Money Equals Energy, But Right Now, the Math Doesn’t Add
I know that a lot of people
would love to live without money, but the fact is that money is a very useful tool in today’s complex world. At its root, money is the medium through which we exchange energetic value amongst each
other, whether that’s by trading goods, services, or time. Money is an essential tool to any large, developed society with a robust and diverse economy.
Money evolved out of the barter system, where people were limited in what they could exchange and receive. Essentially, people could only trade what they had for what the other
person had. For example, I could trade you my apple for your orange, but if I didn’t want an orange, then there is really no reason for me to sell you my apple. Money revolutionized exchange systems
by giving sellers the opportunity to sell their energy output to people interested in it, in exchange for a medium (money), that could be used to purchase whatever they wanted as opposed to being
confined to receiving only what the other person possessed (orange). It really was a natural evolution in the transfer of value from one person to the next.
The underlying assumption to
all of this is that the medium of exchange (money) is a truthful and just indicator of our energetic value; as in our goods, services, and time are accurately priced to the market value of them,
a.k.a. priced to what they are worth. Sadly, that is not a fundamental principle in our current system anymore, as the money value (price) and the actual real world value (energy and demand) have
diverged apart from each other creating a schism in our economic system.
Unfortunately society has moved from a sound money economy where money is anchored down to objective rules, markets are free for everyone, and there is little to no central
control over it all; to that of a fiat matrix where money has no anchor in objective reality, markets are heavily regulated, and central authorities control the economies, usually to benefit of the
élite class and the detriment of the majority of the population.
We used to have a sound money system, where the money supply was tied down to gold, a rare metal that is found in the ground with a fixed supply. Though many other things have
been and can be used as money, gold has made for solid money over thousands of years because it preserves well over time and has a limited physical
supply. What this did was anchor down the economy to some fixed objective set of rules in that governments and central banks could
only print as much money as they had in gold or to some fixed ratio of gold to fiat currency. During the gold standard, people were always allowed to exchange their
fiat currencies for physical gold, which essential holds the banks in check from over inflating the monetary supply far beyond the limited physical supply of gold.
However, that was done away with and now we have a money system where central banks and governments can
print money and expand credit to what seems like infinity just because they are allowed to by law. To make matters worse, the price of precious metals, like gold and silver, which are
supposed to keep the current pricing system in tact by allowing gold and silver prices to rise when the fiat money system gets volatile, are admittedly being manipulated and don’t reflect real world value. Basically, there is no anchor tying the system down to objective rules, since the money
supply can be increased or decreased/manipulated by some central planning authority.
This has had many unintended consequences, such as constantly rising inflation, which decreases the value of savings since the purchasing power of the currency goes down as the
supply grows. Another clear consequence is wealth inequality, since most of the new money creation gets injected at the top of the pyramid,
such as in big
banks, big government, and big business. This helps the top get richer and might bring the monetary value of the economy up temporarily, but it does so at the expense of an ever-dwindling middle
class. Finally, the constant expansion of the money supply totally distorts prices, as all this new credit gives the appearance of rising value, yet in reality this is a false wealth
with no energetic substance. Real wealth is an increase in productive capacity and money flow that makes society better. Money printing does nothing of the sort; it only creates bubbles of artificial
wealth that eventually pop.
What all this has done is
create a skewed system of energy valuation, where economic values in society are completely out of whack with the actual values of our energy outputs. For example, we have a system where banks are
overleveraged/undercapitalized, companies are riddled in debt, our governments are bankrupt, yet the world still perceives them to have high economic value due to the ever-increasing manipulation of
money valuation. There is nothing tying this system to any objective truths; because if there were, many banks, companies, and governments would have gone bankrupt and been dismantled by now. That’s
not to say that the gold standard was perfect or that things need to be equal, but the point is that we need something open, fair, and objective to anchor the system down so price and value correlate