Our Money

[Michal]

19 minutes ago, HawkHybrid said:

 

hence knowing how to create a football is

unimportant. knowing how to play football

is what is important.

 

knowing how to build a computer is not

important. it's knowing how operate the

software that's important. you do not need

to know the hardware to be able to use the

software. (as intended as a computer and

not any other random variations of the

physical, you don't half beat about the bush

that's nothing to do with the point I'm trying

to make)

 

more to topic, lots of people don't understand

the mechanics of currency creation.

they do know that currency(£) loses it's value

over time due to inflation. they can get help

with investing in an inflation hedge such as

gold. all they need to know is how gold might

be able to help their finances.

 

HH

You see, that is the problem, most of people have no idea what is inflation. More than that i meet statements saying that inflation is good because it runs consumption. They see goods and services price increase but not relate it to inflation. They see bigger numbers on wage slip over the time and have false impression of progress in they live even when they can buy less and less over the time.   

Gold is presented as a speculative commodity not worth investing/buying. Yellow rock, relic of ancient times. Almost no body in modern financial advise industry will recommend casual person buy gold. Because it is hedge against current system.

No body in my job said even a word when last wage increase was lower than last year official inflation, when I asked my manager about it she shake her shoulder said that she doesn't know and walked away. That is surrounding world.

AWARENESS is the key! 

[HawkHybrid]

I recognise currency as something(usually a token)

that's added to facilitate trade. it helps to transfer

the value of goods and services.

money is something that holds it's value. an asset

that is relatively consistent in it's ability to hold

value.

it's all relative. so gold can be considered as both

once was currency and money. ie gold holds it's

value relatively well so can be used as a yard stick

to measure other items that fluctuate more,

pricing things in money terms. gold was once used

as currency with the first coinage in lydia helping to

facilitate trade, which previously was probably a

barter process. the recognised money aspect of

gold would have made trading it easier, especially

across larger distances between different cultures

that had different ideas of what constituted accepted

payment.

imo gold is not currency any more. it no longer flows

around the economy facilitating trade because it

has been replaced by more suitable form of currency.

it can still be used as currency in bad times(zimbabwe

dollar collapse) just hopefully required to do so that

often. currently gold is no longer 'added' to facilitate

trade, it is the good that is traded.

 

HH

[Michal]

I hold 3000 pounds in my hand right now ( it is going to be invested soon) and i hate this paper, it is funny because year ago i was enchanted by such amount of cash in hand. Now i hate that year a go i could buy 6000 cucumbers for that and today just 4615. ( was doing cucumber salad today)  

[sovereignsteve]

11 minutes ago, Michal said:

I hold 3000 pounds in my hand right now ( it is going to be invested soon) and i hate this paper, it is funny because year ago i was enchanted by such amount of cash in hand. Now i hate that year a go i could buy 6000 cucumbers for that and today just 4615. ( was doing cucumber salad today)  

Try growing them, it's pretty easy😊