Wednesday, October 15, 2008

Do you think that's gold in your pockets?

Any time they want to devalue the money in your pockets they can print more of it. It has no intrinsic value of its own. We believe in money the same way we believe in God - it's all faith based until the music ends and you get stuck holding a wallet or checkbook notations of worthless paper.

Our whole economy is based on this idea - attenuated barter based on the exchange of items having no intrinsic value of their own (paper money and non-precious metal coins). It is because of the very elastic (inflationary) nature of the money that they can steal from you.

Gold is only better than paper money in one way - it is not very elastic and there is real scarcity. As gold is an element, unless you can solve the question confounding alchemists through the centuries you will find that the supply is indeed finite. You can discover more, but you can't just make more (via printing), and that's why it makes a better means of exchange. And interestingly, gold really does have many unique and interesting properties that make it valuable in itself - intrinsically.

Now what's better than gold? Real estate. That's how smart people "store" their money for safe keeping unless they are using it in other types of investments. Sadly, even the value of real estate is largely theoretical because they have ways to appropriate that too - they call it property taxes but it has the effect of converting the real property that you might own into something that you "lease" via continual payment of a property tax. When you fail to pay the tax, they just come and take your very real property away from you. Remarkable! And so few complain...

You see, they built up a way to continually set up the marks for the big con - we call it "government." They sold it to us via Art. I, sect. 10 of the Constitution - but they played bait and switch on us too. It's not gold, it's paper - and it's worthless. And it's not really real estate if they are just treating you like a serf on the land belonging to the banks/fedual lords.

And that's how the world really works:

You lose.