Money

We all use it but what really is money. First of all while
money is a form of wealth, is not equivalent to wealth. Reduced to its simplest
terms money is simply a medium of exchange. What ultimately gives money value
is the willingness of people to exchange it for something else. This is true
even of gold, its only real source of value other than as a medium of exchange
is the fact that it can be made into things.

The danger of un-backed paper or electronic money is the
tendency to produce more than is justified by the available goods and services.
When this occurs the result is that the value if that money goes down driving
up prices. This is called inflation. Doing this is actually a theft of value because the value of
the money one already has is reduced and that value is transferred to those
issuing the currency. Because the government is usually the ultimate
beneficiary of inflation, it can be considered a hidden tax. It is hidden
because you do not write the check or file a form, nor does it change amount of
money in your hand or bank account. All you see is that things cost more and
that can happen from causes other than inflation.