EPISODE5
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Helloandwelcometoyetanother episodeoftherandomchill podcast.Wearethepodcastthat bringssomeinterestingdiscussions abouttheearthandthecosmos righttoyourfavoritechillspot. JoinmeBonz/Mikeandmycohost Mike/Bonz.
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Hi...
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Iamexcitedaboutthisparticular episodesbecauseoftwothings,one isbecausewehaveabrandnew segmentontheshowandtwois becausetodaywearetalkingabout Money.
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Randomnewsisournewestaddition onthisseasonofRandomChill.
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Yes,inthissegmentwearegoing togiveyouabunchofsomelatest newsfromallthefourcornersof theearth.
RANDOMNEWS
Herewereportonabunchofthingsthathavebeenhappening aroundtheworld,thesegmentismissingcozapparentlythe newsissupposedtobethefreshestsegmentofanyshow, nothingthatpeoplealreadyknow,itshouldbewrittenon thedayofrecording.
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Andthatistheendofournew segment,andnowtotoday’stopic,
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Moneyissomethingthatweuse daily.Andintoday’sworld,there areveryfewthingsthatcanbe donewithoutonepossessingthis veryimportantcommodity.Buthow muchdoweknowaboutMoney,what (MORE)
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areitsorigins?,whycurrencyand notstonesorleaves?Howisit madeandwhomakesit,pleasejoin ustodayaswetryandbreakdown thisveryinterestingtopicandwe hopebytheendofthepodcastyou willbealittlewiseraboutmoney. (pausefordiscussion).Ofallthe definitionsIcouldfindabout money,thisistheoneIlikedthe most.Moneyisanythingthatis generallyacceptedinpaymentfor goodsandservicesorinthe repaymentofdebts.
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OneveryinterestingthingI realizedisthatmoneyisnot alwaysthecoinsandthepaper noteswecarryaround.Various thingsareknownandacceptedas Money,someofthemare currency,whichisthecoinsandthe papernoteswemostlyuse,checking accountbalanceandsavingdeposits (discuss)(findmore)
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Atthebeginningoftheepisodewe talkedabouthowmoneyisusedto dovariousthings,well,Moneyhas threekeyfunctions,itisamedium ofexchange,unitofaccount,store ofvalue.(discuss).
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Moneyhasaveryinteresting backgrounddatingbacktothe templeofJuno(discuss).Thefirst coinsdatebackto700BCamongthe LydiansandPaperbillswere introducedinthe13th Century*(confirm).Theearliest formoftradebymanwasbarter tradewhichalotofusknowor haveheardabout,whichwastheact oftradinggoodsandservices withouttheuseofmoney.Thisform oftradegoesbackabout100,000 yearsback(confirm).Thencame money,whichcanbedatedbackto some3000yearsago.Someofthe (MORE)
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earliestformsofmoneyincluded salt,cowrieshells,andsomevery weirdones,likepotatomashers thatwereusedintheancient Bafianculturethatoccupiedwhat istodaytheRepublicofCameroon, anotherinterestingoneissquirrel peltswhichwereusedfortradeby theRussians.
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Moneytookoverfrombartertrade becauseitofferedthe transferabilityanddivisibility thatmakesmoneyefficientfor trading.Somethingbecomesaform ofcurrencyifitiswidelydesired andthereforevaluable,butitalso hadtosomewhatbedurableportable andeasilystored,andthatiswhy bitcoinsareconsideredcurrency.
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Thereareseveraltypesofmoney, thefirstiscommoditymoney,this ismoneythatisbacked/represented byaphysicalcommodity,itsvalue isbasedonthevalue/demandofan underlyingcommodity.Agood exampleistheUScurrencybefore 1971whichwasbackedbythegold standard
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Theotherkindofcurrencyisfiat money.Thistypeofmoneydoesaway withtheneedtorepresenta physicalcommodityandittakeson itsworthbymeansofpeople’s perceptionandfaith.Thisformof moneywasintroducedbecausegold isascarceresourceandeconomies growingquicklycouldn’talways mineenoughtobackmoney requirements
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Sonowthatweknowallthis,the lingeringquestionishowismoney made,orratherhowdoesacountry oraneconomycreatemoney.Well, allmoneyissimplycreatedoutof (MORE)
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thinairbuttheprocessofdoing thisisabitmorecomplexthan mostwouldthink.Moneyiscreated byakindofperpetualinteraction betweenconcretethings,our intangibledesireforthem,andour abstractfaithinwhathasvalue. Thismeansthatmoneybecomes valuablebecausewewantit,butwe wantitbecauseitcangetusa desiredproductorservice,sothe centralbanksimplyprintingmore moneywoulddomoreharmthangood foranyeconomy.Sohowthendoes thecentralbankcreatemoney?, Whenthecentralbankwantstoput moremoneyincirculation,itbuys governmentfixedincomesecurities inthemarket,andthenputsmoney inthehandsofthepublic.To shrinkmoneysupplytheoppositeis doneandthecentralbanksellthe governmentsecurities.
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Theworldisestimatedtohave60 trilliondollarsinmoneyform.To keeptrackofallthismoney, economistsputmoneyinthreebroad categories,M1includesall physicaldenominationsofcoinsand currency,demanddeposits,NOW accountsandtravelerschecks.This categoryincludesmoneythatcanbe usedtomakepayments.Thesecond categoryisM2,thiscategoryadds allmoneyfoundinM1toallall Time-Relateddeposits,saving depositsandnon-institutional moneythatcanreadilybe transferredintocash.M3,whichis thefinalcategoryofmoney includesallmoneyfoundinM2and addsalllargetimedeposits, institutionalmoneymarketfunds, shorttermrepurchaseagreements andotherlargeliquidassets.The world’sM3figureis75trillion dollars.
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Addingallthis3categories arrivesatacountriesmoneysupply ortotalmoneyinaneconomy.
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Moneyismeasuredusing3methods, namely,Theoreticalmeasures, Empiricalmeasures,andFederal reservesmonetaryaggregates. (discuss).
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Ithinkweareoutoftime,the topicofmoneycangoonandon,we havetolookatbanks,different formsofcurrenciesandwhysome aremorevaluablethanothers,the stockmarketandotherendless topicsaboutmoney.Thankyoufor joiningustodayandpleasejoinus nextweekforanotherepisode.This episodewasmadepossibleby Angstrom,theyarethatdesign companyyouwanttovisitifyou havesomedesignissuesyouwant sortedout.Theywilldoyour websites,socialmedia, photography.
Andmanyotherdesignrelated things.Welltolistentoanother episodeofRandomChill,visit www.thiskenyanlife.comandlisten. Weuploadanewepisodeevery Monday.Seeyouallnextweek
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Cheers...
NOTES
1.Pheux...Thisisthelastepisodebeforewecompileand release,Ithinkweareabitbehindschedulesoweshould putinalittlemoreeffort.
2.Iadviseweholdameeting,talktomeaboutthebest timetodothis.Itshouldbebeforenextweekfriday
3.Startcompilingthingsyouthinkwillmaketheshow better.
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4.Topicsofthemeetingshouldinclude,thewebsiteorthe uploadplatform,recordingdays,releasedays,sponsorship, targetmarket.
5.Ifyourememberweplannedtodotheshowfromrandom locationswhichIthinkisreallyvitaltomakingthisshow good,weshouldalsoseehowwearegoingtogoaboutit.