united for freedom 



Money gives freedom but money also enslaves depending on the money we have and use. The money we use is inflationary .... it increases costs and creates costs. When we have money we have choices but to get money costs money. Money creates inflation because it creates costs greater than its value. Inflation is a direct consequence of free riding.

To get money means we must obtain it from someone who is willing and able to lend some. If we do not wish to borrow or are unable to we must get a job. All of this is a cost of money and these costs increase over time. This is inflation.

Earning money is a form of indirect barter.

We have been led to believe that barter is an inefficient way to trade and that money has somehow dramatically altered the way we do business. Very few people understand money or how it is created. The form of money we use is an asset and its use is closer to barter than many realize. Money is a product that is infinitely divisible so it can be bartered for an infinite variety of goods with an infinite number of costs. This section will teach you everything you need to know about money including what it is excatly and how to create it.

Meaning Of Money

What is money? What do we mean when we speak of money? Money seems very simple until it looked at closely then it becomes a complex and even confusing subject.

Money is an idea even small children can grasp but even the most famous of economists do not fully understand. No one sends their child to school to learn how to spend money, yet to be an economist and learn how money and the economy really works takes many, many years of study and at the end of it an economist knows little more than the average child does about money. He or she may be able to make graphs and create projections based on artificial assumptions but this has very little to do with the way the economy works.

Sometimes money appears to have so many facets it seems to be more than one thing. Money is said to be a storehouse of value, a medium of exchange,  the concept of value quantified amoungst other things


The true meaning of money is found in its use. We use money to transact business. Many people think of conventional money as being worthless paper except they do not treat it as if it were worthless paper any more than they treat a car as a pile of steel and glass.

Money is a product created by governments and their licensed providers. It is a product created under licence from the government. Money is a licence to make money in the literal sense. Money fills a Demand for a reliable medium of exchange and storehouse of value. As with so much else to do with the economy the creation of money has two very distinct and dissimiler faces.


Paper money and coins are generally created by government mints, companies created by governments for the printing and coining of money. But this is or has become a relatively small feature of the economic landscape.


The largest percentage of all money used is created by banks. If asked most people, including those who operate the highest levers of government, would tell you that banks create money through loans, which is basically true, made on savings, which is really, really untrue. One wonders who could be saving anything in these times of mounting debt.

To really understand money in the modern context we need to understand debt. This also leads us to conclude that understanding money has not much to do with understanding the paper money we carry around in our wallets.

Money as the quantification of value allows a seller to create an objective representation of what they sell by means of a price denominated in dollars. The sellers chicken is worth ten dollars. If the buyer has a general idea what other things may be purchased with ten dollars he or she has a good idea what a chicken is worth relative to others goods available in the economy.

The value of money is learned by learning what it buys. A child learns what .10 is by being given small amounts to spend so that she or he can learn the relative value of things. This may appear obvious enough but think of this. Most people in this world have no idea what a trillion dollars is - apart from the fact that it is a very large amount of money. A normal adult given a trillion dollars to spend would appear as confused and naive as a child given ten dollars having never been entrusted with than .10.

When banks create money they create an account with a positive balance. This money is a debt owed the bank.

Estimates put the amount of bank created money at 97% of all money in circulation, the other 3% being the paper bills we still use for small transactions.

But this kind of thinking has created a sort of financial anarchy. Banks nor mints create money. They create currency. They think they create money they may even think they are producing value but they do not and this creates problems for the economy it creates problems for us. Money, as we said above, is the quantification of value. Banks and mints create currency. Currency is an asset used as money to quantify value but all currency created by banks and even by governments constitute debt. Many nations create problems for themselves by equating lots of currency with lots of money. Admittedly it is difficult to seperate the two since we are so used to seeing currency as money. Not even economist understands the distinction, at least in a professional sense which is why there has not been a solution to poverty.


We all want freedom and we all want money. The love of money it is said is the root of all kinds of evil. This is necessarily true. By loving money the true nature of money becomes corrupted. Only the Bible provides this insight. Freedom has nothing to do with the possession of currency and material goods.

We need to understand money and to seperate it from currency. This is hard because the money we see and use is currency. Even the banks computer blips are a form of currency. They are what is called a digital currency.

Money does not really need to be created to exist but because nations and governments do not understand money what they do is create currency and think they are also creating money. But without some kind of curency it is difficult to have an economy and without an economy nothing can be accomplished. This is a profound truth with far reaching implications. Because freedom movements and reformers fail to recognize the central importance of controlling the money supply their seed falls on rocky soil. A good example is South Africa. By kicking out the colonial government it obtained political power but political power is meaningless without economic power.

Ultural Rationalists need to have a clear understanding of the nature of money and how best to produce a currency. The error bankers, government and robbers alike make is to think currency is money and the ownership of material goods gives them freedom but this is wrong thinking.


Neither banks or governments can create money. They provide a service in their issue of various forms of currency. All of this currency whatever form it takes has to be backed by value or it is worthless.

Businesses create the world's money because businesses create quantifiable value. In some ways all the money in the world exists on the books that business use to record their accounts. This is the true money and it is this money that we ought to use. Exchanges are communities that take this value and turn it into a usable currency. Thus the currency created by Exchanges are identical to what money actually is.

A home has value but this does not make it money. A business turns a home into money by marketing it and selling it. People get money by putting their home up for sale. It does not matter how the sale is transacted or what form of currency is used to complete the transaction. The currency is just the form that money has assumed. The money is in the dollar value of the house as a commodity. This is important to understand.

Money is quantified value and currency is a way to represent the quantitification of value. But money is the value in the economy or the real products and services that make up the economy. So, if a government prints lots of currency but business has not created a corresponding amount of value the governments currency only inflates values rather than representing them.

If banks create humongous loads of debt but business does not produce a corresponding amount of new products and services the bank debt will go into default. (The loans cannot be repaid). It is that simple and that complex. The question is this: If banks and governments produce currency that is essentially worthless unless businesses are able to create the money that gives the currency its substance and indeed its value why are they the ones making the currency? Why do businesses not make the money since they alone create the value that backs money?


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