The topic of finances are severely relevant these days, severely being the key word. Everyone is taking a beating from the developments on the market. The thing is noone sounds very clear in their commentary, and people seem to get more confused and panicky everyday.
Why is that? Well I think at the root its because most people arent even asking what this abstract we call money really is. Its like with so many modern things we just know how to use it, but cant be bothered asking how it works. Do you know how the picture on your TV is created? Or how a microwave oven works?
Money is NOT an abstract, its a product that is produced by a business that has the “machines” to produce it. Just like any other product, except this one is at its heart immaterial. You can have printed bearable versions called cash, but this is just a confirmation of your immaterial contract. Usually this is the issuer and you, in most countries its a national bank in collaborations with a lot of other interests. Banks mostly since these are the monopoly holders of trading this product. There is a lot of more information on this and all the problems arising from having granted these monopolies to banks. Since the contract initially is between the people and the financial system, but we the people let our national banks create the agreements of production output and price, then the reselling of the product to us the people is then done with a rather steep mark up. Usually around 3-500% or more.
So money is a produced good. Like controlled copies of music online. In this case it is controlled by the system a bit more then your apple store DRMs etc. (but not as much as you might have hoped) What does that tell us about our current problems?
Well if any other producer of a product is running a business they are under a rather tough natural law of supply and demand. In our case though the supply is not that hard to fudge, since the product is immaterial just like copied music. There is no actual limit to the number of copies you can make. Yes money used to have a backed value, so you could not just keep printing, but most nations abolished this a long time ago. We are now in “Fiat Currency” and its resulting dire straits.
So just as any other business to increase its profit and secure its growth the need to make sure there is an increased demand. This they package in a nice little concept called inflation. They even go so far and say its the natural state of things. Hint: This is Bogus.
If a nation keeps improving their production efficiency and improving the structural wealth of a nation, then if there is just a fair trade balance the wealth of the nation should increase. This would mean that the nominal value of the money should increase because everything would get cheaper. More food produced should mean you got more food per unit of currency. Thank god in some areas this is still true.
The thing is they turn your world and logic upside down and makes sure you always believe you need to buy more of their business partners stuff, and this again at a rate where you always end up the looser. Any product working with the financial system are making sure that they increase their profits faster and faster, thus no matter how high technology goes the actual value of say a car will never decrease, and they will make sure you need to replace them faster and faster..
This overheating results in the “system” actually grabbing more then 95% of your produced wealth. This is done simply by engaging you in their family of scams. Artificial demand increase, artificial scarcity, the middleman scam, etc.
We can not as a race survive this self destructive behaviour. To solve a problem we must first identify it so we have to all get interested in how these machines work, even though it seems extremely straining and boring.
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