About the Author:
A widely recognized attorney, trader, investor, economist and author, Paul Paulson resides in the State of New Jersey. Paul has published multiple reports concerning the origins of money, banking, economics, investing and currency.As the name suggests, this site is focused on the characteristics of money and how they can be utilized. This website regularly publishes the latest legal developments, economic conditions, and market trends. Mr.
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"What is money? Never before has a question so simple been so misunderstood. If you asked a group of people this very question, what types of answers might you receive?
People might answer, "money is to buy things".
This is certainly true, but that is describing a use for money not "money" itself. That would be like saying a shovel is to dig holes rather than a stick with a concave metal or plastic apparatus used to dig.
Others might say that money measures wealth. Yet this definition depends how you define wealth. If you consider numbers in a bank account or on a balance sheet the total representation of wealth, then you might be correct. Some however, might consider a person with a lovely family wealthier than a billionaire without one.
Often people view money as a tangible thing - something to be possessed. People argue that paper currency and/or coins are tangible objects, and as such, are objects to be held.
But under the present rules, money is not held, it is controlled. Money is simply an idea in that it measures the value of the means of production. In other words, money measures the exchange between parties or the value one entity offers another.
Many people misunderstand the concept of money. One reason is simply the population’s lack of financial education. This text attempts to uncover the mystery surrounding money and cure this defect. The first step is understanding that money is a concept and one with its own unique characteristics.
To illustrate this point simply look at the following equation: 2 + 2 = 4. It always will be. This mathematical relationship will survive time. The relationship is just like the laws of cause and effect, or gravity.
In contrast, $2 + $2 = $4 today, but will it always be this way? The answer is usually no. In fact, $2 today does not even equal $2 tomorrow. In the presence of inflation, each dollar will be worth slightly less. In the presence of deflation, it may be slightly more. So money is not math even though math is used when dealing with money.
Again, money has characteristics all its own. This fact offers a unique opportunity to those who understand and utilize this concept
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