Friday, July 15, 2011

MONEY / TRADE Concept, When Money Fails

   What is money?   Money is the use of something with actual value (real money) or something to represent a promise of exchange for some future actual value (fiat money).  The dollar is nothing more than a promise printed on a piece of paper. Many people think of money as a dollar or gold, but in reality money can be anything a group of people choose it to be.  Apples or rocks could be money, it doesn't matter so long as the group agrees or at least finds the chosen item valuable.  Money is the use of something with actual value or something to represent a promise of exchange for some future actual value. 

   Why does America use the dollar as the fiat money of choice?  Because if the type of money used, has no real value (like toilet paper)  it must be backed by someone who's honor is unquestionably or by someone with a lot of resources to fulfill their obligations.  In the beginning of most civilizations, your spoken promise and a handshake is all that is needed.  Unfortunately not everyone can deliver on their promises and not everyone is a good judge of character.  In addition sometime you have to go outside of the local community to find some items so what works in one small community may not work in a different community.

  Now what happens when the preferred money looses its value?  Well that's simple, revert back to the simple spoken or written promise and a handshake.  It may not work outside of local communities but then again it might. Instead of trading just promises, items of actual value can be traded.  Wow what a concept!  Barter and Trade who would have thought?

Sunday, July 3, 2011

Are You for Big Government and Taxes?

  It all really boils down to who do you want to make your decisions?  If you think you can work hard and your smart enough to make your own choices in life and fortune your against big government and taxes. If you don't want to work hard or don't think your smart enough to make good choices then your for big government and would rather have taxes increased.