Changing the mindset about money (II)
Who controls all of our currency? This is a simple question. Employees do not control it; neither do the companies they work for or our government.
So, who does? It is an obvious question which is never asked or has ever been taught in schools. For some reason most people’s lives are basically dedicated to money. It is something we all talk and are worried about.
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We go to school to learn basic things and attend university to learn the skills (obtain certificates) to get a good job. Interestingly, this is all in the bid to trade all our lives for this thing called currency. So, why do you not want to know where currency comes from and who issues it?
Many people are worried about our financial system, thinking something is actually wrong with it but they honestly cannot pinpoint anything.
Alan Greenspan (2007) said: “There is no agency or government in the world that can touch or overrule the activities of the small group of people who control the printing of world reserved currency for trade and commerce called the US dollars.”
So, what is currency?
Currency is ‘a system of money in general use in a particular country, which is widely accepted and circulated’, according to the Oxford English Dictionary. It is the paper and coins in circulation. All currency is money but not all money is currency.
The origins of the word give insight into its true meaning: it is derived from old French “corant” meaning ‘running, lively, eager, swift’ (the present participle of courir’ to run’) and from Latin “currer” ‘to run, move quickly’. It is also defined historically as ‘condition of flowing’.
This knowledge of the origins of the word can help us to understand the properties and behaviour of the currency in circulation. An economy only works if its currency is in constant movement and exchange. If everyone stored currency under their mattresses, there would be less in circulation and the flow and velocity of currency would decrease.
This is known as a ‘paradox of thrift’. On the one hand it is smart to save currency but on the other hand if everyone saved hard currency, the flow of currency would dry up. For any economy to grow, its currency needs to flow.
IMF currency
The Special Drawing Rights (SDR) is a basket currency sponsored by the International Monetary Fund (IMF). The problem is, it is also not backed by anything but just paper and ink for its members around the world.
Its misapplication plunges developing countries into deeper debt. This is so unfair because without giving out credit, the whole system will collapse.
I can understand why Henry Ford said, “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
To understand this, one must appreciate and go beyond economics and so-called expert advice on what currency is all about. It is because the IMF and World Bank which have power make choices to create wealth and prosperity for all but have got it wrong not because of a mistake or ignorance but on purpose.
But remember our prosperity as a nation (Ghana-Africa) depends upon the personal financial know-how of each of us as individuals. Proper preparation is the key to our success by our own efforts and abilities.
This is because the West will never help us and I understand why gold (MONEY) financial intelligence has been completely left out of our school systems for 140 years and reasons why governments do not like it because it is highly impossible to print and duplicate gold
Since the Federal Reserve in the USA is solely responsible for printing over 100 per cent of world reserved currency, a country like Ghana can only borrow those papers or sell her natural resources like gold (which is real MONEY), diamonds, crude oil, etc., before the country can have the reserved currency in the world, the US dollars for her development.
My humble question is, how can these angels print currency and expect us to manage our economy and our local currency which has never been printed in Ghana before, against the US dollars?
An angel of the Lord can never manage our economy under these same conditions set forth by the West for developing countries like Ghana.
Ghana currency
I am not surprised at all why Ghana’s currency has been falling all the time. Africa is managing something it has not understood for the past 140 years. It is not because Africa does not export more.
Rather, the percentage of inflation, Gross Domestic Product (GDP) or mismanagement and corruption are to blame. I wonder if there is any country in the universe that mismanaged the US dollars more than the American government.
How on earth can one print currency (paper and ink) based on faith which is backed with absolutely nothing and the most painful side is, all the rules and laws that govern all currencies in the world are not the same when it comes to Africa’s currency.
The West will never stop the massive devaluation of Ghana’s currency in particular, no matter how smart and honest the management team is, for their selfish reasons. Ghana has better, honest, brilliant, educated elite than any country in Africa, yet to solve the falling of Ghana’s currency, has been like a mirage. Our educated elites have not been thinking of these rules and laws since independence.
When you realise that, the entire system is very easily controlled, one way or other, by a few powerful men at the top, you will not need to be told how periods of inflation and depression originate and whoever controls the volume of currency in any country, is absolute master of all industry and commerce.
Every 30-40 years the world has a new monetary system and it is important for us to think how to use only gold and silver coins as the real money so that the glory as our dear nation will be restored.
There is a system to turn your gold into credit card and etc. So, buy GOLD and keep it now because wealth transfer is coming! Disagree? Read Exodus 12:36.
The writer is a consultant on money
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Changing the mindset about Money (I)