First and foremost, the origin of money can be track thousands of years ago in which people use GOLD and SILVER BARS as their means of trading i.e., to buy and sell goods and services.
For many years, this kind of trading had been used to promote free enterprise amongst markets all over the world. Gold and Silver coins were made for a better way of handling precious metals. But did you ever wonder why nowadays we rarely see gold and silver used as money to buy goods and services? Is it just the evolution of money, the people’s political interest or the complexity of the society?
In the early years, people carry with them gold/silver bars and coins to trade. Later, they had realized that it is too bulky and impractical to bring those money with them, that is why, to solve the problem bankers had put up banks and issued bank notes i.e., you deposit your gold/silver in the bank and in return the bank will give you a note stating the amount of gold/silver you have in their custody. The depositor can use those notes to buy commodities or services and pay through issuing a note to the seller stating the amount of gold /silver that he or she can redeem in the bank. So the notes made the trading simple and are backed by gold and silver as the real money during those times.
So, are there still establishments that allow gold/silver bars as payment today? Of course, bringing gold/silver bars to buy something during 1800’s and early 1900’s might be possible because crime was not yet prevalent those days, but not in the 20th century. Even if there are stores that would accept gold bars or coins nowadays it’s still not safe to trade like this. You can’t just bring gold bars in the streets of Quiapo for example to buy bread or a dress; you might end up being robbed, kidnapped or worst case scenario be killed because of the sum of money you are carrying.
Do central banks still have gold and silver in their possession? Why is it that our money is BACKED BY NOTHING in this present time? Why do central banks continue to print money despite of the fact that we already have had monies in circulation? What would be the effect in the economy? “The complexity of the monetary system around the world was not by accident, it was created to control economies all over the world by means of printing or not printing money”. The people who are benefitting with this kind of system are the bank cartels (central banks, investments banks and commercial banks). They are the so called “FILTHY RICH”, “THE ONE PER CENT” and the “MAFIA”.
“NO WONDER WHY MOST OF THE TYCOONS HERE IN THE PHILIPPINES ARE ENGAGED IN THE BANKING INDUSTRY OR SOMEHOW HAVE STAKES IN IT”.
They get to receive the newly printed money first before the public and thus having the privilege of purchasing goods and services at a lower price because the money is not yet circulated in the society that would create price increase (inflation). Definitely, the so called paper money we are using in this era cannot be considered as money by definition, rather it is called “FIAT CURRENCY”. Unlike money (gold and silver) which do not debase its value over time, Fiat Currency debases its value over time i.e., if you have a $10 in your pocket as of this moment and you can buy three bottles of soda with that amount, in the next 10 to 20 years it will not be the same, perhaps your $10 can only buy 1 or 2 bottles.
There are many reasons why the governments all over the world are forced to mandate central banks to do Quantitative Easing, some called it “helicopter money”, a stimulus i.e., to borrow or print money up to the level where it can address the need to control inflation/deflation, government spending/borrowing, catastrophes and war (sometimes created by those people of interest in money making) , boost the economy and many other areas of the financial industry that has a direct effect in the overall economy.
Because of this syndicated actions, some various groups and individuals all over the world somehow created means to stop this cartel that manipulates and imposed slavery.
There are now:
- “BITCOINS” a certain type of money in the internet also called a “Crypto Currency”. Some believed that this will be the next generation money, the solution to the current monetary policy cartel. It can’t be printed and is not centralized. It can only be reproduced by means of a complex algorithm in a computer and therefore controls the debasement of the currency and omits human intervention. Not only bitcoin, there are now several crypto currencies in the internet that are used to do e-commerce).
- “HOUR MONEY” this currency will buy goods and services through paper money equivalent to hours of labour, quite complicated though.
Well, these types of currencies already exist and have an equivalent amount in dollars these days.
Another bold move was to restore the monetary system back to the time it was backed by gold and silver. Some proposed to amend the monetary system, remove central banks and restore the local state banks so that it can be regulated easily and remove the avarices of the cartels.
The picture below shows gold prices steadily increasing year on year.
You see, there are lots of propositions that intend to remove the current monetary system. But will those instruments work? Can it go against the powerful and influential bankers??
Those questions will remain unanswered until proven.
So, now that we know how the monetary system works, what should we do to protect our money from debasement or from inflation? Today, in the Philippine market, one of the most promising investments prevailing is stock market investing, but how? Should I spend most of my time studying how it works? Do I need a huge sum of money to invest in it? How should I start? What are the risks involve?
Below are several ways to invest in the stock market:
- Open an account in a STOCK BROKERAGE FIRM to enable to buy stocks and try your luck in the Philippine Stock Exchange day trading.
- Enter into a mutual fund/unit investment trust fund for diversified portfolio management i.e. your money is invested to different stock companies by stock market experts to lower the risk
- Invest in a Variable Unit Linked (Mutual Fund + Insurance) which is also managed by stock market experts. This type of investment combines the income potential from stock market and income protection for the immediate family in the demise of the income earner. Truly addressing the financial needs of a family’s bread winner.
In this world full of uncertainty and manipulation, the only way to protect our money against inflation and debasement is to invest it on things that are solid and have potential for bigger yields. Currently we have several types of investments that we may choose from; we have stocks, bonds, forex, real estates, gold and silver acquisition, and many forms of small and medium enterprise that we can study and start investing.
And if you are confident enough you can try trading Crypto Currencies and many other investment derivatives that would give you ample returns over time. Let us not allow banks to enslave us and reap the benefits of our hard earned money. As much as possible, we should only put 3-5 months of our monthly expenses in banks as emergency fund and the rest of our money must be invested to let the money work for us.
Should you decide to start planning your financials and protect your family from financial losses, the FINANCEPH team of financial advisors are more than willing to extend our professional services for free to help individuals achieve their financial goals in life.
We, your FinancePH advisors, will be glad and more than willing to help you plan your finances. Our customized financial planning approach caters to each individual needs, budgets and priorities.
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ABOUT THE AUTHOR:
Ian Jensen Ramos is a degree holder of Bachelor of Science in Mechanical Engineering and Bachelor of Science in Marine Engineering, both he has professional licenses. He is an active international seafarer and is blessed to discover wonderful things around the world for free. Ian decided to join FINANCEPH because he believes in the vision and mission of the team and that for him, “The worth of money is not in its possession, but in its use. For us to use our money in the most rewarding way, we must first educate ourselves about finances.” If you want him to be your financial advisor contact him at email@example.com .