What is Money?
1. medium of exchange: a medium of exchange issued by a government or other public authority in the form of coins of gold, silver, or other metal, or paper bills, used as the measure of the value of goods and services
2. denomination: a form or denomination of coin or paper money
3. somebody's coins and bills: the amount of coins and bills in somebody's possession
Synonyms: cash, currency, ready money, ready cash, change, ready, coins, coinage, dosh, greenbacks, dough, bread, bucks
So, it is a medium of exchange, and currently all is fiat money, whose value is not derived from any intrinsic value or guarantee that can be converted into a valuable commodity (such as gold). Instead, it has value only by government order (fiat).
What? Then it has no value, and it is only a means by which governments implement monetary policy that tries to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates. Why there is no mention of avoiding bubbles, recessions and depressions?
It is because nobody understands monetary policies. Which, when joined with capitalism makes the system entirely unstable.
Capitalism is defined as:
free-market system: an economic system based on the private ownership of the means of production and distribution of goods, characterized by a free competitive market and motivation by profit
Motivated by profit? Does that mean that they do not care about anything else? Yes, definitely yes! Thus, we have money, whose role is barely understood, within a capitalistic system motivated by profit. Moreover, it is well known that money makes money and that money buys power (and the politicians who wield it).
No wonder the world economy is in such a bad shape. We have forgotten that money is a medium of exchange and have confused it with a means to accumulate profits.
Therefore, it is not surprising that global productivity has increased, that there are more good than ever, that in most countries there is an overabundance of food and that many people cannot buy the goods and even worse, they go hungry in the midst of supermarkets full of food and restaurant who throw away vast amounts of leftovers.
Why, because the money is now a means to accumulate profits, it is not anymore a medium of exchange.
October 17, 2013
June 2, 2015
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