Does this make sense? ... a little story of economic fiction...

in money •  8 years ago 

A few years back, I had a bit of cash...so I started a bank.  Thought it would be fun.  I printed up a bunch of currency...it is so pretty.  The paper bills had pink flowers on them...a whole bunch of pretty flowers!  

I had a couple friends in government and I asked them to meet me for lunch...my treat.  I showed them the pretty new pink flowered paper currency.  They loved it and wanted some.  We chatted about how fun it would be if everyone used my pretty currency.  They each had more friends in government.  They all met for lunch and my pretty currency was loved by all.  So, they passed a law that said everyone in the land shall now only use this pretty pink flowered currency.  So it was done.  

It had been agreed by all these important government people...that....they will buy the currency from me and pay me extra for my troubles.  Interest is what we called that extra.  

So, that was that...everyone had to, by law, use the pink flowered currency and the government bought it by the truckload from me.  It didn't cost me much to print...some artwork, some paper, some ink, and a printer.  EZPZ.  They paid me full price of each bill (face value)...PLUS INTEREST!  Yay!!  Wow...it was quite exciting.  I was making BO-ku(beaucoup = a lot in French) money!  More Yay!!!  I had enough money to buy pretty much anything I wanted!  Houses and land and cars and shoes!  Lots of shoes!  It was fun!  

Think that was a silly, crazy story?  It is exactly what the folks who created the Federal Reserve Bank did.  It's not Federal.  It's private.  

Ooooohhhh....there IS a difference....my fantasy currency is pink and pretty ;)

IMAGE CREDIT:  photo and art by me :)



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nice post

thanks!

Ha! Nice story. I'm glad it's becoming better known that the Fed is a private entity with monopoly rights over USD.

One thing i'd note that the situation isn't bad bc of the difference btw public and private entities...a public monopoly is just as harmful in outcome...it's the idea that we're forced to deal with a monopoly.

I should say, we WERE forced to deal with a monopoly, but now we have bitcoin.

Thanks for the comments...and I agree with your point about public vs. private....hard to get all into a story that I want to keep simple....trying to get more folks to realize they are being lied to...about pretty much everything...so it's a start. Folks reading your comment will gain more as well...so much appreciated! I am still on the fence about BTC...so much confusion...but I did buy some...figured better than the worthless paper I have in my wallet! Ha!

Yes exactly! bitcoin is the first viable free market money, so i'd wager it does better than USD monopoly money over time. At least so far those who have held BTC have experienced exponential growth in purchasing power relative to those holding USD; i expect the the trend direction, maybe not the rate, to continue.