Tuesday, April 28, 2009

Currency vs. Money

Whats up yall.I figured that in this capitalistic society where money is the name of the game,it would be good to take a deeper look to truly understand what money and currency actually are.Most people would consider them to be the same,however,those that think this are sadly mistaken.The difference between money and currency is that money is a true asset such as gold,precious metals,real estate(land) and anything else that is natural.The commodities were used in the past through a bartering system.Currency is what most people are familiar with which is cash.Now,cash is made out of paper and if you look on your dollar bill it will clearly state that it isn"t redeemable and that is nothing more than a note of debt .Even though you can go to any store and purchase items with cash.keep in mind that cash is or fiat money is nothing more than paper.This paper money that the federal reserve prints for the United States and charges the US interest on is not backed by anything.Whenever there is currency(paper money),it is not but so long until the value of it will depreciate.The value of currency is in its ability to be circulated.That's It.The value of the currency that we have now has depreciated because there inst that much in circulation.So next time you wear gold silver or a precious metal,remember that what you are wearing is real money and those federal reserve notes in your pocket or in your rubberband is nothing more but a note of debt.Peace.Im out!!!

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