Money Money Money...

Does money exist?

Well yes and no. It exists in a sort of quantum state where it definitely exists but them maybe it doesn't, a sort of Schrödinger's currency.

I know it exists because I've seen it, in fact I believe we have some downstairs.  I certainly have a pound coin in the bedroom, but that isn't really money because it is an old one and is no longer legal tender.  A very cursory search on the interweb shows that actually only about 3% of the money in the economy is in the form of notes and coins.  97% is virtual money which exists only in the balance sheets of banks and other major institutions.

Is this 97% real money.  Well no, not really. Did you know, for example that when you take out a bank loan or a mortgage, the institution which lends it to you creates it out of thin air. 

If you really want to know more about this here is a link to a paper published by the Bank of England on the subject https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf?la=en&hash=9A8788FD44A62D8BB927123544205CE476E01654

So money can be brought into existence with the stroke of a pen and is sometimes called fountain pen money, although nowadays it will more likely be a key stroke.

A good demonstration of the unrealness of money can be seen in the stock market.  Here billions are created and lost almost on a whim.  If confidence is high and the stock market responds favourably millions of pounds can be created overnight.  Similarly if confidence is low, as at present, billions can be wiped off just as easily.  How can this be? And does it really matter?

Well I suppose it does matter because things like people's pensions are tied up with the value of shares, and that will negatively affect individuals who, for example have to realise their assets at a time when their value is low.

But the truth is that we have a society based at its heart on gambling.  All these city traders are doing is gambling with other people's money and creaming off a percentage for themselves.  We have chosen, in this country to eschew traditional money making activities like manufacturing and to rely instead on the financial sector. We have become a nation of dodgy dealers.  Rees Mogg is only Del Boy in a top hat. His money comes from speculation, which is only a posh word for gambling.  In fact it could be argued that Del Boy was more honest or at least up-front.  He at least traded in goods, albeit they didn't always work. All Mogg and his ilk do is move money around, for no good reason other than it makes them richer.  Would we miss them if they were't there?  Definitely not.

One thing that this current crisis has demonstrated is who the real valued members of society are, and they aren't the money shovellers. The disgusting whinging behaviour of the likes of Branson have showed us what they are really like, and that it takes more than wearing a pullover to make you a man of the people. He's worth an estimated £4 billion.  If he spent three of those billions keeping his businesses afloat, rather than begging for bail-out, he's still have £1billion, which is a whole shit load of money however you look at it and he would still have functioning businesses at the end.  What is more he might earn a bit of respect.

Our government seems desperate to get things back to normal, although I would suggest that that depends on us finding either a cure or an effective vaccine, rather than a premature lifting of lock-down and fingers crossed. One thing is certain.  Capitalism does not hold the key in this case. Unfettered private enterprise in places like the USA, especially in the field of health care has failed and even Trump has intervened (I think, it's difficult to know what he is doing) and is using the military to help out.

Perhaps Marx was right.  Only time will tell but our strength certainly lies at present in the hands of our key workers, not our rich and successful, many of whom are reduced to sending us amusing videos from the security of their own homes.  Nice though this is it won't keep us alive or help us overcome the virus. Clapping and badges are just not enough.  Pay them properly.  To an individual money is very real.  To a government it is imaginary, so use your imagination and make some more.