Thursday, June 2, 2011

What is money? A personal perspective.

I am really flabbergasted by the amount of nonsenses that is spread in our media circus about the causes of our current economic and financial troubles! Our so-called experts continue to spew their ignorance about basic economics and common sense logic to the point where I, despite my obvious skepticism with regard to their knowledge, ends up as confused as most people. Yet, I am willing to fight that virus, the virus of misinformation and mis-education and misunderstanding. To get to the point, our problems are quite simple and easy to understand and to fix. Our problem is our monetary system and the establishment that has abrogated itself with the " right" to issue it!

Money is a medium of exchange, a standard of value and a mean of economic calculation. It arises " naturally" by the choosing of the different individual entities that are engaged in the process of exchange. Individuals in a society consequently vote for their best tool of economic exchange, not the State or a bureaucratic elite. Money is simply a commodity, a good that has been chosen through a simple process of natural selection as the better mean of exchange for other goods and services within a confined society. Historically, money has varied from wheat in ancient egypt, to iron bars in western africa, and tobacco in the early colonial Americas. But, throughout our 5000 years history, Gold and Silver have won out as the best and most efficient monies! Consequently, despite their various application in metallurgy, healthcare and dentistry and even new technologies, Gold and silver are primarily " MONIES", the best and most efficient monies! It this consequently beyond shocking when the so-called academic call deride gold as a relic! The sky might as well fall on our head for such " intellectual nonsenses"!
The problems we are witnessing across the globe are simply due to the abandonment of the historic natural monies and the abusive consequences of government monopolies of monetary policies through the measure of monetary inflation that are used by the state to services the needs of the government and financial and corporate plutocrats  above those of other market participants.
Simply put, the government and its connected agency have " stolen" away from the general population its tool of independence for it is impossible to have a just and equal society with a corrupted monetary system that serve a few people while destroying the purchasing power of the general population.

Real money is gold, no matter what the government say, no matter the amount of gibberish that is pushed in and out by the corrupted academic establishment that has an entrenched interest in maintaining the status quo. Sound money is freedom, sound money creates wealth and it is by no accident that the Nations that have a relatively " hard monetary" history are also the most dynamic and wealthy society in the world today.

From a trading and investment perspective,  due to the current monetary distortion aimed at saving the systematically bankrupted financial monsters like Bank of America, Barclay, a currency and commodity trader should understand the important paradigm of real value. Our values have been distorted by the corrupte financial and economic establishment:
The institutions that should be subservient to the needs of people are now controlling the policies and it is by no accident that poverty and misery is spreading among the once wealthiest and most productive parts of the world while a connected group of bankers and speculators are benefiting. This imbalance must be stopped and its parasitic element discarded with. We have reached a tipping point, a point of non return where paper fiat money will eventually be destroyed and all the pseudo-collectivist monetary union will end up in flames. Gold and silver are the eternal monies and the only incorruptible medium of exchanges.

Buy Gold and silver, always!

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