OMG It has been a Month since I wrote my last article.. Too Preoccupied with CAA Legislation in India followed by Corona Virus which is now a Global Epidemic every nation has sealed its borders to stop travellers bringing the Virus into the Country as has happened in most cases so far accelerating the spread globally.
Corona is the Virus and COVID 19 is the disease caused by Corona Virus. Corona Virus on Its own has no life and requires a Host Body to latch on to and grow. Pretty much like Cancer in many ways.
In the 21st Century the Global Economy, which is a man made system was anchored of MONEY meaning currencies.
Born with an enquiring engineering minds I did not take to the one course on Economics offered by he curriculum. Just studied enough to get through with a basic pass. Economics I felt was not a science but system that relied heavily on statistics and speculation. I may be wrong as it is not my forte. But One thing I know is no two economists agree 100 with each others analysis or predictions of economy of a nation.
Lets see what Dr Google has to say..
"In its most simple and concise definition, economics is the study of how society uses its limited resources. Economics is a social science that deals with the production, distribution, and consumption of goods and services. ... Macroeconomics - the branch of economics that studies the overall working of a national economy". Sounds good.
There are three common types of monetary systems – commodity money, commodity-based money, and fiat money. Currently, fiat money is the most common type of monetary system in the world.
Currency is created by the network of mints, central banks, and governments that make up the global monetary system. Just about every transaction around the world involves an exchange of currency of some kind. ... Fiat currencies only have value because the governments who print them say they do
The government gets the goods and services that it needs. That is the exchange that takes place between a currency issuer and the currency users. This is what a monetary system is in essence: a means of ensuring that the government can mobilise real resources into productive use.
Corona is the Virus and COVID 19 is the disease caused by Corona Virus. Corona Virus on Its own has no life and requires a Host Body to latch on to and grow. Pretty much like Cancer in many ways.
In the 21st Century the Global Economy, which is a man made system was anchored of MONEY meaning currencies.
Born with an enquiring engineering minds I did not take to the one course on Economics offered by he curriculum. Just studied enough to get through with a basic pass. Economics I felt was not a science but system that relied heavily on statistics and speculation. I may be wrong as it is not my forte. But One thing I know is no two economists agree 100 with each others analysis or predictions of economy of a nation.
Lets see what Dr Google has to say..
"In its most simple and concise definition, economics is the study of how society uses its limited resources. Economics is a social science that deals with the production, distribution, and consumption of goods and services. ... Macroeconomics - the branch of economics that studies the overall working of a national economy". Sounds good.
I'd be damned if I knew what Currency exchange rates were all about and how the concept was even born.
For example lets say a Kilo of Bananas in India costs Rs10. and in Australia Aud $10 and in USA US $10. This mean all three currencies have the same purchasing power in their own countries. Yet One Aussie dollar = 0.65 US Dollar and it is Rupees 75 for One US Dollar. I have never understood this concept who created it and who controls this screwed up value system and why all countries have accepted this as a norm.
There was a time when my son was young and we ate out at Mackers a lot and one Fillet O fish meal costs Aud$5 then and I go to UK the same Fillet o Fishmeal cost 5 Sterling pounds which was almost Aud$10.
So when it came to Holidays the British were like Royalties with their strong currency followed by US/Canada and Europe. People who travelled from third world countries like the Indian Subcontinent and Indonesia etc were the poor cousins who had to spend ten times more of their hard earned cash for even basic necessities.
In Las Vegas in bellagio one had to pay US$1 to use the rest room and to an Indian it was Rs 75 for a dump... A very unfair system lets eee who created the monetary system
Dr Google says ( I am no expert I am just finding out folks)
A monetary system is the set of institutions by which a government provides money in a country's economy. Modern monetary systems usually consist of the national treasury, the mint, the central banks and commercial banks.
The International Monetary Fund aims to reducing global poverty, encouraging international trade, and promoting financial stability and economic growth. The IMF has three main functions: overseeing economic development, lending, and capacity development.
How did Money Evolve ?
Briefly, evolution of money was mainly through commodity money, metallic money, paper money and bank money. ... Human beings passed through a stage when money was not in use and goods were exchanged directly for one another. Such exchange of goods for goods was called Barter Exchange.