The value of 'money', or otherwise

[larsssnowpharter]

When I was 16 I was required to study Economics as part of an O/A level in General Studies. I recall that, back then, the definition of money was: "A means of exchange and a store a value".

That definition is no longer valid. Money is simply no longer a store of value. Nowhere can I store money at better or equal to the rate of inflation and I continue to get letters from my bank begging me to borrow money from them.

I'll confess that I'm not good with money. Provided I own the roof over my head and have enough drinking vouchers, I'm pretty content. Over the years, I have been lucky (or clever) enough to put most of my savings in property which has served me well but often left me cash poor.

As mentioned elsewhere, I have bought gold over the years. Real gold and it is not entrusted to a bank. It's emergency stuff for the occasion when everything else breaks down. Hopefully, it will never be needed.

I'm still in the property game building a small holiday development on an island in the Philippines. Things on hold because of the plague. The workmen get paid in pesos. My lead builder gets about £7 and tradesmen about £4........per day! Another example of exchange rates. If I could bring this crew and s few others back to the UK we would solve the housing crisis.

I still don't really understand ' money' but continue to regard as chips you play the game of life with.

[Undried Plum]

The big risk with gold is that when the Dollar/Pound/Euro collapses it is highly likely that the gumment will confiscate privately held gold and issue baseless fiat currency in exchange.

That's what happened in 1933. They paid $26 for each ounce of gold they pinched and then a coupla years later offered to sell it back to the robbery victims at a rate of $35 per ounce.

I have a number of Good Delivery bars which are pledged as Funds At Lloyds. It is my hope that the City has enough clout with Whitehall and Threadneedle Street to persuade them that confiscating such gold would cause an instant collapse of Lloyds, so I hope there will be an exemption for people like me. I've also taken the precaution of storing one bar in a stable European country and another in a similarly stable Asian country.

Whether they'll also confiscate Bitcoin is a bit tricky. Policing that would be a hell of a challenge for the bastards. It's one of the reasons why gumments and central banksters hate cryptocurrency.

[larsssnowpharter]

UP

My gold ain't where any government lacky will ever find it!

[ian16th]

You Gold Bugs might be interested in this!

Anyone for the 'Mile Low Club?'

[llondel]

I'll confess that I'm not good with money. Provided I own the roof over my head and have enough drinking vouchers, I'm pretty content. Over the years, I have been lucky (or clever) enough to put most of my savings in property which has served me well but often left me cash poor.

Plenty of places have that covered too, in the form of property taxes. You might own the place but unless you cough up your protection money on a regular basis, they'll come confiscate your house.

[Pontius Navigator]

The Government has run up a Covid debt of £407bn. Who did they borrow it from?

[Undried Plum]

The Treasury borrows it from the Bank of England.

The Bank of England was very specifically set up, by a Scotsman who went on to ruin Scotland, to create a facility for his invention which was the concept of a National Debt.

That fake money comes into existence at the click of a few keys on a computer keyboard, as a result and intent of creating that money out of thin air.

There is, of course, no realistic prospect that the Debt will ever be repaid, or even reduced.

It's just a con trick, as is most banking.

[Pontius Navigator]

Exactly. Isn't that why keyboards have a delete key?

[Undried Plum]

Exactly. Isn't that why keyboards have a delete key?

[Undried Plum]

I wouldn't invest a pfennig in Deutsche Bank myself, but I do read some of their papers.

This one on Inflation is well worth reading.

Highly unusual in this century, especially in the past year, for banksters to admit the consequences of bonkers levels of moneyprinting. I guess that there is some kind of folk memory in the psyche of eaters of wurst which understands just what hyperinflation can do to a currency and to the people who depend on that currency for their wellbeing.

[barkingmad]

Re the title of this thread, with any luck soon for the “elites” of this Earth, money will cease to have any value for us plankton.

Whilst we were all looking the other way at who was not wearing a face nappy, who was intruding into our 78.74” personal space bubble, who wasn’t washing down the handles of supermarket trollies and just how soon could we get the 1st, 2nd, soon to be 3rd and maybe 4th dose of the ‘clotshot’, meanwhile in a land not far away THEY are slowly inexorably introducing the widespread likelihood of “transaction denied” the next time you use that plastic card.

This lovely articulate young lady explains it in simple terms for simpletons like me, so watch enjoy and learn.

Caution, the video contains frontal, colour but luckily stationary images of Turd’eau and the UK’s “Dishy Rishi” Sunak, the equivalent of the finance minister in other countries;



Aside from that, if one has gold stashed away in a vault, what’s to stop THEM from simply confiscating it as per Turd’eau and the recent Canajun protest?

I must go find that little spade and sharpen it for the purposes of hiding small but very heavy packages.

[Seenenough]

"From £175 to £850K in very little more than the timespan of the above graph. That shows you how much the value of "money" has been degraded."

Plum,your statement seems to assume that demand for housing remained constant over the same period, just saying.

[Undried Plum]

"From £175 to £850K in very little more than the timespan of the above graph. That shows you how much the value of "money" has been degraded."

Plum,your statement seems to assume that demand for housing remained constant over the same period, just saying.

I rather suspect that the demand for a roof over one's head really did remain constant. Everybody wants one and everybody needs one.

It's what economists call 'inelasticity of demand'.

Sure, families did become smaller over that time period, but the demand for a home remained the same. Everybody wanted one.

Demand did not increase by 485,700% over that period of time. Neither did the population.

What went up was Inflation. What went down was the value of 'money'. Specifically, fiat currency.

The example I gave was one of my own personal experience, in my own lifetime. Those are real numbers.

[Seenenough]

Plum-Economics 101 Chapter 1 says -Prices go up when demand increases and prices drop when demand reduces.

[Undried Plum]

Plum-Economics 101 Chapter 1 says -Prices go up when demand increases and prices drop when demand reduces.

That "Chapter" does not take into account the devaluation of the currency with which those prices are quoted.

It is the value of the fiat currency which is going down. Can't you see that, man?

The fiat currency value of the ships is not going up because the tide has gone out, ferfuxake!.

[Seenenough]

Has it ever occurred to you Plum that Crypto sees no value in Gold as security?

Few have noticed here that this years IRS return requires declarations by taxpayers as to their holdings and use of Crypto.

[Undried Plum]

Has it ever occurred to you Plum that Crypto sees no value in Gold as security?

Do you understand anything?

"Crypto", as you call it, is not secured against gold.

Wise men may, perhaps, 'value' some of it against gold, but none would value it pari passu.

[llondel]

Has it ever occurred to you Plum that Crypto sees no value in Gold as security?

Few have noticed here that this years IRS return requires declarations by taxpayers as to their holdings and use of Crypto.

I spotted it but ignored it because I haven't done anything with crypto. Too much like gambling, and when you see how well I do at that, you can be sure I'd buy just before a crash.

[Undried Plum]

Spend dollars, mate.

Now that not's gambling.

[Seenenough]

I'm drifting to the side that holds that Gold will play much less of a role in the future world.