One of the purposes of commerce is to build strength. Gaining wealth gives us power, which is the ability to influence others. There are three main types of power: first, power gained through coercion or threats; second, power obtained through payment or inducement; and third, power gained through attraction. The power obtained through coercion, threats, payment, or inducement—that is, force or tactics—is called ‘hard power,’ while the power gained through ‘attraction’ without using force is called ‘soft power.’ Additionally, the ability to effectively achieve your goals using coercion, payment, and attraction is known as ‘smart power.’ Depending on the situation, we may need all three types; however, soft power is something that everyone admires. - Joseph’s “just my thoughts”
A bank trades collateral by holding debt called savings and selling bonds known as loans. Customer deposits are not bank money and must be returned to the customer as the bank’s debts. These debts lure customers; the bank lends money to them to recreate bonds with the customers’ debts. At this point, there is “collateral (mortgage)” to prevent the risk of bankruptcy between bonds and debts. In other words, banks do not possess the collateral; they merely govern it. The primary instrument of control is their bonds. In a way, banks tend not to be places where they make money with their own possessions, but rather conduct business as if it were their own with others’ collateral. Therefore, because banks need to know the value of secured collateral, the most accurate investigation of real estate and valuable gem information is key to banking. This is the similarity between a bank and a library that accumulates information. - Joseph’s “just my thoughts”