The video above is embedded not in support or against the return of a gold standard, but because it helps highlight a very important concept – “money” is not value.
If you believe it is, I want you to repeat the following with me.
Money is not value.
Money is not value.
Money is not value.
“Money” is, at best in the 21st century, a common medium of exchange (a representation of value). It does not actually have any inherent value, other than perhaps as toilet paper, emergency fuel for a fire, or a paper airplane/paper hornet.
Why is this important to understand?
Well, I hear it expressed often enough (mostly in person, but on this blog from time to time as well), that people want to “make money”.
This counterfeiting operation is actually reserved for criminals, and your respective, benevolent masters in government around the world (as if there were a legitimate difference at this point).
What you should instead be focusing on is making something of actual value that (hopefully) translates into currency over time, and when necessary.
This is timeless.
Timeless because what you are creating has inherent value relative to the needs and desires of others willing to trade for it.
People don’t need money.
The only reason people are willing to trade for it at present is because it is such a commonly accepted medium of exchange – it’s convenient. What you actually need (or think you need), are the things you are trading the money for.
“There’s no difference there Anthony”
Actually, there is a massive difference here. If you spend your time chasing and attempting to hoard as much “money” as possible, the fruit of your labor (indeed, the entire foundation behind it) is dependent on a currency that can be easily manipulated by monopolies on force – what we gently call “government”.
This is a very dangerous rat race to get caught up in at any point in recent time, let alone now.
Why hoard XX,000 colored pieces of paper (more accurately, ones and zeroes on a computer somewhere) when you instead could use that currency to build life experience, see the world, fine tune a particular skill set, jump start an entirely new skill set, or invest in something more stable than fiat money.
Point being, spending 6 months and XXX dollars with the best martial arts/self defense trainer in your area is probably going to serve you the rest of your life a lot better than watching your fiat money dwindle into nothing.
Likewise, spending a few weekends learning how to use a firearm is going to serve you the rest of your life a lot better than XXX dollars dwindling into nothing.
The same applies for traveling just about anywhere – it’s insanely cheap in the 21st century, and about 100x easier than most think.
And what about tangible items?
Well, a firearm and accompanying ammunition is going to serve you well for a long, long time, assuming you have the ability to purchase such items.
If you step back from the looking glass far enough, fiat currencies come and go like the weather. The current world reserve currency (the USD) is currently pegged to somewhere between 100 and 200 trillion dollars of debt and unfunded liabilities.
I don’t know what’s more bizarre, the numbers themselves, or the fact that the range is actually that big.
Does it even matter?
Probably not, because it’s a cruel joke at best to think that a currency that deeply in “debt” (I think we need a new word for debt to this degree, maybe debtocaust?), will ever recover – or do anything but burn up for that matter.
With that said, I think it’s very unwise to focus on “making money”. Instead you should be focusing on creating that which actually has value, and then monetizing it when required or desired.
Even more unwise though, at least in 2010, is the hoarding of fiat money, for any reason.
Especially a “rainy day”, since the irony is, the real rainy day is when that “rainy day money” can’t buy anything.
Not to mention, unless you live in a part of the world completely immune to natural disasters, you never know when you’re going to need some spare food, spare toilet paper, a good knife, a loaded gun, and the training to use these items effectively (granted, a weekend long course for effective toilet paper use is, hopefully, pretty unnecessary).