Money as most of us think of it is paper dollars. More we have of it the richer we are. From childhood we are told, go to school so you get good grades, so you can get into a good college so you can get a good job so you can save money so you can buy a house so you can go on vacations so you can have kids so you can give them a good life so you can…..
“So you can” never ends because money needs to keep moving and growing. If so you can never ends and population only increases then it must mean there MUST be more money to go around or it must go around faster. The creator of “Dollar Milkshake”, Brent Johnson
, recently came out with a pretty good video explaining how money comes into existence, how its distributed and how it can also disappear. Please watch the video as its literally worth an admission to college.Money in its current fiat form is not what we see in movies of 1600’s, or even early 1900’s. That money was usually hard money (Gold, Copper, Silver, etc) which were harder to manipulate or currencies backed by hard money (Dollar before 1971). Money now is credit, based on full faith in the producer of that credit, US for Dollars, Europe for EURO, Japan for Yen & China for Yuan.
When all these currencies, which function as money, are competing with each other the mechanism for the competition is the foreign exchange rates between the various currencies. If one “prints” too much, then it drops in value against another. Here’s what will really twist your noodle, a currency dropping against another can be a good thing or a bad thing, because it depends on if you are an exporting nation or an importing nation. If you are both then depending on if you are an exporter in that country or an importer you will either like or hate the change in the value of your currency agains another. It’s a game which is almost too hard for the human brain to comprehend at some levels.
It’s therefore more important that ever to really understand the fundamentals of money to keep you head on straight. I highly recommend listening to Brent’s views on how the current dollar system works.
Now, dollar system as it is today was created in 1971. China and the BRICS want to change that system. After world war II there has only been one monetary world order and it ran through the dollar. Now we are starting to see a push by BRICS for a second monetary system. Will they succeed or fail? It’s hard to tell, but I sure as hell wouldn’t put it past them to keep trying BUT I also wouldn’t put it past the incumbent (US) to make sure it inflicts max pain on the up and comer.
Markets are also watching this world class drama unfold, theres no one better to explain how its being absorbed than
. The thread below on X is a masterpiece explanation on where we are. I won’t even try to summarize because it’s too important not to read. Enjoy!https://x.com/Globalflows/status/1983182741450698829