Earning Good Money

Interesting concept, right? It’s what everyone wants, everyone wants a paycheck. If only we actually had Good Money.

Are we the “honey-money bees” as Buckminster Fuller described in Critical Path? Working only for profit margin aggregates and figures. Seemingly not even stopping for a moment to think of the value of the money we work for. Sometimes we also seem to not even think of what the quality it is that the work we do brings. Does the work that we do have real value in the end? Are the goods or services provided a real value or a perceived value; a perception cauterised into our thinking by the media as well as the government agencies and other institutions they sponsor? Do these institutions even regard the localities they penetrate?

If the money we all work for has real value, why does it decrease in value by way of inflation, let alone excessive taxation? The simple answer is that the money we use every day is actually not money in the truest sense of the word. It is only currency. Currency mandated by government and procured through central banks. Currency has to keep moving by design, hence the name currency. Money in its truest sense is a store of value for exchange. Simple, right? But where is our money then? At least a stable money? Well, it is in many ways out of reach for most people. Due largely to bad monetary policy and its follies we are left with investment and or speculation to battle the ravages of inflation and taxation.

Well here’s where it gets really confusing when you really get to thinking about this. How can one truly invest, if the same powers that create and control our currency, actually own everything? This is largely due to the many perversions of equity law and in conjunction the subjugation of property rights, let alone monetary policy. If you do not understand what I am talking about, ask yourself who or what it is that actually owns everything. Government and banks. Even when you pay off the note you do not own your car or your home. Technically, true ownership is property unencumbered by any debt, many will argue against this I am sure. Try not paying your property taxes or your registration on your vehicle and you will quickly begin to understand what I am getting at.  You will only hold the “title” when the loan becomes satisfied in full. Therefore you are truly only the owner in the titular sense. As usual, I digress. But only to make a point.

Many astute economists circles see contemporary investment as actually speculative “bubble” chasing which is known as the main cause of booms and busts. In general, with bad money, malfeasance of investment creates booms and busts which then create an artificial need for more government intervention. The same intervention which by way of monetary policy, taxation and the resulting stagflation, help to create the economic crisis and instability to begin with.

For now, good money is investment in yourself and your education, working toward a business of your own, whether it is on the side or completely replacing your current employment, or the tools necessary to do your job better as an employee. The tools and machinery used to create, i.e capital, are actually money once you are able to create value and begin to market whatever you do. Investment is an area that needs care and diligence even when you use the services of so-called professional investment agents. If you do not understand your investments you tend to leave yourself prey to those who do.

Good money can also be something that you use or do that eliminates the need to spend elsewhere. I will cover more on this in other articles. Good money is also money that is not spent toward debt. If you have  liabilities it is always necessary to cut as much as possible to support income at a positive level. This allows you more freedom to choose where to place your earnings to stabilize the effects inflation has on your income. Debt usually eliminates your ability to choose much more than working longer hours to make its payments. The exception being positive debts on assets. So long as those assets earn more than their cost. This is just simple business sense and many already understand this. I am only adding it to illustrate to those who do not understand these subjects. Those who are prone to being burdened with business and its modern over-complications and in turn ignore studying on it are usually the worse hit in any recession or depression, as they cannot see it coming.

There really is not a great way for me to end this article because this is a subject I have only in the last year decided to study. And this idea that government might step back from their monopoly of money is somewhat Utopian. So I will end it here and follow-up with other connected articles to help articulate the point further.

*For an in-depth study on this subject see F.A. Hayek‘s Good Money . In the book “Good Money” Hayek presents a sound argument for the need for competitive money and banking. This interview with F.A. Hayek is a great introduction to Good Money.


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2 CommentsLeave a comment

  1. […] the subject of money, please see one of my other articles “Earning Good money”. Also this one on government intervention and protectionism, “Pumping gas […]

  2. […] It’s 2011, and we are still pumping gas, why on earth do you think that is? If you look back for more than thirty years we’ve heard the same story about petroleum and its harmful effects on the environment as well as its scarcity. The pollution, greenhouse gases, oil rig disasters in the ocean, tanker spills, wars fought over oil, price instability, etc., there’s nothing new here, these problems have haunted us for decades. It’s would seem it’s not about solving a problem. It’s all about the metering and profit! We need to change our perspective of “profit” and “value” and concede defeat to our self-destruction as the ends of the current means, and I am certain there is no value in that, a zero-sum game for all involved. For more perspective here please see my related article which discusses the false value of our currency that we work so hard for, and the problem of measuring the value of our work and goals by contemporary monetary standards: “Earning Good Money”. […]

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