Money is a Product
If you’re like 95% of Americans, you’ve NEVER thought of money as a just another product – like iPhones or insurance policies, but how is money NOT a product? What if any of us could invent a useful money and sell it to whoever wanted to use it? What if our money were better than others?
We use money because it is way more efficient than directly trading the product of our labor for the product of other people’s labor. For a money to be useful, it must therefore be portable, divisible, stable, and very difficult to counterfeit, which are among the most critical factors that contribute to the only necessary factor: A useful money must be widely accepted as payment.
Suppose several companies produced their own brand of money, and you could ask for payment, and store your savings, in the brand of your choosing. Which monetary product would you prefer to use? Would you choose a brand of money whose producer would buy their money back from you at any time? For example, suppose you could be confident the the producer would give you one ounce of gold for their $100 bill. – OR – Would you ask for payment, and store your savings, in the brand whose producer would only give you their own pieces of paper in exchange for their $100 bill?
In the past, one could have argued that there would be more delay and more cost to convert back and forth between a larger number of currencies, but given today’s technology, such conversions would be instantaneous and free.
Since 1914, the Federal Reserve produces all of our money in America. How do you think they are doing? How is it possible that a Hershey bar cost 3 cents in 1918, and 85 cents now?
We are being taxed (robbed) indirectly through inflation because the government, the states, the cities, the corporations, and the people, all borrow money that doesn’t exist. Over 90% of the money borrowed was created out of thin air so that it could be given to the borrower; whereas, automobiles and college degrees are not created out of thin air. Therefore, more dollars can be offered to buy the same car or medical procedure. Therefore, each car costs more. Therefore, each dollar is worth less.
Theft through inflation is even worse than it seems because – for a given currency – prices should naturally go down for all products, and although the prices for most products will not go down as fast as they do for computers, prices for all products should go down for the same reason – efficiency and innovation. For example, if dollars were not created out of thin air, then as quantities, efficiency, and innovation increased, we would get more and better cars for the same amount of labor. Given more and better cars and the same total number of dollars in existence means that each car would cost fewer dollars, which means that each dollar would be worth more. So how is it that each dollar is worth less and less?
We are being robbed through inflation, but who gets to keep the difference? If we are free, then why aren’t we all allowed to create a money to compete with the Federal Reserve? Why doesn’t any journalist, politician, or economist on TV dare to ask these questions?
The reality is that we are not free.
To understand that “Money is a Product” is a necessary epiphany to understand the world we live in, and more importantly, how to progress beyond it. Ironically, it is self-proclaimed Progressives who are the most resistant to the reality of money, and who are thus holding us back. Therefore, you will never learn the reality of money from the mainstream media or from government schools.
Thanks to the Internet and the Crash of 2008, people are beginning to wake up to reality.
The Promise of Reality is Freedom.
Ok, money is a product.
Vote for Ron Paul!
Tell all your friends to vote for Ron Paul!
RP: Sloganising the issues, purported solutions for the cheap! RP can´t even articulate the issues, let alone the solution.
Search Mathematically Perfected Economy
Money CANNOT be a product
I mention Ron Paul only in the comments, and only because someone wanted to know what the average person can do right now. I agree that his understanding is limited and not all that well articulated, and yet, he is superior to the other candidates.
I do not claim that money must be based on gold. What I claim is that you must be free to choose.
I looked up mathematically perfected economy. It claims to be based on the same complete economic freedom that I advocate, but then its implementation contradicts those principles. Also, it adds a false premise to those principles, and finally, it doesn't consider all the variables. I will just respond here because I think it is too unpopular and too boring to warrant a full article at this time.
The false premise of MPE is that the value of a unit of money relative to all property must be forever immutable, but that is just a "nice to have" and is not necessary.
A variable not considered by MPE is that the value customers place on individual goods and services changes constantly.
MPE violates its own principles of complete economic freedom when it prescribes a central authority that would produce ALL money for the entire world.
If we had true economic freedom, and thus money could be a product produced by many and used voluntarily, then if any of the prescriptions of MPE were of value to customers, they could use monetary products most closely matching the prescriptions of MPE. Therefore, if MPE were entirely correct, eventually one monetary product that most closely matched the prescriptions of MPE would replace all others around the world through voluntary transactions. That's what is so great about the free market. People get what they want – without cheating.