Tuesday, December 31, 2013

One more time: What is money?

Can we get back to normal? What is normal?

Different types of money:


  1. commodities (Gold,Silver), 
  2. token (fiat currency)
  3. credit (debt). 


Price of money (the rate of interest)
Investment (capital)
Output (Goods and Services)
Day of reckoning (crisis of overproduction)

 90% - Labour (value created by human effort)
 10% - profit/capitalists, interest/financiers; landlords/rent

Who will buy, and with what? Currently the US government and other governments are simply printing their money. There is a disconnect from the price of money and the creation of this money.

What does it mean when your hard earned money, earned with your labour, your sweat equity can simply printed by a government. It means your effort has been devalued.

Meanwhile the debt ever increases, 100% of GDP, and higher, for example, now in the UK the debt to GDP ration is 1000%.

This will not end well.

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