Money : The biggest illusion

That is worshipped in India. Which is the solution to all suffering. He is not the greatest invention of the world, but the world depends on him. In spite of not having value in itself, it is most valuable. He is capable even after being vain. Money, such an illusion, which is the truth. Why?  ‘Belief’.

“The barter system is the exchange of goods and services between two people.” People exchange one goods and services for other goods and services. All trades were dependent on ‘abandonment’ due to the absence of a fixed value determined for any object. You need vegetables for dinner. And you have raised animals. You would have to make sacrifices to fill your stomach.

Imagine if you own an elephant and you need clothes. In this situation you can see big problems with this method of trading.

1. Lack of double coincidence of wants: It is necessary to have double coincidence of wants in this system. Until there is no coincidence between both , trade is not possible. You are ready to sacrifice. But the person in front does not need an elephant. How can business be possible in such a situation?
2. Lack of common measure of value: Such a complex problem has arisen due to non-fixation of the price of the clothes and the elephant. Trading is possible after pricing of both the items. And at that time this idea did not come.

Imagine a farmer who has grown tomatoes. In such a situation he will have to face many problems.

3. Difficulty in storage of goods: It is possible to exchange one commodity for another. Tomatoes are a perishable commodity. Storing it for a long time will spoil it. In such a situation, how will that farmer survive for the whole year?
4. Inability to make deferred payments: Delayed payment was also not possible in this system. No person can take all the tomatoes of that farmer and provide him with useful things in future. Because there is a problem with the goods storage.

A tent maker can make a living for the whole year by selling tents. The farmer is unable to do this. When people started to understand that if you keep the things you use all the time, then the whole year can be easily lived. The main things that were always in use were weapons and salt.

A tent maker can make a living for the whole year by selling tents. The farmer is unable to do this. When people started to understand that if you keep the things you use all the time, then the whole year can be easily lived. The main things that were always in use were weapons and salt.

People started taking more salt and weapons by giving the things available in the bulk. By giving it, they used to take things for work in the future. From here commodity money came into circulation. People started exchanging salt and weapons. Items started being bought and sold through salt and weapons. Transactions began to take place with small conch shells, beads, etc. (which are easily available on any beach) items in exchange for salt and weapons.

Humans had developed better way to transact. It was a brilliant idea to exchange tiny collectibles instead of exchanging goods and services for other goods and goods. The idea proved to be so brilliant that the whole world gradually moved away from the barter system to the money trading system. But there was still one problem with this medium of exchange.

For money to be worth anything, it has to be scarce. The more available an item, the less its implied value. It’s basic economics. If everyone can get their hands on something it can’t be worth that much. Small shells, beads, etc. being easily available on any beach, were not a good measure of value.

As a result, around the year 770 BC, the first metal coins were created in China. They made the coins circular so it is easy to put them in and take them out without hurting your fingers. Then they cast the coins in bronze.

Eventually, money became something of value. You couldn’t go to the beach and pick up bronze. It was scarce. It had value. At this time money wasn’t yet an illusion. The value of the coin was determined by the value of the metal. If you had a coin that was made of 1 gram of gold, it was worth 1 gram of gold. You can easily measure it.

The kings and rulers quickly discovered the power of money. They realised that the more of these tiny precious metals you had, the more power you could control. In 600 BC, Alyattes, Kings of Lydia, created the first official money mint. He created the coing using a mix of silver and gold and stamped an image on the coin to act as denominations.

Now people used to judge the value of a piece of metal by looking at its picture. But the kings of the world wanted more money and precious metals were too expensive. To produce more money, they started slimming down the coins. Then mixing the more expensive metals with cheaper metals. Soon, all the coins in circulation were worth less than the image on their face. By now the illusion of money had been born. The value of a coin was no longer determined by the value of the metal. The value of the coin was now simply what the rulers said.

However, when international trade became a thing, people realised that metal coins were too heavy to log around. And so kings around the world started issuing IOU certificates for long distance trading. Because these pieces of paper were stamped by the king, people trusted its value. They believed that they could use it to get back whatever it was worth in coins. And that was true for the time being. As more of these IOU certificates flooded in the market, people needed coins less and less.

Until finally, the paper was worth what we believed it was worth, even if we no longer exchanged it for physical pieces of gold and silver. From ancient kings to modern day governments and Central Banks, money has remained an illusion.

It had become necessary to get rid of the barter system. At that time money was made like a tool. Due to which almost all the problems occurring at the time of barter were relieved. When money was seen as an opportunity then man made money the most important thing. This is where the illusion of money was born. Which still is.

That is worshipped in India; Laxmi. Which is the solution to all suffering. Money is the main cause of troubles. He is not the greatest invention of the world; Fire, wheel and electricity etc. are taken among the greatest inventions of the world. Money does not come in it but the world is dependent on it. It in itself has no value; Modi ji has given proof of this. Money that is not used is wasted. In fact, money is capable of doing everything.

Thanks 😊