Monthly Archive for October, 2008

The Gold Standard

I took an interesting historical detour recently to read about the gold standard. Up until 1971, US dollars, by law, could be traded for precious metals. Since then, they are simply money because we agree they are.

That’s a shocking simplification. (And I encourage you to gather more complete details before writing a paper or devising an economic policy based on that information.) But when you think about it, money is a shocking simplification, too. A piece of paper, or a number stored on a computer represents — all kinds of things. The moment-by-moment labor of a factory seamstress. The power to purchase a digital watch. Sunlight gathered by leaves and stored as chickpeas, then processed, trucked, and waiting in your grocery store as hummus. The electricity and internet access that allow you to read these words.

Money is energy, neatly packaged so we can trade it around. The economy is a measure of how much money we trade around — an abstract measure of an abstract representation of everything we exchange with each other.

Even though we haven’t had gold standard money for over three decades, we still talk about the gold standard as a measure of quality. If it’s gold standard, it’s reliable, solid, rich, and strong.

Right now, many of the official measures of the economy look bad. Remember that the economy is several measures of abstraction removed from you and what you do every day.

So I invite you to create your own gold standard economy. Find out what the people in your community want and need, and make it for them. Build and serve to the gold standard, and trade your creations for what you want and need. Use some money to make the trading easier.

Ultimately, the real value is you.

I’ve been interviewed!

Ever wondered what my favorite word is? Or where I get my ideas? Well, so did Flying Pen Press! Their questions and my answers are here:

Flying Pen Press blog

or the tiny version:

http://tinyurl.com/55pj8f

Small Steps

“That’s one small step for [a] man, one giant leap for mankind.”
Neil Armstrong, as he placed the first footprint on the Moon.

This issue’s Small Step for Space: Celebrate! We are making progress.

What we celebrate continues to grow. Without a pause to appreciate progress, we deplete our ability to continue. So mark our progress with a party or a toast, a blog or loud music, an evening of videos or a hike with friends. There are plenty of reasons to celebrate. Space is back as an issue in the US elections. The Indians and Chinese have marked new mileposts in their space programs. And, my favorite reason: Elon Musk and SpaceX have made the first successful launch of a privately-funded rocket into orbit.

Book Recommendation

Hominids by Robert Sawyer

Hominids is a classic fish-out-of-water story. Ponter Boddit is a scientist in a parallel world where Neanderthals became the dominant species. When an unpredicted portal transports him to our world, he finds himself quarantined and under suspicion. Meanwhile, at home, his partner is accused of Ponter’s murder. As both men find themselves wrangling with government and law, we tour our system with fresh eyes, and see the strange yet plausible society of the Neanderthals. This is a well-paced story with interesting speculation.

How Small Steps Matter

One of the early insights that has shaped my life happened when I asked my dad about calculus. I don’t recall his exact words. But suddenly, I had a vision of how, in the long run, a single incident, however large, is likely to have less effect than a small input, repeated frequently.

Here’s another way to look at it. Suppose you want to write a book. Let’s say, for argument purposes, that you can write 50 words a minute - somewhere near the speed I type. So you spend an entire twenty-four hours typing full out, and you produce 72,000 words. Not bad - that’s a short book.

On the other hand, say you just slip in 15 minutes of writing every day for a month. At the same speed, that’s 22,500 words. So in four months, you’ll pass the words in that massive day of typing. And hey, it’s only 15 minutes a day. Which do you think you are more likely to do? And, once you’ve done the four months of daily typing or the twenty-four hours of massive typing, which do you think you are more likely to do again?

Or look at eating. We’re not even equipped to eat three months of calories in one day and then fast the remaining days in the quarter. Or exercise. Staying still for three months and then trying to exercise enough to make up for that time in one day doesn’t produce fitness. It creates heart attacks.

Daily practice creates habits. It’s easy to remember to do something every day. Each day leads to the next, and creates momentum. But it doesn’t have to be daily. One hour of writing every Saturday and Sunday works. Exercising three days a week maintains fitness. Weekly coffee makes a good friendship, monthly mastermind calls have built vibrant businesses, annual reunions strengthen family ties. It’s the regularity that counts - building an entire roadway through time.

I meet a lot of people who have big projects they speak wistfully of one day starting. Books, charities, new businesses, new careers, exercise programs, hobbies, relationships, education. Often what stops them is thinking they have to do a lot at once to start at all. Why not do less? Make the first step so small it’s laughably easy. Repeat it over time. It will add up.

That’s the lesson of calculus. Even the smallest fraction, continuously repeated, becomes large over time. While zero is always zero.

Which do you prefer?

So I’ve come to a calmer appreciation of that person I’d admired. I still value the qualities of confidence, commitment to a cause, and outspoken passion. I can still aspire to those, though my idol proved imperfect.

And I wish you, too, nuanced learning from your heroes.

Featured Resource

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Small Steps

“That’s one small step for [a] man, one giant leap for mankind.”
Neil Armstrong, as he placed the first footprint on the Moon.

This issue’s Small Step for Space: Ask yourself this: what is the smallest possible action you could take to promote space travel?

Maybe asking is as far as you will get today. If so, try asking again tomorrow. If you can do a little more, send me your answers. I can always use them!

Book Recommendation

A Deepness in the Sky by Vernor Vinge

I was delighted to discover I had not yet recommended A Deepness in the Sky. I’m glad to have a book this rich and exciting to offer to you. This is a truly outstanding story, set in the same universe as A Fire on the Deep, but easily read alone. Notice how small decisions made by the aliens and the humans lead to large results here.

Fiction does not excel at showing the daily performance of small actions. Grander gestures make more exciting reading. A Deepness in the Sky is 775 pages long, and I promise you that Vernor Vinge wrote it one word at a time.