Of course banks are greedy! Of course corporations are selfish, and Wall Street is wily! Blaming a financial crisis on these qualities is like blaming a flood on the wetness of water…
From “Money: The True Story of a Made-Up Thing: P. 130
Money isn’t just some accounting device that makes exchange and saving more convenient. It’s a deep part of the social fabric, bound up with blood and lust. No wonder we get so worked up over it.
— Money – The True Story of a Made-up Thing p. 6
Don’t you find it strange that you can raise a family, hold down a job, fix things that are broken, and deal with everything that comes up in your life — except your money? … How is it possible that we’re all too busy working so hard to earn our money to be able to deal with the money we are working so hard to earn? … What prevents you from dealing with your money is not lack of time, but your fear of money. … The sooner you deal with your fears, the more money you will be able to create.
— Suze Orman
Inflation
In Argentina, the cost of food is about 50% higher than it was this time last year…
In Zimbabwe and Sudan, the prices of everyday goods are doubling (or more) every year…
And in Venezuela, according to Johns Hopkins professor Steve Hanke, the annual inflation rate is nearly 65,000%.
Rapid inflation – or hyperinflation, in Venezuela’s case – is a telltale sign of a currency crisis. And government incompetence is the root cause.
Modern currencies are “fiat” – they aren’t backed by anything. The value of a fiat currency is dependent upon the government, which effectively controls the amount of money in circulation – either physical or electronic.
If policymakers spend recklessly, take on too much debt, or otherwise compromise the faith in the currency, then its perceived value declines. The result is higher prices for goods and services. In extreme situations, like Venezuela, the currency swiftly becomes worthless.
Whether it occurs quickly or slowly, inflation is unavoidable. Even the U.S. dollar has lost 93% of its purchasing power over the past century. Let’s say someone purchased $10 worth of food and clothing in 1918. Those same items would cost you about $170 today.
The point is, currencies – even the U.S. dollar, the reserve currency of the world – don’t hold their value well over the long term. Therefore, putting cash under your mattress and leaving it there for a long time isn’t a good idea.”
Money makes money. And the money that money makes, makes money
— Ben Franklin
Money means nothing without philosophy. Beyond what we need to survive, money has no importance. Is it good? Is it bad? It depends
— Bill Bonner (link)