You said in post 13 that money has no intrinsic value.
Intrinsic value is the perceived value. I disagreed. I pointed out that this is not correct. A dollar, after all, has the value of a dollar. If it has no intrinsic value, then there should be no problem with me paying you ten cents for a dollar. Net gain to me is ninety cents.
Ah, OK. It is the
extrinsic value that is the perceived value. The intrinsic value is the value it has in and of itself. So a dollar has no intrinsic value because it is an abstraction. The form it comes in, e.g. a coin or a piece of paper, may have intrinsic value, because it has some utility (e.g. as literal 'note' paper, or to stop a table wobbling), but not because it's money.
You also said that goods and services was like energy in physics.
No, I said that the concept of financial value (represented by money) was analogous to energy in physics.
Again, I disagreed. First of all, barter has intrinsic value. I used the analogy of a glass of water. If I offered to give someone a glass of water in exchange for a Porsche, then this would seem, a ridiculous trade, yet if the person I was making the trade with was dying of dehydration, then the trade might look very good if the glass of water is going to save his life.
And I explained that you were describing the
extrinsic value of water and a Porsche, which varies according to subjective judgement. IOW, their intrinsic utility (their physical properties, what they can do or be used for) doesn't change, but the subjective value of that utility does change.
The difference here is that no one would ever trade a dollar for ten cents, no matter how desperate their situation. If they have the value of a dollar, then they can do anything they need that requires the value of ten cents (and don't get me started on hypotheticals like, "what if they need a ten cent coin and they just have a dollar coin," because we both know that's missing my point). The value of a dollar is always going to be a dollar. But the value of a glass of water can change dramatically, as my Porsche example shows. So barter does have an intrinsic value, money does not.
The value of a dollar is in what it
represents - the extrinsic (subjective) value of some utility; this is where it differs from the unit of energy, which represents the intrinsic value of something in terms of work potential or capacity (roughly).
Barter is the idea that goods and services can be exchanged according to their extrinsic value, i.e. the subjective value of their utility. I'll concede that some ideas have extrinsic value themselves - the idea that we can barter has some value if we each have goods or services that the other needs or wants - but do ideas have value in and of themselves? how can we judge the
intrinsic value of an idea?
Does energy have intrinsic or extrinsic value?
If it has intrinsic value, then what makes it change? Energy can be measured objectively, just like money. But the value of that glass of water can not be measured objectively. A dollar is objectively more than ten cents. Ten kilojoules of energy is objectively more then two kilojoules of energy.
Energy is a
measure of the intrinsic value things have in terms of their potential or capacity to do work (roughly). IOW, a measure of the amount of force that can potentially be applied. A car of a certain mass moving at a certain speed, a spring of a certain elasticity compressed a certain amount, a certain amount of gunpowder, a rock of a certain mass suspended a certain height above ground, so on, can all potentially exert a certain amount of force as a result of their particular context or state. This potential or capacity for exerting force is called energy, and can be measured and quantified. The intrinsic value that energy is a measure of will change when the potential or capacity of the thing to exert a force changes - when the car slows down or speeds up, when the spring relaxes or is compressed more, etc.
So energy is a measure of a certain intrinsic value of things that also has extrinsic value. If you want to watch the TV, the energy of the electricity from your plug socket is worth more than the same amount of energy of the water pressure in your taps or hot water in your water tank, or the chemical energy of the clothes in your wardrobe.
But is a Porsche objectively worth more than a glass of water? You may say no, but just ask the guy about to die of dehydration if he agrees.
That would be a subjective opinion of value, i.e. extrinsic value. The objective value of the Posrshe is in its materials, form, and function (a superficially ironic but deeper truth is that these can all be measured in terms of energy expenditure).