Wednesday, October 29, 2008

If It Can't Be Grown, It Has To Be Mined.

Everything we have (excluding cosmic debris) comes from the Earth.  As we produce, we create wealth; we do not create money as we produce. That only happens at a bank.

Now, money only comes into being when someone, an individual, business or government, takes out a loan. 

It's true that gold, silver, platinum and diamonds are forms of wealth (wealth = raw resources + labor + innovation) but we don't use wealth for money.  We use debt.

The Minnesota Transportation Act (MTA) will introduce a stream of wealth-based money into the economy to allow people to pay off their debt. Bank default rates will decline and our economy will stabilize.

We can't grow money and we don't mine it either.  We borrow it.  Our money is not wealth - it's debt.