Posted on 08/18/2010 1:15:08 PM PDT by Sergio
We have forgotten what money is.
Money is really easy to understand, but most people have no idea what it is. We all understand that barter is an inefficient way to foster economic growth and money is a good thing for the economy. But money isn’t a piece of paper.
Let me create a kind of fable to illustrate this. Please bear with me here. Think of this as an amusing weekend read. (snip)
(Excerpt) Read more at dailycapitalist.com ...
Lengthy read, but an interesting take. The entire article is at the link, including a link within the article to the predecesor of this article.
Central-Bankers print paper, our labor and taxes turn it into wealth and power for them.
Thus creative ways to figure out ways to separate us from fruits of our labor and bury us in paper debt, so we keep working to pay it off.
What would complete the cycle for Central Bankers are DEATH TAXES. That way your kids do not have the capital and are not able to eascape banker’s debt.
Money is an abstract representation of goods and services. Its easier to carry than a chicken or a bushel of wheat, and doesn’t take as long to exchange as washing dishes for your supper.
But what happens when the total value of goods and services in the valley exceeds the amount of gold in the cave?
Not sure, but I would think that each gold coin is now worth more.
When the money supply remains static and the goods and services produced expand, each unit of money is able to purchase a greater amount of goods and services then it did in the past. Prices of goods and services would go down, but each unit of currency would be worth more and could buy more.
Note however, that in a free market, the ratio of goods and services to available currency, tends to reach an equilibrium.
At least that's my understanding...hopefully a Freeper with a background in Economics will chime in with a better and more correct explanation.
shudder... Don't say that too loud. I think I read somewhere that our elected "representatives" are thinking of reinstating Estate Taxes.
True, but when the government prints more currency than the total production of goods and services, they decrease the worth of each currency unit.
Let's say I make $10 per hour and with this $10 I can buy 10 widgets. Now the government steps in and prints out a whole bunch of money. I still make $10 an hour, but I am now able to only buy 5 widgets with the same $10.
You can say that you lost half of your hourly purchasing power. You can also say, and I like this one better 'cause it makes me madder, the government just cut your hourly wage by 50%.
Absolutely. Sound money is necessary for a sound economy. If the government adulterates the money, we’re back to barter.
My point, however, is that money is simply a symbol and an abstraction of barter.
I think I got you now. My wife always tells me that I read too much into things...guess she’s right...who knew?
I think I got you now. My wife always tells me that I read too much into things...guess she’s right...who knew?
Sorry for the double post, the network here is acting a little “hinky”...that’s a technical term.
What wealth do "Central Bankers" have, and where do they keep it? And, who are those shadowy figures? The Rockefellers?
As a regular conspiracy theorist, you don't even know that taxes are controlled by Congress and have nothing whatever to do with "Central Bankers."
Perhaps you should read something other than posts on the Internet.
The author is honest enough: it is a fable. Of course, it was clear from the start where he was headed: back to the gold standard!
Naturally, like all gold bugs, he makes errors along the way. Gold can also be "printed." Spain's dumping of gold from the New World was one such event.
Another example is FDR fixing of the gold standard in 1930s. If gold is declared at $500 today and $600 tomorrow, it's the same as printing the paper money. The author prefers, of course, that the reader remains uninformed: the reader may not otherwise accept the moral of the fable. Simply dishonest.
Are you really this naive? Congress is bought and paid for by Central Bankers. They don’t dare breathe without their permission.
In some ways your innocence is cute. Living in your dream world. Believe or not, things are not what they used to be in 1776.
I know it is not easy for fantasy to be shattered and find out the life you are living is a lie, but it is better to learn truth than live a lie.
http://www.youtube.com/watch?v=8NpTVXitOQk
Hope you educate yourself. Cheers.
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