The Truth About Money

It has been said that "money makes the world go around." Is this really true? Lets examine this saying a little bit further.

The truth about money is this. Money has absolutely no value what so ever and I can prove it. Money or the numbers that you see on your account balance are worthless. They have no real value in and of themselves. The physical object (Money) and the physical numbers you see in your bank account do not have any real value at all. If your scratching your head right now and thinking to yourself, "this is absurd, of course money has real value, I use it everyday to get the things I want." Well, yes and no. Yes, you use money in exchange as a way to purchase something that you want. And no, it is not the money itself that enables you to get the things you really want. The problem is, that we have been spending money our entire lives and it honestly seems like it’s the money that give us what we want, but its not.

The scary thing about this is this; we walk around spending money and making money thinking that it actually has value. Unfortunately, the mass majority of us (I would say 95.75%) actually believe that money has real value. I would say that this same majority (95.75%) believes that money does make the world go around. We go around making this statement to each other without giving it any thought. We hear that statement and accept it as the truth. When we look around us it seems to be the truth. After all, you can not do anything in this world, or get anything done without money, right? Wrong!

Here is the truth about money. It is an undeniable truth once you see it. The reason that money has any value at all is because we (the people) all agree that it has value. Money gets its value from us (the people). This is very important for us to understand because many of us (95.75%) are engaging the world with the misconception that money gives us our value, when it is actually the other way around. We (the 95.75%) give money its value through our mutual agreement of its value.

Let's examine this a bit further. A $100.00 bill gets its value from all people (us) through the mutual agreement that it is worth $100. The value of the $100 bill is not inherent in the bill it self, rather it is ascribed or given to the bill through our mutual agreement that it is worth $100. If, for example, all people today agreed mutually that a $100 bill was not worth $100 dollars, then it would become worthless. Either way its put, the $100 bill does not have value in and of itself. The $100 bill is an inanimate object that we mutually place value into. It could just as easily be a rock or a stone, which it was at one.

Let's use an example for clarity. Imagine that you have 1 billion dollars in cash sitting right in front of you right now and its all yours. Stacks of $1,000 bills all for you just sitting in your house and piled to the ceiling. Makes you feel pretty good when you think about it doesn't it? However, also imagine this. You are the only person on the planet earth. What would that money be worth to you now? Absolutely nothing. Why? Because there would be no other people to exchange it with that would mutually agree on its value. It would be a pile of useless paper. Granted, money would not mean anything without your loved ones and friends, but even if you had your loved ones and friends with the billion dollars, it would still be of little use to you. Because there would be no other people to exchange it with who agreed on its value. You could use it to burn and keep you warm since you would not have the service of heat.

The truth about money is this. People and their agreement upon what its worth gives money its true value. If you pull a $1.00 bill out of your pocket right now and examine it, you will see that it has the words "This note is legal tender for all debts, public, and private" written on it. This is the agreement that we mutually honor whenever we exchange money. It is not money that makes the world go around. Money is simply an inanimate object, which symbolizes the mutual agreement that people share about its made-up value. Money does not give people value; it is people that give money its value.