06. Transformation of Money

Money has been a very fascinating invention of man. Its initial purpose was to enable easy flow of goods and services. It replaced the barter system which was very difficult to implement where the matching of goods and services was at the best hap hazard. The economic value of a good or a service was not really the focus of a barter system in most of the cases, but it just served as a method of exchange. The invention of money changed all that. It became a very effective intermediary for exchange of goods and services.

At the beginning, the modern-day economists pegged the value of a country’s currency to the gold stock that is in reserve in that country. It made sense till the concept of fiat money was adopted.

That is the point at which, I think, money transformed into an “EVIL” entity.

This mindless printing of money resulted in the below:

1. Money became a proxy for the political power.

2. It supported large scale hoarding and corruption.

3. The real value of money was not deducible since the printing was made on a mere promise and also it is generally believed that the stock markets and currency exchange markets can be effectively controlled by those needy “experts”, and hence it is believed by some that both the purported use and value of money can be bent!

4. Fictional money generation started by means of stock/currency/commodity derivatives (laid out as several layers) where the value of money generated did not fairly represent the underlying stock! This generated all sorts of burstable economic bubbles affecting lives of millions of ordinary people!

5. Even when the practice of new generation of electronic transfers of money is very much in vogue, there is a general perception that large sets of printed currencies are being hoarded and subsequently being used for funding illegal activities that also primes up unspeakable crimes.

6. The fair money representing salaries of common people, revenue from business operations etc., pales in comparison to the money generated from hedging, fictional stocks and crime.

7. It was also easy for crime syndicates to organize their activities (even like some private hedge funds) all around the globe in a manner that does allow them to be at NO loss all the time – It is bullish – they win; it is bearish and still they win! This scale and efficiency cannot be matched by governments and legitimate international businesses.

   
   

Thus, to make the money turn GOOD again, I suggest doing the below after thoroughly consulting other experts in the field. Of course this may not be a conclusive list of controls.

1. Remove fiat currency concept and peg the value and printing of currency to gold reserves, verifiable/certified GDP value of the nation.

2. Since we have identified precious metals other than gold, we can also consider the national reserves of other metals like platinum and other economically promising rare metals while printing the currencies.

3. Instead of printing the currency, we can consider creating the currencies in some digital (national cryptos) formats too. The national crypto currency should have equal value to the national currency at all times and they should be complementary to each other.

4. Make all transfers as electronic transfers and make the relevant technologies an easily available/implementable commoditized technologies.

5. Credit cards should be replaceable by a person’s biometrics to identify his credit/savings.

6. Borrowing based on a sovereign nation's promise (by entities like bonds) without considering its real economic potential is not a good practice. This is evident in the huge deficits/loan obligations that we shift from current generations to the future generations. Why should our kids be born in debt ??