Tuesday, July 28, 2009

Why paper currency is not money?

We have long been told
that we are actually living in illusion.
But it's usually difficult to realise this illusion,
that we ourselves being part of,
as we tend to mistake things being permanent.

illusion could be easier to comprehend
if we carefully observe how
the illusive entities around us quickly degrade.

In finance,
many people invests in
shares, options, insurances, ETFs
which are volatile derivatives of
the real substances.
When financial tsunami hits,
millions of dollars worth of illusive certificates
may just degrade into thin air.

Even the paper currency that
all of us 'realistically' live by
is also an illusive derivative of the real money.

This means, paper currency
will also degrade into thin air.
Especially when more and more
USD is being printed now,
the rate of degradation will be more obvious.

Check out Michael Maloney's video on how
the paper currency is different from real money.

Holding paper currency in hand
isn't something to feel secured about.
-- because it's a soon degrading illusion.

Materialising the volatile currency into
something solid, especially those
that can generate cash flow,
add values to people's lifes and the world
is what financial gurus advise.

Good day,
Kee Yew

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