Grace in Action: What is Money? The first step to having wealth is to know what it is. And few people know what it really is, in and of itself. What is wealth? What causes it? What causes the cause of it? Let us start with money, the world’s symbol of wealth, and then move deeper. Money is not real. Money is merely legal tender, a form of exchange. We use it to exchange value. It represents value. Money is the “body” of value. It is the physical representation of value that rises and falls in ourselves, within us. Not within “things” outside of us, but within us. For without us, what can the value of a thing, such as a car, be to us? Nothing, at least not to us. In other words, it is we, the observers, that place value in things, but this value is really value in us—we give value to the material things. The material things have no “money” value in themselves—we give that to them. So money is the external physical representation of a particular section of our internal value, within us, within you. That is why a house or a block of shares valued at $1 million today can fall to a valuation of half a million dollars tomorrow when fear is introduced into the hearts of those involved. The fear kills a portion of the internal values of the participants, and that is reflected by the paper money, the “body” of value. Here is something else: physical paper money does not even represent money in full. It cannot reasonably do that. By some estimates (and this varies from nation to nation), only as little as 4 percent of the money in the banks exists as paper cash. Imagine how much cotton, linen, pulp, and metal the world would need so as to make all the money everyone has in his or her bank accounts. Imagine how much space it would take to store all this money in paper form. If you were to stack only one million US$1 bills, it would weigh one ton and be 361 feet high. Neither does money exist as gold reserves anymore. This is for exactly the same reason—we ran out of the reasonable ability to keep a gold standard in the 1970s. (Page 10). A Happy Pocket of Money.
Posted on: Tue, 15 Oct 2013 23:45:57 +0000
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