More on money: We agree on a form
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May 2, 2013
To The Eagle:
Where was I? “Money is an agreed upon medium of exchange. It is also an idea backed by confidence.”
Recent reading indicates it may well have been goldsmiths who issued receipts to people who brought them gold who actually started the current system of money. Makes sense when you think back to the now defunct gold standard, silver certificates, and the fact that pre-federal reserve, the money in the USA was backed by something of value. Unfortunately today it is nothing more than key strokes on a computer that create money.
In case anyone wants to know, each person has the ability to cause change in the monetary system. As long as we all agree that a form of money is acceptable as a medium of exchange and we continue to use it, it has value. Change your agreement or just stop using the stuff and, presto, it loses value as a medium of exchange. If enough people stop agreeing it has value or just stop using it, poof, it becomes worthless.
A word of caution—since the above would cause the demise of money as it exists today, be very sure you have something to replace it with before you decide to get rid of Fed money.
Here is an idea: Get production going here in America again! Then pick something that actually has value and use that to back your new form of money. God has stood the test of time. Do not ever let money be treated as a commodity to be bought and sold. It is a medium of exchange only. Its worth is based on what stands behind it, plus agreement from those who choose to use it that it represents things of value. It is just easier to carry around a piece of paper rather than a cow, a chicken, a loaf of bread, an hour of labor performed, an ounce of gold and so on.
National debt? Get America producing again; get rid of worthless money and those who print and sell it to the government. No free lunch – get a job!
Here is a definition for the word “product”: A completed high quality service or article in the hands of a consumer in exchange for a valuable.
So produce something already! If you already are, well done. Also, help those who are not producing find something they can do and we will all do better.
Ben Elkinton
Cathlamet
P.S. To the boys down at the café, pay attention; there is going to be a quiz!
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