Joseph's "Just My Thoughts"

Money is largely divided into two categories: Standard Currency and Fiat Currency. Standard Currency’s value is tied to real goods, while Fiat Currency relies on legal enforcement for its value exchange. Standard Currency is termed convertible gold if it can be exchanged for gold and convertible silver if it can be exchanged for silver. However, for any currency to be created and circulated in the market, bonds must exist first. When the government issues Fiat Currency and distributes it, the central bank lends money to commercial banks; this process is effectively a loan. A loan is legally recognized as a bond and represents a debt that must be repaid. Without debt existing in the world, money cannot circulate. The government manages the economy by adjusting the money supply in the market, either by collecting or lending more of these loans. Many people aspire to make money, but few truly understand what money is. - 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”

Extending a loan is buying time with money. However, banks turn time into money. Purchase time with cash makes you poor, but changing time with money makes you rich. To pay off your debt, you have to change your time into cash and buy money (debt) with that money. All economic activity is an attempt to turn time into money. - Joseph’s “just my thoughts”

The key concept in creating wealth is the accumulation of assets. "Asset" means all the resources, that can be used for production activities. If assets don't increase, it's not a business. To create value, you have to produce something. The labor, materials, and facilities for production all come from assets. Insufficient assets are borrowed from others, it is called debt. The value added belongs back to the asset. Assets are a source of wealth and a measure of wealth. - Joseph’s “just my thoughts”