Wednesday, May 27, 2009

More details on why I think money will be backed by land

Here are more details on why  I think money will be backed by land. Many experts are predicting steep rise in gold. If this happens it is not going to be good for the economy. It will be just speculation. If there is not enough bread to go around, gold is not going to fill your stomach. This will happen in a nuclear war. 

Land prices varies depending on what is on top of the land or below it. 
Agricultural land, Airport land, Residential land etc varies in prices. If land on one type of use is changed to another, the value of the land changes. However, it is not possible to try to convert land to only one type of use in order to increase the price of the land. This is because, society requires land for different purposes. Innovation, Technological changes etc will change the use of land and hence its price. Land use will evolve with time. Structures above the land as well as contents below the land can change with time. Land can be used more creatively and flexibly. Money is meant for easy trading, it is meant to go round and round in cycles. But with all the speculation and gambling in the financial sector, this is not going to help the economy. In fact, it is going to make the economy worse. Lots of money is being shifted from productive use to non productive use. But some of these people who benefit don't care, they just want to own as much money as possible and make as many people as possible to be as poor as can be.
World government, new world order will just make some people even richer and more people poorer.

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