Wednesday, February 8, 2012

Five minute money lesson; or, Let them eat cake

Found this great piece at Incogman's site. It was posted by "Pat". Read it through to the end because it has a strong conclusion. You'll finally understand why we're getting poorer; and why we're going to get a lot poorer.



Money is a measure of value. It is not a commodity. There are only two things that have value in economics – “goods” and “services”. Money is merely a medium of exchange and a measure of the relative value of commodities. A certain group has introduced the idea of treating money itself as a commodity – and not just a medium of exchange and measure of value.


The most basic trade relationship is barter: “I'll trade you two of these for one of those.” Imagine a “buyer” who has a fish and a “seller” who has some grain. The buyer offers his fish to the grain seller and a trade is worked out: “I’ll trade you this fish for two bags of grain”. So, where does money come in? “Money” is a medium for expediting trade. Almost anything can be used as money: gold, silver, wampum; even green paper. Money must be accepted by the masses as a medium of exchange, and be portable and durable. Money won’t quickly rot like a fish will and it can be carried around and easily exchanged for a wide range of goods and services.


In my town we have a “Farmers Market”. On the weekends during good weather, farmers bring fruits, vegetables, meat and baked goods to trade for things that they want. Do you need “money” to trade goods and services? Not at all. You can trade something that you have for something that the farmer has. However, suppose you don’t have anything the farmer wants – but you want something the farmer has? Money can be used as a mutually agreeable means of exchange. Money makes possible and simplifies the trade.


Money is an arbitrary medium for trading. Literally anything can be used as “money” - so long as people accept it as such. Money is what a measuring cup is to flour - a way for measuring something more valuable than itself.


Imagine that you are baking a cake and you you need 2 cups of flour. The cup is a measure of the volume of the flour you're going to use.
A cup of flour is about 125 grams on average. You use a cheap paper cup to measure out the volume of one cup of flour. The paper cup has almost no value. So, when you go to bake your cake you measure out 2 cups of flour. You don’t use “2 cups”. You use “2 cups of flour”. And there’s the difference: two cups of *flour* makes a cake. Two cups make a...? It’s the flour that has the real value.

MONEY: A Measuring Cup of Value

Money works the same way. Only goods and services have economic value. Money is like a measuring cup. A certain group has tricked a lot of people into thinking that money itself is valuable – and not merely a measure of value. The same group also uses money as though it's a commodity - and charges interest for its use. So... what’s so wrong with using money as a commodity? Because it allows the money makers to decide the value of goods and services - AND TO ARBITRARILY RAISE OR LOWER THEM.


Let’s go back to our cake analogy. Remember you need 2 cups of flour to make a cake. Let's imagine you have a job that pays in flour. Your job pays you 2 cups of flour a day. You have a family and you only eat cake. Each day, your family eats 1 cake, so when you bake a cake you can “afford” it because you make 2 cups of flour a day. Lets say someone has a monopoly on all the “cups”. They are the "Official Cup Makers". What if one day they decide to reduce a cup's size by one half? In order to feed your family you'll now need 4 cups of flour a day. But your job still pays you two "cups" a day! Now, instead of eating every day your family can only afford to eat every other day! Your employer rejoices because they're now paying you only half of what they previously did; but pretty soon their rising expenses are causing them grief too. They look for ways to save money - and payroll is their biggest expense....


As we mentioned above, the only things that have an economic value are goods and services. Our money makers are like a cup makers monopoly - and they are stealthily robbing you by SHRINKING THE MONETARY MEASURE OF ECONOMIC VALUE. How? By printing up more and more money and putting it into circulation. Furthermore, now that you're having to sell off assets to make ends meet, these same money changers - who've been bankrupting you all the while - come along and buy them up for a song!



This very swindle is what's gotten the Jews expelled from 79 nations.

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