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January 16, 2017 | My Definition of: What is ‘CASH’?

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian:

The word ‘cash’ is not so easy to define today as most people view ‘cash’ as their dollar units in their cyber banking accounts. Cyber accounts are any accounts where dollar units are stored within the computer screen and which are not directly accessible as ‘paper’ notes to the owner. Cyber units get revealed as numbers ($100,000, etc.) which I can ‘see’ within my computer screen and which can be deleted with the punch of a computer key by banking officials. The units are actually ‘imaginary’ units!

‘Cash’ can also be viewed as all the ‘paper’ notes which I receive when I use a ATM machine or when I go into my bank lobby and request a specific amount of ‘paper’ notes (called Federal Reserve Notes) to take out with me. So the word ‘cash’ can refer to different concepts which many do not differentiate between (this can be tragic in a marketplace like today). Cyber $$$$, for example, are not the same as Paper $$$$. Cyber units can be deleted and/or the units can be made unavailable by my bank due to a decision from select banking authorities.

Paper notes can also be recalled and/or a bank can refuse to accept the note when I bring it into the bank. This is now happening to varying degrees over in India. India wants to create a cashless society where everyone uses digital money. In Zimbabwe in 2010 all cash (in the form of paper units) became mostly worthless as hyper inflation (over issuance of the paper units) made the notes worthless in the marketplace.Today, people view this word ‘cash’ differently due to all these experiences.

Back in 1964, many viewed the word ‘cash’ as a paper note backed with silver. These paper notes were called Silver certificates. Our Treasury would honor an exchange of the note for a specific weight of silver. Silver certificates were issued between 1878 and 1964 in the U.S. These units were representative money and part of the circulation for paper currency in the marketplace. The certificates were originally redeemable for their face value in silver dollar coins, and then for one year, from June of 1967 to June of 1968, for raw silver bullion.

The above descriptions reveal that we now have three different definitions of this word called ‘cash’. Cyber money ($1.00) can be called cash (these units are imaginary and reside only within cyberspace). An unbacked paper note ($1.00) can be called ‘cash’ (these are the paper Federal Reserve Notes which we get at an ATM machine today). A paper silver certificate can be called ‘cash’ (these no longer are being circulated within our marketplace). But what else can be viewed as ‘cash’ in today’s marketplace?

The best form of ‘cash’ IMO is an officially minted silver coin ($1.00 face value). An American Eagle coin with a face value of one dollar is my personal definition of ‘cash’. Why? This physical coin was the first representation of ‘cash’ in our American marketplace. Back in 1792, silver coins were minted at the Philadelphia mint and these coins were not only created from real silver (Ag) but they also were a long-term store of value when governments cancelled and/or manipulated other forms of ‘cash’.

What we need to recognize today is that this word ‘cash’ has a minimum of four different definitions. Cyber units stored within the computer screen is called cash, a Federal Reserve note in one’s possession is called cash, a paper note backed by silver was cash, and a minted silver coin with a face value of one dollar can be called ‘cash’. All these forms of ‘cash’ are different and if a serious banking crisis were to arise, the BEST form of ‘cash’ IMO would be silver coins with a face value of one dollar. Personally, I have a store of value in silver dollar American Eagles.

If our corrupt banking system turns off the power so all my cyber money is unavailable, then I still have physical silver coins which I can trade in the marketplace. This form of ‘cash’ is tangible and it does not disappear with the ‘delete’ key on a computer. It also is out of the immediate control of our banksters. Most investors do not understand the importance of having some tangible ‘cash’ in their possession. I, however, think it is wise and prudent given the nature of today’s corrupt financial system. Think on this! I am:

Images of four different types of ‘cash’ for your consideration:

Image result for a cyber dollar within the computer screen

This is an image of an imaginary cyber dollar stored within the computer screen. This is called ‘cash’ by most investors.

Image result for paper federal reserve note

This paper note is also called ‘cash’. It, however, can be recalled at the discretion of banking authorities and eliminated from circulation.

Image result for paper silver certificate

This paper note is a silver certificate and it was exchangeable for silver at the bank or our Treasury Department. It was another form of ‘cash’ (but not used today).

Image result for one dollar silver eagle

This minted silver dollar is still available for purchase (at market value) at various mints. This is my definition of the word ‘cash’. I own these and store these units at my personal venue. You may desire to do likewise given today’s market situation.

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January 16th, 2017

Posted In: Kingdom Economics

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