The Role of Money

The living human body needs a certain amount of blood. If the body loses that certain amount of blood, after some time this blood renews itself (parallel currency). However, if the body loses a large amount of blood, or is not capable of self-healing, transfusion is required (external borrowing).

Money wave

If you want to stimulate demand (food, consumer goods), more money has to be injected into circulation. In countries with monetary sovereignty, this is done by the state or by this authorized institution (central bank) through public projects.

Example:

The state decides to construct an infrastructure object, hence hires a workforce that is paid with additional injected money. This equally pays material and working machines. The wages of these workers increase the demand of families for living needs. Thus, the economy lives and society becomes richer for the aforementioned infrastructure.

Construction of an infrastructure object

In the circumstances where money is taken from circulation, the opposite happens. People have less money, they buy less, and therefore producers also produce less, and what they produce can only be sold at lower prices. Furthermore, a country that does not have a sovereign currency is forced to borrow money on foreign markets for high-quality investments. They cause an even greater drain of money from the system (repayment of loans and interest).

Listen to the wise guy

In order to defeat the situation, the state burdens its producers and residents with high taxes and contributions and reduces the social rights of citizens. It often interferes with the sale of its resources (production capacity, natural resources).

It can be concluded that too little money in circulation is beneficial to venture capital. With great security, we can say that the euro is not only a currency, but a method of mass expropriation of people.

Public debates are not being dealt with or, very rarely, by these simple truths. People are often referred to cheerful behavior (left - right, red - black). Moreover, for their lack of well-being, corruption is being blamed, which is a negative phenomenon in society and must be prosecuted, which, however, has far from having such extreme consequences as the lack of money in circulation. In this context, even the people are accused of lacking moderation, that they are inferior, or even more mentally lagging in comparison with the people of economically more developed countries, or with richer segments of society.