Newer Money

Currency is not money. Currency is not valuable. Currency is not sustainable. And currency has zero logic behind it. In the 21st Century global economy, our “money” that we use (no matter the country or denomination) is not money at all, but “fiat currency”. Fiat means, roughly, backed by nothing. The #1 thing that got me interested in economics in 2012 was when I read that the U.S. dollar was not backed by gold. I thought it was it was a mistake on behalf of the author. But it is very true. The U.S. dollar, in fact, is backed by nothing. There is no rhyme or reason for it to be used in exchange for tangible goods.

Money, always has been and always will be, precious metals. Let me give an example of what gives precious metals like gold, silver, or platinum value:

Say 100 individuals mine for, sift for, or set out in exploration of gold. Per individual, only 1 in 100 will be lucky. That is because these gold is rare and hard to find. But the rarity in and of itself is not what makes gold valuable. What makes it valuable is because of the 100 individuals, you have the cost of their equipment, transportation, food, time and labor they invested in/sacrificed, in an attempt to discover said gold. Gold is simply a unit of measurement for these investments/sacrifices that, in this case, 100 individuals put forward. That simple.

Currency, on the other hand, is “backed by trust”. For example; you cannot pay your government taxes in precious metals. You usually cannot buy goods from a retailer in precious metals. And you cannot pay for services of any kind in precious metals. The only way you can pay for these things is (in America’s case) a U.S. dollar. So what is a U.S. dollar? It is a bank note. What is a bank note? An IOU (with nothing back it) distributed by the U.S. Treasury. So the IOU’s (bank notes) are currency created by the government, to be paid back TO the government to keep the economy running/government in “business”. Right? WRONG! The U.S. Treasury, itself, owes this money to the Federal Reserve. What does the Federal Reserve get? Government bonds. What will a government bond do? Ensure to the Fed that it, The Fed, will be paid back the money it created, plus interest. Where does the extra 5%, 2%, 1% or even 0.0001% interest come from? If The Fed created the money in the first place, how can it be paid back any interest within the system with which it is creating the money? Simple, ensure that the U.S Treasury KEEPS borrowing currency to pay the interest on the old loan. Time and time again. This is a textbook definition of a Ponzi Scheme. Nothing can be paid back with currency. In fact, logically, with currency there is not an actual “thing” to be paid back. Currency, is, in fact, DEBT!

So how do we get back to real money? That is, precious metals? Wouldn’t this be a burden on United States (or any country’s) citizens? I mean there is a massive eCommerce system in place where people can, and do, pay for goods and services online with digital forms of electronic currency. So how would one pay for such a good or service with a physical gold bar, coin, etc? Easy, create a community-owned and operated “bank” to hold a precious metal/metals and in exchange for these metals, you are given, not a bank note, not an IOU, or receipt to go retrieve your precious metals at your disposal, but rather an encrypted, debit-like card which holds, in digital form, the exact amount of gold you deposited at that “bank”. At any time you can go to that bank with your card and retrieve your gold, but there would be no reason to do so because the encrypted card would pay for, and be accepted, at literally every point of purchase where money would be exchanged for goods/services/tax payments. The community-owned and operated “bank” would take a very small percent of the gold deposited, with the depositors consent, of course, in order to make a profit on this service. A portion of these profits would then be re-invested into the community which the “bank” resides. So, if say, a mom and pop online retailer resided in Springfield, Missouri, they would collect the digital payments in the form of gold-backed electronic money and then deposit it (per day, per week, bi-weekly, what have you) at. their. local. community-owned. and. operated. “bank”. Which then invests into THAT community after a reasonable profit has been made at said “bank”. Cut, dry, profitable, prosperous, the circle of life.

This is Newer Money. Thank you for reading.