Saturday, October 15, 2011

Money for nothing... (how that system changed everything)

There was a time when people did not work for a pay cheque or profits, they would get up in the morning and go out producing crops (or items of value).  And because one person could not produce every item his family would need, he would produce extra of what he knew best, and then exchange the extra with other producers in the region.

As time evolved, people found it easier to exchange crops & items with coins or notes (which they could then use to exchange with others).  It's much easier to carry a dozen coins than a dozen pigs ;)

Over time the system evolved some more and the banking industry was created.  This system allowed you to receive some coins and notes (now referred to as money) without needing to give the bank any products in return.  In a way the bank was giving you a gift... as long as you promised to give it back at some point (with interest).

Over time, this phenomenon created a mind set where people started believing that they were entitled to purchase items of value even if they couldn't afford to pay for them (or produce anything of equal value in return).  And so the simple concept of exchanging value for equal value evolved into a game of strategy, outwit and con.

The current reality, unfortunately, is that some individuals and companies consider trading as a game where you "win" if you can get AS MUCH MONEY in exchange for AS LITTLE VALUE AS POSSIBLE (the difference is where big profits come from).

So how can we return to the very simple principle of exchanging value for equal value.  The first step in my opinion, is to switch our thinking from "I need to work to make money..." to "I need to produce so I can contribute".

So instead of trying to produce everything that you need for living... why not produce more of what you are best at (like they would do years ago)?  Then you can exchange the extra for other crops or items of value you need for your life.  Sure you'll be getting money for you production (or contribution), but in return you will have given REAL VALUE.

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