Money, Money, Money

I think we all agree that money rules our life. I read a post on Facebook the other day where someone said they know love is more important than money, but have you ever tried paying an account with a hug?😕

Unfortunately we live in a world where money is important.

As I said before the story of money is very interesting and I have to admit quite confusing at times. For me it was very difficult to understand how banks "create" money. Only when I studied economics did I get an understanding of how how it works.

I am sure you do not want an Economics lesson here, but I think realising that banks only need to keep 20% of the money deposited and the rest can be lent to other customers, meaning the same money keeps going around in what the economists call the "multiplier"

This all sounds very good until we realise that all that lending and borrowing happens only in the books and is not backed by real money, so the Government simply prints more money. I know this is very simplified and the Economists will crucify me for all the inaccuracies in this post, but I just want to give you an idea of how money is crated out of "nothing" and thus inflation is a given.

Now once again the Economists will tell an economy cannot grow without inflation, and it is true, but what is also true is that inflation erodes your savings. This is why many people seek a save haven for their money. There re many ways it can be done, paintings, diamond jewelry, gold and silver. For paintings you really have be knowledgeable about art or you will waste your money. Not very many people can afford diamond jewelry or large quantities of gold and silver, so it is not always that easy.

So, I think we all have a lot to think about if we want to ensure a better future for our children. Have a look at what FIAT money is and the dangers.

>

I am still grappling with this, I do not know about you. Is FIAT money a good thing or a bad thing? All I know is a little Gold cannot harm.