The Senior Lecturer tells us that the pound sterling is a con trick

If the value of a single unit of a supposed currency varies between $9,000 and $11,000 in a day then it is not a currency because it lacks one of the essential characteristics: it is not a store of value.

Let’s call it a con trick instead.

Hmm:

Sterling’s fall following the ERM exit did trigger an export recovery, says Kit Juckes at Société Générale. It plunged nearly 35 per cent against the dollar in the six months after Black Wednesday, driving up export volumes and wiping out the trade deficit. Its decline “sowed the seeds of a better economy”.

Or:

Value of the pound in your pocket declines by over 90% since 1973

Unless we want to place entirely too much weight upon “day” we’d have to conclude that fiat money is a con trick, wouldn’t we?

And there’s the other way of looking at this too. The value of the $ has varied by some 20% in a day. Thus it’s not a store of value, is it?

Remember, this man teaches economics in a British university.

13 comments on “The Senior Lecturer tells us that the pound sterling is a con trick

  1. Bitcoin is clearly a store of value (albeit a volatile one), it is also a means of exchange (albeit somewhat limited), it isnt clear that it is really a unit of account. These being the standard trifecta of characteristics of money.

  2. If a professor of a supposed university doesn’t have a PhD he lacks one of the essential characteristics: he is not a learned academic.

    Let’s call it a con trick instead.

  3. Noel, when I was an undergrad at Oxford, the better dons looked down on those of their colleagues who had a doctorate.

    Their theory was that if you were good, you were given a fellowship straight after your first degree, and were promoted from there; it was only the second rank people, who they weren’t sure about, who were sent to do a doctorate first to see whether they were really good enough.

    Not that this applies to Clerkenwell Evening School though.

  4. “…it lacks one of the essential characteristics: it is not a store of value.”

    Money as a store of value? Just ask any Zimbabwean how that’s working out. Jesus wept.

  5. He patently doesn’t know the difference between ‘money’ and ‘currency’.

    Gold sovereigns and silver dollars are money.
    Fiat bank notes are currency.

    Ever since Nixon finally broke the gold standard in the seventies, no dollar bill is money – only currency – and being devalued at an average rate of 2% per year.

  6. @ Richard
    Balls!
    The brightest new graduates (such as my father but not myself) were given a Research Fellowship or a Senior Scholarship, both of which enabled them to undertake their D. Phil without wasting time lecturing or tutoring in order to earn enough to eat.
    Those who weren’t quite that good became lecturers or tutors (arguably on the basis that “those who can’t do, teach”)

  7. If the value of a single unit of a supposed currency varies between $9,000 and $11,000 in a day then it is not a currency because it lacks one of the essential characteristics: it is not a store of value.

    How can something that isn’t a store of value have a value of between $9,000 and $11,000?

  8. How can something that isn’t a store of value have a value of between $9,000 and $11,000?

    It’s his New Definition. To be a “store of value” the value must be fixed forever and never change. Houses are a notoriously poor “store of value” in the UK because they have stupendously risen in value over the past four decades, so people shun them as a “con trick”. There are numerous programmes on television about this, for example “Location location location”, a BBC production which warns citizens about where these con tricks are and how to avoid them.

  9. john77, well, that’s what they told me, and it did seem to fit with the people I saw. But only true for its time I think, and it didn’t look like it was ever true for sciences.

  10. The is just the stupid cunt Murphy venting his spleen that he doesn’t have any Bitcoins, and it’s not fair. If he did you can be assured he’d keep his trap shut.

  11. I think we should place some weight on “day”, don’t you?
    I can vaguely plan for some reasonable compound rate of inflation that might reduce the real value of my “money” by 20% over 10-15 years.
    Not 10-15 hours…

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