The Problem With The Value And Faith We Put In Paper And Electronic Currency

If you reach into wherever it is that you keep your on-hand cash and pull it out, there are four things that you should keep in mind:

• You have exchanged something of value to you in order to obtain that note, and you should have a good understanding at all times of just how much of that valuable thing you traded for that note
• From the time you exchanged that item of value for that note, there has been and will always be continual fluctuation in how much of that valuable thing each note is worth to you and others
• The actual note in your hand only has a perceived value, granted to you by others who also believe in that same perceived value, otherwise all you hold in your hand is a piece of paper
• Without an exchangeable value other than its perceived value, all of the value you put into that note could completely disappear instantly…yes, instantly!

No matter where you sit on the political spectrum, no matter how you earn your money/dollars/notes, and no matter your age, location in the world, or your socioeconomic conditions, these four things apply to you. Pretty scary, isn’t it, especially that part about the value of your notes disappearing instantly, right?

There was a time in history when all of the paper currency in the world, whether issued by a bank or a government, was exchangeable for, and therefor backed by, a stockpile of precious metals somewhere. The value of the paper money in your hand was tied to the value of gold, silver, or some other metal that was under lock and key somewhere, and any time you wanted, you could go and trade in your paper money for that tangible precious metal. Today, however, this is no longer the case. And that is why whenever we are dealing with paper currency, we need to remember those four things above.

But, how did we get here, and why? That’s the trillion-dollar bill question, isn’t it?

Sadly, the answer is very simple. It all boils down to the fact that governments need your value through either your labor or your money, in order to operate and exist. That means that governments need to provide a currency that can be used to perpetuate their economic system and provide the means to take value from you. But today, there are far too many people, there is far too much potential value, and there is far too little precious metal to have paper currency tied to actual tangible real-world assets any longer. In short, the world’s governments and their economic systems need far more value in paper money than all of the already-mined precious metals in the world can provide.

Following the chaos of World War II, the 44 Allied nations came together and agreed that in order to create economic stability, they would all peg their paper currency to a gold standard and that each of their gold standards would be tied to the U.S. dollar at an exchange rate of one ounce of gold for 35 U.S. dollars. This created a scenario in which these nations and their central banks could exchange U.S. dollars for gold on demand. This system worked well and helped fuel the economic growth that would ensue for the next 25 years.

But that amazing growth would yield a problem by the 1970s. The Allied nations’ populations and economies had grown so large that the amount of U.S. dollars in circulation had far surpassed the amount of gold the U.S. held in reserves. This meant that if the world’s governments cashed in their greenbacks, there would not be enough gold to pay everyone their stored value. Fearing that this would cause a run on U.S. gold and result in economic collapse, in 1971, the U.S. government removed the gold standard from U.S. currency, allowing the central bank to just print money that has no actual real-world, tangible value except for what we perceive in our minds as a collective. No longer could the world’s governments exchange U.S. currency for a fixed amount of gold. Instead, the value of each piece of currency would be tied to its perceived, or market value.

Let’s think about that for a second. When banks and the U.S. government first started printing paper money, the value of that paper money was tied to a precious metal like gold or silver, but that meant there could never have been more paper money out there in circulation than the amount of physical precious metal the bank or the government had on hand. That also meant that at any time, you could walk into the bank or the right government office and demand precious metal in exchange for the paper currency in your hand.

Do you see how this system of paper money based on a precious metal stockpile makes perfect sense? People no longer had to carry cold coins in a purse or large amounts of gold bars on a carriage, but instead, just had to carry light paper currency in their pocket.

But now, people can no longer walk into the bank or a government office and demand something of real-world value in exchange for the paper currency in their pocket. Today, all you can get for that paper money in your pocket is other forms of paper currency, or worse, a balance on the bank’s or government’s electronic ledger.

And, if the fact that paper currency is no longer tied to anything of actual real-world value is not scary enough, the next step, which is already well underway, is to transform that paper money into electronic numbers on an electronic balance sheet somewhere in the cloud.

Imagine a planet where the governments of the world convince us all that the cost of producing that actual paper currency is just too high, and even worse, completely unnecessary now that we have this beautiful digital world in which everything is stored on electronic ledgers and we can all carry around little plastic cards in our pockets instead of that costly-to-produce and now completely unnecessary paper money. Oh, and don’t even get them started on producing coins! It costs a nickel to make a penny now. How impractical is that? You humans don’t actually want to carry around coins any more, do you?

If you don’t believe this is where the governments of the world are taking us, think a little about how you transact now compared to ten or twenty years ago. How often are you using actual paper currency versus those plastic cards in your pocket? How many of your bills do you pay with a paper check, and how many do you simply pay online?

See how this is all progressing along nicely for the governments?

And what is the problem with the governments doing away with physical currency all together? Well, the biggest problem is that people will no longer have the ability to hold currency outside of the electronic system - meaning no one, ever, will be able to hide currency from the government's greedy hands.

Then, all it will take is for the government to sit at a keyboard and it can have complete access to the value of everything you own. Remember how earlier we talked about you exchanging the value of something for that currency? Well, once all currency is electronic and there is no way for you to hold that value in something tangible, then it can all be wiped out, entirely wiped out, with just a keystroke. That’s everything you have worked for your entire life – gone in an instant.

Couple this with a current movement to get everyone on the planet an electronic ID by 2040 and every single person on the planet and their electronic currency will be reachable by governments and global governing bodies like the UN at any moment, anywhere in the world.

Can't wait to see the black markets this creates for alternative currencies! We'll be using commodities as currencies to barter with each other outside the government's ever-watching eye like it was the Dark Ages again. How many chickens for a sword?

Think of what this will do to the price of precious metals. That is, if the governments even allow us to own precious metals any longer once they do away with all physical currency.

While we will have to see where governments and technology take us, unfortunately, there is very little we can do about the tangible real-world value in our paper money, other than exchanging some of it for precious metals while we’re still allowed. The main thing to remember each time you look at those paper notes in your hand is to ensure that your portfolio of assets is as diverse as possible.

Never keep all of your value in eggs, and never keep all of those eggs in one basket.

Photo by The Digital Way via Pexels

Those Who Seek To Divide Us...

I have long believed that deep in her heart, America is not as divided as the media, career politicians, and other power seekers would like us to think. I believe that deep down, most Americans want a better life for their families, want to be left alone to pursue their dreams, and wish to simply live life as they see fit. I know that is all I want – to be left alone, to be allowed to keep the fruits of my labor, and to live life as I see fit according to my beliefs.

Naturally, while I do believe these are the things we all want in life here in America, I do recognize that we currently have differences in opinion about how we can obtain these dreams. I would argue, however, that the dividers like the media, politicians, and other power seekers, for their own benefit and to the detriment of the rest of us, have created these differences in opinion by continuing to divide us into pre-defined groups. The side effect of which, has been the distraction of far too many Americans from attaining their dreams, and instead, an unnecessary, continued concentration on the overly inflated differences between us.

Those who seek to divide us for their own prosperity and continued existence, seek to divide us according to things like gender, race, career choice, and net worth, when instead they should be using their voices to unite us as a nation. They should be using their voices to bridge the real gap between us – those who see America as the land of opportunity where anything can be achieved regardless of those very things the dividers use to divide us, and those who have been so pummeled with the divisive message that they have come to believe it, and wrongly, now live their very lives by it instead of fighting against it.

Here is an example of how these dividers quietly accomplish this goal, which also leads to the revelation that this divisiveness is what has put us into the two camps that, in turn, the dividers point to and say is the reason we are divided, instead of admitting that, in fact, they are the source of our divisiveness.

Each year, Time magazine selects a person of the year that they claim, for better or worse, has been the most influential person in the world. This time around, they naturally have chosen Donald Trump. In the video in which Time Editor-in-Chief, Nancy Gibbs, explains why they chose Trump, she states: 

“One of the things that was remarkable in going to see him to interview him is to be in that penthouse, which is the most ostentatious imaginable marble and mirrors and gold, and see him in the suit and the diamond cufflinks. There’s a kind of dissidence that we pressed him about of how is it that the billionaire is the tribune of the working man? He said he thought that it had to do with that he wasn’t a phony – that there have certainly been wealthy politicians before who in some cases would bend over backwards to make themselves appear like the common man, or do anything that they could, eating the corn dog at the Iowa state fair, and wearing a flannel shirt in New Hampshire. I think he had a very strong instinct that his wealth and the flamboyant display of his wealth was not a liability, that it was actually an asset.”

This statement got me thinking about one of the most staunch and apparent differences in what the Time magazine cover calls “The Divided States of America”, as well as the root cause of this difference. I agree that we are a nation divided – a nation divided in principles and a nation divided in hopes and aspirations. And while I agree there are racists and homophobes and all sorts of others –ists –isms and –phobes living out there on the fringe ends of the political spectrum in this country, I also believe that a large majority of Americans are actually none of these things that the dividers use to steer us to their desired end through fear.

I do, however, believe there is a very real chasm between two sides in this country, and it is one that we must address – one that is clearly pointed out in Nancy Gibbs’ statements about how a billionaire could possibly serve as the tribune of the hard working people of America, and we can explain this phenomenon in two words: aspiration and perspective.

Ask a conservative who they blame for their plight in America today and they will say the government. Ask that same conservative what the key is to prosperity and they will tell you business. Ask a liberal who they blame for their plight in America today, and they will say business. Ask that same liberal what the key is to prosperity and they will tell you government. Granted, reality is not as clearly defined as this example, but you can easily see the relevance of this take on the American political spectrum today.

If you do not believe that you can achieve anything in this country because there is an entire group of people – business people – holding you back, then you see a successful businessman like Trump as an embodiment of the evil that is conspiring against you. If you believe that you can achieve anything in this country because those business people build companies and provide jobs, then you see a successful businessman like Trump and the embodiment of hope and aspiration.

If you believe that the entire corporate structure in America has been stacked against you, then you look to the government for salvation. If you believe that the entire government superstructure in America has been created to steal the fruits of your labor, then you look to business for salvation.

And this is why you can pluck one working man off of the street – one who has bought into the liberal idea that the cards in America are stacked against him and that there is this mythical group of –ists, -isms, and –phobes constantly working against him – and have that working man tell you that Trump is history’s greatest monster, yet can pluck another working man off the street – one who has bought into the conservative idea that America is the land of opportunity and anything can be achieved if he plays by the rules and works hard, and that there is no mythical group of –ists, -isms, and –phobes, only a bloated government that needs his hard-earned money to survive and perpetuate itself – and have that working man tell you that Trump is an aspirational figure that represents that working man’s own potential for success in America today.

I hate to continue to narrow the differences caused by the divisiveness perpetuated by the media, politicians, and power seekers down to such a clearly defined line, but let me give you one more example. You take a young person in their early 20s who has just started their career and you show them a picture of what embodies success to them, and then ask if they too can achieve that success, and you will get one of two responses.

I believe the person who was raised on the idea that they were born in the greatest country in the world that provides people with the greatest opportunity to make something of their lives will tell you that they most definitely aspire to the success in the picture, and that their aspirations of success are achievable.

I also believe the person who was raised on the idea that they were born in an oppressive country that is filled with –ists, –isms, and -phobes that are constantly working against them will tell you that the type of success in the picture can only make someone miserable, that success of that type can only be achieved on the backs of others, and that not only is the scene in the picture not attainable for them, but in fact, is the last thing that they would want for their life, even though the image actually and truly embodies that person’s very definition of success.

And this is where the dividers have left us. They have successfully used their voice to classify us into every category under the sun and divide us into all these tiny little groups, which have led us to unite these groups into two camps – the so-called haves, and the so-called have-nots – even though each one of us has the same opportunities in life here in America. Yes, not entirely exactly the same, but still, the best opportunity of anyone else in any other time on this planet. Then, we all fight amongst each other while the dividers perpetuate their message of division, further solidifying their own existence in this world by point to us and blaming us for the divisions they have created.

I propose that the time has come for those of us that the dividers have divided to no longer allow them to divide us. We should hold journalists to what they call themselves – being journalists. We should also hold the elected representatives of the people to what they call themselves as well. And lastly, we, the divided, should come together to remove the division that is being imposed on us by no longer allowing the dividers to classify, categorize, and split us apart.

Photo by Ingo Joseph via Pexels

What If This Is What Happened...

Overheard on Jefffrey Epstein’s Lolita Express somewhere over the Southern Atlantic in 2002:

“I’ll tell you, Bill, here’s what we do – It’ll be yuge! – So what I’ll do, if Hillary ever decides to run for president – it’ll be great – I’ll run as a Republican – I’m a billionaire so everyone will think I must be Republican – They’ll all believe it – I’ll go crazy – I’ll go nuts – I’ll whip them into a frenzy over immigration, over China, over Mexico, over the economy – I’ll play the middle – fight both parties – No one will suspect a thing! I’ll scare the hard core Republicans and get them out to vote - win the nomination – Get this! – Then, I’ll get even crazier – Say even crazier things – Practically throw the election – Everyone will believe it! – They’ll think I’m just being me – my crazy self – And that I just couldn’t control myself – couldn’t keep my mouth shut! – They’ll totally believe it! – People will get scared – They’ll be really afraid of me starting nuclear war or something – Like I’m going to start nuclear war when I have a bad day! – They’ll totally think it! – They will be scared that no matter what Hillary’s done in the past – no matter how crazy liberal anti-American she was growing up – no matter how many laws she breaks or lies she tells coming up – she will win! – She’ll win because I will scare them all so much – And they’ll have to vote for her – I mean, they’ll have no choice – It’s either me or her – No one else will stand a chance – It’ a two-party system! – What are they gonna do? – With the supporters you guys already have and the people so scared of me being crazy – She will win no matter what – I’m telling you, it’ll be yuge! First woman President – you’ll be her First Lady! – I’ll loose – say the election was rigged – bitch for a bit, then go back to making money – Doing what I do - I’ll be more famous than ever – Maybe even get a TV show or something – Amazing shit! – I am telling you, it will work – People will believe it – No one will suspect a thing – It’ll do wonders for my business – You guys will be back in the White House! I guarantee you it will work!”

Photo by Khusen Rustamov via Pixabay