Once we traded firestarters for a wheels. Eventually we began using gold coins as a medium of exchange. Then warehouse receipts (for stored gold) we used as currency. Now we have a Federal Reserve Bank. That is a quick history of money. Never forget money is a medium of exchange, and you will be able to figure out what is going on economically.
Albert Jay Nock said "...everything which is paid for must be paid for out of production, for there is no other source of payment."
Printing money in excess of what is in the warehouse makes a claim on all savings, normally in the form of inflation. All of these bailouts are guaranteed by we the taxpayers. They are an inescapable claim on your savings and future production of goods and services.
Under the rule of law the people who got themselves in trouble would fail.
Tuesday, March 24, 2009
Money Is A Medium of Exchange
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