| Making money is an ancient art. Even before money | | | | everybody else agrees with you. People all over the |
| was invented back in the 1500's when banking was | | | | world toil daily to get some money. They work in day |
| invented, people traded in value. So money essentially | | | | jobs and take risks of all kinds to get some |
| is a numerical representation of value. Before banking | | | | representational currency of value so they can buy |
| was invented, money was owned and controlled by | | | | food, shelter and other things. |
| the monarch. The royal mint produced coin made of | | | | Wealthy people know this. While the majority toil for |
| gold which was weighed and equal in value to the gold | | | | the representation of value, wealthy people seek out |
| it was made of. However, over hundreds of years, the | | | | real value. They get it for next to nothing and sell it off |
| people realized that this gold can be filed and shaved | | | | piece by piece to people with representational value |
| off. Shaving a little from each gold coin before using it | | | | (paper money) Just like paper money, which is |
| in a transaction allowed them to melt down the | | | | representational value, real value also depends on the |
| shavings and use it illegally. The monarchies of all | | | | wholesale agreement on value. Value resides in human |
| countries failed to find a solution to this dilemma and | | | | need. Emotion and logical conclusion is where the |
| this went on for hundreds of years. | | | | actual value resides. Your own estimation of what is |
| Gold was the first precious metal assigned by | | | | valuable and that of everyone else is what constitutes |
| authority to represent value and it is this word | | | | intrinsic value, value that you would part with money to |
| "VALUE" I want you to keep your eye on. Just as | | | | get. So actual value that money represents resides |
| today, we cannot eat a dollar bill or sleep under it to | | | | with the individual. If there is enough individuals that also |
| give us shelter, the royal gold coin could not be used to | | | | agree with the estimation they gather in number to |
| be eaten. So the gold coin and todays dollar bill do not | | | | form a market. |
| have an intrinsic value on their own. You cannot ride it, | | | | Need comes from one of the human five senses. |
| sleep in it, eat it, or even take it with you. All money | | | | Visual appreciation of value, Auditory appreciation of |
| does is count value in a decimal numerical nature. So, | | | | value, Kinetic (touch) appreciation of value, olfactory |
| lets dwell on this minor revelation. | | | | (smell) appreciation of value and taste. But there is a |
| Let's say you want a million dollars. You want a million | | | | sixth, engagement. The sixth (engagement) can be a |
| dollars to buy a nice house, get a cool car and go on | | | | combination or just one of the five senses. It is this |
| holiday. You can do all those things with a million in cold | | | | element of engagement which forms a conclusion of |
| hard cash. But wait a minute...where does the value | | | | value and therefore has monetary worth. Engagement |
| reside? If money, as we have just established is the | | | | is where the mind perceives the intrinsic value to be |
| numerical representation of value, where is the value? | | | | worth more than the representational value you have |
| This is perplexing. The money, the million bucks sitting | | | | in your pocket and therefore you will be willing to part |
| there on your kitchen table, in hundred dollar bills, | | | | with it in exchange for the real value. |
| represents all those things which YOU value! You can | | | | What does all this mean to you and how does it help |
| look at that money and it will not be put into gear and | | | | you make wealth. That should be obvious. Wealth is |
| be driven. It does not have a door so you can enter it | | | | created by securing real value and selling it off to |
| and sleep in it. | | | | others in exchange for the storage vehicle of |
| The only reason that money has value is because | | | | representational value or money. When you store your |
| there are billions of other people that agree with your | | | | wealth it grows through interest and capital |
| perception that this million bucks has value. If they didn't | | | | appreciation. |
| agree, you could not spend it for the actual value. This | | | | The point is this, intrinsic value is based on the human |
| is getting interesting. Because what we have actually | | | | perception of others. This being the case you can |
| established is that value is elsewhere and the only | | | | create value from thin air and make it worth money. |
| reason money has representational value is because | | | | |