Money – There is no object that could divide predators and producers deeper. The predatory manipulation of money is the ultimate power bastion in the world. At best, money is the subject of love and hate for producers. However, one cannot deny that money is important and has a certain power in every person’s life, either directly or indirectly.
Willie Granger, in the context of the Federal Reserve System in America, says there was a time when monetary policy discussions were so common that they could be heard in small town cafés and hairdressers. The grader is right because many in America can certainly remember some of these talks in their youth.
Monetary policy is not easy to follow. It is said that only two people really understand the money and their thoughts do not match. It may not be so bad, but some are with cunning conspiracy theories that usually involve a Jewish or Masonic storyline.
Understanding money is enlightening
Suddenly everything is more meaningful. Widespread confusion, such as the attempt to understand the 1990-1991 recession and the other economic crisis, means that many could benefit from this lesson from youth. And it turns out that money is not very difficult to understand. Although the debate and assumptions about monetary policy are practically unknown to contemporary Americans, as in Latvia, there were people who were actively discussing from early morning until about 1940. The fifty-year break in monetary discussions since 1940 prevents most Americans from clearly understanding the problem of banks in the new century. Unfortunately, the lack of public understanding of issues eliminates the political pressure needed for the much needed banking reform. The current old-fashioned functioning of banks provides an excellent opportunity to significantly delay credit changes and the modernization of practices. Modern banking services can be computerized, but the rules and assumptions of these computer programs are still outdated.
Before the industrialization period, international monetary policy has become a major obstacle to the application of an industrial solution to life-threatening environmental problems.
- The economy is based on shortages. Money defines this reality only if it is limited. Money has value because it is rare.
- Interest payments are treated as bank charges for money management. In the game version, a banker is considered to be a wise citizen who finds money that is not used, pays low interest to induce the owner to deposit that money in his or her bank, then lend it to someone else who needs money at a higher interest rate and gets the money himself difference.
- Lenders are entitled to charge any interest rate at which the borrower agrees.
- Small borrowers are risky borrowers and have to pay higher interest rates.
- Lenders have a right of recovery from borrowers. The insolvency of any company is considered to be the borrower’s fault (even if the disability is linked to natural disasters), which is required to repay the loan with interest, regardless of what.
- Lenders have the right to demand payment at any time, even if this activity destroys the borrower.
The new reality
As the industrial revolution introduced methods that greatly increased production, it put an end to the economy of goods production. With this new reality, economic aspects should focus on overproduction and unemployment. The value of money has also changed. It is therefore worth looking at the very foundation of money and its functions.
Everyone uses money. We all want it, work on it and think about it. While money creation and growth seem intangible, money is a way to get the things we need and what we want. The task of defining what money comes from and what is the value of money belongs to those who devote themselves to the economy. Money has different features.
By deducting what history of money tells, before the exchange tool, ie money was created, people changed to get the necessary goods and services. Two persons, each of whom had another desired item, concluded a trade agreement. However, this early form of barter does not provide portability and divisibility that makes trading more efficient. For example, if you have cows but you need bananas, you need to find someone who has not only bananas but also a desire for meat. What if you find someone with meat but no banana and who can only offer bunnies? To get his meat, he / she must find someone who has bananas and wants bunnies and so on. As you can see, the lack of exchange of goods is exhausting, unclear and ineffective. But exactly when the problems are over: even if you find someone with whom to exchange meat for bananas, you may think that their banana bunches are not worth the whole cow. Then you should develop a way to divide your cow (dirty business) and determine how much banana you want to take for certain parts of your cow.
To solve these problems
There were some kind of goods that worked as a currency. For example, the 17th century and the 18th century. At first, American colonists used beaver fur and dried corn in transactions; who had generally accepted values. These items were used to buy and sell other things. Types of merchandise used had certain characteristics: they were widely recognized and therefore valuable, but they were also durable, portable and easy to store.
Another, more advanced example of consumer goods is precious metal, such as gold, which has been used for centuries until the 1970s. For example, for the US dollar, it meant that foreign governments could take their dollars and exchange them for gold with a fixed rate for the United States. Interestingly, for beaver fur and dried corn (which can be used for clothing and food, respectively), gold is expensive only because people want it. It’s not necessarily useful – after all, you can’t eat it, and it won’t keep you warm at night, but most people think it’s beautiful and they know others are the same. So gold is something that you can safely think of with value. Gold serves as a physical sign of well-being based on human perception.
Modern types of money
Although people in most developed countries do not exchange goods with one another, the money functions are largely the same as they were. Meanwhile, the modernized money market allows you to use a variety of clear and non-cash forms for your own needs: digital money in a bank account, money in paper and coin form, securities, etc. Similarly, there are many more opportunities for people to get extra finances, such as quick loans for a year or shorter Time Period is a very convenient way to get funding for someone who needs it quickly and with less documentation than choosing bank offers.