Money: A Myth or A Conspiracy?

It is well enough that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning” — Henry Ford

Chasing bunch of cash, that is where everything sums up to, right? But, is that where every thing should sum up to? It’s kinda both ‘Yes’ and ‘No’. But the bigger question is, what are those god like papers?

What are real assets?

Money? Well, that would be the current asset but everything grounds up to the actual physical properties. Lands, golds are the actual properties disguised as money.

For getting money, people had to reserve their actual property to the money lenders and this is how all it started.

History

It all started with Federal Reserve System. In early 19th century, a group of 6 brilliant and wealthy people had a meeting. One of them was Nelson Aldrich who led the meeting. Other members were Henry Davidson, Frank Vanderlip, Benjamin Strong, Abe Andrews and Charles Norton. The meeting went for 9 days and they came up with Federal Reserve System and established a central bank in America.

“Central banks are the organizations responsible for money generation”

So, was that all what it took to make money the god?

“Government has no authority over central banks. They are totally independent organizations”

Why don’t central banks make enough money for all people?

“The general increase in price and fall in purchasing value of money. “

Gold is as much precious as it was before. But, money doesn’t hold the same property. The value of money changes from time to time. It’s called time value of money. Let us get it another way, gold is as much traced element as it was before. On the other hand, money is produced by a central bank. So, there is nothing like “lack of money”. Lesser the money, more is the value of money. If the central banks produce more money, then the value of money decreases.

America holds the veridical power

Well, the dollar got some deadly history. What’s for other currencies? Of course, they didn’t come out of thin air. The rest history resembles the true power that America holds.

Other currencies → Backed by dollar → Backed by gold

Above self made equation gives dollar some husky power. The amount of dollar you have grounds up to some equivalent gold. So, if you got some dollar then you got some gold. But, inflation makes the worth dollar you have a little tricky. The dollar you hold today might be worth less tomorrow. What does all this mean?

Russia The Cleaver

When it comes to money, everyone is a genius.

Above self made saying resonates the practicality of the current world and it seems so obvious with the Russia. Year 2015 A.D, central bank of America led the inflation. As soon as the veridical result begun to have its effect, Vladimir Putin sensed the act of abnormality. Knowing this, he sold all the US dollar he had and in return he bought gold. This could be the most smart thing as I’ve heard so far.

Conclusion

So, money is something that’s very powerful without actually being powerful. Money is the only thing people care about and is the only thing that’s worth very less.

A tech enthusiast and a programmer.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store