Capitalism?
Frankly speaking, it's hard to hear.
What is money? I'm going to tell you the truth about the money that no one has ever told me.
Money? The financial capitalism system started in the UK and developed in the United States.
Their fundamental principles are the same.
First of all, it's about prices.
Fifty years ago, jajangmyeon was 15 won, and now it is about 300 times more expensive.
So, why is prices only going up?
The law of supply and demand The basic principle is that where the curve of demand meets the curve of supply is formed.
But it's not just its principle that prices go up.
There are other reasons why prices are going up.
That's because the amount of money has
It means that the volume of calls has increased.
What are you talking about?
Let's find out where the money comes from and how it goes around.
I think most of the money comes from the Mint.I'm actually going to film it.
But it's a very small part.
Most of the money is invisible. I think the government makes it, but that's not how it makes money.
You don't understand, do you?
First of all, I have to think about how money works.
For example, the central bank took 100 won and gave it to commercial banks.
Then the president of a company borrowed 100 won and Lee paid 50 won back to the bank with interest.
The bank will lend this 50 won to another president (see picture #1).
This is the bank we knew.
But this is something we don't know about the bank.
Banks do not lend only within the limit of their deposits.
I'm not giving you a loan with a deposit.
If you know the above, only 100 won is in the market.
This is how money is made...
If you leave the deposit of 100 won, the money will continue to be 100 won.
However, the bank can lend you the remaining 90 won with only 10 won left.
Then 100 won will be 190 won.
This is called deposit creation and currency transfer in the economics books.
The other 10 won was approved by the government.
Because, as the economics textbook says, you can make a profit by lending out the reserves or investing in other places.
So, what is a bank?
The above principles of deposit creation and currency transfer are applied to a task manual called the Modern Finance Principle, created by the Federal Reserve Bank of the United States.
Here, we apply 10% as a partial payment reserve ratio (the rate that banks must accumulate with the money they give to their depositors).
It's usually called the reserve ratio.Therefore, if I deposit 100 won, I can lend the remaining 90 won.
They made gold into gold, easy to carry, and they built a safe to store it.Leaving this gold started to create a goldsmith who deposited the gold and paid for it.
Eventually, gold began to be traded on behalf of gold coins, and gold began to be tied.
It's a more convenient gold depository than gold, so there's no reason to carry gold.Because of this, goldsmiths don't come for all the gold coins at once or at the same time! And when I start thinking about it, I start borrowing with the money that I keep.
It won't be a problem if the loan is paid well.
So I started to make a lot of profit from the interest on the loan.
But it turned out to be a problem, but he told me he was paying interest to the depositor, so he renewed the contract.
So the depositors could sit back and make money, and the goldsmith could make money on loans.
Since then, private banks have begun lending money that no one knows how much money they have.
The private bank issued ten times more certificates than the gold in the safe, with statistics indicating that it usually comes for about 10 percent of the gold.(This is the basis for the current 10% reserve requirement rate.)
The goldsmith's rich, wealthy depositors have noticed that after that, the depositors have come to look for all the gold coins, but they don't have any gold.
That's what happened with the bank run.
In modern times, if there's a bank run, it's doomed.That's because the current system in the bank is the same
At this time, the British royal family needed a lot of gold coins and made suggestions.
I gave the banker permission to issue virtual money and to take out loans.
And based on this process, we have the central bank, and we have the current bank.
Yes, right. Most of the money is not in the bank. It's all checked out.
The bank has only 10% of the payment rate.
How much do you earn if you roll 90% with 10% left?
If you put one billion in the bank as the reserve ratio, the other nine billion, and that nine billion, 8.1 billion, 6.1 billion, 6.5 billion, 5.9 billion, and so on, there's a process of creating credit.
Theoretically, there's a maximum of 100 billion.
The bank has to borrow money to get the currency system rolling.
That's why banks lend money.
Money is a debt.
The lower the reserve requirement ratio, the less money is left in the bank.
Which means you can make more money.
Our country is the Bank of Korea, and the Bank of Korea has an average reserve ratio of 3.5%.
Theoretically, 500 billion would be six trillion 500 billion.
Do you know that there is more money in the market than in the printing press?
As the volume of money increases, prices have no choice but to go up.
The more money you have, the lower the value of the money, the higher the price, the inflation.
That's how you get to know the important story from now on.
Currently, the central bank has the right to control the volume of money.
Interest rate control and the right to issue money.
If the market needs more money, the central bank can pay more.
Usually, money needs to be high in order for the economy to pick up, and more money needs to be spent.
In addition, companies continue to invest in facilities and hire more workers because they have more current assets such as cash.
The unemployment rate decreases, which in turn revolve around an increase in the volume of money, and an increase in consumption
And as the economy picks up, it's naturally this inflation phenomenon.
So the basic national economic policy is directed at moderate inflation.
Let's look at the dangers of inflation.
Hyperinflation has occurred in Zimbabwe, for example, because the government has spent too much money.
Prices go up sharply, the currency goes down, and the purchasing power goes down.
a fall in interest rates
Let's look at deflation.
We define it as a phenomenon where prices fall due to a reduction in the money supply and economic activity slows down.
When the volume of money is reduced on the market, it reduces production and investment, it's hard to get jobs, it's hard to make money, prices are down, the economy is down.
a rise in interest rates
The credit in the world has been destroyed.
Look at the European Union. I'm in debt.
Because I don't have enough money to pay my debts.
Because it's not money earned from work, it's money borrowed, and when inflation comes, deflation comes.
It is difficult to know in advance when the financial crisis will occur.
Quantitative easing, monetary expansion, economic stimulus, whatever, you can see that there's a lot of currency problems and risks right now.
Now, some people are saying that our country is also in stagflation.
It has the highest ratio of household debt to national debt and one of the highest rates of interest to GDP.
There's an article about the rising unemployment rate every year, and the news is that prices are rising.
Stagflation is a combination of the term "stagnation" and "infusion," which refers to a rise in prices during the recession.
Why is this stagflation dangerous?
Households have no money available for consumption due to rising unemployment, but prices continue to rise.
We're only affected by the big goods and the real estate market, but we're faced with inflationary pressures, including food, utilities, and other items that we can't reduce
When market uncertainty grows, consumers save on anxiety, they cry out for savings,
Prices will go up naturally. Companies don't have consumption, so they cut back on employment and investment.
This saving-oriented pattern of consumption and corporate investment will not translate into stable inflation.
If it gets worse, the even relationship between goods and prices will be broken. So there's an incomprehensible disconnect between goods and prices.
Consumers will be more likely to spend less, companies will also be in a vicious cycle of cutting back on investment, and markets and industries will fall back.
As above, there is a problem with the current capitalist system.
By issuing a limited amount of this, we'll be able to get away from the threat of hacking into blockchain, and overcome it with a Decentralized Cryptocurrency, which means that everyone shares a distributed ledger with reliability and doesn't need central control.
It's my point of view.
