Various Potential Bases Of Money

Q: Is there some reason they would not have it? Part of what's been going on, is that as some economies have collapsed, the elites have left, bringing all the gold they could carry out, and then selling it on arrival in a more stable developed economy. Its a damn moot point how much is still out in undeveloped economies (that tend to be even more corrupt), and how far down the global economy will get. Whatever it is, its limited like an oil well, and when it runs out the price will go thru the roof. Back in the gold rush days, the government had some control over the price since the mines were on our territory. Not any more.

A: Values can be easily manipulated by those who have power and influence over the market. I can figure by example some cases, the modern art with those millionaire prices than never go down. It can get unsold in auctions, but the price never goes down. Another example can be the books. With a good campaign, a book can sell several hundred thousands, perhaps a million copies. But it is a mystery how many people can be brave enough to read this book. The same can be said about other objects of social prestige, like cars, horses, big houses with gardens, etc. The value of these objects are totally subjective and depends to some degree on the fashion. Other examples are in the stock market, some influential people keep pumping false information to savers and investors, and prices are going up and up, till there is no one more to buy stupid investors to buy those stocks and prices fall down like a cards' castle. Other examples of manipulation have been the house market and commercial properties. They have been growing for years and now they are in ruin. That is the reason for me to believe, that there is not free market. For the market is manipulated by those who have more money and control over the stock and the financial capital. On the other hand, the present capitalist system is prone to cyclical crisis, because the very accumulation of profits paralyze the system. If you analyze the capitalist system, there are three loops working in parallel. The loop one is the one in which people produce material things and food. The loop two is the one of the people who do the services. The loop three is the loop of people who extract the profits from groups one and two. There would be no trouble with profits if they are returned after a sort while to loops one and two. This devolution can be called investments. The trouble is that while loops one and two are shrinking, because profits are extracted from the loops, the third loop keep growing and growing. And even when they invest a part of this money, they cannot give more profits, for the money to buy products is limited, or even shrinking. The only sure way the new investments can thrive and give fresh profits is when other other investments fail. In general, it is not only profits that generate crisis. Also the savers can help to create the crisis. To understand this, one have to image the savers are people who do not expend all their salaries in compulsive buying. These savers are investing a part of their salaries in the stock market, and in other ventures like investment funds, to have some money for their old age. The problem is that all this money... I mean, for all those stock's prices to keep rising for years, we need to parts. One is the buyer and the other the seller. Let's suppose, that those who sell stocks are the rich people, and the money got from the sale if saved into a bank. This operation looks totally innocent. It is like their money is slumbering in the bank's coffers. But is it isn't. The bankers are allergic to that this money sleeping innocently in their caves. So the banks lend money, for many people is saving by buying stocks. The more the people saves, the less money they expend. So the bankers lend this money. In the start, they lend the money to those borrowers with more credit rank. But soon, this borrowers are less scarce as time pass. So they are in earnest to lend more money, the the stock market is rising, and those rich people who sell the trashy stocks do not feel sure with the money in their basements. So they use to keep most of the money on the banks. Then, all those profits from different sources are already expended in some form of trashy buying like a new flashy house, or any dubious business, or in trashy commercial property. This is the origin of the crisis. It is called "diminishing returns on investments". In this moment, all those profits are theoretically in the banks, but the banks had lend this money to stupid borrowers that bought houses at exorbitant prices.

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