The speed of money circulation / and our legacy to future generations!
We have seen a lot about economic crises around the ages of the world; some for various reasons: real estate bubbles, due to the blocking of banks in certain nations, etc.
In some cases we see that some countries suffer some crises due to the flight of foreign exchange and sometimes simply due to the stagnation of the raw material that they offer to other countries and they stop buying it.
But what about the speed at which money moves and the speed at which it changes hands?
It turns out that many times we buy a product or pay for a service; and this money is obviously used by those who acquire it, to in turn pay suppliers, they also consume goods or services and are forced to pay with the same money.
But what if the money reaches a point where it is stagnant?
In that case, it is most likely that the money will be contained or stored in people's accounts that prevent it from continuing in circulation, which makes the amount of cash circulating in the world less and therefore it begins to circulate. be scarce; And as history has shown, each time a product or in this case an asset becomes scarce, it becomes more valuable.
And it is useless that nowadays more and more paper money is printed if at the end of everything it ends up in the hands of a few, as in most houses!
Let's take an example, let's imagine that a large pipe delivers water to a city. Now let's imagine that water is money; This large pipe in turn is divided into small pipes that carry the water to the other houses of a city.
As long as the water flow is equal to the width of the main pipe, the other houses will have a constant flow and in great quantity; but, if the main pipe is blocked, the water will no longer be able to be supplied in the same quantity, and for this reason the water level in each small pipe will be diminished. This in turn will result in the inhabitants having to start storing more of the vital liquid for fear that at some point it will become permanently scarce; and likewise deprive themselves of certain comforts that they had before.
If we transfer this example to daily life, but with money, then we can realize that, if those who have more of it, decide to stop using to the same extent as before, then other people will be affected; This is about interrupting the flow of money by slowing it down.
We live in an era where historically more inorganic money has been created and backed by trust, or rather by "fear" about $ 2,300,000,000,000 of Dollars have been injected into the economy, this in% tells us that only last year was I create 23% of the total circulation of the existing money ...
Heck, where has all that money gone?
That is where you see how the numbers and coffers of large chains like Walmart are inflated, where their leaders on average earn almost $ 4,000,000 of dollars per hour, while the rest of the mortals fight or savor a salary of $ 15 per hour. is happening with the world and your ability to reason.
This is going from bad to worse and nobody seems to care, we are at the door of a stronger resection than that of 1929, and there is no doubt about it, in the meantime we will continue enjoying our pop corn with a refreshing carbonated drink and watching our favorite series. We will go down in history as the age of the unintelligent, who let the future be taken from us by being distracted in various absurd tasks ... Greetings from the future my dear colleagues!
Posted Using LeoFinance Beta