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alstry (< 20)

The 3 Kinds Of Money



April 15, 2011 – Comments (0)

Life is simply a journey of human production, your own, and that of others.  In today's specialized world, we depend on others production more and more including Food, Water and Security. 

Money is simply a way to generate the human production of another. The production can be almost anything, good or service.  Money can take many forms including physical, intangible or a symbol.

There are 3 kinds of money:

1.  Love/Volunteer

2.  Trade/Barter/Currency/Gold/Silver/etc.....

3.  Force/Steal

All three are effective ways of generating production listed in declining morality.  They are ALL effective in generating production.  The Taj Majal was built out of LOVE.....TRADE is the most common exchange.....and FORCE has been around for a long as man has existed.

As society has become less self sufficient, we depend on others more and more.....and trade has been the primary mechanism to exchange human production.  First we bartered production directly. As we became more specialized, we started using derivatives of production like bills of exchange, silver, gold, and currency.

All of the derivatives of production, including currencies, had one thing in common, they were backed by some sort of production or a reasonable expectation of future production.  Otherwise, would good would they be?

In America, we always backed our currency with either gold, silver, or our production.  It wasn't until QE1 and QE2 did we print money out of thin air and effectively lend money to ourselves at whatever interest rate we wanted.  Since we could print as much as we wanted, we could control the interest rates and give as much or as little to whoever we pleased.

Now more and more around the world are rejecting our money....and pretty soon, if we maintain this policiy our money will not buy us much as evidenced by rising food and fuel prices.  As food and fuel prices keep rising there will be less and less to pay employees.

At some point in America, just like is happening in many countries around the world, wages will not be sufficient to buy basic necessities.  At that point, Americans will no longer work for money and our current system will collapse. 

The most interesting irony out of this whole equation will be those that perceive themselves to be rich, those with the most money, will realize they are the ones MOST dependent on the current system functioning.

Once the system stops functioning, what do you think will happen when LOVE and FORCE are the only ways to get another's production when everyone depends on others production?

Japan and Egypt are excellent examples of systems that have stopped functioning with two different outcomes how the people exchange their production.

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