What Is Money?

Sure I am a housewife and mother.  I am a reluctant worker bee in the workforce as well and frankly very angry that I cannot pursue life, liberty and happiness as I wish.  Yes I am selfish.  We should all be.  When asked what three things are most important to you in your life, number one should be you.

I have read Ayn Rand, as well as too many authors to list here.  But the point is I have the right, conferred in 1776, to these civil liberties.  This country was built on the escape from government interference into people's lives.  Just because it is not religious in nature doesn't mean it isn't happening.

Unfortunately you can cry and scream all you want but the root cause is what we need to find so we can fix it.

It's the money.  The money is bad.  Never in the history of human beings has the money not been tied to something real, like gold or silver, until August 15, 1971  This action by Nixon was more criminal than Watergate.  No one says anything about it.  Frankly, my personal opinion, Nixon was the beginning of the finale.  The end had come but it could have been reversed.  No one had the guts to do it.  They let the whims of the day shine in their eyes and eventually we lost focus on the things that truly matter.

Free capital markets encourage the behaviors of all those who truly believe they should treat others as they wish to be treated.  If you treat others as you wish to be treated then the riches are yours.  Free markets demand that what you produce helps others.  That is the only way you are rewarded.  If it does not help others, then you go out of business or are run out of business.  You are punished.  But at the root of all this is money.

We have fallen into the trap of mistaking paper for money!  What is urgently needed is someone that can tell the difference between paper/plastic and money. The need becomes obvious when one considers the current attitude to Gold and money.

I have heard it all.  Those Nobel Peace Prize economists and Federal Reserve Bankers, and economists say it over and over.  Gold as money??  Ridiculous!

The arguments are varied and listed below.

• There's not enough of it!
• It doesn't allow for the flexibility so necessary for modern monetary policy to be utilized properly.
• There's not enough of it!
• It is too rigid to meet the often rapidly changing needs of business and trade.
• There's not enough of it!
• It would give an unacceptable amount of economic power upon those nations which are lucky enough to have large deposits within their borders.
• There's not enough of it!
• It would stifle economic growth by drastically interfering with and even curtailing the present finely tuned lending practices of Central and commercial banks.
• Besides - there's not enough of it!

Bernanke listed all these reasons when he was lecturing at George Washington University in March 2012.

You see there is no place for Gold in the financial system today. The most frightening thing about this argument is that it is true! There really is no place for Gold in the financial system today. 

Most people don't spend much time wondering what money is, their major concern is how much they have, and how to get more. Usually, the question of what money is arises only when money ceases to work correctly. In economics, the answer to the question what is money? consists of three words:

Money is a medium of exchange.

That's all. Yet the conception of a medium of exchange ranks below only language with its outcomes such as speech and the written word as the greatest intellectual discovery in history. Without language, the exchange of anything but the most rudimentary ideas is impossible. Without money, the production and exchange of anything but the most rudimentary goods and services is impossible. It is not difficult or time consuming, or inefficient, it is IMPOSSIBLE!