How To Grow Money On Trees?
We all heard it before, “Money doesn’t grow on trees”. But today I want to contradict this statement with a simple explanation about what money really is.
As long as I can remember, money has been something unique and special to me. Something mysterious and difficult to obtain. As a child I didn’t think much about money, but I knew it was important, because my parents treated it as such.
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What is money?
Long before we used paper money, we used gold or silver to pay for our daily needs. And before that we had other objects and things that we could trade, from salt to Squirrel Pelts to chocolate.
It was important that the object you use was of value to a large group of people, that it was available in large quantities. The problem though is that a commodity like Squirrel pelts is very limited and difficult to reproduce. And although that sounds like its strongest aspect. It becomes a problem when you need higher quantities, or if you want to hand out loans. Just to name a few problems.
Nonetheless. Using commodities like gold or pelts as a way of exchanging goods is rather inconvenient as well. Not all pelts are the same size or the same quality, and gold still has to be checked for its purity and weight.
And how about the fact that other states and countries didn’t accept pelt as a way of exchange? International trading becomes so much easier if there would be a way of trading that everybody accepts.
That is when they invented paper receipts, you simply put your gold in the bank, where it’s safe and secure. And they give you a receipt giving your proof that you are the owner of this gold. With this piece of paper, anyone can go and collect the gold. And that is how our modern “paper money” was born. It still had a long way to go, but the first steps were done.
Former President Richard Nixon Then in 1971 announced that the US dollar would not be directly convertible to Gold anymore. Turning money into its own commodity, or Fiat currency how we like to call it.
But, we still have receipts that are backed by a commodity, for example: Art. Art often is stored in high security vaults. And to prove somebody really owns a piece of art, you will get the receipt, stating its current worth, authenticity, and its current owner. A proof of ownership if you will. It’s similar to owning a house, a car, or a piece of land. etc.
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Why is the history of money important?
There is a reason why the money is what it is today. It is probably the best invention ever made. And the first tool that connects all people in the world. It’s a technology that has been improved and redesigned over and over again.
People will always want to exchange one good for another. Money helps with that. It’s a huge time and problem solver and it creates so many more ways to make a living. Now, anything can be exchanged for money.
It’s important to understand what money is, because the kind money system we have today solves a lot of problems. So we have to watch out to not go back in time and create “new money” that actually brings back old problems.
Nonetheless, money can still be seen as a commodity. And because of this we now know that money is something of value. Value can be created and therefore money can be grown on trees. How?
Simply start growing bananas, apples, or oranges. And exchange them for another commodity of value, let’s say, money…
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Conclusion
Above explanation was meant to remind you what money is. And knowing that we can create items that have value, and exchange them for money. We now know that fruits grow on trees. Fruits have value and therefore money can be grown on trees.
Well, I hope you get my point. I suggest you read some books about this, for example. What Has Government Done to Our Money? by Murray N. Rothbard.
Thanks.
Ron
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