FINANCIAL BUZZ | The Dollar – Part I

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barriobee1The Dollar – Part I
By Barrio Bee

Back in the day… a fair trade required the exchange of items of perceived equal value…
We all know it better as the barter system…
Then along came the discovery of gold and its universal attraction…
Talk about a monkey wrench…
Gold was then used to facilitate the exchange of goods and services…
It was even used to save for a rainy day…
Eventually the concept of money developed in the marketplace…
At the end of the day… he who owns the gold… makes the rules…
Alas… we have the advent of the new “golden rule”…

Individual countries were the most willing parties to apply the golden rule…
As countries gained control over the gold and the money… they grew in power…
Inevitably… These countries began to outspend the gold and money they controlled…
You know what happens after that… New and higher taxes are declared…
And the masses disapprove!
Leaders then tried to inflate currencies by reducing the amount of gold in each coin…
Again… the masses disapprove!
This pressured leaders to seek more gold by conquering other nations…
Alas… we have the advent of an Empire…

An Empire made it easy for people to live beyond their means…
Financing of the extravagances came by conquering foreign lands…
Which brought gold, slaves, and new taxes to the conquering nation…
Unfortunately… this almost always led to the moral decline of the people…
And an unwillingness to work harder and produce more…
Since there were only so many countries that could be conquered…
Ultimately… Empires met their demise because… no gold… meant no military power…
Countries that strive only for empire and fortunes to support welfare at home eventually fail…
Alas… we have the collapse of an Empire…

Today… the rules are the same… but the name of the game has changed…
He who prints the money… makes the rules…
When gold runs out or when paper money is not accepted…
The obvious result is that wealth and political stability are lost…
And since saving, hard work, and production are not in vogue…
The country goes from living beyond its means… To living beneath its means…
The economic and political systems must then adjust to new rules…
Rules that will no longer be written by those who run the soon to be defunct printing press…
Alas… we have the advent of the Dollar…

Next month… The Dollar – Part II…