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”
In markets that trade natural products, such as agricultural, fishery, energy, and commodities markets, oversupply or at least excess supply causes problems. When supply is high, prices plummet, causing significant damage to producers; conversely, when supply is low, prices rise, and consumer sentiment diminishes. As a result, both suppliers and consumers suffer. The challenge is that it is difficult to intentionally set the level of production. Because of this, a futures market develops in situations where we have to accept what nature provides. Futures trading is a method in which a producer and a distributor agree in advance to trade the price of an item to be produced in the future, without knowing the exact quantity yet. In other words, in futures trading, the focus is on price rather than quantity. Since it is challenging to stock items that require freshness, futures trading offers advantages by allowing transactions to be made in advance. However, if supply fluctuates too much,...