Some Observations Regarding Economics

Everybody knows that we're experiencing some tough times. I read a lot of information on economics and finance. My opinion of the current economic situation is that it was predictable. There appears to be two forces at work here, but first I will talk about the monetary situation.

In previous times, numerous substances were used as money. Tobacco, sea shells, tally sticks, salt, gold, silver, etc., have all been used as money. Historically speaking, the substances that functioned as the best forms of money have been gold and silver. I understand this, and a number of people understand this as well. This is the reason why the price of gold and silver are so high today, and why they do a better job of preserving their value, regardless of what happens in the world's financial markets.

While gold and silver are excellent forms of money, they do have some disadvantages. They are bulky and hard to carry around. It is almost impossible to carry around gold for everyday transactions because it is so valuable. And you can forget about using silver for that because it is extremely heavy. Another problem is that they are very rare. Although the rarity of gold and silver make it valuable, it also makes it virtually impossible for them to be used as money because there just isn't enough of it to support world trade. Some of these facts may be the reason why the world's financiers choose to manipulate and suppress the gold and silver commodity exchanges.

So although I know that gold and silver are great for preserving your wealth from inflation and hyperinflationary destruction of financial (paper) assets, everybody does not have this option. With over six billion people in the world today, there just isn't enough gold and silver to make world commerce work. That's just a cold, hard fact. This is why credit is used as money. There is no limit to how much can be produced.

Unfortunately, the same thing that is good about credit is also a weakness of it. Because there is no limit to how much credit can be produced, this can also cause problems in society, and we are experiencing them now. If credit is to be used, there should have been some sort of limit placed on how much would be emitted. The old saying is that 'absolute power corrupts absolutely', and we're seeing this happen with the big banks. Unfortunately, the average person is being given the bill for the wayward antics and tendencies of these banks. They basically got no penalty, while average people are the ones who will pay the penalty and the bill.

Times will probably get tougher for average people, and especially for people that depend upon a job for their income. But people who can take advantage of world trade (outside of the United States), and people who can participate in technological innovations will probably soar ahead with financial growth opportunities. But those who are left back with the old ways of doing things will be left behind. The economic environment is changing, and the person looking for a job will be left behind if s/he does not develop marketable skills that will be in demand today, and in the future.