In the beginning of human economics was the practice of barter system. Goods for goods. Then came the currency or money which actually differ from the coins and bills we use today but it started with commodities like cowry shells, precious metals, beads, corn, barley, and other things
that were valued and desired by the human population. Next came the coins and bills. Now, credit cards and other form of electronic or digital cash were added into the mix of acceptable currency or medium of exchange.
Did you know that the value we put on any currency is just a pigment of human imagination? Why is it that a 20 US dollar bill has buying power of 40x than that of a 20 Filipino Peso when in truth they may have been manufactured using similar paper and ink materials? Of course, we take into consideration a lot of economic factors which again are based on human standards. Or to make it more simple, why is it that a $20 is more valuable than $10 despite the fact that both are from the same currency made out of similar paper and ink materials that differ only in the design and number printed on them? This is so because we were made to believe that since the one bill was stamped with a higher number, its follows that its value must be higher as well. In other words, we are no longer concern about what material the bill was made out of but on the number printed on it.
The advent of credit card and other electronic or digital cash made money a real illusion. Illusion in the sense that you do not have physical possession of the money, just the plastic card, but it is real because you can use it to purchase goods and services. We can say that it was a loan granted by the bank. Meaning, there is really the existence of the money in the bank's vault. However, in most cases, financial institutions use the debit and credit method in transacting with their customers. There is no physical transfer of money from one person to another.
Over 90% of money is literally created out of thin air via loans and the expectation of debt repayment. Banks grant home loans to consumers, but when those consumers were unable to pay there monthly amortizations, the banks go bankrupt despite the fact that they repossess the properties over which the loans have been taken out as evidenced by the housing bubble burst around the world. This occurrence shows that value of money and properties are subjective and dependent on the whim of those who have the power and capacity to dictate the economy.
There may come a time in the near future when currency will become obsolete and all we need are numbers to our name and we are then good to avail of goods and services commensurate with those numbers available for each to spend. This is possible because money has no enduring definitive form and intrinsic value. Money, in its form and value, is dependent on what humans think it should be at a given time and place.
The advent of credit card and other electronic or digital cash made money a real illusion. Illusion in the sense that you do not have physical possession of the money, just the plastic card, but it is real because you can use it to purchase goods and services. We can say that it was a loan granted by the bank. Meaning, there is really the existence of the money in the bank's vault. However, in most cases, financial institutions use the debit and credit method in transacting with their customers. There is no physical transfer of money from one person to another.
Over 90% of money is literally created out of thin air via loans and the expectation of debt repayment. Banks grant home loans to consumers, but when those consumers were unable to pay there monthly amortizations, the banks go bankrupt despite the fact that they repossess the properties over which the loans have been taken out as evidenced by the housing bubble burst around the world. This occurrence shows that value of money and properties are subjective and dependent on the whim of those who have the power and capacity to dictate the economy.
There may come a time in the near future when currency will become obsolete and all we need are numbers to our name and we are then good to avail of goods and services commensurate with those numbers available for each to spend. This is possible because money has no enduring definitive form and intrinsic value. Money, in its form and value, is dependent on what humans think it should be at a given time and place.
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