From time to time in my previous articles, I’ve written a bit about my experience with economics. To many of us the very word, “economics” sounds complex and intimidating. There is a language in the money world that many of us do not understand.

 

We read articles in magazines, books, blogs and listen to money reports via the six o’clock news. There is bull market, bear market, up-turns, down-turns. There are Keynism and Austrian schools of thought on economics. There is the Federal Reserve, central banks and community banks. There is the Euro versus the Dollar… gold, silver, paper money. And on and on about money and economics.

 

The simpler a particular thing is, the easier it is for me to understand. I’m going to relate some personal experiences, and opinions about money, the economy and what’s going on. It’s not rocket science, and not set in concrete. It is a “just me” take on the subject.

 

I’ve had a few limited lessons in economics. Several years back I entered a class in economics, and the first thing the professor asked each one of us was, “what do you know about money?”  My response was, “If your out-go is more than your income, your up-keep may become your down-fall”. Everyone laughed and thought that was funny.

 

After asking each student, then the professor asked if anyone had anything else to say. I spoke and said, “You can only spend a dollar once.”

 

What did I know about economics? I grew up on a farm in Northeast Georgia when money was scarce as hen’s teeth. I grew up during the depression years, and the aftermath of that era, followed by four years of war when we had to use ration stamps and vouchers to buy things. But my mother was very frugal, and loved money and could squeeze a nickel till the buffalo hollowed as the southern saying goes.  And we lived with plenty of the things needed, but few luxuries.

 

In the early sixties, I was living in Reno, Nevada, when silver dollars flowed like wine on gambling tables, when suddenly, silver as a medium of exchange was removed from circulation quite suddenly. I wrote to my mother, still living in Georgia, and told her what was happening. She arranged to purchase Canadian silver dollars directly from Canada by the thousand dollar bag and hoarded them until she passed in the mid-nineties. At that time they were worth several times the dollar she paid for each.

 

At that time, I thought the smart thing to do was purchase mining stock. I learned the largest consumer of silver was Eastman Kodak. Silver was used to manufacture film. There was a company in Nevada who developed a process of stripping the emulsion off used film, reclaiming the silver deposit. I bought stock in that company.

 

You see, back in the sixties, I thought that the economic crisis we face today, was just around the corner. I was mistaken. It has taken forty years for worthless paper, {fiat} money to catch up with us.

 

Money is just a commodity, a medium of exchange. And all these many years we have been exchanging nothing for something. I warned you I was going to try to keep it simple. I’m into KISS economics, {keep it simple stupid}.

 

One easy to understand simple fact is, for thousands of years, hard money, gold and silver has been used as the medium of exchange because it has intrinsic value. There is a limited supply in the universe. Conversely, with reference to paper money, the government mint has a grist mill turning out unlimited amounts of paper money which causes inflation. By definition, inflation is an increase in supply of money.

 

In the free enterprise system of supply and demand, and voluntary exchange of goods and services, everything levels itself out satisfactorily between all parties. In the absence of coercion, phony money, and thievery by taxes, there is a society of people who can work together, live and let live and enjoy the control and self-responsibility of individual freedom and private ownership of property.

 

The production of money should be in private hands to live morally in a moral society. We have strayed so far away from the reality of morality; we have a Pavlov response to the mantra, “government backed.”

 

It’s in the area of government backed everything which causes all the serious problems we face today. Starting with government backed money, the tentacles of that system permeates everything else.

 

From the American Revolution where we fought for and won freedom from an oppressive British King, one might ask how we got from there to here. Having been freed from the burden of excessive oppressive taxation from abroad, we wound up in an economic crisis, burdened with heavy duty excessive taxation in just over two hundred years. It is right here amongst us. How did it happen?

 

The truth of the matter is, it did not just happen… we voted ourselves into the predicament we now face.  Interestingly, the fact of the matter is, that which we voted ourselves into, we cannot vote our way out of.

 

What shall we do? What can we do? What do we want to do? These are the questions we must ask and answer.

 

Winston Churchill said, “Schools have not necessarily much to do with education, they are mainly institutions of control, where basic habits must be inculcated in the young. Education is quite different and has little place in school.”

 

I welcome any comments.

 

 

 

 

LET FREEDOM RING

JUST ME
AC

 

The Freedom Lady

annecleveland@bellsouth.net

Tagged with →  
Share →

0 Responses to Make Believe Money, Where Did All the Gold & Silver Go? (Issue 157)

  1. You are dead-on with your analysis here. Now, how do we get people to listen?

  2. TJ says:

    http://www.chrismartenson.com/

    That site has a great “Crash Course” which I think you would enjoy. It lays out how we are facing a combination of problems that will hit at the same time, more or less like a perfect storm.

    I am surprised how little people know about money. When I tell them that every dollar represents debt they think that is wrong, but it is true. All dollars are loaned into existence. I am worried that either our politicians do not understand the problems we’ve allowed them to create for us, or they know, but do not have the courage to face the problems.