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Money Is Intangible
"Let it be known," I state, "that money is created out of nothing and money is extinguished back to nothing."
"But," you insist, "an established law of physics governs that matter can neither be created nor destroyed."
"True," I agree.
"How, then", you argue, "could this dollar bill, which I hold in my hand, have been created out of nothing? And watch as I destroy this paper dollar bill currency with a flame."
"Consider this concept," I respond. "Was that dollar bill really tangible? The paper on which it was printed was certainly tangible. And its ashes are certainly tangible. But that dollar bill, burned, exists no more. As its flame consumed itself, so it was consumed. As its flame extinguished itself, so it was extinguished. Nevertheless, that dollar bill was merely tangible evidence of an intangible promise. The evidence exists no more. The promise, in this case, is probably lost, also, for promises actually exist only in the mind, and are therefore intangible. Written promises are merely tangible reminders of that intangible promise. Further, no promise is any good without a human being acting in good faith to fulfill that promise. (We are dealing with the intangible powers of our human mind now.)"
"That dollar bill actually represented a promise of faith," I continue. "It was a commitment by honorable people to remit with products and services: One dollar's worth of physical labor, services and-or products. Both paper and metal currency are merely a convenient, tangible medium of exchange. In essence, all money is intangible. Money in the form of currency is merely tangible evidence of an intangible promise. We might reasonably use this definition: Currency is tangible evidence of an intangible commitment of faith, honored by respectful, tangible people, and regulated by an honorable, intangible government which is controlled by a respectful, intangible society of tangible people. It is tangible people that make the intangible promise good."
"Is it reasonable," you respond, "to conclude that money can exist both as tangible and intangible entities at the same time, as your definition suggests?"
"Almost", I reply. "Your reasoning is true in that currency is tangible evidence of intangible money. To understand this subtle but important separation, note that the tangible can stand without the intangible, but the intangible can not be separated from the tangible and survive. The intangible exits only as a shadow of the tangible. In the case of currency, tangible paper and metal represent intangible money, which in turn represents tangible labor, services and-or natural resources. Do not let the idea of a double shadow confuse you and lure your mind away from the tangible things that constitute intangible value. Currency, though printed or minted on tangible material, is nonetheless a shadow, for all forms of money are worthless without the tangible labor, services and-or natural resources that they must represent as their shadow. In essence, tangible currency is intangible, for it assumes the role of intangible money."
"To keep it simple" I continue, "remember that both paper and coin currency are intangible money. That will give us a concept we can use for all that money in the bank that really does not even exist. Most of the money bankers brag about is nothing more than entries in a ledger. It really does not even exist, yet it is called money. By understanding that money is intangible, we common people have a practical interpretation we can use. We can talk about that intangible stuff in the banker’s ledger. Simply remember that tangible looking currency is really intangible money."
"I will buy into that concept," you conclude.
MONEY is the absence of tangible things.
An intriguing dialogue on light, shadow and illusion is conducted by Socrates in Plato’s Republic in the latter part of Book VI and the beginning of Book VII. In the Mentor Classic paper back edition by Rouse, helpful diagrams appear on pages 309 and 314.
It is important to understand the legal definition of currency and coin. Representing money, currency is commonly used in two forms, paper and metal. Notes are paper and coins are metal. They are paper and coin currency. Coins are currency. Paper bills are more properly called notes. Postal money orders and cashier’s checks might be included as a medium of exchange, but are not usually called money.
Worthy of note, banks create large sums of intangible money that are represented only by tangible entries in tangible ledgers. That form of money is called "checkbook money", and is not backed by a promise of tangible labor, services and-or materials. Due to this lack of tangible backing, checkbook money is dangerously inflationary. It also fractures our monetary system and our economy. Fracture and fractional are good terms to remember when you talk about your banker. They are discussed in the essay Money Replaces Barter System in Money Is Unreal.
Money Is Intangible is a Platonic companion of Shadow Partner.
Money vs Currency explains in simple language the difference between tangible currency and intangible money.
MEL discusses the necessity of intangible money being backed by tangible labor (including services) and products.
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