Saturday, April 9, 2016

Ways our modern money is funny

One of the things am glad I did a while back is sit down and come up with my own explanations for money. So yeah figured some things out on my own and you can click the money tag at bottom of this post to chase down that path. In essence though I concluded that money is a social IOU which society guarantees, which is given at best in exchange for a favor. So money enumerates the value of a favor in my opinion.

In the past though before the modern monetary system, money I think was just one thing, like gold itself could be made into money, but was also just gold. And like, there were jewels. Ok there still are lots of things for riches, but today people focus on money. So people could have riches, where money was just a part of it, and how did the nobility gain riches in feudal societies as shift to a particular political system?

Sitting here typing this post can guess, so not saying did the research, but wars for riches were one way, as well as selling things from things owned by the nobility, but also think a lot of their money came from taxes.

So could the nobility go bankrupt? My understanding is, yes.

And the idea of simply minting money probably was abhorrent but not researching for this post! But today with modern money, of course, governments have figured out ways to simply make money, which typically involve government bonds.

Original ideas for government bonds were temporary funds, but lots of nations now have a constant supply of government bonds which allows them to run immense deficits, which to me is how modern money can get funny.

My own explanation for endless government deficits is that there were wealthy people who realized that if they bought government bonds and pushed governments to fund that way, they could avoid taxes. Though it actually simply pushes taxes down the road, though for some wealthy that could be enough to live a lifetime with a much smaller tax payment than otherwise.

In my opinion we have wealthy members of society willing to completely destabilize the social order ONLY to limit their taxes. No other motivation is necessary to explain a tremendous amount of problems of modern government.

These wealthy avoiding taxes in my opinion lack any moral guidance in this behavior.

And recently, some managed to get governments to bail them out around the concept of "too big to fail" which is something even the nobility couldn't do in the past.

We have modern rich who have pushed themselves beyond past nobility by controlling governments in such a way that they are rescued even when financially stupid.

And not against wealth at all, but do think that people should earn their money or I guess inherit it, is ok.

The nobility in the past did not have the same option of funny money.

If they were running out of riches, they could raise taxes, and possibly lead to rebellion, or they could go on a war to go grab riches.

In our time, we had demonstrated recently how some of our wealthy can just have the government make money for them, bail them out, and go on living in luxury.

I've seen no shame in their manipulate the government to save them game either. And I dare say, there are wealthy who probably have actually en toto earned nothing, who are in essence some of the greatest government welfare recipients in human history.


James Harris
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