The dictionary defines the word "Value" as being, among other things ---- "The worth of a thing. The rate at which a commodity is potentially exchangeable to others. A fair return in service, goods etc." So one notices the use of the word "worth" in trying to define "value." However when one turns to the definition of the word "Worth," the word "value" only applies when trying to define "Wealth", which is the adjective of the word "worth." For "worth" is defined as follows : " That quality which renders a thing useful or desirable." However "Wealth" is defined as "having value" : "equal in value : " exchangeable ( for ) " etc.

So there is not only a subtle difference between the two, but a tangible difference which somehow it seems difficult to define at times. For in reality ---- What is VALUE !! : And WHAT is WORTH !!

If the value of something changes, so too then does it's worth. And of course so too does "wealth," which in reality is the sum total of "value and worth." Thus one arrives at "the illusion of wealth."

Ultimately, no matter where or how "wealth " exists, it has to be defined in monetary terms. AS MONEY !! It is impossible to define any "possession" in any manner ---other than in monetary terms. Whether it be in the possession of land ; buildings ; commodities ; shares ; bonds ; --- whatever. There is only one common criteria that can be used in defining it's "worth" or "value"----and that is in monetary terms. So in order to have wealth that can be defined, it has to be expressed in monetary terms. Which brings us to MONEY. Thus the value of money is of primary concern when one wants to define wealth. Even of more importance is the protection of the value of any currency, in order to protect wealth. And so we arrive at the first "law" in the protection of wealth, which is in the protection of the currency.

In actual fact, no matter where wealth "lies", it is incumbent upon "authority" ( government ) to attempt to protect it's citizens wherever and whenever possible. For after all, the wealth of it's citizens --- is in reality the sum total of the wealth of the Nation.

If monetary value defines wealth, then the first concern should be the protection of the value of the currency. Which brings us to "Market Forces" and "Fixed Currency Exchange Rates."

Thus if the values of any or all currencies are left to "Market Forces" ---- then any or all governments are responsible for the loss in wealth of their citizens. Wherever wealth lies, the illusion of wealth will also reside AS LONG AS NATIONS FAIL TO PROTECT CURRENCY VALUES.

Putting this factor aside, the manipulation of interest rates --- for whatever reason, diminishes wealth. As an example, let us use any currency, and a manipulation of interest rates, to see how effectively a currency value is diminished. A value of $ 1 Million invested at 6% will generate an income of $60,000 per year. Now take the same investment ----and interest rates that have been diminished to 3% ---and the income derived will have dropped to $30,000 per year. Thus the "value" of that $1 Million has effectively halved. It will now take $2 Million in order to generate the same "income wealth" as was previously inherently within the currency.

So when interest rates are manipulated to encourage consumer spending, it in actual fact has two opposite effects. For those who have income derived from interest rate sources, their spending power dramatically drops, as their income diminishes, while those who have no more "wealth generation" ( salary or wage increases ) are forced to resort to additional debt --- in order to spend more. Thus in reality both parties have suffered a diminution in wealth ---- for DEBT, at whatever interest rate it bears --- is still money "owing" and thus a diminution of future income which has to be repaid.

There are additional problems which arise when interest rates are manipulated. The lower they fall, the greater the temptation to resort to investment on Stock Markets. While one may hesitate to condemn Stock Market investment, never - the - less it is not only a form of "gambling," it is as well a definite harbinger of capital value loss. The more that money "flees" to Stock Markets, the more that share prices rise, that have no relation at all to the "intrinsic value" of those shares. Thus each increase in so - called "value", is in reality a loss waiting to take place.

Recent events taking place world - wide has shown that Stock Market investment is not a guarantee of wealth creation. Debt accumulated by companies has proved to be the nemesis of even the so - called strongest and the best. Above all, it is now being seen that Company Law and Accounting Law and Accounting practice has failed to protect the so - called wealth of investors. Additionally "government" has failed to protect the wealth of it's citizens by not enacting laws and procedures to protect them from loss of wealth.

If one were to invest in land and fixed property, there again is no guarantee that wealth creation will result. Town planning can play havoc with land and property investment. The changes in "zoning" and "land use" can effectively either enhance or diminish value.

Bonds and bond values and the income derived from these investments are seriously affected by many factors. Interest rate manipulation can affect not only income, but as well the "value" of the bond should they be offered for sale before the date of maturity. Additionally the allowance of debt accumulation in relation to net worth when issuing bonds are not circumscribed by or in law, as a safeguard to investors. The same applies with the issue of shares or the acceptance of companies by Stock Markets in protecting the wealth of potential investors.

Commodities are subject to price variances. To this one has to add the fluctuations in currency values in which these may be purchased. Thus while there is no "order" to currency values and commodity prices, there will always be that "wealth illusion."

Economists and politicians are fond of the "cliché'. " The "play" and use of particular words and phrases. Among these are the two words "market forces." The problem with those two words, is not in the reality of their meaning --- but in the unfettered reality of their use. If one were asked what creates the greatest "mayhem" in economics or in economies ---- THAT WOULD BE IT !! Until such time as defined and specific rules and laws --- both local and International are applied to the so - called use of "market forces;" mayhem will rule. The ILLUSION OF WEALTH will always be there ---- while "market forces" are allowed to hold sway without restriction of use.

To this one has to add another three word phrase ; they being --- SUPPLY AND DEMAND. Most often stated as "The Law of Supply and Demand." In other words the law of supply and demand is in reality a part of "market forces." One should perhaps include the "after thought" of the phrase "not always." This is especially so when discussing interest rates. The best use to which interest rates should apply, is in allowing "supply and demand" to determine what interest rates shall be. Never used as a tool to be manipulated for the basic factor of commercial stimulation. This is aptly shown when studying the greatest economic expansion ever experienced in the United States. Specifically during the period 1992 to 2000. During these years Bank Rate stood at 6% to 6.5% and prime rate stood at 9%. These were NOT low interest rates, and at no time inhibited phenomenal growth throughout the entire economy.

Surely this should be an abject lesson in the use of interest rates. When not being artificially manipulated, the supply and demand for "money" should determine interest rates. That is how it has normally functioned down the years all over the world. This applies equally to both domestic and other economies world - wide. Thus bonds are floated at ruling rates, and when being at a competitive level for funds, are pitched at the most enticing rates in order to attract the necessary funds.

International Trade exists as long as there are legitimate currency values to make payment. Thus it should be of the utmost importance for all governments to ensure that currencies maintain legitimate value. For this to happen, ONLY FIXED CURRENCY RATES can ensure this. Surely it can no longer be left to " Market Forces" which continually creates havoc and uncertainty to the value of currencies. As long as this uncertainty exists, so too do we limit and ensure that so - called "Globalization" is but an unattainable dream.

To this we have to add domestic and International debt. How can debt exist without the certainty that repayment will be at the same "value" or "worth" of the currency involved.

Thus in order to protect wealth, a number of factors have to exist. The first is currency value, which can in itself only exist if it's relationship to all other currency values remain constant. The second is commodity prices whose values are fixed by International agreement. These are commodities that are Internationally traded, thus protecting the value and wealth of individual economies. Globalization cannot function to EVERYONE'S BENEFIT until such time as commodity prices are protected and remain constant until changed from time - to - time by consent.

The third are laws to adequately protect investments, no matter in what form these investments exist. The fourth is the control of debt creation in relation to assets, be they related to individuals, companies or Countries. Fifth is the correlation of valid interest rates to the supply and use to which "money" is utilized.

WITHOUT THESE ----- WEALTH WILL ALWAYS BE AN ILLUSION.