Happy Saturday Everyone
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Today’s article, like many of our articles, comes from a Nation contributor. Thanks BJHunter!
Ever since we got off the gold standard, the only thing behind our money is the U.S. government. Basically our money is a bit of an illusion in itself. When the government “starts printing money” which really means selling US Treasuries, nothing of any physical presence is created. It’s all done electronically. People buy these bonds anyways because they believe it’s the most stable government in the world. So basically the government can get billions of dollars out of thin air. (But the more bonds you sell, the perception of your currency will change)
From this point of view I’m very comfortable with virtual shares. At this point in time I see an SOI as an investment in OneSeason.com, there trading platform, their future in fantasy sports, and in the future people becoming very comfortable with virtual goods. As you saw in the past (mid oct.) the perception was very positive and very real. People were paying $90 for a share of Lebron. That’s nine REAL hours of work(1 Day) for someone making $10 an hour. That $10 an hour worker would get a paycheck(a piece of paper) which he could then exchange for more paper(dollar bills). Oddly enough he could go to the grocery store and exchange if for milk. Now if you look from the outside on this situation with an open mind, you would ask yourself, why on Earth would anyone exchange milk for a piece of paper. You can drink the milk to give your body energy and nutrition, that piece of paper has no real tangible value…(perhaps you could write a grocery list with it) But it happens every day!
As you can see it’s all a matter of perception…
And if anyone wants evidence of the illusion of a virtual marketplace alive and well, look up Second Life on Wikipedia…they have a $500 million dollar market.
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