What is money? Where does our money come from?

Oniy8 said:
These are simple and vital questions it might seem, but the answers remain contested and often muddled. Where Does Money Come From? is a comprehensive guide to the modern UK monetary and banking system.
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Yes! :D
 

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Must be the most prominent figure to date calling for a gold standard (though leaves the post soon), robert zoellick president of world bank...

"The system should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values. Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today."

The G20 must look beyond Bretton Woods II - FT.com
 
rsh01 said:
Must be the most prominent figure to date calling for a gold standard (though leaves the post soon), robert zoellick president of world bank...

"The system should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values. Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today."

The G20 must look beyond Bretton Woods II - FT.com
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Gold is unlikely to save anyone. Stopping the war frenzy might.
 
rsh01 said:
Must be the most prominent figure to date calling for a gold standard (though leaves the post soon), robert zoellick president of world bank...

"The system should also consider employing gold as an international reference point of market expectations about inflation, deflation and future currency values. Although textbooks may view gold as the old money, markets are using gold as an alternative monetary asset today."

The G20 must look beyond Bretton Woods II - FT.com
Click to expand...
Thats interesting. I think in time that view will become more common as the distress levels rise in the current system. That things will be taken to breaking point before the FIX is offered! A gold / commodity based standard.

If i were an elite level banker with a power maintainance mindset i would see my choices as:-
1) The current system (debt based fiat)... Almost total control for me! Keep it going for as long as i can sell it to the masses! :cheesy:
2) Commodity based (gold standard most likely)... Nowhere near as nice as for me as debt based fiat but will do for now. Until i can get a decent war going! "Remember the golden rule. He who has the gold makes the rules!". :)
3) Public / Government created money (pure fiat)... To be avoided at all costs! :eek::mad:
 
darktone said:
Thats interesting. I think in time that view will become more common as the distress levels rise in the current system. That things will be taken to breaking point before the FIX is offered! A gold / commodity based standard.

If i were an elite level banker with a power maintainance mindset i would see my choices as:-
1) The current system (debt based fiat)... Almost total control for me! Keep it going for as long as i can sell it to the masses! :cheesy:
2) Commodity based (gold standard most likely)... Nowhere near as nice as for me as debt based fiat but will do for now. Until i can get a decent war going! "Remember the golden rule. He who has the gold makes the rules!". :)
3) Public / Government created money (pure fiat)... To be avoided at all costs! :eek::mad:
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Wonder if he's just trying to save his family's lives from the inevitable pillaging when fiat crashes for good.

Would be interesting to know the personal asset values of PMs of all the top bankstas in the world, surely their wealth is not stored in just fiat and property.
 
rsh01 said:
Wonder if he's just trying to save his family's lives from the inevitable pillaging when fiat crashes for good.

Would be interesting to know the personal asset values of PMs of all the top bankstas in the world, surely their wealth is not stored in just fiat and property.
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Possibly, who knows, ive no opinion on this guy tbh. I cant see fiat crashing for good. Not if history is anything to go by. I guess when it does fall down it will disapear long enough for folks to forget, then it will be back! And abused by those who know in some similar way.
Would be great to know the asset values of the worlds richest for sure! Id bet the vast majority of their wealth is in pretty much anything other than money!
 
"In the beginning was the Word..."
Money is a representation of a promise made. A contract.

The value of that promise depends upon how much ones word is trusted to honour the promise.
 
The surprising thing is how few people understand the system we live by and accept as best. It is promises that create money. And by the way, they only create the principle ; not the interest portion. So keep the music playing or else you may find there isn't quite enough to go around.
 
Luc.Chase said:
The surprising thing is how few people understand the system we live by and accept as best. It is promises that create money. And by the way, they only create the principle ; not the interest portion. So keep the music playing or else you may find there isn't quite enough to go around.
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In a sense im not suprised how few understand the system because if more people did, it couldnt exist! If folks were aware in honest laymans terms they wouldnt accept it.. Misinformation is an essential part of it imo.
 
The current debt crisis may have brought us a lot closer to having to change the system. Who knows, we may ( finally ) realise that controlled QE is good after all. Elect a pro-growth government, create money as a public service according to the need of the economy for liquidity and use taxes to destroy any excess.
 
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Luc.Chase said:
The current debt crisis may have brought us a lot closer to having to change the system. Who knows, we may ( finally ) realise that controlled QE is good after all. Create money as a public service according to the need of the economy for liquidity and use taxes to destroy any excess.
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That makes no sense. How do you create money? With debt. Your argument goes round in a circle.
 
I feel sorry for that kid, being forced by her parents to say those things, because her parents are too old to give that rather poor explanation, but when a kid says it, it sounds impressive.
 
Sidekicker said:
That makes no sense. How do you create money? With debt. Your argument goes round in a circle.
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No it doesnt, thats the basic monetary reform frame.
To have debt free money created by government (via some accountable / elected commitee, spent into the economy when expansion is needed. To have an appropriate amount destroyed via taxation when contraction is needed.
 
eighteen said:
I feel sorry for that kid, being forced by her parents to say those things, because her parents are too old to give that rather poor explanation, but when a kid says it, it sounds impressive.
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She was forced by her parents? Are you sure about that!?..
As for a poor explanation, I thought she did very well. You understand that many economists dont understand how or who creates our money as its not taught in any real depth, or in some cases in a misleading way.
If i asked this girl who creates money, she could tell me and be more correct than 99.9% of folks. Perhaps more importantly she seems to understand the implications of the situation.
Better imo than doing 5hrs a day on playstation, filling her face with junk.
 
darktone has serious comprehension issues. He is the type of person who when asked to draw a circle, will ask you what shape you would like it to be.:rolleyes:

When asked to reply in his own thread, he still replies in the same thread :rolleyes:

And, he hasn't got the foggiest idea what 'fiat' means:rolleyes:

UNSUBSCRIBED!!
 
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