Thursday, April 15, 2010

The Purpose of Government Issued Money

What is the purpose of government issued money?

Is it to make our lives easier?

Is it to increase trade among citizens?

Is it to make it easier for the government to take possession of your hard earned fortune?

All of the above, but think about it for a moment. Could you live without printed money? Absolutely! Humans lived on earth for thousands of years before money was invented. If you wanted something another person had, you traded something that person considered was of equal or higher value. For example if your neighbor had chickens and you wanted some of the eggs, you traded something from your garden for them or you worked for that neighbor until you payed your debt. The problem with this process of trade is that the government can't get its cut.

So if you were the government the solution is to create a worthless piece of paper and tell people it has the same value as a real product. When you convince everyone that it is of value the government, can take a little bit of every sale you make and therefore they become wealthy as you become wealthy. It also gives them unlimited wealth when they can print more money anytime they like. Can you eat money and provide nourishment for yourself and your family with it? No, but if you find another sucker who believes money has value you can trade your money for something else.

Real money is not printed paper, and real wealth is not money. Real money is something that provides nourishment and/or happiness and real wealth is a surplus of happiness. We all know at some point our lives are going to end. Why does it take people so long to learn that ultimately a good life is measured by the happiness you experience and the happiness you bring into the lives of others.

The only reason we really need printed money, is so we can pay taxes.
Money, Real Money is not printed. What would happen if people all around the world stopped using printed money?

So what if you're unemployed and out of cash, you still have money as long as you can provide a service or you have some type of possession. You don't need a worthless piece of paper. Come on people wake up!

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