What exactly is “Money”?

20 Dec

“Where does all this money come from?”

It all comes from a printing press. Some of it is then given to people who’ve actually worked to earn it, some even to people who have generated it through creating some of the former type of work for others to do and a lot more to people who just play around moving it from one place to another – except that in this case nothing actually moves at all except a flow of electrons down a cable.

The key point to grasp is that it’s not actually “money” as the Romans would have known it. It’s virtual, theoretical, and infinite in quantity once inflation takes a grip.

And it just goes round and round. The latest gyration is that countries with no money – in fact, thanks to Gordon Brown and his ilk, MUCH LESS than no money – are lending this non-existent “money” to a ludicrous international Quango led by a French crony and political failure rewarded with perhaps the biggest financial job in the world who is going to lend it back to some of the countries who lent it in the first place, which – having built up even more debt through lending themselves money via a third agent rather than directly – now have to borrow even more money to help pay off the money they’ve just borrowed to help pay off the debt previously incurred by their moronic leaders, who frequently quoted the phrase “borrowing requirement” as if some ogre was standing over them with a vast bludgeon forcing them to borrow money even though NONE of them was elected on a policy of “Vote for me and I will borrow so much money (to make it appear I am clever and generous) that the country will go bankrupt and make your money worthless.” Or if that was in Labour’s manifesto it must have been in very tiny print.

Anyway, at each stage of this movement numerous people who don’t do any real “work” take their cut and in the case of the political and financial elite become very rich even though no wealth-creating “work” is done whatsoever. Thus the sum of “money” involved diminishes constantly and more has to be printed to fill the gap. The vast debt built up is reduced through inflation, which of course stiffs the plebs – and especially anyone idiotic enough to save this increasingly-worthless paper – while leaving the political class largely intact.

Simple really.


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One response to “What exactly is “Money”?

  1. faisalmahboob

    December 20, 2011 at 11:31 am

    But what is the alternative? We can’t go back to the Gold Standard as it restricts monetary policy and has other problems we have seen in the past. Another possible solution could be to have a debt free society like in Islamic Finance.


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