Money vs Currency


You know how all squares are rectangles but not all rectangles are squares? Well, money and currency are kind of similar. Currency is the rectangle for comparative purposes while money, is the square. Pretty much anything can be currency so long as there is value but only money can be money. Most simply, currency is just an accounting principle that we can all understand regarding the distribution of value. Money is the structured and overseen order of value. It is important to understand the differences between the two because the fundamental characteristics are the same but the difference is what stands between us and financial optimization. 

Currency, which is the platform for money to exist, has a long history dating so far back, that there are animals, who have the ability to understand some forms of exchange. The animals have a tough time understanding the differentiation of value but they do exchange shit and that means the concept of currency is so old, even monkeys have it. As humans, we use all sorts of different currencies. The most mainstream is obviously money but that doesn’t mean sex, drugs, rock, and roll are off limits as far as payment goes. Have you ever heard “gas, grass, or ass, no one rides for free”? That saying perfectly illustrates that all money is currency but not all currency is technically money. The root word of currency is current and currents flow meaning currency flows. There is a flow in our economy. Markets don’t act much differently than seasons through out the year. Based on events taking place, conditions change. That is true in both cases. If only we had the French bulldog calendar that lets us know when to buy and sell our investments. 

In other articles, we talked about how banks and governments use their flow, or current, or currency to create an unlimited amount of money. My question is where is our flow as people? How come my money doesn’t work like the rest of currency? My money still has four sides and four corners, why is it not treated like a rectangle? Here is our Standard American Flow: work, so money flows to us, then flow our money to pay our bills then obey the laws and live happily ever after. If we have more money than we know what to do with, we can call Ed, Scott, Merrill, Charles, who ever we decide to take that extra scratch and play a ‘risk reward’ type of game. Kind of like gambling, except we call it the stock market. Then, hope its all enough. I don’t think investing is bad. I don’t think gambling is necessarily bad. But, I do think putting all of the pressure to create money solely on investing or gambling is unsustainable, no matter how smart we might be at investing or black jack. 

Because currency is the accounting principle for value, there is true value attached to what ever is the “money”. It started out being gold, at that time and still today, there is a finite number of gold nuggets stashed all over. With that right away, it gave people the impression that there was only x number of value and the goal was and still is to have more value than others because “less for them means more for me”. That point of view is only thought of when it comes to money. Think about water, could you imagine going to the drinking fountain and having to worry about getting less water than the guy who got there first and drank a whole gallon? That preposterous but its how we look at money. “They have more first, so I will always have less.” Supply and demand “should” be relevant for goods and services, not resources. Currency is a resource like water therefore, so is money. The reason supply and demand is irrelevant to money is that supply is unlimited and the demand is everyone, not really a whole lot to figure out.

It is what it is for today. However, because information is so accessible, moving forward we can utilize the same principles and have the same flow as the government. Continued shifts toward financial optimization through the use of education as well as action will make money so accessible that no matter what, if we go broke it is 100% on us. That is ultimately what were after, right? We just want to be able to live our lives knowing that as long as we do the “right things”, we will have enough money. The current landscape suggests to do the “right things” but that doesn’t actually guarantee shit as far as success goes. This is why we get people who believe that, “nice guys finish last”. To a degree, that saying is true. The system isn’t currently set up under the assumption that there is unlimited water in the drinking fountain, it’s who ever can get the most the quickest.