What is Money?

Money is a medium of exchange and is a market discovery traded in exchange for the full extinguishment of debt and stems from the necessity to allow for specialization and division of labor to develop so that wealth and standard of livings can rise. Exchange is the basis of all economic life, without it we would live very primitive lives if at all. Since money is one-half of every exchange, understanding it is important. A monetary price system is a fact of life in the physical world as much as it is a fact that you cannot snap your fingers right now and produce a house. The people in the physical world contained within the known five senses must contend with economic law and pass through a monetary pricing system to evolve. There is nothing magical about it that requires government. To deny economic law is to deny gravity. The laws of economics actually limit what any government can do.

Because of money, an elaborate "structure of production" can be formed in the market process, with land, labor services, and capital goods cooperating to advance production at each stage and receiving payment in money. Since all exchanges are made in money, all exchange-ratios (prices) are expressed in the common denominator of money. This allows people to compare the price of each good and service to that of every other good and service and rationally measure the value of a given exchange to them personally and thereby most efficiently and most effectively individually manage their limited resources and maximize their use.

Although an exchange benefits both parties, exchanges are never equal for if they were there would be no benefit and therefore no reason to exchange. An exchange is made only because each party valued the two products in different order. If I have an excess of food but no lumber I value your lumber more than I value my excess of food. If you have an excess of lumber and no food you would value my food more than you would value your excess of lumber and therefore we would be likely to make an exchange to better satisfy each of our different needs.

Money serves as an efficient medium of exchange for other things in an exchange like land, goods, and services. The mediums of exchange can be anything but sound money is a commodity.

Whatever the mediums of exchange become they evolve in the market process out of bartering into more efficient mediums of exchange. So the mediums must have wide demand in and of itself meaning a high liquidity as a commodity and not as a medium of exchange, the mediums must have divisibility without losing value, must be durable, must have homogeneity of quality, easily transportable, and be limited in supply. Under a free market the most marketable commodities in this regard will become more and more the generally accepted mediums of exchange and the soundest monies because their characteristics most easily anchor themselves to a known price and a known demand due to their high liquidity.

The biggest problem with our monetary system is what we use to facilitate exchange is not a commodity. Once you trade your work for no work you are going to lose your work it's just a matter of when and how it comes about. The other problem is the government forcing us into it.

The market process of free market money has been removed by the government and converted into a monopoly protection racket for counterfeiting legal tender at will using the taxpayer as collateral. As a result the counterfeiters and their minions basically become the owners of the work by exchaning their no work for the work.

If there is a printing press or computer that can counterfeit legal tender at will, it will, which is legalized fraud when the government legalizes that practice. This creates a perpetual scam based economy until it collapses in on itself. Without free market money which is basically a legal exit from that system you either have to learn how to screw people better or just learn how to work harder to get and keep your stuff.

The soundest money known to man is weighted purity of gold and silver coin, which has an anti-inflation insurance policy built into each one by default, which limits government and therefore protects liberty better than any constitution could ever hope to. The soundest free market monies are the fastest way known to man to simultaneously achieve peace, freedom, prosperity, and justice. We want to be trading work for work not work for no work.

An important point that needs to be made is that technology and knowledge not only reduces the effects of the inflation caused by the counterfeiting, but it can increasingly remove scarcity and the need for exchange which is the natural evolutionary process that money is suppose to provide a civilization. The more unsound the monies are and the more the competition for the mediums of exchange are outlawed the more this natural process is undermined and subverted by the people who control the government.

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