Currency Establishes Trade

Mickey | Financial Services | Thursday, December 2nd, 2010

A long time ago people do not have money to buy things, because money or trading forex securities had yet to be invented. The system that was used was a barter system where things were traded. This is kind of an impractical system because what if you go there to trade something no one wants to trade. This would create a huge problem for you and it would be a big waste of time. Fortunately, money was invented to handle the situation. Money is very convenient and easy to use. This idea in itself is not a bad idea.

When you go to your job and you work, you are able to get paid for it. This pay is used to buy goods and services. Your pay is not production. What you do on your job is the production and once you do that production, you get paid. This is how money works.

If you travel overseas, you will notice that each country has their own currencies. You will have to trade in whatever your currency is their currency in order to buy something. You may not get an equal amount of their currency. You may get more or less depending on the exchange rate. This is determined by the economies of each country.

Money makes our lives easier. It is easier to carry it around than bushels of apples or cartons of eggs. Where money becomes bad, is when it has been manipulated in order to damage the state of country. This is where problems with money and economies come in. The manipulation is artificial. It is not based on production of the country. If this online forex system were to change, then so would the economies of the countries that are affected. This is the flaw of having individuals rather than countries controlling their own money supply.

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