Tag: money

Just a reflection on nearly 900 posts!!

Prompted by a recent comment from a reader.

This Blog started on July 15th, 2009.  At first there were a group of authors all committed to the vision but for various reasons they all were unable to maintain the very real challenges of writing a daily article and they amended the relationship to that of occasional guest author. My fellow founding author, Jon Lavin, has just completed a very demanding Master’s Degree which, for very valid reasons, has kept his nose to a different grinding wheel for the last 3 years.  My greatest wish is that Jon can return to writing for this Blog simply because the original idea about dogs having much to teach us came from Jon.

The vision of why so many hours are spent managing and writing on Learning from Dogs is encapsulated here.  One of the ideas expressed there is, “Our children require a world that understands the importance of faith, integrity and honesty“.  This aspect has become more and more important in my mind.  Within less than a month of this Post, I will have my first grandchild (the gender is a closely guarded secret!)  When I look at some of the scenarios that could face that grandchild over the next four decades, it’s easy to feel pretty nervous. So being able to use the power of this electronically connected world to ramble on is my way to trying to do something!

This is leading me to the point of this Post.  If it wasn’t for the growing number of readers, now several hundred a day, and the graciousness of those readers to find the time to comment, I think this Blog would have rolled over and gone back to sleep in front of the fire as Pharaoh is wont to do!

The comments have been fabulous and even selecting a couple seems unfair on the rest.  But nonetheless that is what this article is going to include.

Just a few days ago, there was an article about the internet and control.  Dogkisses wrote:

I feel quite positive about technology, including the Internet, but I also wish we could keep things like public libraries and continue to learn skills such as handwriting.

My nephew, an A student in college, recently had to take a handwriting course. My sis was embarrassed ’til she arrived finding many Mothers she knew there for the same reason. Many college students didn’t know how to write.

I volunteered once at a “Center for Independent Living.” One of the main services they offered was free Internet access to people with disabilities. I have since learned how important this is for people who are either bed-ridden or as with Chronic Fatigue Syndrome, stay home much of the time. It is a connection to the world. People can have a sense of community. This is a good thing.

I also love how quickly I can learn little things, such as words and how that might take me somewhere else to learn about something different. Pretty cool.

Maybe some people who have control in certain arenas are afraid that The People who are being controlled will, via the Internet, be heard and all too clearly.

Then last Friday, another reader, Steven Law, added an insightful comment to a Guest Post written by Patrice Ayme last December 10th., the Essence of the Civilizational Crisis, a very profound piece.  This is what Steven wrote:

“To create public money, the money everybody uses (be it cash, electronic transfers, swaps, whatever) we use a private system, with proprietary money creating devices inside (say subprime, or derivatives). Civilization has never worked this way before, as the state previously was careful to stay the one and only money creator.”
What Patrice ignores here is that the State “creates” nothing. And I do not support “private” monopoly of money either.What I would like to entertain is the ability for a true free market (one in which we do not have) to explore competitive money, and yes, privately issued by competing banks. But that these banks would not operate on fractional reserve. They would largely operate their monies on a commodities basket reserve system. Not just precious metals, but multiple commodities as well.
At any rate you can learn more on this by reading F.A. Hayek’s “Good Money”pts. 1 & 2. Also I recommend spending some time at The Von Mises Institute online, great insights and education from an Austrian perspective on these matters.

I like your post, but find a few flaws in the argument. My main point here is that civilization has failed throughout history to keep the State under control and not allow state controlled money monopoly. Fiat currencies have failed miserably throughout history and are doing so again. We have some serious learning lessons coming our way…again.

Just want to expand on what I said about the State not creating anything. How can they create when the monies the receive are largely from coercion as well as monopoly? Therefore any “creation” by the State is at the expense of industry and freedom. Hence the need for a limited government.
I also recommend watching “Corporation Nation” on youtube. It’s pretty long and supports with verifiable evidence the depths our government has reached into fascism.

So there we are! Writing this Blog is a labour of love and having both readers and readers willing to comment keeps the love affair going!  Thank you all, every one of you.

Finally, Steven mentions that YouTube video Corporation Nation.  The whole series of videos is long but if you fancy starting in at the beginning, here it is.

Gold or Dollars?

Is Gold Really A Superior Investment?

I’m sure you’ve heard about the steady rise in gold prices over the last several months. You may have also seen the advertisements from gold investment companies pushing the purchase of gold, or heard predictions about even higher gold prices as world currencies struggle.

And just yesterday, the world’s first “Gold ATM” machine was unveiled in Abu Dhabi (Gold ATM Machine, Financial Times).

Gold dispensing machine in Abu Dhabi

We have to take a step back and ask ourselves about the true underlying value of gold.

Why is it valuable?  Because people demand it, and there is a relatively limited world supply.  Why do people demand gold?

It’s not like gold will sustain you: you can’t eat or drink it, nor does it have utility in and of itself.

No, the reason gold has value is because it can be exchanged for money which, in turn, can be exchanged for goods or services.  So the value of gold is derived from the very same place as is the value of money:  access to underlying goods and services.

The actual value of gold, however, is entirely dependent on other people’s demand for gold, given limited supply, much like fine art.  Unlike money, you cannot actually use gold for transactions:  have you tried to use a bar of gold at your local restaurant or car dealer, for example?

Think about it: if for some reason gold fell out of favor — let’s say someone discovered it was toxic — then gold would no longer be desired as an indirect means of exchange — having to first be exchanged for currency — and its price would drop to nothing, quite independently of the value of money itself.

The value of money it also dependent on its demand, which in turn depends on the acceptability of the currency on the world stage as a unit of exchange.

Dollars are accepted as currency and retain their value as long as the underlying real U.S. economy continues to be productive, and as long as the world supply of dollars does not outstrip the world demand for dollars.

Gold bars

Dollars are suffering at the moment for two primary reasons:  the attack on private industry by Obama’s policies, and the excessive world supply of dollars.  Both of these factors drive down the value of a dollar, and drive up the number of dollars that a bar of gold commands.

by Sherry Jarrell