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Showing posts with the label compulsory circulation power

Just my thoughts #0673

An asset is the foundation of all economic activity. If you have assets, you can run a business and settle your debts. The ways to create assets are ‘how one works,’ ‘how to receive gifts from others,’ and ‘how to purchase assets made by others.’ There is a way to steal, but it is a crime. If you don’t initially own an asset, the simplest and almost the only way to create one is to produce something with your own labor. Whether the product is a service or a good, it must be produced unconditionally. Trading products creates added value. Thinking about trading later and making products first is the fastest and most basic way to escape poverty. Therefore, produce even the smallest things every day. Knowledge, records, art—whatever! - Joseph’s “just my thoughts”

Just my thoughts #0625

When we exchange what we need, we use money as a medium instead of trading ‘ goods for goods .’ In this context, money acts as a means of exchange . When we exchange what we need, we also build wealth by passing on added value to each other. In other words, money functions as both a medium of exchange and a measure of value , as well as a tool for accumulating wealth. But isn’t this a bit strange? Although exchange value comes from goods and surplus is generated from this exchange value, the object used to measure and accumulate wealth is money, not goods. This is because money alone has the privilege called ‘ compulsory circulation power .’ In other words, even if value is created, added value cannot be realized unless it’s exchanged. The ability to enable such exchanges is what we call ‘compulsory circulation power.’ - Joseph’s “just my thoughts”

Just my thoughts #0602

Production and processing create added value . Wealth is the accumulation of this added value. Distribution shares this added value among economic entities . Cultivating coffee trees generates added value for green coffee beans , while roasting those beans adds further value to the coffee product. Grinding the beans and extracting them with water creates and consumes the added value of a cup of coffee. Finance enables the distribution of the added value generated by this production and processing through the use of money, facilitating the easy accumulation of that value. However, finance can leverage its power only because there was prior production and processing. The challenge arises when the compulsory circulation power of currency enables the ownership of labor and resources that underpin production and processing, along with real estate , which is foundational to its existence. If production, processing, and distribution are dictated by money’s compulsory circulation powe...

Just my thoughts #0555

Cash serves as a universal means of payment for exchanging goods and services that everyone needs. For manufacturers to continue producing these goods and services, prices must be slightly higher than the market value of cash . This is because if the value of the goods or services produced falls below the cash, manufacturers or service providers will prefer to hold cash instead of producing these goods or services. Consequently, it is accurate to say that the value of cash is less than that of the goods or services. However, people desire cash because it functions as a means of payment endowed with “ compulsory circulation power .” In other words, cash has no limits on the exchange of value and possesses the capacity to reward even human life. Due to its enforced value exchange by law, people consistently strive for cash, even if it holds less value than goods. Therefore, all economic indicators and expressions of wealth are converted into cash. - Joseph’s “just my thoughts”

Just my thoughts #0489

When you exchange a department store gift voucher or any brand coupon for cash (currency), the par value written on the certificate is reduced and replaced. Department store gift vouchers can only be used at department stores, while cash offers different usage values that can be utilized without restrictions within the country. In other words, the relative value of the gift voucher compared to cash is taken into account. At this point, the difference in the exchange range creates this discounted value, even though the securities maintain the same trading par value . In reality, the market value of payment methods is determined by the scope of use, trading objects, and exchange period. This is why money is also regarded as one of the goods. In accounting, the value base is CASH . This distinction arises because cash ( fiat currency ) holds the highest value in use within a country, owing to its compulsory circulation power . - Joseph’s “just my thoughts”