What makes money money.

• Durable: A good money shouldn’t fall apart in your pocket nor evaporate when you aren’t looking. It should be indestructible. This is why we don’t use fruit for money. It can rot, be eaten by insects, and so on. It doesn’t last.

• Divisible: A good money needs to be convertible into larger and smaller pieces without losing its value, to fit a transaction of any size. This is why we don’t use things like porcelain for money – half a Ming vase isn’t worth much.

• Consistent: A good money is something that always looks the same so that it’s easy to recognize, each piece identical to the next. This is why we don’t use things like oil paintings for money; each painting, even by the same artist, of the same size and composed of the same materials is unique. It’s also why we don’t use real estate as money. One piece is always different from another piece.

• Convenient: A good money packs a lot of value into a small package and is highly portable. This is why we don’t use water for money, as essential as it is – just imagine how much you’d have to deliver to pay for a new house, not to mention all the problems you’d have with the escrow. It’s also why we don’t use other metals like lead, or even copper. The coins would have to be too huge to handle easily to be of sufficient value.

• Intrinsically valuable: A good money is something many people want or can use. This is critical to money functioning as a means of exchange; even if I’m not a jeweler, I know that someone, somewhere wants gold and will take it in exchange for something else of value to me. This is why we don’t – or shouldn’t – use things like scraps of paper for money, no matter how impressive the inscriptions upon them might be.

Actually, there’s a sixth reason Aristotle should have mentioned, but it wasn’t relevant in his age because nobody would have thought of it…it can’t be created out of thin air.

Not even the kings and emperors who clipped and diluted coins would have dared imagine that they could get away with trying to use something essentially worthless as money.

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I have been neglecting this page.

I have been doing it out of confusion about the word Capitalism. This blog is under the authority of Prodos Marinakis for the purpose of promoting Capitalism. I can’t very do that if the definition is confused in peoples minds.
___Capitalism is a complex concept. So I will make the subject simpler.
___A new definition of capitalism for you.
___An unregulated market place that operates under common law rules.

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Now I can write here and post to Facebook.

I love it. One more nail in the coffin that the free Internet is building for socialism. We will pick apart that false monster much more rapidly. It must be dismantled if most of the human race is not to die in poverty and disease. Only free markets can provide the wealth necessary to keep us alive. All through history the state has tried to destroy them and all through history it is in those places where the state is weak or not looking the men have produced the wealth that has kept the human race alive. We carry on that tradition as we share our ideas here on the Internet.

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Why we are in a depression and not a recession.

It is a depression. What makes it a depression and not a recession is simple.
A recession is the popping of a bubble caused by financially manipulating the cost of money to a lower level than the market would put it by a central bank. The market can recover from that in about a year.
A depression is when the government steps in and starts doing politically correct things on a massive scale to stop a recession. Each of those non economic actions in the economic field have bad consequences. So the government keeps doing things. It will keep doing that until people wake up and realize that it is the problem and must be stopped.
So until we return to economic solutions to economic problems we will be in a deep depression. It takes longer than a year to wake people up. How much longer we don’t know yet because the Internet speeds things up but if feel sure that it will take longer that the 3 years required to officially call it a depression.
Our problem is not just an economic one. It is one of understanding and special interest.

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The Market versus Socialism

There can only be order if there is freedom. Markets do need to be guarded from force. That can only work properly if the guards are paid by the market on a voluntary basis and can be fired on a moments notice. Money must be in total control of the market. Anybody who wants to make up a batch and sell it must not be interfered with.

Whether there is currently a free market or not we still must talk about it because it represents the economic pole of order as opposed to socialism which represents the economic pole of disorder.

In the market we have prices that people use to do their planning. With prices that can be relied on every body who is an economic player plans out what he is going to do and does it. Since everybody knows what he is dealing with almost all plans work out.

In socialism economic plans are made by political means by few people. There are no reliable prices for them to use to determine what to do. So they have to know everything about everything for every move they make. Since every move they make changes things they need to know everything about everything in the new changed environment. Since there is never just one set of planners in socialism their plans always conflict with each other. It is worse than anarchy. It is total random action leading to total destruction of the economic system.

A few people can never know as much as everybody does.
There are too many plans to be made for one committee to make them all.
There are no prices that give accurate information.
There is constant conflict with the people who spontaneously are always going to try the reestablish the order of the market.
The money is no damn good.

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Electric Money

Do you really think that electrical patterns have real value? You are talking paper money plus. You don’t even have to issue more bills to inflate. You just change the number on a screen.
Sound money is money who’s value is determined by the market (An auction of all of the people.) People will only make more of it if the get enough profit to do so. If it is made out of paper that means an infinite amount. If it is made from precious metals it means only so much. If too much is made users of the metals will melt the coins down and use them to make their product so that they can make money on it. If there are to few the the makers of coins will make them and more will be produced.
No bubbles there so no recessions/depressions.
We need to take control of money from the hands of the few and put it back into the hands of the many.

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The problem is the FED.

The problem is the FED. There has been no deregulation since it was created.
Spontaneous order in chaotic systems.
The economy is a self regulating system.
The regulations of governments always tell it to do something differently.
The system adjusts but is not as strong as it is at equilibrium.
Once there are enough government regulations a critical mass is reached.
The market starts falling apart into units that can no longer cope with the abnormal(government) regulation.
We get the unemployed workers and the bankrupt businesses.
We are stuck with firms that either have had little regulation that effects the way that they do business or government supported entities (The Bank).
Since the economy is smaller now and a larger proportion is non productive we have to do with less unless we are members of a privileged elite.

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