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To: Zardoz who wrote (69152)	5/14/2001 4:51:12 PM
From: long-gone	Read Replies (2) \| Respond to of 116782

<<Answer one question. What is money? Credit.>> Rather limited answer.

To: Zardoz who wrote (69152)	5/14/2001 6:50:56 PM
From: E. Charters	Read Replies (4) \| Respond to of 116782

Remember what the professor said about simple declamatory answers. Back up your answer with reasons. Actually you get part marks for that answer. I will bet you looked it up. You are right, partly. Of course I didn't think you had not thought about it at a certain level. Just about everyone who posts here has some basic grasp of the fundamentals of money, unlike the greater unwashed herds of people who chase the buck but never understand it ramifications. So now what would Hitler, that great genius of action, have said about credit and its limitations? (He admired Ghenghis Khan for his worst tendencies so that should have been people's first clue not to trust him, but he had great insight into money matters, which allowed him to heal Germany's economy. Ironically some of his chosen enemies understood money as well as he did because the had to learn to deal with it as credit instruments well before others came to terms with that in Europe.) Let me help you. although money is distributed as credit it is subtly different. It is not certain kinds of credit, it can only be one kind. Redeemable credit. Small quibble? Well it is all. Money is an instrument of redemption of value. In it most redeemable form it is a thing of value in itself. In other words it has intrinsic value in its best form. It depends on what you trust. Some people trust letters from people. It is a form of neurotic dependence. Society must work with this trust however. But it is subject to adulteration. The question is what is value finally. The difficulty in establishing value means that money must have currency or commonality of value and dependable indexable value in some way. So its supply must be somehow limited also in some way. In this, it is most difficult to establish a credit system that cannot be exploited by too liberal a means of creating money where people's ideals and power exceed their temperance and vision. Interest rates alone cannot do it. There must be a way of limiting the money supply or supplying confidence to it that is easy to track and that all men will place confidence in it. Comparing credit units in some easily resolvable way with one index, a metal, gold, became man's early, primitive and universal way of establishing worth. It was something you could see, feel, and touch. The question is, now that many countries communicate so fast and effectively, and statistics can be compiled so accurately and quickly, is this primitive form of indexing obsolete? I think the answer can be found in what credit is. A form of trust. It depends on what you trust. Do you trust government completely? Have the people who know, any control on the monetary policies of their elected? All we are getting in elected officials are people dealing with an impossible problem as with Greenspan, or people who will balloon credit to untenable levels with rose coloured glasses. I trust gold. Call me archaic and simplistic. You trust politicians. I trust gold and guns. I also trust you in a way because I can predict your actions and reactions. So knowing what you will do and what gold will do is a form of trust. If I owed you a million dollars and could not write you a check, but showed up with a bag of gold dust on your doorstep weighing 2000 ounces T (137.04 pounds AVDP) I will bet you would refuse it as payment. Your grandaddy wouldn't have. Where did the Hutch's lose it? I think they lost it by taking some kind of government drug that made them brainwashed so that certain kinds of mantra would make them follow the pied piper. I don't blame you. It was in the food and water. Take a hike into the bush and live off the land for a while. Try to get the poisons out of your system. Get back to basic values. Try to think about the worth of things and how you would trade with any group of people for commonly arrived at value if you didn't have an F-15. You will come around. The basics are there. You just have to dry out for a while. EC<:-}