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.


The Fool and His Ship

Would someone say you are the fool in the quotation : ” A fool and his money soon parted.”

Or the fool in: “The fool encumbered by what he thought was money soon departed.”

Is the “money” you get paid for your work of value?

The use of money and its utility is not constant, in fact under our current system our currency (no pun intended) is diminishing in value at a constant pace. Far more rapidly since 2008 then at any time since the 1970’s. The price of gold is a good example of  the dollar’s depreciating value. The intrinsic value of gold is not really going up, its price in terms of fiat currency is going up…rapidly. This inflationary problem is also largely hidden in many ways. One being the quality the products we buy and use every day. You may not see the price  of every product go up, but you do see its quality and life span deteriorate requiring we replace them more often or consume more than we would otherwise.

What may happen…

Show me daaa... money?

The current crisis is worse not only on the inflationary side, but at the political level, and I am not talking about the obvious. Many will think of California and other states like Wisconsin and think of political

‘fallout’ as in the departure of specific political office holders at the behest of the voters. This is more likened to a global governmental shakeout! The fallout is going to determine several things. One of which would be who will be the world leader and what will happen to the dollar. Well, at least some of this is nothing more than speculative at this time, but I’d say that many can guess with a fair amount of accuracy, that America and the dollar are no longer #1! Funny how the ‘system’ is seemingly in constant ‘crisis’ and we keep employing the same methods, over and over  to remedy them.  Hmmm…(scratching head) Sorry, I digress again. But please bear with me, this stuff is all connected. I’ll get back to my original point.

Think about it for a moment…

In quote #1 I spoke of a fool and his money parting. What is not so obvious in the quote is that many people may not understand what money is and what money is not. If you and your ‘currency’ are parting, fine! Get rid of it as fast as you can before you get robbed by inflation. But what about saving? Well saving cash is like trying to save lettuce, it’s extremely perishable. So long as we allow government to hold us to it by mandate, and government continues to print it to pay for the obligations it contracts to fulfill, this will be the case.

So better to figure out what to turn it into. I don’t want to call this move investing yet because it is merely the act of maintaining your store of wealth. “Investing” is more about true capital than paper. This is the antithesis of what the established current Keynesian doctrine tells us to believe. But, whatever…another subject I’ll cover later.

This brings us to quote #2. The fool and what he thought was money departing because he believed everything was going to remain as it was. I wonder if when the guys who jump out of a window during a market crash ever realize on the way down that the problem of money is actually a fairly easy fix, if they put their minds to it instead of through the cement?

For the most part, it’s all funny money anyway, right? So why jump out a window? Take the slap and figure it out. And why we should ever think that the government’s role is to “fix” markets to begin with is a stretch anyways. Seems to me the “fix” is in, and the jig is up!

O.K., to sum a little of this up as much as I can in such a short article, here goes. Hopefully you aren’t more confused by this than you may have been before.

As the money crisis continues to bring continued instability and with this instability the growth of government as well as corporations* seemingly controlling nearly every aspect of our lives, what is one to do? First off start considering what money is and what you spend it on, how much you save or “invest” as well as where you spend most of your time.

* I am not attacking all corporations, some truly do their best to bring value. Under the circumstances this is not an easy task.

Do it, and don’t delay!

Consider maybe investing in yourself and your own business. Or even just a small side business. Search for information about whatever you might have an interest in and educate yourself. What are you passionate about? What are you great at? What do you want to do? What do you enjoy doing? These are just a few examples of what you could invest your time into. Consider a venture on your own. This could be taking a hobby or a pastime activity you and your family and friends enjoy and turning it into something great! Everything you do is an investment turned business venture. Just think creatively and ignore the gatekeepers, they will attempt to not allow you to pass through the barriers they use to protect themselves, as well as to protect status quo. Also remember that some gatekeepers are merely attempting to keep you from experiencing success, as they may have never had success. Misery loves misery, so stay away from negativity! If you’ve heard that before, I say it again!

Consider this quote by Jim Rohn:

“A good objective of leadership is to help those who are doing poorly to do well and to help those who are doing well to do even better.”

How can you bring leadership to what you do and turn it into something positive?

Build something darn it! And don’t be a fool…

There is a fool in all of us at one point or another. We can learn and succeed or just be fools and keep doing the same crap over and over. Stay off the ship of fools and get out and build another ship.