World Currency: The Value Of Money

The value of the money in the world is calculated by the way in which that money can be used.

Money in itself has very little intrinsic value (it's just paper, or some sort of plastic composite) - it doesn't really "do" anything apart from providing a way for people to make more pertinent transactions.

The *real* value of money comes from what you can exchange it for. Most people don't really understand this - they think that money is somehow a product that's designed to give people the ability to magically own things. It's not the case - the money is basically a denotation of value; allowing people to trade value in their own ways.

We've found that whilst most people only value money, the truth is that it's the asset base behind the money that counts most. This is why the USA has the most valued and utilized currency in the world - it has the largest & most prolific asset base in the world.

Unfortunately, most people will never understand this. Like little monkeys, they jump onto the numbers they get from currency and think they're "rich". You're not rich just because you have a lot of money; you're wealthy by virtue of the assets you help create. The assets you build are almost entirely based around the value they provide to a community.

The best way to look at is is that if you are living in a snowy place, you may wish to "invest" into building an igloo. This igloo allows people to gather together and keep warm. Whilst building the igloo upfront may be a cost in resources and manpower, in the long run it is a worthwhile investment.

People will pay you to use the igloo. Your asset thus has "value" which can be utilized in the real world. However, in order to transfer other value for it, you're not really able to provide the likes of a Reindeer fur or some other object - because it might not be worth the whole price (IE the transaction won't be fair).

Thus, when considering the way in which you're able to get the most out of the system, you basically have to be able to create a way through which people are able to transfer value in a fair and quantifiable way - this is where "money" has come from.

Money in of itself doesn't drive value, but the way in which it can be used to exchange for other things. This means that if you're looking at getting the most out of the system, you will end up trying to identify what is driving the money already. Not only does this mean that you're basically looking at getting the most out of the system, but that the monetary supply can be backed up by actual assets.

Intrinsic Value of Money

Because money doesn't have any intrinsic value, it was historically backed up by particular assets that were used as a measure of its underlying tradability. The most common of these was gold, although Salt and even Cheese have been used before.

The point is that if you're looking to "trade" money, you're basically looking at the ways in which you're able to get the most out of the money you have. This means that you want to examine how much it can buy in terms of resources.

Unfortunately, most people don't really understand what they will get out of their money, and thus will end up with a problem. This is partly due to the way in which modern money is not backed by any sort of underlying asset.

To this end, you need to realize that if you're looking at the various ways to calculate the "value" of the money in the world - the most important thing is to find which money is going to bring you the most effective purchases. This gives you the most effective way to calculate it...