The average chappie, who is not involved in the markets on a day-to-day basis, and thus only thinks about and/or considers issues that the financial chappies think/argue about on a daily basis, have a very different perspective and understanding of money. Although, that could be said for quite a few of the financial chappies also. The following can be found as the original here

Token money was never meant to be an end in itself, and certainly not for speculation.

Interesting opening statement. Money…an end, or a means? I would agree I think that money is a means: a means to facilitate exchange, to simplify and universalize the price system, to allow economic calculation and incorporate the reality of time into those calculations.

As for the second…speculation? Incorrect. Entrepreneurs are speculators, and have to be. They speculate, calculated in terms of money. Money allows, and is necessary for this speculation, which is itself responsible for creating wealth through production.

What is money, but a token of convenience which parties trade goods and services.

Superficial analysis. Money allows for indirect exchange to take place. This indirect exchange creates the price system. The price system allows economic calculation. Economic calculation must take into account the passage of time. As such, money, is actually responsible for the expansion of society.

These tokens made of paper, of base metal, or markings in the memory of a computer are worthless in of themselves.

Incorrect. The Regression Theorem of Money proves that any commodity money, viz. gold/silver, has to have value as a commodity, prior to an additional value that accrues to the commodity as a money.

The problem is that those in control of these tokens think that they have control over you and me; they start treating these tokens as commodities to gamble with; and they play games by devaluing, printing more or scrapping these tokens.

The basic confusion between a commodity money, that is a product of the free market, and a fiat money which is a product of a coercive power exerting monopoly power over money.

A man can be the richest man on earth with trillions of these tokens on a computer database in a bank, and in one crisis it can be wiped to nothing. Money as tokens is a worthless illusion.

Fiat money value is controlled by the coercive power that holds the monopoly over the fiat money creation. Your statement confuses so many different issues. Your example states money held as a cash balance can be wiped to zero, is incorrect. Money held as fiduciary media, viz. a debt instrument, can be wiped to zero if the debt is defaulted. The basic confusion here is [talking about fiat money] the lack of distinction between fiat held as cash, and fiat held as fiduciary media.

Spain at the present time occupies the minds of bankers, politicians and media, in the place of Greece, in the latest financial crisis as the experts attempt to play further tricks with worthless tokens to stem total disaster. Money tokens have been replaced with debt tokens. I am unsure how one can trade with negatives.

Fiat money held as cash balances has been substituted with fiduciary media. That fiduciary media is not cash, it represents a claim on cash, which, may not be available on demand, on maturation of the contract, or ever. The ECB and all Central banks are printing/creating more money & credit [inflation] so that the supply of money as cash, balances the total supply of fiduciary media. This inflation dilutes the purchasing power of each individual unit of existing cash.

The real commodity of trade is things produced, our time, our sweat. You may have no money, but everyone has a commodity of their creativity, time and sweat which is tangible and more valuable than a token that can vanish as an item of value overnight.

You conflate commodities with factors of production, which muddies the water somewhat. Cutting to the bone, the issue that you seem to be trying to reach is the issue of property rights and natural law.

Interest bearing investments, stocks and shares and other token based investing is really a mass delusion with nothing of value backing it up, but of debt.


You are purchasing [contracting for] the property rights to productive assets. Those productive assets, if you have speculated intelligently, will provide future value cash-flows discounted through time and risk. If you lend [hold debt] you settle for an interest return [future value discounted by present value] on those productive assets.

You yourself have just stated that production underlies the production of wealth, which is correct. You have simply confused yourself with abstract concepts.

For investments something of practical and tangible value is better like land, buildings, art, manufactured commodities (the type useful even if civilisation collapses) than token money.

The productive assets of the steel mill, or oil field, or search engine are every bit as tangible as the ones that you have listed. Land is actually a factor of production, whereas art is a product. The two are very different economically.

It is better to invest as an investor in small local or creative enterprises, such as those on As has been shown by the Facebook IPO saga, the small investor was ripped off by faceless bankers.

Caveat emptor. If you do not possess the skill, experience, intelligence and/or luck to accurately assess the investment, you have no business trying to speculate against the professionals. FB was roundly slagged off by everyone who participates regularly in the markets. At 100X earnings, in this market, it was doomed as an IPO. Every blogger would have told you so, and did, endlessly.