From where does the money originate? It is incorrect to blame farmers for inflation. It is incorrect to hold gas pump personnel accountable for inflation. It is incorrect to blame individuals for inflation. Why? since farmers don’t produce money. Employees at gas stations do not print money. Money is not printed by the people.
So, who is the money printer? The government controls the banking system. This is the Federal Reserve System in the United States. Politicians point the finger at inflation on everyone but themselves. Politicians that place the blame on unions and large corporations are either demagogues or incredibly dimwitted. Since only the government has the legal ability to counterfeit money, it is the government that is to blame for the increase in the money supply.
The background of money: money started out thousands of years ago, although the exact time is unknown. It was a barter system back then, however. For example, I am a farmer and I own cattle. So, I make butter and I would trade butter with somebody who makes shoes. This works to a certain degree, because what if the shoemaker wants butter but I who own the cows, want furniture instead of butter? So, it starts getting complicated.
They therefore devise a medium of exchange. Additionally, this was cash. It wasn’t always paper, though. They initially mostly settled on gold and silver. Because gold and silver were in short supply, would not corrode, and were in high demand, they were utilized. Gold became to be recognized as money by all. Since gold cannot be created out of nothing, once the politicians got involved, they disregarded the fact that it was utilized as currency. Gold cannot be created from nothing, but money can.
According to John Maynard Keynes’s fabian socialist theory, gold and money should be kept apart. Thus, for instance, money in America was backed by gold until 1934. At the period, gold coins were in use and could be purchased at coin collectors’ stores. The United States government possessed billions of dollars’ worth of gold, and 135th of an ounce of gold was concealed beneath each dollar bill. However, because they couldn’t create these without gold backing them, they could only produce a limited number of them. Therefore, the politicians, shrewd as they may be, reasoned that they would avoid inflation if they were forced to back their currency with gold. Therefore, Franklin D. Roosevelt at the time called in all the gold, encouraging the populace to do so out of patriotism, knowing that the government would retain it for them in case of an emergency and return it to them when it passed. Many gullible, patriotic folks so gave the government their gold, but Roosevelt informed them that the government could not return their assets until the situation was resolved. And because the administration refused to return the gold to the people, the emergency of 1934 continued. Therefore, America kept creating a lot of paper money.
The Fabian Socialist Movement – money and its supply
From where does the money originate? It is incorrect to blame farmers for inflation. It is incorrect to hold gas pump personnel accountable for inflation. It is incorrect to blame individuals for inflation. Why? since farmers don’t produce money. Employees at gas stations do not print money. Money is not printed by the people.
So, who is the money printer? The government controls the banking system. This is the Federal Reserve System in the United States. Politicians point the finger at inflation on everyone but themselves. Politicians that place the blame on unions and large corporations are either demagogues or incredibly dimwitted. Since only the government has the legal ability to counterfeit money, it is the government that is to blame for the increase in the money supply.
The background of money: money started out thousands of years ago, although the exact time is unknown. It was a barter system back then, however. For example, I am a farmer and I own cattle. So, I make butter and I would trade butter with somebody who makes shoes. This works to a certain degree, because what if the shoemaker wants butter but I who own the cows, want furniture instead of butter? So, it starts getting complicated.
They therefore devise a medium of exchange. Additionally, this was cash. It wasn’t always paper, though. They initially mostly settled on gold and silver. Because gold and silver were in short supply, would not corrode, and were in high demand, they were utilized. Gold became to be recognized as money by all. Since gold cannot be created out of nothing, once the politicians got involved, they disregarded the fact that it was utilized as currency. Gold cannot be created from nothing, but money can.
According to John Maynard Keynes’s fabian socialist theory, gold and money should be kept apart. Thus, for instance, money in America was backed by gold until 1934. At the period, gold coins were in use and could be purchased at coin collectors’ stores. The United States government possessed billions of dollars’ worth of gold, and 135th of an ounce of gold was concealed beneath each dollar bill. However, because they couldn’t create these without gold backing them, they could only produce a limited number of them. Therefore, the politicians, shrewd as they may be, reasoned that they would avoid inflation if they were forced to back their currency with gold. Therefore, Franklin D. Roosevelt at the time called in all the gold, encouraging the populace to do so out of patriotism, knowing that the government would retain it for them in case of an emergency and return it to them when it passed. Many gullible, patriotic folks so gave the government their gold, but Roosevelt informed them that the government could not return their assets until the situation was resolved. And because the administration refused to return the gold to the people, the emergency of 1934 continued. Therefore, America kept creating a lot of paper money.