Monetary System/Economics Part 1: Currency vs Money

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Understanding the difference between currency vs. money is fundamental to understanding economics. Currency must possess some attributes such as being portable, divisible, fungible, durable, a unit of account, and a medium of exchange. Over the millennia many different substances have been currency such as salt, sugar, spices, wheat, rice, copper, precious stones and gems, nails, cows, spears, axes, exotic bird feathers, beads, certain rocks, shells, lumber, stamps, candy etc. They have all come and gone for various reasons. The market always tends towards more efficient means of currency. This is reverse Gresham’s Law, which stipulates that in a Free Market good money will drive out bad currency. When people are free to choose which currency to transact in, the best and most efficient methods will always rise to the top.

What is natural currency vs. artificial currency? Artificial currency is that which is chosen by the State and mandated by edict and legislation. It is often entirely controlled and manipulated by the State regarding quantity, value, interest rates, borrowing, creation. This complete control of the currency supply is vital to have intimate access to the inner machinations of the market economy. In this way even some individuals and businesses who refuse to pay their tithes AKA taxes or who hide their currency from the State can forcefully have their value extracted via the hidden tax of inflation. This is the pernicious power the State maintains through having a monopoly on currency.

Natural currency is that which is chosen by free and peaceful people to interact in. It is chosen because it has been demonstrated to be of superior value as compared with currencies of the past. The value of currency is its ability to lubricate transactions and facilitate trade. When it no longer effectively serves this function it must and will be summarily abandoned and replaced with a better alternative.

Through this natural market selection of currencies over the millennia, gold and silver have risen to the top in consistently satisfying these criteria. Therefore it has rightfully attained the glorious status of money, which has the additional attribute of being a store of value over long periods of time. Gold and silver are the impenetrable shields used by wise investors to protect their wealth from being plundered by political predators and thieving nation States. This is why they are the enemy of the State. This is why pure gold and silver has always been reserved for the god kings and pharaohs of antiquity and the people have been given toilet paper trash fiat currency to trade in. When currency and money are profoundly understood by the people the violent Statist paradigm will have been largely defanged and disarmed. Do not be afraid of money. It’s power lies at the very kernel of civilization.

 

Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants – but debt is the money of slaves.

Norm Franz

 

 

https://steemit.com/economics/@danilo-cuellar/monetary-system-economics-part-1-currency-vs-money

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Free Market Capitalism Is Not A System

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Many people ask me, “But doesn’t your Free Market Capitalism system depend on people being generous angels? Without the State who will regulate the bad industries?” One of the main reasons why Free Market Capitalism works is because most people do want to trade voluntarily and peacefully. This is the only way that wealth is created and civilization develops. Wealth is not created by the wild adventurers of violent conquerors. Indeed this is how the delicate latticework of wealth of isolated peoples is wantonly destroyed.

There will always be the very small minority of psychopathic and sociopathic people who choose to use violence and threats of violence to solve their daily problems. When there exists no institution with the legitimate use of force AKA the State which would attract such vile people, they do not become a threat to anyone. The mafia differs from the State in that nobody hallucinates their use of force to be legitimate. Their commands and edicts are not viewed as laws and regulations. Their robbery is not viewed as taxation. Their kidnappings and murder is not viewed as the War on Drugs or the War on Terror. Their violent extortion racket is viewed as just that, a violent extortion racket.

Wealth is created by the billions of voluntary consensual transactions made by peaceful individuals that occur in the market economy every single day. These individuals likely know little to nothing about the price mechanism, competition, supply and demand, inflation, law of diminishing marginal utility, and Economics in general. Nevertheless unwittingly they are operating in accordance with these natural phenomena. Free Market Capitalism is based on human action. The true hidden beauty is that it is based on peace, love, and freedom.

 

 

It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.

Adam Smith, Scottish moral philosopher

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Casual Debate With A Friend On A Beach

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Please enjoy an excerpt of a casual conversation I got into with a friend during a recent camping trip. Herein we discussed economic reality of small businesses, a DuPont horror story, the problem with libertarians, the myth of the robber barons of the early 20th century, oil has raised the standard of living for billions of people, natural vs forced monopolies, consumer demand vs universal needs and more!

 

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