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Saturday, March 14, 2009

Frontline Value Use Loss Energy

Once I was told that money is stored energy.
Money has the potential to buy things, to command labor.
People save money for retirement.
You work for money and then you stop working and live on your savings.
If you lose your savings, you will have less to spend in retirement.

What about a house.
You live in a house. The value of the house is that you live in it. How much does it really matter what the price tag on the house is?
It is said that a lot of wealth has been lost because of the decline in house prices. On the other hand a lot of wealth was created when house prices went up rapidly.

What has really been lost?

The houses are still there.

There is also a lot of talk about financial losses.
Those losses are suspect to me.
I believe the money was passed around or redistributed.

If someone bought an asset at a high price, someone else sold it to them. The seller had a gain. It is balanced.

Trading things does not really create wealth. It is an illusion.
You can lose or win, but it balances.

Real gains are like this.....
I plant a seed. It becomes a tree. I invent something useful. It makes life easier. I build something useful. I create something useful. Those are real gains.

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