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Sunday, January 1, 2012

The Basics

For this brand new year, I'd like to go on record with a few basics about money. First, money is important to us for what it can buy. That's it. There is one thing we all must have and, unless we produce it ourselves, we have to buy it. I'm talking about food. Now, we do have to buy shelter and other things, too but underneath it all, it comes down to the food we need to keep our bodies functioning. Our bodies stop functioning and we die. Then nothing on this Earth matters to us anymore. Food is perishable. We will need food in the future but it doesn't last that long so what do we do. Well, we find a durable store of value that can be used to purchase food in the future when the food is fresh. Lots of things were tried as durable stores of value but gold seemed to do the job best. Because someone had to work to produce food and someone else had to work to dig gold out of the ground, they could go to market and work out a fair trade of gold for food. Now the gold producer can store future food purchasing power in the form of gold, which has low maintenance costs or he can buy large freezers, produce his own electricity and store the current production of food until it's needed in the future. Obviously, gold is the cheaper method. So, knowing the above, what does it mean when someone counterfeits a bit of gold that he then uses to buy food? Yep, he has STOLEN food from someone else. Counterfeiting has a cost but it is so much lower than production costs that the perceived value actually costs nothing to the counterfeiter. He is trading perceived labor for actual labor. Counterfeiting, if carried to its logical end, would be responsible for the death of people through starvation which would be akin to murder. So why do I bring this up? Well, I'm laying the foundation to explain how governments and banks DO steal food from your childrens' mouths...today!

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