World
Economies...why don't they add up? 
Electronic Money
transfer, using the technology known as the "internet"...has
played a very large and overlooked part of world economies.
Meet the concept of E-Money... |
|
Let's raise a rather abrupt question; If every individual of every country were
to withdraw...in cash...every penny they owned,
where
would the global economy be as the governments and banks no longer have our money
to trade with? They answer may surprise you...
“They will be just fine"
There is a fundamental point I am making
here. E-Money is the money that never makes it into cash. The money that
only exists as promise between countries,
a promise based on the capabilities and national productivity of any given
market, that does not represent in any way shape or form the true value of
the worlds economy.
Every little market plays a part in,
what is quite literally a Global Pyramid. The basis of this pyramid is value,
be that value in money…or value in
one promise to another (the synical may say offsetting one debt on another).
The defining moment in true money, is ironically when the actual definition
lost
its meaning.
Money
was invented for a means of universal, standardized trading.
The problem here is that, two
identical bricks…one
produced in the UK and one produced in China…would be of two different
values because of one countries value over another (should that make a human
being less productive, or a brick less expensive!?). The very promise of money,
because that’s
all it is, a promise of set value trade, has been lost and misinterpreted.
So what happens when a country promises
E-money, something that isn’t really
there (or theirs)? If the promise is fulfilled there is no problem, as
the receiving country will be paid and add to their own GNP (Gross National
Product). If they do
not
fulfill
that promise…they will go into negative value (national debt). They will
still be held responsible for any agreements made, but in theory that individual
country’s
net value will decrease. Thus the availability to produce the same brick at
a lower
price, because it is bought by the countries that hold a higher trading value.
In this instance, money has been used as a measure, not an actual value of
the products or services levied within such an agreement. This type of trade
utilizes money owed in negative value, and uses this figure in gross product
as a means of trading up to an even greater value and therefore, a greater
promise or debt.
Now, take the above examples. Multiply
them by a few hundred billion transactions and you suddenly have an entire
exponential Global
economy based on money
that isn’t actually there because they are in negative value. The problem
here is that money will inevitably find it’s way to an end consumer…that’s
you and I. At this point in time, a Government has to honor this value, they
have
to
put a value
on this money and thus the exchange rate was born. The exchange rate does not
counter to right the wrongs of trading with what was not even there in the
first place, it only compounds the problem by adding yet another transaction
to that unit of measure we call…money.
Lets simplify this further. You have
a house and a mortgage to the value of $200'000. You have a job...and you
have a bank account with $10'000 in credit. You are in negative value...because
until the mortgage is repayed...every penny you earn is nullified by the
amount owed. Yet you still have a positive bank balance with readily available
cash? The relationship between you and your bank is an economy, your house
is a country and your job trade. The value of your house to you is less
because you owe
money
on
it...you
have not yet fulfilled your promise to the bank of repaying the money lent.
What happens when the housing market booms or crashes? This would require
an exchange rate to equal the property (country) debt against the banks (economy)
initial funding...doesn't seem to work out that way though does it?
The very same thing
that happens to negative value countries in moments of global shortfall...
Maybe one more concept to ponder. If
the world wide web, which is just that...a series of wires and satellites
for the purposes of data transfer...were not in existence...if it took 10
hours to move cold hard cash...in person...from
one bank to another in a different country; Would countries still be able
to slip into a negative value trading with money that isn't theirs?
Hmm, sounds like a good time to start
your own economy...work at home!
Added by: Administrator
MW01
For
those who wish to have access to all the latest
news and articles before they feature on the website...please
feel free to Subscribe
to our Newsletter. It
will prove to be a valuable, informative FREE business
resource!
We
look forward to working with you...
read more
Bookmark(ctrl
+ d) 
RSS Twitter MySpace Facebook Newsletter
