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Control Your Debt CrisisBe in charge of your debt in England and Wales |
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Book: Control Your Debt Crisis Debt Dictionary My blog on Wordpress Home page Debt Dictionaryat controlyourdebtcrisis.co.ukmoneyMoney is that which is accepted as payment for goods and services and repayment of debts. Money has four uses: a medium of exchange, a unit of account, and a store of value and, arguably, a standard of deferred payment. In recent years it has seemed also to be used as a measure of most activities; very dehumanising in my opinion. We most often think of it as the notes and coins in our pockets or in our bank accounts, but it is important ot realise what may be meant in a contract. The word itself may originate from a temple of Hera, located on Capitoline, one of Rome's seven hills. In the ancient world Hera was often associated with money. Historically the combination of money's functions has led to arguments about their separation, and the crisis we are now in argues that may need some more work. Money as a medium of exchange is in conflict with its role as a store of value: its role as a store of value requires holding it without spending, whereas its role as a medium of exchange requires it to circulate.It may alternatively be said that storing of value is just deferral of the exchange, but does not diminish the fact that money is a medium of exchange that can be transported both across space and time. Money is used in trade to avoid the complexities of a barter system. As a unit of account money provides a standard numerical unit of measurement of the market value of goods, services, and other transactions. A unit of account is a necessary prerequisite for the formulation of commercial agreements that involve debt. As as a store of value, a commodity, a form of money, or financial capital it must be able to be reliably saved, stored, and retrieved. Fiat currency like paper or electronic currency (that is no longer backed by gold, as in most countries) is not considered by some economists to be a store of value. Liquidity describes the ease of trading for goods, or into the common currency of an economy. Money is the most liquid asset because it is universally recognised and accepted. Liquid financial instruments are easily tradeable. In economics, money refers to any financial instrument that can fulfill the functions of money. Commodity money has included such things as gold, silver, copper, rice, salt, peppercorns, large stones, decorated belts, shells, alcohol, cigarettes, cannabis, candy and barley. Representative money consists of token coins, and other physical tokens such as certificates, and even non-physical digital certificates that can be reliably exchanged. Credit money (which Debt Dictionary is very much about) is any claim against a physical or legal person that can be used for the purchase of goods and services. Risk affects both buyer and seller. The claimant may default or the lender demand early or additional payments. And the other risk is time; credit money is a promise of future payment. If the interest rate either fails to compensate for the combined impact of the inflation (or deflation) or overcompensates, either creditor or debtor will lose out. Fiat money is any money whose value is determined by legal means. The terms fiat currency and fiat money relates to a government order (fiat) that it must be accepted as a means of payment. Money supply is the amount of money within a specific economy available for purchasing goods or services. Monetary policy is the process by which a government, central bank, or monetary authority manages the money supply to achieve specific goals. The processes include: *changing the interest rate at which the government loans or borrows money *currency purchases or sales *increasing or lowering government borrowing *increasing or lowering government spending *manipulation of exchange rates *raising or lowering bank reserve requirements *regulation or prohibition of private currencies *taxation or tax breaks on imports or exports of capital into a country. Velocity of circulation also has an effect on the ecomomy and the actions of monetary authorities Joseph Harris - Debt Control Man, Author of Control Your Debt Crisis on Your Own Terms LinksUseful links will be found throughout the site, and I will be grateful for any further suggestions. |
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Copyright © 2008 Joseph Harris, © S P Publications, © Get Results Books, © Control You Debt Crisis. This copyright material may be used only for strictly personal use unless permission is sought and granted under any terms agreed. Please ensure acknowledgment of copyright is included with any use - ©Joseph Harris www.controlyourdebtcrisis.co.uk. For any other use please contact me at this email address. email Joseph Harris, Publisher
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Control Your Debt Crisis On Your Own Terms; Make Creditors and Debt Collectors Obey the Law