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Money Is A Social Contract

A short while back I posted a blog addressed to Thom stating that when any guest o n his show says"I made all my money by myself" he should stop them right there and say to them, No You Didn't, for all the reasons about the commons that Thom brilliantly articulates virtually all the time. I also stated that the money these people make is dependent on other people accepting their money. That is the part I want to e-blabber-rate on now.


In a true libertarian free-market world there could be no such thing as money. All wealth would have to be measured by the amount of land an individual could defend and the resources, livestock etc that that individual could obtain from that land. All commerce would have to be done by bartering and trade from what an individual has managed to accumulate.

Thousands of years ago, people realized that monies and currencies could be a more efficient method to conduct commerce and measure wealth. But like all new ideas and inventions; money was a double edged sword.

With all the convenience and benefits of using money to conduct commerce and measure wealth, came an obligation and duty to those, that in affect agreed to accept and honor any currency , a requirement to support the governments, institutions or agencies in their efforts to maintain the value of the currency. True, people can and will argue forever on how best this can be accomplished, wether it be by Keynesian economics, so called Free market, Communal concepts, Trickle-down, etc. But the bottom line. MONEY IS A SOCIAL CONTRACT.

In reality, the possessor of money does not even really own the money they possess. But are granted rights and privileges that are agreed to by the governments, institutions and agencies that issue the currency reflected by the value of that currency. This point is best illustrated by governments, institutions and agencies that issue currency which often do affect the value by deflating or inflating the value of a currency, either by whim or perceived necessity, thereby, affecting the wealth of those that hold those currencies.

Ultimately though, the value of any currency is based on the willingness of the people, wether it be a democracy or a dictatorship, to continue to accept a currency as legal tender. When the peoples confidence in that currency is diminished, so is the value of that currency.

Therefore, when someone says that they made all their money all by themselves. They are lying. I know it, you know it and worst of all, they know it. It is impossible.

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Time to Start the Impeachment Process

Thom plus logo Some Democrats are afraid of impeachment because after he was impeached Bill Clinton was more popular than before.