Production and processing create added value. Wealth is the accumulation of this added value. Distribution shares this added value among economic entities. Cultivating coffee trees generates added value for green coffee beans, while roasting those beans adds further value to the coffee product. Grinding the beans and extracting them with water creates and consumes the added value of a cup of coffee. Finance enables the distribution of the added value generated by this production and processing through the use of money, facilitating the easy accumulation of that value. However, finance can leverage its power only because there was prior production and processing. The challenge arises when the compulsory circulation power of currency enables the ownership of labor and resources that underpin production and processing, along with real estate, which is foundational to its existence. If production, processing, and distribution are dictated by money’s compulsory circulation power, who will g...
The lower the trust, the higher the economic and relationship costs. If performance is low beyond costs, efficiency is reduced. Trust is the most important asset in all areas where human intervention involves value. Higher trust increases the efficiency of the money use. Some people get high satisfaction even if they spend the same amount of money, but others get complaints. Don’t make the mistake of thinking that all money is the same. - Joseph’s “just my thoughts”