Re: A theory of profit.

[User996472@xxxxxxx]

Harry Veeder wrote: A monetary economy generates a market for monetary profit
> because the*use* of money, relatively speaking, generates costs for
> producers and benefits for consumers. Or in other words, profit is the
> equilibrium price for using money as means of exchange.

Whereas Wendy Moreno retorted with the following: I don't understand your
idea of profit. I just know
profit=(price)(quantity) - total cost, I mean
profit is a kind of surplus as a consecuence of participating in any kind
of market (real or financial).
For example, in the derivative market, you can get some profit if you bet
against the market, considering your expectatives about the behavior of the
"x" market. Maybe you are not going to use money at all, but you are using
"contracts" and transfering flow of funds between accounts.(not money but
transferences).


As a consequence of the arguments presented, I believe that "profit" is a
highly subjective word.  The same could be said of "gold".  Undoubtedly,
governments regard gold as official reserves; a layman on the other hand
might construe it as ornaments(incidentally, since the price of gold is
gyrating downwards its purpose/uses would broaden undeniably).  Hence, the
above debate about profit should at best be amusing, at worst be perplexing.

Regards,
Tom