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Showing posts with the label fiat currency

Just my thoughts #0362

Adenosine is released when our body is tired, making us feel exhausted. Rest serves as a complementary action for fatigue rather than a mere exercise of will to “take a rest.” The caffeine in coffee prevents the sensation of fatigue by interfering with adenosine’s binding to neuronal receptors in the brain. It doesn’t eliminate the substance that causes fatigue; it simply disturbs the senses. Humans have negative elements, and while removing them is the fundamental solution, they often misunderstand the impact of caffeine on their senses as a remedy. Ultimately, without rest, a person can become overwhelmed. Problem-solving should begin with acknowledging reality, but if we view illusion as a solution, there will be no answers. - Joseph’s “just my thoughts”

Just my thoughts #0361

Money is largely divided into two categories: Standard Currency and Fiat Currency. Standard Currency’s value is tied to real goods, while Fiat Currency relies on legal enforcement for its value exchange. Standard Currency is termed convertible gold if it can be exchanged for gold and convertible silver if it can be exchanged for silver. However, for any currency to be created and circulated in the market, bonds must exist first. When the government issues Fiat Currency and distributes it, the central bank lends money to commercial banks; this process is effectively a loan. A loan is legally recognized as a bond and represents a debt that must be repaid. Without debt existing in the world, money cannot circulate. The government manages the economy by adjusting the money supply in the market, either by collecting or lending more of these loans. Many people aspire to make money, but few truly understand what money is. - Joseph’s “just my thoughts”

Just my thoughts #0360

If the means of value exchange is recognized only in the fiat currency issued by the government, the accumulation of wealth that has taken place can only be expressed in terms of value versus fiat currency. Due to the limited quantity of money, if I make money, someone will lose it. In other words, my profit is someone’s loss. Of course, the opposite is also true. Therefore, it is said that currency possesses the property of ‘goods’ whose value changes according to market functions. So, is there a structure where everyone can gain profits, rather than a game where someone loses while someone else earns? This essence will not change, but the methods by which productivity grows and the ability to create added value will improve, creating the best win-win system in the current scenario. If we must share a pizza, making a larger pizza itself is akin to making everyone happier than before. - Joseph’s “just my thoughts”