Real Value

Imagine you are holding a gold coin in your hand. Do you know how it was created? Think about it. First, someone had to dig or pan the gold from the ground or a stream. In any case, it came from the ground and someone had to work at getting it. Then, usually, someone else has to refine it which is another bit of work someone has to do. Then, again usually someone else has to work the gold into coin-size blanks for the final stamping (actually "coining") process. Finally, someone has to stamp (or coin) the image onto the metal, usually with a LARGE press (which someone else labored to make). There is a lot of work in that lump of metal. Work produces the value. It always has and always will. Now, imagine you are holding a Federal Reserve Note (FRN) in your hand. The ink had to be produced by someone, true enough, as well as the paper. OK, that's some work but nowhere near as much as digging, refining, working and coining gold. Actually, the FRN is a promise to deliver work someday. All currencies (not based on something like gold, silver, platinum, copper or some other tangible fairly rare commodity) throughout history are exactly that, promises to pay or deliver value through work. It's so easy to just print more (or make bookkeeping entries electronically for NO cost) that the promises to work far outstrip the amount of work available. Traditionally, these promises always end in default. With gold or silver (or other) there is no promise to work, the work has already been done and you're holding it. NO possibility of default there. THAT'S THE DIFFERENCE! As long as central banks can print money with only a promise to work someday, value will be stolen from those who DO work for money! Purchasing power is spread out over all the dollars in existence and as more dollars are created faster than you can earn them, you lose ground! Simplicity itself! Where does the purchasing power go? Into the pockets of those who create money. It's time to change things back to delivered value from promised value.