Its the money stupid

Discussion in 'Economy' started by WatertheTree, Sep 25, 2011.

  1. WatertheTree
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    WatertheTree Senior Member

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    Fiat currency explained in 3.5 minutes.
    [ame=http://www.youtube.com/watch?v=hx16a72j__8&feature=player_embedded]Fiat Money - YouTube[/ame]

    Abolish the Federal Reserve!!
     
  2. countitjoy5
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    countitjoy5 Rookie

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    If you want to abolish the FED I hope you're ready to die because the banksters will use their power to silence and murder anyone who challenges their corrupt system.
     
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  3. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    What an amazingly naive video.

    :lol:
     
  4. editec
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    editec Mr. Forgot-it-All

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    I suspect what most of you continue to fail to realize is tht ALL CURRENCY (including gold or silver) is an ARTIFICAL REPRESENTATION of WEALTH.

    All money is an agreed upon symbol of wealth.

    What is money?

    It is the respresentation of human work that has already been done.

    Human labor is the source of all human wealth.

    Money is merely a contrivance that we use to make transferring that wealth convenient.

    Money is a tool, not real wealth.

    The money I have in the bank is merely a representation of work that was done in the past.

    It is not wealth but the PROMISE of wealth that I can purchase in the future.

    It is the promise of exchange that gives money any value.

    doubt me?

    Take all the humans out of the equasion (but one) and what is money or gold, or even natural resources?

    They are nothing.

    They have no value if no human is there to GIVE THEM VALUE.
     
    Last edited: Sep 26, 2011
  5. expat_panama
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    expat_panama Silver Member

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    People on these threads have such a hard time understanding this, and it amazes me too.

    All money is "fiat money".
     
  6. editec
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    editec Mr. Forgot-it-All

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    I understand why they have a hard time, though.

    It is often very hard to see the philosphical underpinnings that make society run when the reality of practice completely obscures it.

    I think that realizing that money is a symbol of wealth, rather than real wealth, is sort of like getting ALGEBRA.

    You have that "AHA!!" moment when what was completely unfathomable suddenly makes perfect sense.

    Starting from the premise that all human wealth is the result of human effort isn't really intuitive.

    When you see an apple on a tree, it appears to be a thing of value intrensically.

    It takes some deeper thinking than many people typically do, to realize that the value of the apple lies not in the apple itself, but in YOUR DESIRE to eat it.
     
  7. expat_panama
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    expat_panama Silver Member

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    That was sort of how I came to it too. Same with getting a handle on how money, wealth, and income are all very different.
     
  8. editec
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    editec Mr. Forgot-it-All

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    Basically you had a shift in how you perceieved the world.

    Henderson the Rain King tells us that truth comes in blows.

    FWIW it took me a long time for my shift in perception to help understand what Bellows meant by that statement.

    Eureka!
     
  9. Avorysuds
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    Avorysuds Gold Member

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    The difference between gold silver and copper VS printed money backed by nothing is hundreds of hundreds of years of time tested value. Hell, thousands of years really...

    Gold silver and copper can actually be used for important things, and it's rare... The printing of money will change possibly in your life time. Not even getting into inflation due to the never ending expansion of the money supply.

    More or less an apples worth might depend on how hungry a person is but even if a printed money is destroyed during a time of war or Depression, the seller understands that gold/silver will one day hold direct value again, possibly even still have great value at the moment while that paper money could be used to build a fire.

    Gold/silver has withstood the test of time, paper money backed by nothing has proven to fail over and over again… Just look at the American dollar, today.
     
  10. expat_panama
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    expat_panama Silver Member

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    You mean like, today?
    [​IMG]
    Paper dollars trade for five gold coins for ever four they bought last week. That must mean paper dollars are a pretty good 'investment'.
     

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