Currency

Currency/Money

Recently after view the documentary from 大型纪录片 货币 

got some idea of what is currency in actual.

Firstly will be the money from government come from where?

there is 3 channel the money come from. 

i) From tax impose on citizen

ii) Issue Government Bond 

iii) Print Money 

Out of this 3 method, the best and easier method to be use will be print money. this apparently is favorite choice for government as it has the most immediate effect on the economy as well as slowest side effect on the economy. 

but when there is more money being printed it cause inflation. inflation is a monster that create imbalance between rich and poor people. 

for example asset price increase due to inflation but the asset itself did not generate or create any benefit or usage to economy but those who own asset will earn from it due to inflation. but those who work hard will be suffer due to inflation as original 1 dollar could buy a single bread will cause 2 or 3 dollar after inflation.

there is another assumption such that inflation give opportunity for those investor or risk taker to become sudden rich while those worker who work hard for living will be suffering most. it bring rich become richer while poor become poorer. 

in history there is a lot of inflation over happen during the past and all have bad ending. so to keep alive one shall at least target to beat inflation in order to stay alive or sustainable.

we live in a strange world where the risk taker earn more than those who work quietly.