What is Money – Really – and Why Do We Need to Own Gold – Really?

What is Money – Really – and Why Do We Need to Own Gold – Really?

Have you ever wondered what money really is [and why we need to own some gold as a result]? You’ll notice that everyone you read has a strong opinion , but who’s right? [Let look at the situation and see if we can come to an answer that we both can agree on.] Words: 3086

So says Danny B (www.fofoa.blogspot.com) in edited excerpts from his original article*.

Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!) has edited ([ ]), abridged (…) and reformatted (some sub-titles and bold/italics emphases) the article below for the sake of clarity and brevity to ensure a fast and easy read. The report’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Please note that this paragraph must be included in any article re-posting to avoid copyright infringement.

The article goes on to say, in part, that:

Is money really just one single thing and then everything else has varying levels of moneyness relative to real money? [For instance:]

• is gold real money?
• is money whatever the government says it is? 
• is money whatever the market says it is?
• is silver money in any way today?
• are US Treasury bonds money?
• is real money just the monetary base or is money all the credit that refers back to that base for value?
• is money supposed to be something tangible, or is it simply a common unit we use to express the relative value of things?
• is money really the actual medium of exchange we use in trade or is it the unit of account the various media of exchange (checks, credit cards, PayPal) reference for value?
• should the reference point unit of money itself ever be the medium of exchange? Some of the time? All of the time? Never?
• is money a store of value and, if so, for how long?
• is money supposed to be the fixed reference point (the benchmark) for changes in the value of everything else or is it simply a shared language for expressing those changes?
• is money something that changes over time or is money’s true essence the same concept that first emerged thousands of years ago?
• and probably the most important question: does the correct view of money produce answers that are vastly superior to the blind conjecture prescribed by all other views.

Answers

Everyone has a strong opinion about what money actually is so “everyone” will probably disagree with what I write but that doesn’t mean they are right and I am wrong. I want to challenge you to use your own mind and see for yourself. Take what I say and then take what they say, compare, contrast, analyze and then decide for yourself. The prescription produced by my view is quite simple – and only you can decide if it is vastly superior to their blind conjecture.

The Pure Concept of Money

According to Webster’s the word ‘money’ emerged in the English language sometime during the Medieval period in Europe, maybe around the late 1200s. Wikipedia suggests a possible etymology originating with the Greek word for ‘unique’ or ‘unit’. The Western term for physical coins that emerged sometime around the late 1500s was ‘specie’ from the Latin phrase for “in kind” or “payment in kind,” meaning “payment in the actual or real form.” The word ‘currency’ came a little later from the Latin word for current or flow, and was married to the money concept in 1699 by the philosopher John Locke who described the “circulation of money” as a flow or current of monetary payments made in specie.

Etymology is important, because with money or “the moneyness of things” we are talking about a vital concept that predates the word by thousands of years and it’s only by understanding the pure concept that we can see the ways the word has been bastardized by…[the debtors and the savers] over centuries. The meaning we commonly assign to words may change over time, but that never changes the original concept underlying the emergence of the word in the first place.

Case in point: Is ‘money’ equal to ‘wealth’? Is “gathering wealth” the same as “gathering money?” [Such an understanding of just what those words actually meant in the language of the time can be seen in the way Proverbs 13:11 was translated over the passage of time]… and which I think will help to illustrate my point about words and concepts:

(Wycliffe Bible 1395) Hasted chattel, that is, gotten hastily, shall be made less; but that which is gathered little and little with hand, shall be multiplied.

(King James Version 1611) Wealth gotten by vanity shall be diminished: but he that gathereth by labour shall increase.

(Young’s Literal Translation 1862) Wealth from vanity becometh little, and whoso is gathering by the hand becometh great…

[The Living Bible Version 1967) Wealth from gambling quickly disappears; wealth from hard work grows.]....

http://www.munknee.com/2011/12/what-is-money-really-and-why-do-we-need-to-own-gold-really/

All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.

Satyajit Das: The Cultural Transformation of the World of Finance (1/6)

by INETeconomics on Dec 22, 2011

When Satyajit Das started to work at a commercial bank, the world of finance was simple: banks made money by lending it. That was 44 years ago, and the tools of the trade have changed quite a bit since then. In this INET interview with Robert Johnson, Das describes some of the cultural changes that transformed the world of finance from the perspective of a practitioner and shows how traders of the "School of Hard Knocks" were replaced by a generation of traders that came straight from business school and overly relied on models and financial theory.

All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.

Mineweb.com - Gold and silver the currency of the elite in the Great Financial Crisis - Thunder Road - POLITICAL ECONOMY

Mineweb.com - The world's premier mining and mining investment website Gold and silver the currency of the elite in the Great Financial Crisis - Thunder Road - POLITICAL ECONOMY | Mineweb

Paul Mylchreest's Thunder Road Report always makes for fascinating reading and his take on the global economy, gold and silver is frightening and disturbing. Read, learn and inwardly digest.

Author: Lawrence Williams
Posted:  Thursday , 22 Dec 2011 

LONDON - 

I have a particularly soft spot for Paul Mylchreest's occasionally published Thunder Road report.  The basis for the best read article ever onMineweb, which on its own picked up almost 100,000 page views, came from an edition in 2009 - (see: China pushes silver and gold investment to the masses) .  The information and insights in these reports is invariably controversial, illuminating and extremely prescient.  I urge you therefore to beg, borrow or steal a copy of Paul's latest 52-page document which primarily looks into the politics and history behind the current financial crisis - indeed you don't have to do that - just download the report from Mineweb here -Thunder Road Report December 2011. As a window into Paul's view of what is happening to global politics and the economy, it makes for fascinating and disturbing reading from which you can then draw your own conclusions.  We may not agree with everything in it, but it is certainly food for thought on the way the world order is changing. .........

http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=142151&sn=Detail&pid=102055

All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.

Gerald Celente - Lanigan & Malone - WMJI 22 December 2011

 by GeraldCelenteChannel on Dec 23, 2011

Trends Journal: http://www.trendsresearch.com/journal
Twitter: http://twitter.com/geraldcelente

All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.

Injured Global Economy Ponders Coming Challenges | International Forecaster Weekly Bob Chapman The International Forcaster

Injured Global Economy Ponders Coming Challenges | International Forecaster Weekly Bob Chapman The International Forcaster | Economy News | Investing | US Market Information | Gold | Silver | Wall Street Bailouts | Investment Trends | Money Resources | US and Worldwide Politics

December 21 2011: No understanding of debt repayment, banks and Euro zone nations broke, Fed opens swap floodgates, nations on the edge of default await aid, recapitalization, European plunge into recession is underway, quantitative easing the cause of inflation, 40 million on food stamps in the US, Ron Paul the best choice still, Greece to tip Europe over the edge.


Debt repayment is a subject few want to discuss, or that few understand. We know most of the largest banks in the world are broke along with at least 6-euro zone nations. There are many others, but the most concerning are the debts of major nations, which are supposedly solvent. Needless to say the US is deeply indebted and the Super-Congress Enabling Committee couldn’t even lay politics aside to cut spending increases.
A bill has been entered into Congress to prohibit US funds being used via the IMF to bail out European banks and governments. We see a scant chance of passage because of the elitist control of both Houses. On the other hand it makes little difference, because the Fed has opened the swap floodgates and other avenues of secret funding to “recapitalize,” bailout, European banks of all sizes and depths of default.
As we end 2011 it is all quiet on the Western Front. Behind the scenes unbeknownst to almost all the elitists are plotting and planning on how to extricate themselves from the morass they have gotten themselves into. How do they put the crisis on the back burner and extend the timeline? The vaunted 6 nations on the edge of default await aid, but one might ask from whom? That solution hasn’t even been sorted out as yet, and we now find France facing a possible two level lowering of debt ratings, but even Germany is not as solvent as they were thought to be. Could it be that France and Germany might not be able to repay their debts? Now you can understand why the money machine, known as the Fed, says nothing about their bailout of Europe. 95% of the population of the world doesn’t even know what a swap is. Even if they did understand they are never going to get the truth from the Fed. We saw that in court and GAO revelations recently.
The European Central Bank, ECB, does not have the Fed’s ability to continue to create money and credit. That means that the taxpayers in each nation must foot the bill, unless the Fed prints money for them. Thus, we see a central bank, which really is not a central bank. Germany is still not allowing the ECB to emulate the Bank of England and Federal Reserve. Germans still vividly remember the Weimar Republic and the resultant rise of National Socialism and Adolph Hitler. Even if such possibilities do not exist today they still see rampant inflation as a result of endless funding. Northern Europeans, in spite of participating in the EU and the euro zone, understand the frailties and cultural differences of their neighbors in the south. Europe has pursed the wrong path for more than two years. There simply isn’t anyway to bail out the six. They have to allow them to default and leave the euro.
The short-term cost is $6 trillion just to go sideways for a year or two. After that the underlying problem will still exist, and it will be worse. Professionals in part recognize the problems and as a result interest rates have risen and the entire European system is under pressure, including their stock markets. We know that “The President’s Working Group on Financial Markets” has been active in markets worldwide, but because it is secret, we do no know the extent of market manipulation in keeping world markets up when they should be down. When Ron Paul becomes President of the United States and the reign of the bankers ends we will then be able to see what these criminals have been up too. A good part of the world is headed into recession and depression. Europe’s plunge into recession is underway and that condition is just going to exacerbate the situation. What we have is a European standoff and the possibility that Germany may go its own way, becomes more plausible with every passing day. .........


http://theinternationalforecaster.com/International_Forecaster_Weekly/Injured_Global_Economy_Ponders_Coming_Challenges


All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.

European Debt Crisis Becoming A Greater Problem | International Forecaster Weekly Bob Chapman

European Debt Crisis Becoming A Greater Problem | International Forecaster Weekly Bob Chapman The International Forcaster | Economy News | Investing | US Market Information | Gold | Silver | Wall Street Bailouts | Investment Trends | Money Resources | US and Worldwide Politics

All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.

European Power Play As Panic Sets In | International Forecaster Weekly Bob Chapman

For translation GOTO -  http://translate.google.com.my/?hl=en&tab=wT 

European Power Play As Panic Sets In | International Forecaster Weekly Bob Chapman The International Forcaster | Economy News | Investing | US Market Information | Gold | Silver | Wall Street Bailouts | Investment Trends | Money Resources | US and Worldwide Politics

November 19 2011: Chancellor Merkel looks to the people of the euro zone to legislate away sovereignty, changes to be made as the situation deteriorates, Turmoil among the Europeans, power plays as panic sets in, housing sector falling apart.

German Chancellor Merkel keeps moving the field of play away from the European Central Bank, and to the people of the euro zone. That is so she can get legislation to remove the sovereignty of EU members. The pitch is, if the new EU is to work all fiscal decisions that will have to be determined in unison by bureaucratic technocrats, all of whom want world government. This way Germany can lead European countries in locked goose step to one-world nirvanas. Incidentally, Britain’s PM David Cameron is going in the exact opposite direction. He sees an opportunity to allow powers to ebb back to national status from Brussels. What Mrs. Merkel is saying is that existing treaties and the ECB does not have a possibility of solving the euro problem.
In the background we find German Finance Minister Wolfgang Schauble is a driving force behind the plans to run towards EU and fiscal and monetary union. This shows you how deliberately out of touch German politicians are and they seem to care less. They say this is the best way to ensure the EU’s survival, not the euro, the EU. Their plan will eventually destroy any possible solution in the quest to control European nations. As the Dir Spiegel put it so aptly, entering into voluntary euthanasia. What Merkel is up to here is massive changes in the German Constitution and the remaining Constitutions of Europe. Germany has one of the best Constitutions in the world, so why change it to abet world government? Herr Schauble and his Illuminist think tank behind the scenes is the one, which is really making all the decisions. An eminence guise, if you may. We wonder if Herr Schäuble has visions of himself as dictator of the EU? Perhaps these are his elitist orders. His quest along with Merkel’s is increase guarantees for the new ESM, which a majority of his own party rejects. Then again he doesn’t let democracy get in his way. Schäuble is the Illuminist’s main man in Germany and one to be watched closely. We knew Greece had to default two years ago, but so did Herr Schäuble and he told that to Mrs. Merkel.....

http://theinternationalforecaster.com/International_Forecaster_Weekly/European_Power_Play_As_Panic_Sets_In

LINKS
Dr. Deagle Show 111109 1/3 to 3/3 - BOB CHAPMAN - COMING ECONOMIC STORM
http://www.youtube.com/watch?v=dT9b2mbaLFQ&feature=email
http://www.youtube.com/watch?v=kK5lPTWZj-w
http://www.youtube.com/watch?v=Gi66ivhliQY
Bob Chapman: Surviving The Banker Sociopaths 1/2http://www.youtube.com/user/thealexjoneschannel/#p/u/11/2Ai4cgWzRiw
Bob Chapman - The National Intel Report with John Stadtmiller -15 Nov 2011http://www.youtube.com/watch?v=9T6sXOcWC58&feature=email
Silver Update 11/16/11 - Stupor Committee http://www.youtube.com/watch?v=e7jpMlWebWE
FFw/JB Podcast (11/17/2011): Bob Chapman http://www.youtube.com/watch?v=O8cBOEpUiXw&feature=youtu.be

All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.

Fed Now Largest Owner of U.S. Gov’t Debt—Surpassing China | CNSnews.com

Fed Now Largest Owner of U.S. Gov’t Debt—Surpassing China | CNSnews.com

By Terence P. Jeffrey

November 16, 2011

"In its latest monthly report, the Federal Reserve said that as of Sept. 28, it owned $1.665 trillion in U.S. Treasury securities. That was more than double the $812 billion in U.S. Treasury securities the Fed said it owned as of Sept. 29, 2010.

Meanwhile, as of the end of this September, entities in mainland China owned $1.1483 trillion in U.S. Treasury securities, according to data published todayby the U.S. Treasury Department. That was down slightly from the $1.1519 trillion in U.S. Treasury securities the Chinese owned as of the end of September 2010, according to the same Treasury Department report.

Thus, at the end of September 2010, the Chinese owned about $339.9 billion more in U.S. Treasury securities than the Fed owned at that time. By the end of September 2011, the Fed owned about $516.7 billion more in U.S. Treasury securities than the Chinese owned.".......

http://cnsnews.com/news/article/fed-now-largest-owner-us-gov-t-debt-surpassing-china

CNSNews.com is not funded by the government like NPR. CNSNews.com is not funded by the government like PBS.

CNSNews.com relies on individuals like you to help us report the news the liberal media distort and ignore. Please make a tax-deductible gift to CNSNews.com today. Your continued support will ensure that CNSNews.com is here reporting THE TRUTH, for a long time to come.

All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.

South Africa’s Incredibly Shrinking Gold Production...www.usfunds.com

South Africa’s Incredibly Shrinking Gold Production

• November 17, 2011

Finding evidence to pop the talk of a gold bubble is much easier than finding a needle in a haystack. There are enough needles of evidence out there to fill a pin cushion. The latest Gold Demand Trends Report from the World Gold Council (WGC) contained two salient visuals of how the dynamics of the global gold market have shifted from the West to the East over the past 40 years.....

http://www.usfunds.com/investor-resources/frank-talk/?i=7079

All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.

The Future Of The Euro Zone Is Sealed | International Forecaster Weekly Bob Chapman The International Forcaster |

For Translation to some languages use Google.... http://translate.google.com.my/?hl=en&tab=TT

The Future Of The Euro Zone Is Sealed | International Forecaster Weekly Bob Chapman The International Forcaster | Economy News | Investing | US Market Information | Gold | Silver | Wall Street Bailouts | Investment Trends | Money Resources | US and Worldwide Politics

November 16 2011: Euro exposure to toxic waste derivatives probably much more than what was reported, a payable end to the european crisis, morbid stories of currencies, a new banking system must be put in place. Two years left for the Euro.

It wasn’t all that long ago that industry estimates were that the issuance of credit default swaps in Europe, CDS, were about $18 billion. At the same time on the street it was estimated that the exposure was $75 billion. We estimate $150 billion - this represented insurance on the holders of bonds issued by Greece, Portugal, Ireland, Spain and Italy. The Bank for International Settlements says that figure is now $518 billion. As we have noted before the big problem is counterparty risk. When CDS, credit default swaps, are triggered to default will the counterparties pay up? Even if writers are buying from one another someone has to get caught holding the bag and loose money. That is where the risk comes in. .........
http://theinternationalforecaster.com/International_Forecaster_Weekly/The_Future_Of_The_Euro_Zone_Is_Sealed



Corbett Report Interview 408 – Bob Chapman
http://www.corbettreport.com/interview-408-bob-chapman/

Interview 408 – Bob Chapman
http://www.corbettreport.com/interview-408-bob-chapman/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+CorbettReportRSS+%28The+Corbett+Report%29

Bob Chapman - The Financial Survival 11 Nov 2011
http://www.youtube.com/watch?v=8MrnUrbC6go&feature=email

Bob Chapman - HoweStreet.com Radio with host
Phil Mackesy:
http://talkdigitalnetwork.com/2011/11/corzine-cftc-get-it-wrong/

Bob Chapman: The Collapse is Coming!
http://www.youtube.com/watch?v=eCG4hv6Ds2k&feature=email




All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.

Lang Xianping: China's Economic Depression Has Begun

by ChinaForbiddenNews on Nov 7, 2011

Follow us on TWITTER: http://twitter.com/cnforbiddennews
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On October 22, Lang Xianping, an economics professor
at the Chinese University of Hong Kong, gave a private talk in Shenyang City in Liaoning Province.
He cited statistics showing why the Chinese Communist Party (CCP)
is trapped in an economic crisis and is at brink of bankruptcy.
Some scholars say that Lang's conclusion is not surprising at all,
for they themselves hold the same the view.

Lang Xianping's speech, which was widely circulated online,
pointed out that
the CCP's official published growth rate of 9.1% and
its inflation rate of 6.2%, are false.
Instead he says, China as a nation, is bankrupt.

Lang Xianping: "The 9.1% figure is false.The inflation rate of
6.2% is also false. Inflation has reached at least 16%!
Do you know how to calculate the gross domestic product
(GDP) figure? Nine minus six.
The actual growth rate, according to the CCP's data,
should be less than 3%.
What if the inflation rate was 16%?
What's the GDP growth rate? Minus seven percent. The situation is this serious."

Professor Lang said that all of the CCP's current policies are
covering up the deep, murky reality of China's economy.
He cited the Purchasing Managers Index to explain that
back to early July, China's economy entered a recession.

Lang Xianping: "The Purchasing Managers Index,
which was just released, showed a reading above 50.
This indicates normal economic growth, while below 50
means the country is entering into a recession.
Now among China, the U.S., and Europe, let me tell you,
the first country that has gone into recession is China.
It started in July. But has anyone reported the news?
No. Why? No one is allowed to report it."

Now, China's stock market fell from 3,000 points in April,
to 2,313 points in October.
But other markets such as property, cars, luxury goods,
antiques, and art, among others, are really booming.
The co-existence of such a bleak winter and boiling summer
can only take place in China.
The basic reason is that China's manufacturing Industry crisis
has just begun.

Lang Xianping: "Field research conducted by
The Economic Observer, a weekly Chinese newspaper,
shows that the production rate of the apparel industry
in Jiangsu Prov. and Zhejiang Prov., is less than 33%.
The plastic industry is 50%, the rubber industry is 60%,
the soybeans extraction industry is less than 30%.
My own survey shows that at present,
60% of all Leather-processing plants have shut down in Haining, China."

Professor Lang also cited that although the total capacity of
China's power plants is 916 million kilowatts, the utilization rate is only 40%.
By June 20, the volume of iron ore piled up in China's
various ports has reached 98.9 million tons,
far more than the 7,098 tons imported
during the period of financial crisis of last few years.
This data shows that in reality, in China,
an economic depression has begun.

Lang pointed out that 70% of China's GDP came from
infrastructure construction, which, in reality, has not brought any economic benefits to the country.
For example, before the former Soviet Union collapsed,
70% of its GDP relied on military engineering projects.
The current situation in China is very similar to that of
former Soviet Union, at that time.
Once China's manufacturing industry pillar collapses,
the country's seemingly impressive infrastructure construction, won't last longer.

Category:

News & Politics

All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.

A Brilliant Overview Of Where The Markets And The Economy Are Right Now

A Brilliant Overview Of Where The Markets And The Economy Are Right Now

Read more: http://www.businessinsider.com/naufal-sanaullah-market-overview-2011-11#-1#ixzz1djcp3H3Q







http://www.businessinsider.com/naufal-sanaullah-market-overview-2011-11#-3

All information on this website is for educational purposes only and is not intended to provide financial advise. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold MinKL Invest harmless in any and all ways.