Today, all countries are facing money related problems in different ways, and these problems will increase more in the future.
We know that the price of goods and all other services are increasing from the past few years.
But what we don’t know is, What is the main reason behind this price hike? And What should we do to escape from it?
The increase in Inflation will never stop and in the future, inflation will increase up to the level where a common man with their normal income will find difficult to find food for themselves.
We all accept the fact that the rich are getting richer and the poor are getting poorer.
But we do not know, why this is happening exactly?
And you know what is the worst part, we people don’t even try to find the answers to it.
This ignorance is the main reason which made us the slaves of this system.
That is why in this blog, I’m going to share knowledge about money, monetary system and related to the world economy secrets, and their answers.
These things are very much important to know and understand.
This unawareness about this secret is creating a negative impact on all of us and will be more impactful in the future.
Let’s begin with the hidden secrets of money.
Freedom and time is human’s real and true wealth, which is stolen from them easily or we can say legally.
You might be thinking, how’s that possible?
For understanding this simple thing, you need to the history of money.
Most of the people know that in ancient time, the Barter system was used for Transaction purpose.
Generally, in the barter system, you have to give one commodity in order to get another.
Suppose I have a hen and you have rice. So I’ll give my hen to you and in exchange for that, you’ll give me your rice.
This system was good but it has many problems and complications.
Because of this people started thinking about something else.
Even at that time, people were aware of gold and silver. So they started making coins out of it, to do the business.
Holding more gold while travelling was a matter of concern.
They were scared that someone might steal all that. This fear gave a chance to the goldsmith and other business people to give a solution.
They told people to give their gold to them. They will protect it and keep it safe. In return to this, people needed to pay some amount of fees.
People liked this idea and started giving their gold to them.
In return to that Goldsmith used to give them an I.O.U (I Own You) in which it was written that I have your gold with me and how many grams is it.
In simple words, you can call it a Gold Receipt. By showing it they can take the gold whenever they needed.
This system was working perfectly.
But after some time, Goldsmith realized something different, after making this system, most of the people were not coming back to collect their gold and everyone started to do business with those I.O.U receipts.
Because everyone believed that where there is receipt means the gold is safe.
After realizing this thing, Goldsmith became greedy and they started working in the wrong way.
Hence, that receipt has become money they started making more duplicate receipts.
Even when they didn’t have the gold with them, and started giving those receipts to poor people as loans and started earning interests on those loans.
In this way, they printed as many receipts as they wanted and earned a lot by taking other people’s time, freedom and hard work.
This way the world’s largest theft began.
The shop which was protecting the gold was the world’s first bank and that receipt was the first currency.
The sole reason why we people are living in a financial crisis is that we don’t know the difference between currency and money.
Many people think that money and currency are the same things. But that’s not correct.
|It's a medium of exchange.||It's a medium of exchange.|
|You can carry it anywhere easily.||You can carry it anywhere easily.|
|Which will not get spoiled easily.||Which will not get spoiled easily.|
|Which can be divisible.||Which can be divisible.|
|It is Fungible. That means if you have a 100 rupees note then it is similar to the one with me and we can purchase the same thing using it.||It is Fungible. That means if you have a 100 rupees note then it is similar to the one with me and we can purchase the same thing using it.|
As you can see they both have similar properties. But the thing that makes money different from currency is that money actually stores some value inside it, which stays for many years and because of that its purchasing power remains.
For example, the one rupee note which was valid earlier has no value today.
But gold and silver which are a form of money are still valid.
Whereas one rupee note is just a piece of paper which can be printed as many as government and banks want.
Because of this, the value which they have today will not be there in the future.
But gold and silver have remained for more than 5000 years and they are the actual money because no one can print as much they want using machines.
What is the real meaning of inflation?
Hence, the government and banks can print money as much as they want.
That’s why most of the time because of greed and other reasons, the government prints a lot of money and brings it in the market.
Because of this, the quantity of the currency keeps on increasing.
Now you must be thinking, what’s the issue?
More currency means more money in the market which is good, then you are thinking wrong.
The reason for and definition of increasing Inflation is the supply of currency.
The more supply of currency increases in the country the more the price of the goods increases.
This game of currency is working because of the confidence of banks and the lack of knowledge in people.
However, the banks don’t hide anything, instead of that, they say it our face. They clearly say that this currency is Fiat that means there is no gold kept behind this currency.
But we still don’t understand this and take the receipt and protect it with all our life.
Whereas, it’s own value is reducing and reduce due to inflation.
So to conclude, what should we do?
At first, learn about this topic, and understand it more properly.
Share this knowledge among people and educate them.
Today’s world depends upon the Internet and social media, we can spread this knowledge easily.
Instead of doing a job, think to do business. Try to become rich, not for you but for others and for the betterment of the country.
Because after doing business you can find many loopholes to tackle with this system.
Do some investment in gold and silver. They are the actual money and will keep the purchasing power for long. The government can’t print it on their will and cannot stop it overnight.