Why Money is Relatively Real By Anthony Blackstone, B.A., J.D., M.B.A., Phd. Perpetual (C)Copyright (2012 C.E.

) By Anthony J. Fejfar and Neothomism, P.C. (PA) Some materialists, whether communists or captialists or otherwise, think that money is real, and thus, they spend their entire lives and even existences accumulating money, thinking, I suppose that from a materialist point of view, they will be more real by holding real money. Unfortunately for them, however, money is not real, but instead is only relatively real. Now, I suppose that if money really were relatively real, then it must be based upon some standard, or value, or even commodity, which is real, such as Gold or Silver, for example. So, let us imagine that the country of Tidemount was on the Gold Standard, such as the United States was, prior to 1940. Thus, Tidemount has a big High Security Facility, known as Fort Boxer,

where all of the Gold of the Country of Tidemount Gold Reserves are stored. Let say that somehow, Fort Boxer has 1 Million Ounces of Gold, which backs the Country of Tidemounts Paper Currency, that is, the Tidemount Dollar. Now, let us see if the Tidemount Dollar and the Gold that backs it, located in Fort Boxer are real, or not. First of all, Gold is measured by

Karat Weight, with a ratio of the weight of Gold, relative to a particular volume, such as one cubic inch. Now, the idea is that if the weight per one cubic inch of the Gold is heavier, then its troy ounce value, per cubic inch is higher, and thus more valuable. So, if a particular cubic inch

of Gold weighs more than another, it is considered more valuable and worth more money, or more widgets, for example. But you see, there is one little problem with this. You can add lead, which is a base metal, to Gold, smelting it together, and the Gold weighs more, and is seemingly more valuable, even though it is composed of 50 percent of its metalic composition of

lead, which is worth about 5 cents an ounce, not hundreds of Dollars.

In this situation, the

Gold would probably be valued at least 28 Karat Gold, even though it is half lead which is virtually worthless. Thus, a person holding this lead Gold can still get a price of, say, 600

Dollars an ounce for this Gold, when another person with pure Gold is only going to get 300 per ounce with Gold without lead. The next problem with the Gold Standard for Money is that the whole situation is logically circular. You see, the value of Gold is measured in terms of what it can be bought for with Paper Money Dollars, yet, at the same time, the value of the very same Paper Money Dollars is valued based upon the very same Gold. Next, the value of Gold in terms of money Dollars or trade goods, such as widgets for sale, is not a constant. Let us again assume that the Country of Widemount has Gold Certificate Dollars in circulation in the amount of One Million Dollars, and that the Country of Widemount produces One Million Widgets, annually. Now, this means that one Widmount Gold Certificate

Dollar is worth One Widget, more or less. But, what if the Country of Widemount increases its Widget production to 1.5 million Widgets annually. This would mean that One Gold Certificate

Dollar is now worth 1.5 Widgets, where before, it was worth 1 Widget, and thus the value of the One Dollar Gold Certificate has changed. On the other hand, assume that the Country of Widemount has increased its Gold Supply through new mining producation, such that now 1.5 million ounces of Gold, are now backing 1.5 million Gold Certificate Dollars in circulation. At the same time, the Country of Widemount is still producing only One million Widgets. At this point, the value of Gold Certificate Dollars has now been reduced to 1.5 Gold Certificate Dollars per Widget, which may seem higher, but in fact the Gold Certificate Dollar is now worth less, since, its prior purchasing power was One

Widget per Gold Certificate Dollar, but now, can only buy one Widget per 1.5 Gold Certificate Dollars, such that the purchasing power of a Gold Certificate Dollar has been reduced by about one third or its former value. Also, in the Country of Widemount or any other Country, the Gross National Product of that Country involves Trillions of Dollars, while the amount of God available in Fort Boxer or Fort Knox, or otherwise, is measured and valued only in Billions of Dollars. Thus, to have an

economy of any size at all, the amount of Gold that you would have to have stored away to back Gold Certificate Dollars would be so huge that you would have not enough room to store it anywhere. Also, ironically enought, the Country of Widemount, or any other Country, would be put in the paradoxical position of buying up Gold with its Dollars, in order to back the value of those Dollars, which again is a type logical circularity. Additionally, there exist an International Money or Currency market where one countrys money is traded directly for anothers, or in other situations, when international business deals are made, such a buying fruit or lumber or book shelves from another country, it is necessary to value the currency of each country in order to do the deal. In this situation, the value of a Widemount Gold Certificate could fluctuate widely in relation to other countrys currency when each country produces a different amount of Widgets per their own currency and or Widemount Gold Dollar Certificate. Also, if a Gold Certificate Dollar is worth anything in Gold, that Gold Certificate Dollar must be redeemable for Gold, on demand. Thus, each Widemount citizen, or even a foreign

citizen or corporation, should be able to go to Fort Boxes, and exchange their Gold Dollar Certificates for actual Gold. Naturally enough, it is highly probable that if this were to take place, most people would stop by Fort Boxer, sooner or later, and trade in their Gold Dollar

Certificates for actual Gold, at which point, in a short period of time, there would be no Gold left in Fort Boxer, at all. Given the foregoing, it is clear that money or dollars or yen or rubles or marks or francs, are only relatively real, with no fixed or absolute monetary value. The value of any given currency, from any particular country, is based upon psychology, that is public confidence in that countrys money or currency, relative to the goods, services, and real estate available, which is value and sold in relation to that countrys currency, as well as the value of that countrys currency in relation to the currency of other countries. Therefore, you materialists must beware, because, you see, when you are being selfish and greedy in accumulating money, you must realize that such material wealth is only relatively real, and thus you can only be a relative materialist with relatively real money, and not more. So

maybe, just maybe, you may with to work on a hobby project, or do a little volunteer work, and engage in Self Actualization (Maslow and Sarte) which produces Psychological or Spiritual Satisfaction, not just materialistic selfishness and greed.