Archive for energy
Over the past week, my comments on value being comparable to energy, in that it cannot be created or destroyed have been questioned. The questions have come primarily from LinkedIn where my previous post has been syndicated. Readers hold energy and value should not be compared at all, and that that value can in fact be destroyed…
That is not true. Worth of particular types of things (including financial assets) can be diminished or even destroyed as they fail to compel relative importance. Obviously there are many qualitative and quantitative measures of importance, but value is an inherent measure of a system of worth. For instance when the equity markets shrink due to a lack of confidence and as a result of short selling of shares of sorts, the value is stored somewhere else (either debt, or liquid, or physical assets of sorts). Value exists intrinsically per the physical being of things. Value is quantifiable or qualify-able at the point that more than 1 individual exists to engage it. Value starts to change form as individuals and groups of individuals (institutions) start to exchange worth based on their ability to identify value. Growth in the population of things does not scale value. It only increases the access to quantify and qualify value.
Similar to energy: value is a property of objects, transferable among them via fundamental interactions, which can be converted into different forms of worth but not created or destroyed. Even if our modern infrastructure (system) of economic worth collapsed, value would remain. The identifiable objects left would carry more value than they do today.