submitted by jwithrow.
Currently we use fiat currency as money… But it’s just an illusion.
If you doubt this then ask yourself the question: What is money?
Yes, you know what money does – it buys things. But what is it?
Is it a green piece of paper with numbers and words and some symbols printed on it? Is it a card with your name, a string of numbers, and a bank logo on it?
Or is that just a piece of paper and a piece of plastic?
Fiat money is not wealth. That runs contrary to everything our society has told us, but it is the truth.
Fiat money is simply a medium of exchange which can then be used to acquire wealth… But the money itself is nothing more than a tool.
Historically, we have used gold and silver, and notes backed by gold and silver as money.
Our fiat currencies today serve the same purpose as gold and silver money… But there is one major difference. Fiat currencies can be created arbitrarily from nothing. And the central banks of the world create their fiat currencies out of thin air in massive numbers.
That’s the biggest secret of the 1% – fiat money is an illusion that is available in abundance.
While fiat money can be created out of thin air, the value of existing money necessarily falls as new money enters the economy. That’s just basic supply and demand economics. All things equal, value goes down as supply goes up.
Basically, the new money steals value from the old money. The old money can buy less and less over time. It loses purchasing power.
And that means they poach value from your bank account every time they pump a little more money into the system.
As a result, our cost of living rises over time.
Because of that, the key to financial success is not to hoard money. It’s to use money to acquire assets… Assets that rise in value over time because of all the new money being created from nothing.
The truth is, money is little more than an idea. It is an illusion… And it is only valuable as long as it is perceived to be valuable.
So if you think of money as an idea and not as a tangible asset, you will see that it takes nothing but an idea to obtain more money. But that money must then be exchanged for assets in order for it to be converted into wealth.
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