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Money: Why did we ‘invent’ it? Let’s review!

October 15, 2014

Money, like ‘time’ was invented by man for a specific purpose. The word ‘money’ has some 5000 years of history. Farmers started to barter their grains/produce for cattle/food and other products (from nature) and this began the process of monetary economics. What emerged from barter was the concept of ‘value’. Since ‘value’ is a psychological concept/perception it is subjective (at the core) and without any objective substance or materiality. To solve this conundrum of ‘value’ (a necessary phenomena for trade/exchange) in a somewhat objective manner, ‘money’ was invented. Money became the ‘proxy’ for this subjective concept which we call ‘value’.

Prior to our invention of ‘money’, barter was the means of exchange and trade!

So what products emerged as ‘money’ within the barter communities? What happens is that many different items (in various locations/markets) emerged from the people (as ‘money’) as they negotiated among themselves. Indians chose an item called ‘wampum’ (a bead from the sea). Hunters chose an item from the forest or rivers like beaver skins or deer skins. Farmers chose items like tobacco, rice, and wheat. City folks preferred items like silver/copper or gold (minted into coins). All these and many additional items emerged from the people and became forms of ‘money’. Items like cowry shells, nails, tally sticks, and even cigarettes were traded and called money within select markets.

Men within our service branches chose cigarettes as a form of money! Scarce smokes could purchase many goods/services!

As our rulers and strong men got into the mix over what should be ‘money’ the best items ended up being copper, silver, and gold (minted into coins and then denominated with numbers). Numbers and names emerged and these units/words eventually became our currencies and proxies for price discovery/valuation within a marketplace. Rulers used a physical coin (defined by weight) as their representation of money. These coins (by weight) then were given a ‘name’ and a ‘number’ and this produced a coin which could be used for ‘valuation/price discovery’ of alternative goods/services within a marketplace. This evolution of money and currency created our market ‘prices’ as we negotiated exchanges in our respective marketplaces (throughout our planet).

This money exchanger operated in Afghanistan (2012)…using different National paper currencies! Exchange rates were created by the person in control of the currencies!

Prices then became representations which allowed us to compare goods with alternative goods. Prices eventually governed over trade and exchange and determined who got what and when. All this worked relatively well as long as rulers did not ‘counterfeit’ or ‘debase’ the coin/currency. Over time, however, rulers and their proxies (the lenders/banksters/finance ministers) discovered that they could counterfeit/debase the real item chosen by the people and no one would notice what had happened. People became sold on the concept of ‘faith’ in rulers as their representatives for honest money/currency. Deception and intrigue, however, emerged into our markets to confused the price discovery process and the valuation process. Human nature was revealed!

Goods and services have no inherent/fixed ‘price’! Prices are metaphysical creations determined within a marketplace! Within economics all is ‘relative’ and ‘subjective’!

This deception/debasement process tended to work to enrich the rulers and their proxies (lenders, banksters, finance ministers) so they did not need to earn their fair share of the wealth which the laborers produced from the land/resources. Gradually, the entire money/currency operation was confiscated and controlled by the rulers and their selected proxies (now mostly private banks and finance houses). Controlling the ‘money’ meant that wealth could be distributed and manipulated for the benefit and desires of the rulers/banksters/lawyers. The people who invented and started the game of money (via barter/trade/exchange) lost complete control and became serfs/slaves/servants of the monied interests and their desires to rule and control. Strong men (with guns) assured that the rulers remained in power/control…and the people maintained a subservient role/nature.

Debasement of a currency happens over time! Banksters are often responsible! Politicians are also responsible!

The original purpose of money was meaningful and necessary for trade/exchange/growth/prosperity. The original goal of economics was WEALTH creation. Wealth was what money was supposed to produce for the people and the larger society. Governments, however, took control over money and then gave control to banksters/lenders/finance ministers for their administration of the money units. This gradually evolved into the Global Casino operation which we experience today. Today, money has mostly LOST its original function/purpose/role within economics. Money today has evolved into units of imagination and virtuality. Today, our money has NO meaningful relation to the First Principles which established money for our markets.

Dozens of Nations now promote a digital/cashless economy! Most of the Eurozone is becoming cashless! Cashless finance means cyberspace currencies for all transactions!

Many today think of our cyber currencies (now located within cyberspace) as our money and currency. This is a gross deception and few comprehend what has evolved over the years. Cyber currencies are really units of light (pixels) which appear within our computer screens. These cyber currencies (dollar, pound, yen, etc.) get typed into a computer screen by banksters within their central planning facilities (called Central Banks). These cyber units then get circulated via computer to computer all around our planet. We call this globalization of economics and finance. Today, we live within an interconnected global marketplace of cyberspace (called the World Wide Web). This web is now our means and source of price discovery and valuation of goods/services. Few comprehend what has evolved and why our current system is dysfunctional and corrupt!

Todays World of finance/economics is a Global interconnected world which is computer driven! Most every currency today is a cyber currency which gets created by a Central Bank! Central planning rules over economics today! All citizens of our planet are becoming slaves of the elite who rule/control the global system!

What is MONEY? Where is MONEY? Who creates MONEY? How is MONEY created and distributed? What is our CURRENCY? How does CURRENCY and MONEY differ? What is CONSCIOUSNESS? What/where is the SOURCE of our currency units? What is VALUE? Is VALUE a ‘thing’ which exists? Is VALUE imaginary? Why do so few understand the history and role for MONEY, CURRENCY, VALUE? All these questions and more need to be understood to comprehend why our current monetary/economic system is dysfunctional and collapsing in front of our eyes. The difficult issues of money and the related concepts (algorithms, naked shorts, puts, calls, derivatives, swaps, paper gold, high frequency trading, quantitative easing, thin air, out of nothing, realtime, etc.) must be comprehended and understood if a person desires to survive in our current distorted/deceptive/corrupted environment. Who wants to learn? Enjoy! I am:

2 Comments leave one →
  1. October 18, 2014 12:53 pm

    Great article!


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