Where should money circulate? - One for the thinkers.

[McDuck]

Where should money circulate?

Money circulates in different areas of our society.

Some of it circulates in the housing sector.
This money keeps builders, timber merchants and real estate agents, etc busy.

Some of it circulates in the Methamphetamine sector, keeping the criminal underworld and customs etc busy.

I suspect in places like North Korea, money circulates in neither of these places.

Sometimes, over time, money can mutate from one circulation path to another.
The telegraph for example, all the telegraph money probably ended up in the telephone sector.

The thing is this.
Wherever money circulates, there is an opportunity for the people involved in it's circulation to clip the ticket.
And have a jolly good lifestyle doing it.

Weather or not a particular money path is a benefit or a hazard to society, is another matter (Vaping).

You can usually tell where the most money is circulating, because there are correspondingly big buildings at the center of your local city,
(Housing the top dogs of that particular sector).

My question is this.
Do we really still need banks and insurance agencies, and huge computer based enterprises?
Do they actually offer our society any needed services?
Or like Vaping, are they just another human folly, one that misdirects money and time into unproductive, wasteful, and possibly harmful areas.

It's an interesting idea.

*
EG.
Take banks for example.
Original function, hold your gold in a safe.
Secondary function, have another goldsmith in another city cash your gold receipt to save you travelling with pockets full of the yellow stuff.
Present function, warping and distorting the activities in certain sectors, at the whim of certain individuals.

To make it blunt-
Original function, security.
Secondary function, convenience.
Present function, control.

[donna]

Very interesting McDuck. We need the insurance co.s unless there's another solution for homeowners to get some sort of payout as with CHCH earthquake - what would homeowners do with their broken home otherwise?

cheers,

Donna

[McDuck]

Very interesting McDuck. We need the insurance co.s unless there's another solution for homeowners to get some sort of payout as with CHCH earthquake - what would homeowners do with their broken home otherwise?

cheers,

Donna

Hi Donna.
Very true.
Very true indeed.

There's no doubt that some of the money flowing into the insurance sector is very useful.
I guess the real question is how much.
And where does it end up.

A local insurance company, or a government scheme, for example, might pass the surplus back into our economy, where as a remotely owned company might not.

It's entirely possible that insurance might also be used as a control tool too.
Getting actual numbers helps clarify the picture.

I bet there's some great cons going on in this field right now.

https://en.wikipedia.org/wiki/History_of_insurance

[klauster]

Assumptions; If you take money e.g. a gold coin, I would go along with “walking money”.
But the modern banking system manufactures a currency out of nothing – that is not money, just paper like a promise.
In other words, there is no deposited money like gold coins held by the bank. That gives the common term “money” a different dimension – security? NOT AT ALL.

[McDuck]

However you want to consider money, whatever the stuff is, it moves in different parts of society (and the world) and it generates and modifies human activity.

The question is:
Is it moving in the right places, in the right quantity and at the right speed, or is it's path way being distorted by self interested antisocial operators, and to what degree?

[klauster]

The question is:
Is it moving in the right places, in the right quantity and at the right speed, or is it's path way being distorted by self interested antisocial operators, and to what degree?

Well, “money” stimulates human’s consumption or moves by manipulation because the modern banking system manufactures money out of nothing - checkbook money based on debts. And the computerization of the financial market and the exchange of currencies have created a business model based on mouse clicks.
Does it really matters where to money come from or goes to?

Money earned by speculation or hard labor spent for foods, tax, social services etc… where is a difference?

Societies don’t live within their limits, government spending exceed revenues, growth is based on economies selling more with less, e.g. one logging operator can remove an entire forest. But would you develop a timber processing industry around logging by adding values to products that would create sustainability.

In a sustainable economy local produced products would create new jobs and good earning would fuel consumption. The car industry is a perfect example and shows adding value makes the money. That same principal worked in the Middle Age for Europeans processing natural resources while the exporting colonies stagnated.
Why does it matter where money circulated and between?

[McDuck]

...
Why does it matter where money circulated and between?

So you would be happy if the whole NZ economy consisted of Methamphetamine production ?
All the money circulating in that path alone?

Taking a proposition to the extreme often reveals the flaw in the reasoning.

[klauster]

So you would be happy if the whole NZ economy consisted of Methamphetamine production ?
All the money circulating in that path alone?

Well, related to the given examples slavery in the Middle Age and banks’ economic dictatorship (decisions who gets the money) are legal.

Comparing that with illegal operations like drug money looks to me like ignorance. But the truth is, legalizing drugs will change that as you know “ money doesn’t smell”.

[Anthonyacat]

Well, related to the given examples slavery in the Middle Age and banks’ economic dictatorship (decisions who gets the money) are legal.

Comparing that with illegal operations like drug money looks to me like ignorance. But the truth is, legalizing drugs will change that as you know “ money doesn’t smell”.

Have you ever sniffed your hands after handling large amounts of cash, especially coins or the old cotton bank notes? Some money smells terrible. Reason they call people Filthy Rich.

Yeah, I get you weren't being literal.

[Don't believe the Hype]

However you want to consider money, whatever the stuff is, it moves in different parts of society (and the world) and it generates and modifies human activity.

The question is:
Is it moving in the right places, in the right quantity and at the right speed, or is it's path way being distorted by self interested antisocial operators, and to what degree?

(emphasis added)



who gets to decide what is 'right'?

[McDuck]

(emphasis added)

who gets to decide what is 'right'?

Good question.

To draw a mechanical analogy.

In a car engine, a petrol engine, fuel flows around.

(It can be considered similar to - the Money in a Economy,- or the Blood in your Veins).

The 'right' amount of fuel, at the 'right' place, will depend upon what you want the car to do.

Standing still, you want it mostly in the fuel tank.

Speeding along a racetrack, you want a good part of it, on fire, pushing out pistons.

But even then, the amount and sequence is essential to 'right' operation.

[klauster]

Have you ever sniffed your hands after handling large amounts of cash, especially coins or the old cotton bank notes? Some money smells terrible. Reason they call people Filthy Rich.

Yeah, I get you weren't being literal.

Thanks, I like that - and not too old to learn something every day.