Money is not "real", it is an agreement

Money is maybe the most effective means of trade. It is a neutral medium. It is not linked to anything except the agreement between me and you that it carries some trading value in the tangible world.

Money is not real, however. What IS “real” is the basic cost of living: the price of housing, water, clothing and food. To stop and stabilize inflation is to stop the rising prices of those four.

Our current monetary system is based on the trade value of money against gold. But gold is nothing more than stupid metal. A “rare” one, but so was Aluminium, people thought. The next is an excerpt form a Wikipedia article:

Before the Hall-Héroult process was developed, aluminium was exceedingly difficult to extract from its various ores. This made pure aluminium more valuable than gold. Bars of aluminium were exhibited alongside the French crown jewels at the Exposition Universelle of 1855, and Napoleon III was said to have reserved a set of aluminium dinner plates for his most honoured guests.

Until we found a better way to harvest it and found that Aluminum is actually one of the most common metals on this planet, it almost could have replaced gold.

Like any agreement, the value of money is directly connected to the believe we hold in this agreement. When we lose this belief, the “value” of our money plummets. Inflation sets in. Everything penny we have been saving becomes worthless.

So fucking what if a government prints more money than there is gold on this world (re: “Zeitgeist”). We believe in money. We keep on producing goods and buildings and worthless crap as long as we get something in return we can use to spend again. Compared to 100 years ago we are wealthy beyond dreams. We are connected in many ways. High tech equipment has become incredibly cheap and outperforms anything scientists thought was possible only 50 years ago. A lot of stuff can be produced dead cheap now.

The “real” economy is based on production and trade. Money is nothing more than the grease.

To stop and stabilize inflation is to stop the rising prices of housing, water, clothing and food.


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