How About Getting a Basic Understanding of MONEY? | The “7 Steps” to The Life Cycle of Money!
Manifest Your Dreams Publicity Blog
As I mentioned in my last post, I’m taking a new direction with this Blog. Its new brand is based around some more tangible finance matters. I’m having a lot of fun learning about some really cool things right now and I look forward to teaching you what I learn here on this Blog.
But, before we dig into real in depth stuff, How about getting a basic understanding of money?
I’m here to help you understand MONEY at its simplest form. One of my mentors, Robert “Rich Dad” Kiyosaki states over and over that the knowledge of money matters are the pinnacle supreme to financial wealth success. You can tell that he truly believes this in his writings.
Like I said, I’m here to help you understand … understand MONEY at its simplest form.
These are The 7 Steps to the Life Cycle of Money (in any society or civilization proven throughout history!):
1. Free Market emerges
In the beginning of any civilization or the re-beginning of a civilization such as after an economic collapse, one thing immediately emerges due to the talents and gifts given to everyone individually and specifically. One man may specialize in cutting down trees and building houses while another herds cattle and yet another grows vegetables in a garden.
Then this is what happens:
The timberman needs food and the gardener needs a house. This is where the need to trade naturally emerges And You Have “Free Trade” .. This is also known as a barter system.
2. Free Market Money emerges
Next, a Free Market Money emerges. This is a Need due to the fact that different quantities of different items have a “different value”. So for example, say the Gardener needs a house built but the Timberman doesn’t need that many vegetables. They will go to waste. Meanwhile, somewhere in the free market, a man found a gold mine and started mining for gold. This is his trade, and this is also a very difficult process. Due to its lack there of and difficulty to mine, free market money (gold and silver) emerges. This is now used as a “trading unit” in free trade.
3. Government emerges
Order slowly starts coming to the civilization and a government emerges to maintain that law & order. (note: they don’t provide any direct products or services to the market but to “regulate”) In not too long, the government starts regulating the market by placing rules in effect (i.e. times to trade, what can be traded, taxes, and more.)
4. Government Monopolizes
The government decides to issue its own form of “money” also known as fiat money or currency. Its important to realize that this is not gold or silver. This becomes items such as the $20 paper promise note in your pocket that probably didn’t cost anymore than $.01 cent to create. So, it leads to the very curious question: How much is your “money” really worth?
5. Debase the Money
Didn’t think it could get any worse or more manipulated? Well, this is the process in which leads to the example I shared above. The government “literally” and “intentionally” debases or (in other words) “devalues” the money. For i.e. we start with a 999.9% gold coin (which is in fact gold in its its purest form) and before long you have a coin that only has 90% and then 45% gold or silver. Before long, it no longer has any TRUE value. You should be able to look at your coins now in which are made out of metals like zinc, nickel, copper, etc. and see that your being ripped off by the government. Furthermore, they print so much “money” and place too much into the market that there is no longer a “demand” and the value decreases causing what you’re used to seeing: INFLATION! The coins are now less valuable because of their metal content, and then added on top of that, more are in the market therefore that makes them even less valuable as well. (Interesting and Sad Note: You don’t own your debased money either. The government does.)
6. Confidence Crisis
The Great Depression of 1933 really started in 1929 with the stock market crash. This was a confidence crisis because THE PEOPLE FINALLY REALIZED THE LACK OF STORED LABOR IN THE MONEY THEY’VE BEEN USING ALL THESE YEARS! This leads to yet “another” curious question: Are we in this phase now?
7. Re-Emergence of Real Money (Gold & Silver)
People slowly remember what is truly valuable and people return to the original gold & silver monetary system.
Have you seen the spot precious metal prices rising and rising over the past 5 to 10 years? especially within the past 6 months? I HAVE! Its an incredible experience to be a part of. Not every generation gets to experience “this” .. maybe you’d like to learn more OR just leave your comment and share this post with a friend!
We are in these final stages. In my opinion, if we are not headed for the Tribulation, we are in fact headed for the next, Great(est) Depression. This is not to be taken as pessimism. I’m a very optimistic young man This is to be taken as truth, because the truth shall set you free, right? Once you realize the truth, you can store your labor in real money such as gold & silver and ultimately take place in the largest wealth transfer in history.
To view 7 videos on the 7 Steps to The Life Cycle of Money Visit http://www.goldshop101.com/curt – There is a lot of valuable information here. I look forward to providing you with much more as I embark further on my financial education journey.
God Bless Your Success,
P.S. Start investing in gold & silver today with a simple plan! Click Here to take the first step!
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