Definations of Money
Some Working Definations of Money
A check: This is effectively what we do when we
write a check we create a personal bank note. A check is merely a written paper note authorized by
your autograph that can be presented to a bank in exchange for what is
accepted as legal tender.
Legal tender: is whatever the authority, who we
all have agreed governs these matters, determines to be acceptable as a means of exchange. For
the benefit of everyone in a community, if paper notes are to be freely exchanged one would
naturally want some central authority to vouch that these notes in fact really do have
redeemable value in a bank.
Fiat
money:If those paper notes that are deemed
by the State legal tender cannot be exchanged at the bank for real gold or silver for the
stated value on it - that money is not backed by anything of substance, it is considered "fiat"
money or false money.
Accepting for value:In this second scenario [using Fiate money], the paper has no intrinsic
value. The only value it has is the value you perceive or accept it to have and as long as you
accept it as having value it will be a means of exchange.
The above for the purposes of this site
are working definations. Looking at the defination above [Accepting for Value] here in lies the
problem. Perception is a fickle thing - what may be deemed to have value today may be deemed to
have very little value tomorrow and that my friend is an insult to human beings. Hopefully by
the time you have completed your course here you will intuitively understand
that.
Speaking of value - a case in point within
recent memory during Bush Jr.'s US presidential term we
witnessed how the American Dollar lost 27% of its value against the Canadian dollar
in less than 1 year! in less that one year! in less than one year! in less than 1 year folks!!!
Is this an indication of the shape of things to come.
Few realize how severe that erosion of value has been since 1913.
Folks we are literally talking pennies - let me repeat it - pennies on the dollar!
By staking our future in paper that represents nothing of redeemable
value we are extremely vulnerable but the situation we unwittingly find our selves today is
fundamentally unsound as every aspect of our lives since as we shall see it is based almost
exclusively on a paper derivative world.
And as we shall find out this is even more serious a
situation then I can allud to here.
The good news is there are things we can do to create and protect
what wealth we do have but . . .
But before we can do something positive we fundamentally need to
understand our predicament. Like a fish in water we are so conditioned to behave in a paper
derivative world that it virtually impossible to see our way out of it.
With the information and links in this site you will be able to take
the appropriate steps to not only ensure security for ones self but also ones family. How you will
be able to do that is not based on what you know - but on how you think.
The book by Napoleon Hill, "Think and Grow Rich" was on the right
track but few know that this book for mass consumption is the severely watered down version of
"Success in 16 Steps".
Now lets get a sense of what money really is.
Next GO TO: What is
Money
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