A succinct definition of wealth would state that a person possesses wealth if they have stuff that other people want.

You may have a temptation to say, "Of course, people want the valuable property that wealthy people own." But that is not what I meant.

The property of wealthy people has market value because people want it. If people did not want it, it would have no market value.

I do not wish to belabor the point right now, for I want to give you the opportunity to cogitate on the concept of value and wealth. The property of wealthy people has no intrinsic value. It only has value to people who desire it.

People tend to use the term Market Value instead of Market Pricing. Market value refers to the common price established through the market process of multiple exchanges of units of indistinguishable economic goods.

Market value actually means the market values the good/service more than dollars given up.

Searching for a Logical Man Who Understands Money

Somewhat similar to Diogenes, I search for a logical man. I want to find someone who can answer a few simple questions about Money and The Federal Reserve.

Can The Fed Raise Rates?

I hear and read a lot of pronouncements about how The Federal Reserve will raise rates and increase or reduce the money supply. Generally knowledgeable people make these statements; however, I have some serious questions about the validity of these statements. Because of these questions, I seek a logical person who can answer them clearly and precisely.

Because of the underlying complexity of this subject, I will post my questions one at a time. First, I will ask about raising rates.

This first question consists of a simple matter of math logic.

How can The Fed unilaterally raise rates when an interest rate amounts to a dependent variable? The difference between an amount borrowed and the amount paid back consists of the amount of interest. Knowing the dollar amount of interest and the time between borrowing and paying back, we can calculate the rate of interest.

I know of no way to change an interest rate without first changing the amount borrowed, the amount repaid, or both. Yet knowledgeable people continually say, "The Fed will raise rates."

Please respond to this question in the comments and explain the assumptions supporting your answer or cite a credible source.

In later posts, I will address my questions about the significance of Fed Funds and The Fed's role in changing the money supply.