Why Should You Use Digital Money?.......Whatablessing

Oct. 5, 2011 - PRLog -- Why Use Digital Money? Whatablessing Way to Real Money



In today’s world we really do need transportation, an address and a connection for communication. We need income, and in most cases that means a job. Otherwise, we have to create a product to trade.

The most basic economics involve the idea of exchanging something of value. That value is in the eyes of the beholder, not in the eyes of the owner! I might have something I think is junk, but if someone else “beholds” that thing and decides they want it, then they’ve placed a value on the thing. Regardless of what I might think about that thing.
Exchange: That’s the fundamental concept.

As societies got more complicated, people started using various commodities as symbols of value. Among the most well known are gold, silver, diamonds, copper, and other metals and jewels. Because those items were considered to be equal with actual “stuff,” they became precious metals and precious jewels. “Precious” means that which has a high value to people.

Symbolic money is no different. If you do whatever it is that gets you a piece of gold, then you have a physical piece of precious metal. When you exchange it, you first want to get something of equal value. Secondly, whatever it is that you trade for, you continue to have something physical.

The problem with a “gold standard,” where it refers to money is that there isn’t enough gold to match all the stuff in the world. Not only that, but there isn’t enough gold to match what stuff MIGHT enter into the world. There might be enough gold for all the current stuff, but what if you want to start a business making new stuff? There isn’t enough gold.

To solve the problem, societies create money out of something that’s more readily available. Those societies arbitrarily declare the value of that new item, and it becomes real money. “Real” means that you can pay bills, pay taxes, and make legal claims based on the exchange of that money.

So what’s the difference between, say, paper money and “fiat” money?
Social money has two basic requirements. First, it MUST associate with and match some underlying real-world value. Secondly, whomever is in charge of that money MUST be honest!

The US Treasury and the Federal Reserve are in charge of telling us how many paper dollars there are in the world. The Bureau of Labor & Statistics is in charge of telling us how much food, work, service and product there is in the world. Both of them are lying.

When someone arbitrarily decides to make more money, they have to also arbitrarily tell us how much that money is worth. They make a declaration by “fiat,” and so we end up with fiat money. Fiat money is a symbolic form of exchange based on nothing at all other than someone’s say-so.

Long ago we had a gold standard, where people could physically exchange a piece of gold (or silver) for something of value. In 1913, we decided once again to go with paper money. At that time, the US Government assigned 35 pieces of paper to 1 ounce of gold. The gold was supposed to match the amount of work and production in all of America.

In 1971, we decided not to use gold anymore. (Well actually President Nixon decided, not you and me.) The government said that we would print paper dollars in enough volume to match the entire production of the country — the United States Gross Domestic Product.

Since the mid-1990s, the amount of paper the government needs has been growing so fast the printing machines are in danger of exploding. NONE of that paper is matched to a damn thing! They “say” it matches the US economy, but that’s a lie.

Even so, the rest of us still like to know that we have something valuable in our pocket, wallet or purse. We like to actually see our paper money in a box, an envelope or under the mattress. But we’ve been learning how to use futures contracts for money, in the form of checks.

You give me a hamburger today, valued at $1.00. In exchange, I give you a contract that tells you that sometime in the future you can go to a special place and the people there will give you a dollar. In other words, I write you a check for a buck and you hang on to it until you cash it at the bank.

That was all fine and dandy, until we discovered computers. That led us to credit and debit cards and electronic gift cards. What actually does that mean?

When we used paper money, the only reason we needed checks and checking accounts was to handle long-distance transactions. That distance might be physical, or it might be distance in time. But one way or another, a bank actually had to have a certain amount of paper money in its vaults to match the numbers in their accounting books.

The problem is that money started moving around so fast, nobody could keep up with the actual transfer of dollars! There weren’t enough trucks to move that amount of money from bank to bank. Prices started going up as more and more paper flooded into the economy. (Those pearls suddenly started being made out of plastic, and everyone who could started making pearls.)

Instead of a house needing $35,000 pieces of paper moving from one bank to another, that house required $300,000 pieces of paper. All that paper was taking up room! BUT!….no matter how screwed up, at least there was some amount of paper that matched some amount of stuff.

The problem is that we now have such a massive amount of paper, there isn’t any room to store it anymore! Not only that, but none of that paper is worth anything other than as toilet paper or kindling. It costs more to print and move that paper than it’s worth!
Enter the final disaster: Digital Currency.

This digital currency is electronic money. Now we don’t even need a “thing” to represent underlying value. No, with digital currency we can just pretend that some “thing” exists, even when it doesn’t. At that point, we no longer even need to have fiat money! From now on, we can arbitrarily move numbers around on computers, none of which mean anything at all.

It’s already impossible to comprehend 14 Trillion Dollars. The paper would be mind-boggling, or we would have $1-billion bills in our wallets. Therefore, why bother? Why not just have numbers in a machine, totally disconnected from any kind of meaning at all? You get Direct Deposit for your paycheck? Well then, why not just pay you $1-million a year? Who cares? They’re just numbers, and there’s no need to carry around actual paper in an actual wallet!

This all works only until people who actually produce things stop exchanging!
At that point, no doctor will perform services. No farmer will sell food. No mechanic will fix a car. No store will sell candy. No weaver will make cloth. No plumber will fix the toilets.

Digital currency means that we can instantly give everyone with a food-stamp card $1,000 a month. We can increase your credit card limit to $18-billion. We can increase your wage to $10,000 a month. It’s like…magic! We can give everyone as much money as they want, and never have to use chopped up trees or ink or printing presses! Nobody has to do anything, we just push a button and BLAM!….you have a new minimum wage!
Until nobody agrees anymore to give up real and valuable things!

The reason the whole world wants fiat digital money is because there’s still a limit on how much money the government can print. It’s hardly a limit at all, but the amount of paper money necessary to pretend we have an economy is still that limit. Get rid of paper money, and there’s no more limit whatsoever. At that point, the government can spent quadrillions of dollars a minute, and the only thing that changes is a computer register.

Create your own Computer Register at: http://whatablessing.net. Take the Financial limitations off your life and gain Financial Independence.

Bryce Jackson, Business Mentor, Success Coach

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Luke 6:38 Give and it will be given to you…….
with the same measure that you use it will be measured back to you

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