The Money Myth - Part 1

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It is an ill-kept secret that the way most of the world's financial systems work is not only a total farce, but also incredibly malevolent. In the world of finance, money truly is the root of all evil. In the first of the weekly quotes I ran on this blog, I quoted Henry Ford, who said:

It is well that the 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.

How many people really do understand how the economy works? Do you? Really? Honestly? I don't pretend to understand it fully, but I know it makes no sense. And I'm not the only one. Over the next few days I'm going to post a simple story one piece at a time that explains why the way money works makes no sense, and how it could work better.

Money is so central to everything we do in life. Bear with me, it's worth it.

Part 1 - Shipwreck Survivors

An explosion had blown their ship apart. Each one grasped the first bit of wreckage that came to hand. And when it was over, there were five left, five huddled on a raft which the waves carried along at their will. As for the other victims of the disaster, there was no sign of them.

Hour after long hour their eyes searched the horizon. Would some passing ship sight them? Would their make-shift raft finds its way to some friendly shore?

Suddenly a cry rang out: “Land! Look! Over there, in the direction the waves are carrying us!”

And as the vague silhouette proved itself to be, in fact, the outline of a shore, the figures on the raft danced with joy.

They were five. There was Frank, the carpenter, big and energetic. It was he who had first cried, “Land!”.

Then Paul, a farmer. You can see him, front and left in the picture, on his knees, one hand against the floor, the other gripping the mast of the raft.

Next is Jim, an animal breeder; he's the one in the striped pants, kneeling and gazing in the direction of land.

Then there is Harry, an agriculturist, a little on the stout side, seated on a trunk salvaged from the wreck.

And finally Tom, a prospector and a mineralogist; he is the merry fellow standing in the rear of the picture with his hand on the carpenter's shoulder.

Tomorrow - A Providential Island