How is money made?
Feedback to previous articles revealed one important point that most people do not allow to understand what I am actually writing about in the articles of the “Novus Ordo Millennium” series. A misunderstanding of this moment causes a misunderstanding of both the articles and the situation we are facing. And the situation can be briefly described as follows – there is a lot of paper, but there is not enough real money. For many, this is not clear, because for most people the issue of banknotes and the creation of money are one and the same.
Most people think that if there is not enough money, they just need to be printed and the issue will be resolved. Therefore, it is logical to believe that if they really were not enough, they would have been printed long ago, so there is enough money a priori. In fact, the creation of money and emission are two different points. To prove this is very easy. Just look at the examples of countries where billions in bills are in circulation. There is nominally a lot of money there, but they really aren’t.
With the emission of more understandable. If we speak in a very simplified way, I printed the necessary amount, distributed it to banks at interest, they through credits and in other ways distributed them to the population and enterprises. Making money is a more complicated process, few people know how money is actually made. Few people know how to do this, which is one of the reasons for the lack of money.
To create money, you need to know what their essence is, what is their nature and what is the mechanism of their creation. The most difficult moment to understand is that money is actually intangible. Money is really perfect. Ideas in their pure form cannot manifest themselves in the material world, for this they need a form, which in the context of money can be: gold, banknotes, coins, numbers in a computer, and so on.
Almost all definitions describe the material side of money, the material properties of money, although the very word “money” contains their ideal properties. What properties are we talking about? Several years ago, on the Internet, I met an Kazakh in absentia. He turned out to be a very interesting, but rather contradictory character.
So, he is a supporter of the theory according to which there once was a single parent language, which then formed the basis of European languages, including Russian. No, not about the Latin language in question, but about the one that was before him. Later, he disappeared into other languages, but he remained here and there. As you have already guessed, in his opinion, of the modern languages, Kazakh is the closest to him.
He does not claim that the Kazakh is the Pro-language, but simply says that the Pro-language is the most preserved in it. At first glance, all this looks like a story with the “Globe of Ukraine”, but as it turned out, there is a sense in his words. Kazakh cited many examples of how Russian and English words could be decomposed into Kazakh, moreover, decomposed with meaning. Looking at him, I learned a little about this art.
It turned out to decompose into Kazakh words and the word money. One of the components received is the Kazakh word “Dene”, which is translated into Russian as: body, body, body, substance, matter. The second component is the Kazakh word “igi”, which is translated into Russian in several meanings: valuable, positive, useful. In sum, it turns out “dene + igi”, which is very similar to money. A person who does not know Kazakh is likely to hear the very word money.
So it is quite possible that it was from the components of “dene + igi” that the word money was formed, and subsequently acquired the harmonious form. This, of course, is not the ultimate truth, but “the puzzle has taken shape” and this leads to certain thoughts. I am not strong as a translator from Kazakh, but it turns out that in its meaning, denei is a body, body, body of some kind. Accordingly, first comes some value, which then materializes, and money is obtained.
“Deneigi” is a way to give value to the body, body, a way to give it material characteristics. Nowadays, different types of “cases” are used, which materialize value: bills, coins, numbers in a computer, and so on. Materialize usually what? The idea. It turns out that money is an ideal entity. Although it would be more accurate to say that money is an ideal-material entity.
A bill, a coin, numbers in a computer is the material side of money, and value is the inner side of money. With the outside of the money, everything is clear. How are bills, coins, numbers in the computer, we know. There remains one unresolved question – how value is created, or in other words, how money is created at the idea level. If we understand how value is created, we will get the final cog in order to assemble the entire system.
How is value created? Value is simply potential. How is the potential formed? When one idea interacts with another, the difference between them is determined. This difference is the potential. The greater the potential, the higher the value. It is known from physics that when two potentials connect, they are realized, i.e. work is being done.