Seems to be
the rage of the news feed these days. Let’s take a look at the word.
Trade
involves the transfer of goods or services from one person or entity to
another, often in exchange for money. A system or network that allows trade is
called a market.
An early form
of trade, barter, saw the direct exchange of goods and services for other goods
and services. Barter involves trading things without the use of money. Later,
one bartering party started to involve precious metals, which gained symbolic
as well as practical importance. Modern traders generally negotiate through a
medium of exchange, such as money. As a result, buying can be separated from
selling, or earning. The invention of money greatly simplified and promoted
trade. Trade between two traders is called bilateral trade, while trade
involving more than two traders is called multilateral trade. “Think Global,
Buy Local”.
Barter is a
system of exchange where goods or services are directly exchanged for other
goods or services without using a medium of exchange, such as money. It is
distinguishable from gift economies in many ways; one of them is that the
reciprocal exchange is immediate and not delayed in time. It is usually bilateral,
but may be multilateral and, in most developed countries, usually only exists
parallel to monetary systems to a very limited extent. Barter, as a replacement
for money as the method of exchange, is used in times of monetary crisis, such
as when the currency may be either unstable or simply unavailable for
conducting commerce.
Laissez-faire
is an economic system in which transactions between private parties are free
from government intervention such as regulation, privileges, tariffs and
subsidies. The phrase laissez-faire is part of a larger French phrase and
basically translates to “let (it/them) do”.
For me the
first knowledge of economy was trading baseball cards. For a penny pack for
bubble gum you got a bonus of a cardboard reproduction of a baseball player
with all the stats. It was a great advertising gimmick and sold a lot of gum to
the dentist glee. Kids would separate players by the teams and bone up on their
loot like fantasy football but wanted more. You could trade a ‘Hank Aaron’ for
a ‘Mickey Mantle’ on a handshake. Then certain cards became rare and valuable
and swapping stopped due to animosity for not getting a square deal.
From my
history book, people use to kill animals and eat the carcass and skin the bones
for trade for commodities like woven cloth or minerals as a laissez-faire trade.
What if the person doesn’t have any commodity to trade? Can a teacher share
their knowledge for a month’s rent? Can a musician play for their dinner? Can
an automobile be traded for a painting?
You might let
your neighbor borrow your lawnmower but would you trade your wife? Would you
trade your children? Would you trade your values for survival?
Now trading
involves commodity, equity, derivative, shares stocks, planning, strategy,
binary options, index, margins, risk management, trends, supply and demand,
indicators, inflation, deregulation, etc. but we all use our plastic to trade
numbers and calculations against algorithms to acquire our needs and wants.
Are our
sanctions and tariffs bigotry on our and others skills?
-->












