What Is Money and How Is It Created?


The truth is shocking and appalling to most people

 

What is money?

It’s a simple question, but if you ask the average person, they’ll have a hard time actually explaining what modern money is, where it comes from, and how badly it’s destroying our society and the planet.

Just as fish are rarely conscious that they’re swimming in water, we humans are rarely conscious that we live in a powerful financial stream that’s taking us places we don’t want to go.

Knowing what money is and where it comes from is incredibly important, as it plays a huge role in our future wealth or poverty, as well as our time and freedom.

Money knowledge is so important that it will never be taught in schools.

So let’s talk about it.

What is money?

Money is simply an agreement between two or more people to use something as a means of payment.

  • If 325 million Americans agree to use a tiny green rectangle of paper backed by the full might of the US military apparatus as a means of payment, that’s money.
  • If 100 million mostly young adults agree to use digital bits of cryptographic code as a means of payment, that’s money.
  • If my friend Shane sells me a pair of dumbells and agrees to accept my homemade kombucha as a means of payment, that’s money.

Money is an agreement between 2+ people to use something as a means of payment, and it requires trust between the parties involvedideally, by making sure the money represents some sort of underlying wealth.

The difference between wealth and money

Money and wealth aren’t the same thing.

True wealth is purely biological. You can eat it. Drink it. Wear it. Drive it. Live in it. Heat your house with it. Power your car or machine or business with it.

Money, when it’s working well, is an accurate representation of real wealth.

True wealth isn’t imaginary; it’s biological. Bankers, hedge fund managers, and NFT creators aren’t “wealth-creators” — they’re sophisticated video game players who successfully convince people to ascribe value to digital numbers, which in turn allows the creators to then acquire items of real wealth like mega-mansions, Ossetra caviar, doomsday bunkers, and hyperyachts.

How can I figure out the difference between wealth and money?

Quite easily.

Remember, money is an agreement between two or more parties.

So to determine if something is money or real wealth, just pretend that you’re the last person on earth or alone on a deserted island for the rest of your life.

Money in that context immediately becomes worthless. American dollars, Euros, pounds, gold, silver, Bitcoins, beaver pelts… it’s all money, and it’s utterly useless without another person to accept it as a means of payment.

Real wealth proves itself real in isolation. If you’re the last person on earth, you’ll value water, food, seed, lumber. […]

Continue reading: What Is Money and How Is It Created?

About agogo22

Director of Manchester School of Samba at http://www.sambaman.org.uk
This entry was posted in Finance and tagged , , . Bookmark the permalink.

1 Response to What Is Money and How Is It Created?

  1. Robert Reid says:

    Great post!

    I think more people should learn to trade the foreign exchange markets.

    Check out my page

    https://moneymattersfinance.wordpress.com/

    Liked by 1 person

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