Monday, July 3, 2017

Cash IS NOT Money

Moving Money

Originally written and Published on my  PATREON  site   June 7, 2017.

What would happen if you had a Gold coin that you could melt down and sell the Gold in that coin for two Gold coins. If you know the answer you will understand why coins ARE never worth and CAN NEVER BE worth the face value on the coin.  The face value is recorded in an Asset Account in a Federal Reserve Bank and the coin is used to transfer that value from one Bank account to another.

That is the same purpose of a Federal Reserve Note. It is simply a printed receipt for Money recorded as numbers in a Bank Account. Coins differ from a Federal Reserve Note only by being printed on metal instead of paper. Both are use to move the printed value from one Bank Account to another. It may move through several the hands of more than one buyer/seller before ending up as a Bank Deposit as an asset for which the Bank is liable to to the Depositor. Checks -  Credit/Debit Cards - Drafts all serve the same purpose 

Cash Money exist nowhere and has never existed anywhere except as a printed value that the Printer of that receipt claims he will exchange a thing of real value for. The  ultimate Value of the dollar is established by the fact that is is the only way you can pay your taxes or any "number valued debt" you owe. You must obtain dollars to pay your taxes and other debts. That gives them value.

No matter what you think money once was, I assure you it wasn't and isn't and never will be. It is just a bookkeeping system to determine who has purchasing power for Goods or Labor. It has the advantage that trades can take place over a span of time, unlike Barter which occurs as a single transaction, It makes trading Goods & Service fungible instead of requiring concurrent agreement at the time of trade. It is the lifeblood of World Commerce.