This action might not be possible to undo. Are you sure you want to continue?
Unfortunately for the people of the world everything is going according to the New World Order Plan. But what is this New World Order Plan? In a nutshell the Plan is this. The Dark Agenda of the secret planners of the New World Order is to reduce the world's population to a "sustainable" level "in perpetual balance with nature" by a ruthless Population Control Agenda via Population and Reproduction Control. A Mass Culling of the People via Planned Parenthood, toxic adulteration of water and food supplies, release of weaponised man-made viruses, man-made pandemics, mass vaccination campaigns and a planned Third World War. Then, the Dark Agenda will impose upon the drastically reduced world population a global feudal-fascist state with a World Government, World Religion, World Army, World Central Bank, World Currency and a micro-chipped population. In short, to kill 90% of the world's population and to control all aspects of the human condition and thus rule everyone, everywhere from the cradle to the grave.
A formal and adequate definition of money is surprisingly difficult to give since throughout human history what has been perceived as money and the variety of objects enlisted as money is long indeed. Moreover, such a definition of money has been complicated by the efforts of various writers who have striven to define the term such that it would give support and succour to their particular socio-economic theories. However, these difficulties notwithstanding a simple definition of money can be given:
Money is whatever people agree it is ...
Money is anything that is widely used for making payments and accounting for debts and credits
Furthermore, the greatest and most important function that money performs in society is, clearly, that it facilitates exchange vis-à-vis wealth or value. Before money, men used the primitive system of barter; however, the period of mere barter had passed before the time of the great Hebrew Patriarch, Abraham c.2000 BC. This was because the move from pastoral existence to urbanisation and the separation of employments into specialised fields necessitated a more sophisticated medium of exchange than barter could possibly afford. In short: urbanisation and industrial organisation is based upon the division of labour that is only possible through the agency of a medium of exchange. This is because the increasing specialisation of labour established a social order in which the individual produced little or nothing for the direct satisfaction of his own wants, and had perforce to live by exchanging his product for the products of others. Such an arrangement could only endure if an article existed that would be willingly accepted by all for the fruits of their labours: that is, an agency of value -money- the individual would accept for their special products. The adoption of money as an article of wealth exchange was crucial to the development of human society for it facilitated the growth of society from pastoralism to high culture and civilisation. For
http://www.overlordsofchaos.com/html/gold___money.html (1 of 7)2/03/2010 12:02:19 p.m.
Gold & Money
without "money" the difficulty of bringing together persons with reciprocal wants would have been an insurmountable obstacle to that development of exchange, which alone made division of labour possible, which is the prerequisite to civilised existence. The second important function of money is to provide a ready means for estimating the comparative values of different commodities. For, common sense tells us that without some common object as a standard of comparison this would be practically impossible. For example, if a clockmaker had only clocks and wanted to buy bread, meat or a horse, it would problematical to determine how much bread he ought to obtain for a clock or how many clocks he should give for a horse. Moreover, the problems of equivalence increased as the number of commodities concerned increased, for each commodity would have to be quoted in terms of every other commodity. Thus, the societal imperative through the ages and within cultures to establish a common currency of exchange or "common object" that could be used as a medium of exchange and to determine comparative values of different commodities. By the selection of some particular article, the "common object," as the criterion the comparison of values is made much easier. Thus, the chosen commodity becomes a common denominator, common measure or "common object" of value in terms of which the value of all other goods are estimated. By such an arrangement, the "common object" –money- not only renders exchange possible by acting as an intermediate term in each transfer but also makes exchanges easier by making them definite. Throughout history there has been a great variety of "common objects" or "money" which have been used to supply the need of a circulating medium ranging from seashells, feathers, animal skins, cattle, sheep, goats, oxen, pig, amber, ivory, jade, glass beads, silver and gold coin, paper currency and, today, electronic debit cards. Consequently, money in its various forms has been the great agency for transmitting values from place to place. Furthermore, the Form of Money or is not important since these are so diverse and are merely symbols that represent economic value to a particular people at a specific in a convenient and commercially acceptable forms. Furthermore, "value" is a subjective and therefore a psychological concept, which is independent of the purely mechanical aspects of economics. Another important function of money arose at a later stage in Western culture when the economic infrastructure and its participants became more sophisticated and trusting of each other and entered into relations arising from "contracts." That is, an agreement that something is to be done in the future for which payment will be given and received. Naturally, for an estimation of the value of that future act a standard is thus required and so money which has already acted as a medium of exchange and as a measure of value at a given time, performs a third function, by affording an approximate means of estimating the present value of the future act. Here, money may be regarded as a standard of value or of deferred payments. Thus, there are four important functions of Money:
That it supplies the common medium by which exchanges are made possible, that is, it facilitates exchange vis-à-vis wealth or value. Money is thus a commodity universally accepted in exchange for goods, services and for the discharge of debts or contracts.
That it supplies the common measure by which the comparative values of those exchanges are estimated. That is, to provide a ready means for estimating the comparative values of different commodities. Money thus acts as a measure of value and a unit of account, a common standard that makes the operation of the price system possible and provides the basis for keeping accounts and calculating cost, profit, and loss.
That it supplies the standard by which future obligations are determined. That is, money affords an approximate means of estimating the present value of future acts conveniently called "contracts" whereby it functions as "deferred payments." Money thus serves as a standard of deferred payments; the unit in which loans are made and future transactions are fixed providing the commonly accepted basis for borrowing and lending. Importantly, it facilitates credit the primary feature in the contemporary economy.
http://www.overlordsofchaos.com/html/gold___money.html (2 of 7)2/03/2010 12:02:19 p.m.
Gold & Money
That it provides a store of wealth, a convenient form - high value in small bulk- in which to hold any income not immediately required for use. That is, money provides a reserve of ready purchasing power and is the only completely liquid asset i.e. one readily convertible into other goods.
Briefly, then, money is a commodity accepted by consensus as a medium of economic exchange, i.e. the "common object." It is the medium in which prices and values are expressed, it facilitates trade by circulating from person to person and country to country and it is the principal measure of wealth and acts as a store of value; for in no other way could a large body of wealth be concentrated. However, although the term "money" has come to include anything that functions as money there has been considerable hesitation in more prudent circles to extend the term to those forms of credit that are in modern societies the chief instrument of exchange e.g. "Bonds" and "Derivatives."
The employment of metals as money material is a recent phenomenon in human history and was probably invented in Lydia when the king, Gyges, struck the earliest coins in the 7th century BC. These coins were called "staters" and were made of electrum, an alloy of gold and silver. Later, gold was coined, and, by the time of Croesus, the last king of Lydia (reigned c.560–46) renowned for his great wealth, gold and silver coins were in circulation. The Persians used the staters of Lydia, which were current there under Cyrus II the Great the eventual conqueror of Lydia. The Persians adopted the Lydian model, and coined both gold and silver coins called "darics", named after Darius Hystaspes (521-485 BC) who is reputed to have introduced the system into the Persian Empire. A silver coin circulating in Persia in conjunction with the gold daric was the so-called silver darics, 20 of which were equivalent to the gold daric, it was called the "siglos" and was known to the ancient Hebrews who translated this as "shekel" (Neh. 5:15) Base metals have been used frequently by past cultures; for instance, iron was widely used as currency in antiquity, especially in Greece. An early Chinese currency was a bimetallic coin minted in copper and iron, which later was used as a subsidiary coinage in Japan. This combination also figured in the first Hebrew coins. The use of copper as money has been more extensive than is the case in respect to the metals just mentioned. It, as stated, was used in China along with iron an early instance of bimetallism and it figured in the first Hebrew coins. Copper was the sole Roman coinage until 269 BC and it has endured as a part of the token coinage modern currencies. However, it is the intrinsic value of two metals –gold and silver- that has given them, the precious metals, preeminence as the media of exchange between people. Silver especially was a favourite material for money and was the chief form of money until the end of the 18th century. Silver was the principal Greek money material, as it was in Rome after 269 BC as it was also the leading constituent in the currencies of medieval Europe. Although silver was until the end of the 18th century the chief form of money, and often looked on as forming the necessary standard substance of value, gold became preeminent as money in the Victorian era. Although gold was always treasured by past peoples its use as ubiquitous coinage is a recent phenomenon and until recently the pre-eminence of gold as money was beyond dispute.
& Reasons for their Adoption as Monetary Standards
http://www.overlordsofchaos.com/html/gold___money.html (3 of 7)2/03/2010 12:02:19 p.m.
Gold & Money
In the course of monetary evolution, there has been a long process of selection and elimination as the qualities that are especially desirable in the articles used for money has changed through time and across cultures. However, two salient facts emerge regarding the use of the varied materials of currency, both metallic and nonmetallic:
That the metals tend to supersede all other forms of money among progressive communities;
That the more valuable metals displace the less valuable ones.
There seven primary reasons for this are:
The material of money must have the attributes of wealth; i.e. that it is useful, transferable and limited in supply. These conditions are essential to the existence of value and any instrument for measuring and transferring values must possess them.
The amount of value in proportion to weight or mass must be inversely proportional. That is, high value in small bulk is very desirable since it gives the quality of portability, want of which was a fatal obstacle to the continued use of many early forms of money e.g. Skins, corn, tobacco, iron and copper. Animals, such as Sheep, goats, camels, horses and oxen, although self-moving, are expensive to transport from place to place.
The material of money should be uniform so that one unit shall be equal in value to another is a necessity, which is as decidedly lacking in cattle-currency as it is prominent in the metals.
The material of money must be capable of being divided without loss of value, and, if needed, of being reunited. Most of the articles used in primitive societies such as seashells, eggs, skins and cattle do not have this quality.
The material of money should also be durable, which excludes all animal and most vegetable substances from the class of suitable currency materials.
The material of money must be easily recognised as of a given value. Articles otherwise well fitted for money-use, e.g. precious stones, suffer through the difficulty of estimating their value.
The material of money, functioning as a standard of value, should alter in its own value as little as possible. That is, money should not alter within short periods, which is a characteristic of the more valuable metals, and particularly of silver and gold. However, complete fixity of value is from the nature of things unattainable so the nearest to this ideal that can be secured is desirable. This quality - fixity of value- was not of great importance in early societies for future obligations were few and piddling. However, in more complex societies, and especially with the growth of mercantilism, industry and commerce in Western civilisation and the expansion of the system of contracts, covering a distant future, the baneful effects of a shifting standard of value became problematical in currency movements around the globe. Solutions to this problem have spawned ingenious devices to correct fluctuations … devices that have ultimately sown the seeds of destruction of the modern fiat monetary regime with its floating-exchange system.
Thus, metals to a greater degree than non-metals possess the requisites desirable in the material of money. Moreover, these desirable qualities can be reducible to this: Metals are durable, homogeneous, divisible and recognisable, and because of these superior advantages they were, until very recently, the only substances used for money by advanced nations. However, not all metals are equal in their desirability as a store of wealth or their use as money. Iron was rejected because of its low value and its liability to rust, lead because of its softness, and tin from its tendency to break. More importantly, all these metals and their alloys, as well
http://www.overlordsofchaos.com/html/gold___money.html (4 of 7)2/03/2010 12:02:19 p.m.
Gold & Money
as copper, are unsuitable due to their low value, which hinders their speedy transmission so as to adjust inequalities of local prices. Once the cheaper metals are excluded as suitable materials for forming principal currencies what was left was silver and gold. Moreover, in the late Victorian era there was a very decided movement towards the adoption of gold as the sole monetary standard, with silver being regarded as suitable only for a subsidiary coinage. The reasons for gold and silver being the most suitable materials for currency are by virtue of their special features and can be summarised thus:
The value of gold and silver changes by slow degrees i.e. fixity of value;
Gold and silver are readily divisible, which may be reunited by means of fusion without loss;
Gold and silver do not deteriorate by being kept;
Gold and silver are firm and compact texture makes them difficult to wear;
The cost of production, especially of gold, is so considerable that they possess great value in small bulk, and can of course be transported with comparative facility;
The identity of gold and silver is perfect.
Richard Cantillon (died 1734) the Irish economist and financier who wrote one of the earliest treatises on modern economics and whose treatment of the theory of money was of pioneering importance give a pithy description why both these metals posses all the qualities needed in money. Gold and silver, wrote Cantillon, are alone are of small volume, of equal goodness, easy of transport, divisible without loss, easily guarded, beautiful and brilliant and durable almost to eternity. Anne-Robert-Jacques Turgot (1727-81) the French economist was more adamant and asserted that gold and silver became universal money by the nature and force of things, independent of all convention and law; consequently to proscribe either of them by law from being used as money is a violation of the nature of things. It is because of this almost immutable law of value, recognised by most thinking people, that gold was not only the Ancient Metal of Kings but the future standard currency in a post-fiat money system.
"There is no more direct way to capture control of a nation than through its credit [money] system." Mr Phillip A. Benson, President of the American Bankers' Association, June 8 1939
Who issues money is perforce both politically and economically a very important question, for control of a nation's money supply ipso facto brings with it control of that nation's credit and thus control of that nation. Primitive societies in which monetary affairs were crude, where money was not sharply distinguished from commodities, there was no difficulty in the matter. In such times, seashells, skins or cattle and the like were money by the force of things and this condition endured as long as crude metals were used. However, when coinage was introduced the idea of a regulating authority also came into being. For, increasingly sophisticated
http://www.overlordsofchaos.com/html/gold___money.html (5 of 7)2/03/2010 12:02:19 p.m.
Gold & Money
economics within the progressively organized state not only made it necessary to enforce contracts but also the parallel system of penalties made it incumbent on monarchs and judges to provide due standards of payment. Furthermore, the demands of raising and controlling state revenue made it a matter of interest to the ruler to provide a good medium of payment. Thus, although private persons often exercised the privilege of coining, even at the very beginning of the organised state coinage was a special prerogative of the king. Furthermore, the larger states became the more stringent the control over the issue of money; for instance, in the later Roman Empire the right of coining was reserved to the emperor exclusively. After the fall of the Roman Empire the traditions of prerogative passed on to the medieval kings but in the modern state the regulation money has been definitely vested in the supreme authority, i.e. the sovereign. Coins are manufactured articles for which the sovereign often imposed a charge sufficient to cover the cost. Such a charge, the fee charged by a government for coining bullion, is called Seigniorage, which has in many cases been so fixed as to bring in a large profit to the government. Seigniorage was and is a source of considerable profit for monarchs and sovereigns.
It is incumbent on the state to maintain its currency in a sound condition; as such it has to deal with the question of its expense. This is composed of several elements:
The cost of manufacture
The loss through the attrition which money undergoes in the work of circulating;
The interest on the capital sunk in the monetary stock.
The expense of coinage is richly justified by the services that a good currency renders to a nation. However, coins or uncoined bullion can be an inconvenient and insecure mode for conveying large quantities of value and so in the late 18th century, certain banks began issuing various forms of paper notes —banknotes— to represent convenient denominations of money. This was the beginning of the so-called fiduciary or representative money and the various forms of credit in which so much of the modern economy consist. Initially, fiduciary or representative money -money consisting of promises to pay in another medium- was redeemable for gold or silver and these became the principal money of growing industrial economies. Furthermore, for a variety of practical reasons, the circulating coinage began to be made of base metal alloys, also taken to represent gold or silver on deposit somewhere and available on demand. Temporarily during World War I and permanently from the era of the Great Depression of the 1930s, the gold standard was abandoned by most nations, meaning that paper money was no longer convertible to gold on demand. Paper money issued on the general credit of a nation and not based on deposits of money metal is often called Representative or Fiat Money.
http://www.overlordsofchaos.com/html/gold___money.html (6 of 7)2/03/2010 12:02:19 p.m.
Gold & Money
Search this Site
http://www.overlordsofchaos.com/html/gold___money.html (7 of 7)2/03/2010 12:02:19 p.m.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.