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Open Money: Part 1

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Let´s begin by looking at the form of conventional money, the stuff we all know so well. This..this stuff, the national currency. Lets look at what it DOES, lets look at what it IS, and lets look at where it comes from. What it does, is it moves, money moves and conventional money moves anywhere if you try this with a monopoly bill sometime take it to your supermarket or your gas station try and buy something, you'l find it's not money, it doesn't move. what makes it able to move anywhere is the condition of it's value if the money became valueless, like monopoly money, it wouldn't move anywhere. So, it is a necessary component of making it moveable anywhere, that it is kept in a limited amount. Not to much of it. If we can all create it, it would be a problem. So, I put it to you what money IS. at least as far as you and I are concerned, is quite simply this: It is scarce. Now where does it come from in the first place? What is the origin of this money? Well, the key factor in the origin of a conventional bank, central government, legal tender, is, that it comes from them. Not from you, not from me, them. The institutions, the organizations that are the authority structures about the money systems of our countries. They originate it, it is limited and scarce so that it will be valuable, so that it will move anywhere. It's a done deal. Now that's really, all we need to know to understand the basis for why conventional money works the way it does. So the next thing to do is to see exactly what this means. What is the form of conventional money mean for how it works for you and I? Well, basically, it is a lot like this isn't it? We have our barrel, our bucket, our tank. And we have this stuff in it, the money we have. Money is coming in, maybe from our employers, maybe from our sales, maybe from our winning from the stock market. But at the same time as you know, there is money going out, and that keeps the level dropping. And what does the money go out for? It goes out for everything. It goes out for rent, it goes out for groceries, it goes out for energy, gasoline, it goes out for taxis. It goes out. And here we are stuck between the supply that lifts our level, and the outflow that drops it. That is our life in the tank. Money comes, money goes, and we're in the middle.

Video Details

Duration: 3 minutes
Country: United States
Language: English
Producer: Alan Rosenblith
Director: Alan Rosenblith
Views: 792
Posted by: alanrosenblith on Dec 23, 2009

The "does, is, and from" of conventional money.

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