MODERN MONEY Is Just Useless Paper: REAL MONEY IS GOLD

News & Politics
1

Paper money is the greatest fraud in the history of mankind. Money is nothing but useless sh!t. Governments print worthless money just to stay temporarily afloat but then inflation kicks in and they crash like rock down a cliff. You cannot manufacture FAKE gold. For you to have gold you have to toil & dig hundreds of feet underground of spend countless hours on a riverbed sieving sand just to get a gram of gold.

[COLOR=rgb(184, 49, 47)]We assume

[ul]
[li][COLOR=rgb(184, 49, 47)]There are only 3 people in a country: A ,B and C having a wealth of Ksh. 300, 200 and 100 respectively.[/li][li][COLOR=rgb(184, 49, 47)]Also, there is just one commodity in the country that all three of them would buy using up all their wealth.[/li][/ul]
[COLOR=rgb(184, 49, 47)]Therefore, total wealth in the country = [COLOR=rgb(184, 49, 47)] Ksh. 600 (300+200+100)

[COLOR=rgb(184, 49, 47)]Total commodity in the country: 60 kgs of rice.

[COLOR=rgb(184, 49, 47)]Since they use their entire wealth to buy this commodity only, the price of rice would be =[COLOR=rgb(184, 49, 47)] Ksh. 10 per kg (600/60).

[COLOR=rgb(184, 49, 47)]At this rate, person A can buy 30kg of rice, B buys 20kg and C buys 10kg of rice.

[COLOR=rgb(184, 49, 47)]One day they get hold of a currency-printing machine. They decided to double their money by simply printing more notes.

[COLOR=rgb(184, 49, 47)]Now they have [COLOR=rgb(184, 49, 47)] Ksh600, 400 and 200 respectively.

[COLOR=rgb(184, 49, 47)]Total wealth now = [COLOR=rgb(184, 49, 47)] Ksh. 1200

[COLOR=rgb(184, 49, 47)]But total commodity in the country is still 60kgs of rice.

[COLOR=rgb(184, 49, 47)]The new price of rice = 1200/60 = [COLOR=rgb(184, 49, 47)] Ksh. 20 per kg

[COLOR=rgb(184, 49, 47)]They go to buy the rice. With 600 bucks,A would still be able to buy the same 30kgs only, B 20kg and C 10kg! Damn! They realised how futile it was to print those notes.

[COLOR=rgb(184, 49, 47)]Merely printing of notes doesn’t do good to anyone. If the total money supply is increased disproportionately to the increase of goods (and services) in the country, it only leads to devaluation of the currency. Although their wealth doubled, the value of their currency got halved.

So whoever invested paper money (Chinese) Fvcked this world real good.

2

@Ndindu yule mtu anaspend io countless hours akitoil kwa riverbed kutafta gram moja ya gold reward yake ni nini?

3

Reward yake ni kuexchange hiyo gold yake na Magunia ya mahindi ama beans or cooking oil but not paper. If you are locked up in a cage with 1 billion shillings and another person locked up in another cage with 20 liters of water, and 20KG dried foods (Njugu, Sweet potoes) who will survive the longest?

[COLOR=rgb(184, 49, 47)]The same case with our Useless Coffee and tea and flowers sectors. We waste millions of acres growing sh!t instead of growing REAL FOOD because whiteman told our godforsaken CUNTs that rule from the Statehouse to do so.

4

Hmm . Using your example, you can have ksh 1200 but the goods still cost ksh 10 per kg ( or at least closer to that). The real reason you print that money is because the price of the goods rose to ksh 15 ( for example) and you didnt have enough cash.

In fact I read somewhere that paper money is gold. See the coins that make the paper notes, they were once made of real gold. They decided, why waste the real gold. You would usurp the whole gold supply just creating cheap coins. What about millions. Its the modern world where we dont even carry notes any more ( at least some countries).

As for China, they export heavily. Every year, dollars come in and very little goes out. So they create value. But you have to peg it to something. Alas paper money. [SIZE=1]I not an economist but more like Sonko Malong.[/SIZE]

5

The one locked up with a ton of gold

6

GOLD is a good store of value but 10kg of GOLD in a cage Vs 10kg of Potaotes for a 2 week caged lock down, I’d rather be the guy with the potatoes.

7

so gold and money are more of the same thing? If I might learn something?

8

Haitaki makasiriko daddy

9

Which economy class did you go to?

Money is not wealth, neither has it been a measure of wealth. Money is just a medium of exchange. Wealth is assets, commodities, etc.

10

So you know that.

Paper money is a good medium of exchange but a poor method of storing value
That is why Gadaffi was advocating for a Gold Backed currency.

11

In kenya we only grow starch for sale, cash crops for export, we don’t think about ourselves .

12

Money is a tool of trade Mr Bonobo 2.1,it has never been a measure of long-term wealth.

13

Give me a million dollars in 10 years.

14

Mimi bora nimejua niko na pesa na nitakufa niache pesa na gold yioteeeeeee

15

Watu waanze kuweka mifugo muwachane na makaratasi

16

5 years would be sufficient

17

Gold cannot be effectively used in large populations because ile gold iko ni kidogo sana. If used as money its price will fluctuate too much to be any useful. Itakuwa kama bitcoin.

18

Yes and no ! Gold is money . Fiat currency/paper notes is not money. Can’t store value ,can even go to zero . Gold on the other hand has always had a consistent store of value.
This chieth all started 1944 after ww2 when the powers that be created the Bretton Woods System where all currencies are pegged to the dollar …which was meant to be “as good as Gold” but is it?

The first paper money was receipts for Gold held in a safe/bank. Instead of carrying your Gold around ,you could use this instrument (a promissory) to discharge your debts because it was actually backed by real gold in the safe. So when the banks realized people were exchanging this notes in lieu of gold they started printing more of this notes chini ya maji and voila worthless fiat paper money was invented . It’s called a confidence trick. There’s a book called The Ascent of Moi- Niall Ferguson

19

Yes and no ! Gold is money . Fiat currency/paper notes is not money. Can’t store value ,can even go to zero . Gold on the other hand has always had a consistent store of value.
This chieth all started 1944 after ww2 when the powers that be created the Bretton Woods System where all currencies are pegged to the dollar …which was meant to be “as good as Gold” but is it?

The first paper money was receipts for Gold held in a safe/bank. Instead of carrying your Gold around ,you could use this instrument (a promissory) to discharge your debts because it was actually backed by real gold in the safe. So when the banks realized people were exchanging this notes in lieu of gold they started printing more of this notes chini ya maji and voila worthless fiat paper money was invented . It’s called a confidence trick. There’s a book called The Ascent of Moi- Niall Ferguson

20

even all forex pairs were pecked to gold because gold is a measure of wealth not paper money. Even today all forex pairs all pecked to commodities, assets, stocks, etc.

A country GDP is not determined by how much money they can print like Zimbabwe but there commodities exports, services exports, manufacturing exports, etc.