How is money made?
Feedback on previous articles revealed one important point that most people do not allow to understand what I actually write about in the articles of the Novus Ordo Millennium series. A misunderstanding of this point causes a misunderstanding of both the articles and the situation we are faced with. And the situation can be briefly described as follows – there is a lot of paper, but real money is not enough. This is incomprehensible to many, because for most people issuing banknotes and making money are one and the same thing.
Most people think that if there is not enough money, they just need to be printed and the issue will be resolved. Therefore, it logically believes that if they really weren’t enough, they would have been printed long ago, so that money is enough a priori. In fact, making money and issuing are two different things. This is very easy to prove. It is enough to look at examples of countries where billions of dollars are in circulation. There is nominally a lot of money there, but really it is not.
With emissions, it’s more clear. Speaking very simplistically, I printed the required amount, distributed it to banks at a percentage, they through loans 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 created. 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. The money is actually perfect. Pure ideas cannot manifest themselves in the material world, for this they need a form that can be used in the context of money: gold, banknotes, coins, numbers on a computer, and so on.
Almost all definitions describe just the same material side of money, the material properties of money, although the word “money” itself contains their ideal properties. What properties are we talking about? A few years ago on the Internet, I met in absentia with one Kazakh. He turned out to be a very interesting, but rather controversial character.
So, he is a supporter of the theory according to which there was once a single proto-language, which then formed the basis of European languages, including the Russian language. No, not about the Latin language in question, but about the one that was before it. Subsequently, he disappeared into other languages, but remained in some places. As you may have guessed, in his opinion, of the modern languages, the closest to it is Kazakh.
He does not claim that Kazakh is that parent language, but simply says that the parent language is most preserved in it. At first glance, all this is similar to the story with the “globe of Ukraine”, but as it turned out, there was a sense in his words. Kazakh gave many examples of how to decompose Russian and English words into Kazakh, and to decompose with meaning. Looking at him, I learned a little of this art.
It turned out to decompose into Kazakh words and the word money. One of the components obtained is the Kazakh word “dene”, which is translated into Russian as: body, body, trunk, substance, matter. The second component is the Kazakh word “igi”, which is translated into Russian in several meanings: valuable, positive, useful. In total, it turns out “dene + igi”, which is very similar to money. A person who does not know Kazakh is likely to hear the word money.
So it is quite possible that it was from the components of “dene + igi” that the word money was formed, subsequently acquiring a harmonious form. This, of course, is not the ultimate truth, but the “puzzle has developed” and this leads to certain thoughts. I am not strong as a translator from Kazakh, but it turns out that in terms of meaning, Deneigi is a body, body, body of some value. Accordingly, at first there is a certain value, which then materializes, and money is obtained.
“Deneigi” is a way to give values to a body, a body, a way to give it material characteristics. Now different types of “cases” are used that materialize value: banknotes, coins, numbers on a computer, and so on. Materialize usually what? The idea. It turns out that money is an ideal entity. Although it will be more accurate to say that money is an ideal material entity.
A banknote, a coin, numbers in a computer is the material side of money, and value is the inside of money. With the outside of the money, everything is clear. How are bills, coins, numbers in the computer made, we know. One unresolved question remains – how is value created, or in other words, how is money created at the idea level. If we understand how value is created, we will get the final screw 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 potential. The greater the potential, the higher the value. It is known from physics that when two potentials combine, they are realized, i.e. work is being done.