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Friday, June 15, 2012

Why Money grows on Trees

Money don't grow on trees is a very old saying especially from parents who want to inculcate the habit of savings on their children. I have been listening this for all my life time. As I grew, Like most of words from parents, I observed different thing. Money indeed grew on trees. In good old days, that tree was natural and had natural growth and hence money supply was natural and uncontrolled. But, in current world of mass production that tree was genetically modified using technology. So, that tree now has enormous rate of growth.

So, logical connection between money and tree is simple. Woods grow from tree. Paper are created from Woods. And finally, money is created from paper. These days its not hard for bankers to create money. Recent recession was an example of good excuse for doing that. Printing billions of money is a matter of few greedy people reaching a consensus as to what each one gets and passing a bill. Normal people either don't have an idea about that or they simply don't care.

So, for normal people like my family that saying still holds pretty much true. But, for international bankers this does not. If you have any friends whose parent is an banker, ask what they said to him while s/he was growing. I doubt they said same what my parents did.

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