Debt : The essence of wealth is ‘debt.’ Liabilities are regarded as debt capital and included as assets in accounting . Isn’t it odd? Debt is classified as an asset... The fundamental idea that currency is created based on the principle that debt arises is crucial. Debt can serve a positive purpose by lowering opportunity costs , but it can also be harmful if not repaid, as it deprives others of their opportunity costs since it must be paid back. Managing debt properly is essential for a company's capabilities in certain situations. Understanding others’ debts can help maintain good credit. However, there are limits to examining others’ debts. Instead, we can monitor the flow of money as an apparent interest rate. Therefore, recognizing and responding to interest rate fluctuations during economic activities is extremely important. - Joseph’s “just my thoughts”
Economic activity must accompany a counterparty. Since people couldn't live alone anyway, they exchanged whatever goods met their needs, and as a result, an "economic system" was created. The standard of exchange is called "value" and the numerical representation of it is called "price. "Value" and "price" certainly do not necessarily match, and one of the main reasons is "competition. In the end, value is exchanged for price. Values are offered at the pricing initially presented by others or at a provider's insistence that wants to earn profit at first. If only the offered price is recognized by others, the recognized price is accepted as its determined value. The price of one's wage agreed upon with another is the real price of one. All other evaluations and recognitions except the above are only self-justifications and excuses. - Joseph’s “just my thoughts”