What you do with your money does effect the economy
is supposed to be kept moving, or flowing (thus the name currency)
and economies are based on the idea that money will continue to flow. Wealthy
people know this, and that's why they're always looking to invest.
you ever wondered why someone would pay millions for an elephant
painting or obscure piece of art? They have to keep the money flowing through
the system. If they just hold on to the money, it becomes de-valued.
I know I'm losing some of you here so let me give you an exaggerated example.
Let's say you have all the money in the
world and you just hold on to it. You don't spend any of it. It's
just sitting in your giant vault somewhere safe. Darned if the world governments
wouldn't simply print more money. I don't know why governments are like
that, but they are. They print money all the time. If you don't
believe me, get a bill and look at it. There's a printing date on it.
It will say "SERIES 1995" or something like that on it. (By
the way, when you're done looking at the bill, you might just as well put it in
an envelope and send it to me...)
Back to our example...
The money you're holding (all the money that was in the world) is still there,
and they printed more. That means there is now more money in the
world. Now that there's more money in the world, the money you're holding
is worth less. Do you see how that works?
Click here if you're ready to Gimme A Buck (please)
OK, let's look at this a different
way. Let's say this time you don't hold the money. Instead
you buy art, property, companies, legal
services and send much of it to me...
Now the government has
no need to print more money. Sure they'll replace destroyed money and things
like that, but they don't need more money! The money that you spent on art,
property, companies, legal services, and on me is being "re-spent" on
administration costs, insurance, supplies, management, etc. It's an endless
loop that goes on forever.
As long as the money keeps moving,
the "value" (what you can get for it) pretty much stays the same.
The only time you'll see economic problems is when someone tries to hold or doesn't
know how to spend their money. That's where the government will step in
and print more money. When the government prints more money, it becomes
worth less. Get it?
I know this sounds bizarre to most
people, but the more you think about it the more it will sink in. The point
is... you don't really want to keep the money! You want to keep it moving!
why not help out the economy a bit and move
your money to me?!
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