We have been
following the emergence of a new economy, where people collectively started
producing various goods from their labour. This soon led to a market place
where people traded the different things they were producing. The combined
labour of the people in the economy applied to the natural resources around
them increased the general wealth of these hard working people. Next money
emerged freely to aid the free market process of buying and selling. The
goods being bought and sold in the market place represented the stored wealth
of the economy as they reflected the labour of those that had produced them.
In the same way, the free market money that was now being used also had a
high intrinsic value as it had been produced by the combined labour of
Like all groups
that apply the natural laws of free market economics together with hard work;
our economy is now enjoying growing prosperity and an increasing distribution
of wealth for all. The division of labour is increasing as people are finding
opportunity by specializing in certain areas and pursuits, bringing yet new
and different goods and services to the market. Trade from surrounding
regions is increasingly being attracted to our market, and people are
migrating to the area in search of new opportunity and a fresh start.
Our economy is
making the important and difficult transition from a newstart up economy to
an ordered community, or what we know better as 'a society'. As population is
growing there are new social needs. People want to be safe and live in peace.
Codes of conduct and defined law and order are emerging as the shared values
and communal rules of our fledging new society are being discussed,
developed, written and enforced.
governments and rulers eventually surface in all developing societies.
Sometimes it's as a result of that community looking for and appointing a
judicial system and police force to protect and uphold common law and order.
Other times it seems people simply want leadership
and direction, and lack the ability to self-police and govern. And at other
times, someone sees the opportunity to usurp power and seize it by force,
imposing their rule over all others. Regardless of how governments start,
they always end up taking the reigns of social and economic control,
ultimately determining the current and future direction of that
Again history is
our great teacher. All economies, societies and civilizations are entirely
dependent on the integrity of their government and rulers; it has been said,
"as our rulers are, so we become" (1).
Regardless of how
our rulers start or how quickly they extend their powers, eventually they
become heavily involved in the free market process. The day comes where the
rulers of the economy walk into the market place and begin to legislate and
dictate how it should operate. They begin to regulate trade, introduce trade
tariffs and exchange rules. This is the inevitable Stage Three in the Life
Cycle of Money, 'Government Intervention in the Free Market'.
by Philip Judge
Philip Judge is the 3rd generation of a family that has had
substantial involvement in the Precious Metals markets. He has researched,
written and spoken on the gold, silver and commodities markets for over a
decade. Philip works in the marketing and operations department of The
Anglo Far-East Bullion Company, an internationally based Bullion Banking,
Investment Management and Financial Services Company