Good question!
As more and more people begin to think about it, it is clear that the awakening of the civilian population is on the way.
It is clear why some experts like to preach “super money” to “savage” the market!
Why is there only a small amount of excess money going to pay?
There are two problems:
One is the issue of the mechanism for issuing currency;
Another is the question of the implementation process.
We talk the same way.
I. The truth about the super-currency
Some have pointed out that if the money is even, it has the effect of “all the money is no money.”
But the “symmetric” means the same amount of money.
For example, in a simplified model, Ma owns 100 grand in cash, while Wang has 10 bucks, adding zero to them, which amounts to 900, 90 to the horse.
This amounts to a lack of development, and the gap between the rich and the poor has not been narrowed, because the money is a symbol of wealth and not the wealth itself.
Wealth is a product of production, and if the price of commodities goes up by zero, like pancakes, which are sold at $1 0, it makes no sense to pay.
But if it’s the same amount of money, the effect is different.
For example, $100 million each, $100 million in horse money and $100 million in king’s money.
– See, the effect of shared wealth.
Now you know why people use “all pay is no pay” to confuse people and stop paying low-income people?
Because wealth is equal to wealth — in some people’s view, wealth is what makes people human.
You want to be human, you climb on one side, you step on the other.
This is called humanity!
See? They like to pay, why else would they call for “currency easing” and “improved liquidity”?
They just don’t like to pay the poor.
Is it then possible to speculate that unless money is paid directly to the poor, the more money goes, the better for a few?
In other words, the current system of issuing currency is unfair and allows only a small number of people to gain more than they can.
It was said that, wrongly, the excess currency was intended to stimulate economic growth, with growth and employment, to the benefit of workers.
Does that make any sense?
There is some reason, or only in the short term.
Intuitively, would it be too easy to develop an economy with more money alone?
In that case, Zimbabwe, which has the largest banknote, is not the richest country in the world?
There’s no financial crisis in Sri Lanka, right?
It’s definitely not that simple!
But printing money does stimulate the economy, doesn’t it?
Why else would the first reaction of the major economies when their economies were in recession be to set up money machines?
It doesn’t seem to be working. It seems to be working.
To understand this problem, a simplified economic model is needed.
Assuming that one of the original tribes lived by hunting, they worked eight hours a day, and together caught 100 rabbits.
Suppose you’re the leader of this tribe, what do you want the tribe to do?
Extension of working hours to 996;
2. To devise an incentive mechanism to make the hunt more active and committed;
Three, improve the bows and arrows, one of the right ones.
If you think of all three ways of growth, then congratulations, you know a very important economic question: where does growth come from?
Growth comes from three places:
Increased inputs in a broad manner
You’ve got eight hours, rabbits, ten hours, can’t you get ten?
One pound of flour can evaporate 20 buns, two pounds, can’t it evaporate 40?
2. Increasing producer motivation
If they lay down and work was a fish grab, there must be no growth, right?
3. Improving production technologies
Like the Industrial Revolution.
Which of these three sources of growth is the most important?
The second, most important, is productive motivation.
Why did Marx say that in a hundred years of capitalism, more wealth was created than the sum of all previous generations?
It is because capitalism responds to the selfish nature of human beings and increases the motivation for production.
Free trade has facilitated the division of labour, which has led to specialization and technological improvements in production.
Usually, improvements in production technology stem from increased motivation in production – if you want more hunting, you improve your equipment, exercise your skills, study the life habits of prey…
You see, increased productivity and improved production technology are high-quality growth; low-quality growth is simply increased inputs.
When a company doesn’t want to improve incentives to make people more happy.
It is not about improving the production process and the competitiveness of the product or service, but about getting people to work extra hours, so one word for a company like that — low.
Seeing here, some readers have found out.
II. How the excess currency stimulates growth
Take it easy. We’re going to see how the excess currency stimulates growth.
Go on, you’re the chief of the tribe, and you’re led by the authorities to catch rabbits, and for every rabbit you’ve caught, you pay a dollar, and then you take the rabbits to the market, press 1.5.
The Tribal Alliance overstated the currency, inflation, and you found the rabbit price went up to $2.00. But the worker’s wage was still $1.00.
What do you think about this time?
You’ll recruit more people, you’ll run to the tribe next door, you’ll buy more.
Isn’t that just an increase? More jobs?
In the above example, the price of money is “flexible”. The supply increases, the price drops, the original rabbit buys $1.5, and now it’s $2.
However, wage prices are ” sticky ” , because the ministry will not immediately ask for an increase in wages, which will only be required if the price rises in inertia and the pattern of rising prices is discovered.
Mankun, in The Economics Doctrine, referred to this situation as “price viscosity ” , where wages are not easily variable.
Once your salary rises, your excess profit disappears, and you lose the incentive to increase your capacity.
So why does everyone always think that the increase in wages won’t keep up with the increase in house prices?
Because once we catch up, there’s no point in raising the house price.
From this example, you can see a few facts about over-currency stimulus:
Only in the short term, and in the long term, inflation;
Because it produces only short-term stimulus, which has resulted in mostly crude growth, such as real estate enterprises, which suddenly amplify their financial resources, and which have accumulated more land, high turnover, rapid harvesting rather than improved design and construction processes;
Wage growth is lagging.
Would it make sense if the prices of goods and wages increased at the same time and in the same magnitude?
For example, the price of rabbits increases by 0, and the salary of tribal people increases by 0, which is equivalent to adding a zero to the number shown on the paper notes, right?
The excess profits earned by the tribal leaders resulted from the erosion of the salaries of the ministries.
The more the money goes, the worse the workers!
However, the rigidity of wage prices is only one aspect of the bad luck of hitting workers.
In the real world, complex mechanisms for the issuance of currency can also lead to an inequitable distribution of labour.
What’s with the money? Can you just send it?
I can’t!
For every silver ticket issued in the ancient estates, it is necessary to ensure that there is sufficient silver in the vault to be collected at any time.
Modern banks, on the other hand, require balance sheets to be maintained, that is to say, each piece of paper requires the corresponding asset to be endorsed for its value.
What are the assets of the renminbi?
Someone said it was the house.
If there’s a problem with the house, does it affect the bank’s assets?
Why not? As long as the purchaser is still repaying the loan, there will be no impact. The bank’s assets will rot and become bad debt only when the loan breaks occur.
That is to say, the liability of the worker is the endorsement of the bank ‘ s assets and currency.
What do you want to do if you want to overdo the money?
I’m going to increase your debt!
This is the magic of modern finance — it turns the debt of workers into money, revolving in the financial system, debt networks, wages and consumption.
However, such a cyclical process is uneven, which leads to currency going to the asset class and debt going to the wage class.
What’s going on?
In reality, the excess currency that we have observed is not a direct charge to the account, but rather a one-tier, one-tier, down-ward payment.
As a result, the closer to the issuing centre, the easier it would be to obtain excess currency.
Why do financial and real estate people like to preach money?
Because they had recently left the currency centre, they had been given priority for overpayment.
Don’t underestimate that priority. In fact, it’s the real place of value.
It is well known that the result of currency overhang must be inflation.
However, there is a time gap between currency overhang and inflation, which provides a huge room for profitability.
For example, you’ll see:
Before the banknotes were invented, the “sharp money” was a way of overselling money that was common in ancient capitals.
The principle is simple, assuming that there is a “baht money” in circulation, 10 baht money is collected from the court, and the money is melted into a “hundred baht money” and the rate is declared to be “100 baht money.”
That’s over 90 bucks.
In the beginning, the people were still unknown, so they kept to the rate requested by the authorities.
But as long as we know that new money is less valuable than old money, we will resist it.
You’re holding a hundred baht and trying to be 100 baht.
But the merchants don’t do it. They only accept it for 10 baht.
It’s ancient inflation — it used to be a hundred baht, and now it’s only ten.
The nature of the excess currency is always a decline in the value of the currency and the votes become hairy.
But there’s a clear time difference between the government’s overstretched currency and the crowd’s discovery that the new currency has become hairy, so it’s attractive to the lack of money!
BUT, the wealth code is not only known by the government, but also by some of the better-known “private financial institutions”.
When they find out that 10 baht can be made of one hundred baht, and when 100 baht is made, 900 per cent of the profits will be the same for the foundr.
Private speculators will recycle the old currency in large quantities and make new ones;
And then there’s no old baht on the market. It’s all incontrovertible baht.
In the process, the authorities profited, the speculators profit, and only the rest of the population suffer.
The modern world’s super-currency is just more complex, but it’s just the same, and now it’s 100 bucks, and it’s only 50 bucks 10 years ago?
The other is the “dilution of debt” caused by overpayment, which over the past 10 years has been a situation where money is being owed more and more.
What do you mean currency dilution?
For example, if the leader borrows $30,000 from the king of the village next door before he gets over the money and promises to return it in six months, and in order to make it easy to calculate, the interest is zero, you can consider them old friends.
We’re counting on the rabbit’s market price at the time at $1.5/only, and he needs to sell 20,000 rabbits over the course of the six months.
Turns out it’s been six months, and the rabbit’s price has gone up to two dollars, so he’ll just have to sell 15,000 rabbits.
In this way, the chief takes advantage of 5,000 rabbits, even if there is interest, as long as the interest is less than 5,000 rabbits, the chief is the one who takes advantage of it, which is the effect of inflation on the thinning of the debt.
Now, think about it, is it possible that some industries with so much debt can make so much money?
III. The importance of distribution
It was said that these were clear rules, that workers were hit by the shadows, or because of gaps in vision and information.
Asymmetric information is on the one hand and, above all, the rules were designed to take into account the limitations of hitting workers — it was at the outset, specifically for the rich.
First, because of insufficient collateral, ordinary people simply do not have access to a large number of bank letters like the rich.
To put it simply, ordinary people have unequal access to financing, and the more rich they are, the more they can borrow.
Second, financial water must lead to inflation and increase the cost of living, while a large proportion of workers ‘ income is spent on living.
This would squeez the rest of the workers, prevent them from building capital accumulation, and then lose their fight for financialized wealth distribution, and lose their “currency dividend”.
In contrast, the income share of the rich is much lower, with more wealth remaining, more assets being saved and more currency inflows.
So the “first-time distribution” of the currency is clearly unfair.
But if we can make it up through the Second Allocation, there is hope for a balance.
But unfortunately, asset 0 tax, heavy labour tax!
(a) Asset 0 tax, which means no tax on property income and transfer income (e.g. inheritance);
A heavy labour tax is a relatively high tax on wage and operating income.
There are some intuitive examples in reality:
Wang is a comnon, 996 earns 8000 and pays monthly taxes;
Zhao is a charterer and has nothing to do with it.
Sadly, most of our taxes now are for labour.
Taxes such as taxes, excise taxes, and now the most important entry taxes are borne by the wage earners.
Businesses ‘ income tax, value added tax, etc., are also transferred through prices to consumption, and ultimately to the wage earner.
And you’ll see the weird thing is that when capital pays taxes, it does everything it can to convert business income into property income.
For example, why does a famous boss get a dollar on his salary?
Does he not like money?
Certainly not, but rather a transfer of income through equities, funds, etc.
In public opinion, however, he sought to package his property income as business income, for example, by glorification of his wealth as a victory for business thinking, investment vision, etc.
Why are the rich so divided?
On the one hand, it is because property income is not taxed;
On the other hand, they know that business income is more legitimate!
It is even more sad to add that the rich who hold assets not only pay taxes but also receive subsidies from workers.
For example, urban taxes paid by young people and rural people (buying houses, diluting savings, urban consumption, social security…) have become capital and public services in cities.
And these infrastructure and public services have turned into land premiums, raising the price of the house of the “Paylor”.
In other words, the taxes paid by the wage earners were eventually transferred to the asset earners.
In other words, the second distribution is unfair.
Some say you can also leverage a house and wait for appreciation.
It’s different!
Because the buying of a house is a good way for the payer to share the dividends of the currency.
But now it’s a debt trap!
Leveraging properties are also two-sided, on the one hand, assets and, on the other, debt.
What many ignore is that assets are false and debt is real!
This means that the assets will be depreciated, but the debt will be as much as it is.
When the price of the house rose, everyone wanted to buy it, it was very liquid, and at that time the house was an asset and a wealth.
But when it does not rise, the liquidity is poor and the loan is still to be repaid, which is a liability and a burden.
Why?
Why was the house a wealth code and now a debt trap?
It’s not sustainable because of this super-currency system!
In fact, the excess currency flows only to more profitable places and not from top to bottom.
When the financial bubble is growing rapidly, not only will the currency not move down, but it will also go down and inhale.
It’s called “defeating.”
But here’s the problem, because the economy is not money — the economy is the flow of money!
Money is accumulated by people who don’t need it, and people at the bottom have more than no money to pay back debts.
If this situation accumulates to the end, the economic crisis will erupt!
Some say, how about skipping the coins?
The State shall direct the money to the industrial sector, promote the upgrading of the industry and improve the treatment of workers by means of targeted and precise drip irrigation.
Economically, it is called a functional currency, which is the currency that the central bank invests in the base strategic assets (Basic Strategy Asset, BSA) bypasses the financial system when traditional money supply channels fail and enter a state of crisis.
For example, in the film “A great show,” a group of people wandered off a deserted island and formed a primitive society, and the chickens’ boss Zhang shied around to accept poker as a monetary tool, saying that the whole island had only two sets of cards, which were scarce and impossible to overdo.
But Hing later discovered that he had four hearts in his hand, which means that Chang’s always overloaded the money, because the price of life goods had not changed.
Indeed, with economic development, it is not possible to increase currency.
Because of the increasing number of commodities and the relative scarcity of money, this could discourage the enthusiasm for trade and cause depression.
The most logical way to do this is to get Zhang a pair of pokers and tell you to build a road and get them as much as you can.
This is called a functional currency, which has been added to the market, with an additional route available on the island.
The principle of a functional currency is that the value of the newly created currency is endorsed by the asset generated by the investment, so that the quality of the asset, that is, the effectiveness of the investment, is crucial.
But, in essence, it still amounts to “left-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-and-hand-hand-hand-hand-hand-and-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-hand-and-hand-hand-hand-hand, for example, or, for example, or-hand-hand-hand-
Why, in conclusion, is the excess money rarely paid?
1) Wage inflation is lagging because of the adhesive nature of wage prices, and the excess profits of tribal leaders stem from the erosion of the wages of the ministries;
2) The nature of the excess currency is a debt expansion, which is an expansion of the debt of workers, with the currency flowing to the assets of the predators;
3) Heavy labour tax and zero tax on assets;
4) The asset premium resulting from the construction of public services is fully absorbed by the predators, while the cost is borne by the workers;
5) When the liquidity crisis occurs, the monetary dividend becomes the current debt trap;
6) The emergence of “functional currency” is a trend, but process management and asset acceptance are key. Case number: YX11WQzJ8q0
I don’t know.
Keep your eyes on the road.
