Where does capital really come from? Most US policymakers believe that capital comes from debt issued by the Fed and its member banks; most other big debtor countries agree (i.e. Japan). On the other hand, policymakers of the world's biggest creditor nations (led by China) believe that real capital is the surplus produced from production and trade (which has been mainly accumulated in US dollars and ultimately backs the US dollar as the primary reserve currency). For the past 7-12 years the two conflicting ideas about capital have begun to have noticeable effects in certain global asset markets. The chart below, showing gold, oil, and Fed Funds rates, illustrates what has occurred. For most of the three decades from 1973-2002, these asset classes traded closely together; in the last decade, they have been diverging dramatically. We'll explain why this happened and the critical implications it holds for the USD prices of oil and gold. http://www.zerohedge.com/news/2014-09-16/can-petrodollar-survive-low-interest-rates
Scarcity produces capital out of thin air.... Capital has a very broad meaning and without first prior defining, this whole article becomes very blahzay and unfocused... typical for zerohedge. If it is financial capital they are referring to then it all originates from the environment and the commons (such as scarcity, demand). Production and trade just makes it available. Debt is also a by-product of capital and definitely not where it comes from. Capital reaches beyond our man made laws too.
that would put you in the same group as US policymakers and the sheeple they fleece. no surprise there.
your work is capital. what you earned with your work is currency. You happen to be able to acquire other capital with your currency right now, but it's about to get a lot more expensive (exorbitant in the case of gold) because there's just too much currency that was created with no work at all. if you actually read the article you will find this gem, that I think you can relate to: this is the world we live in and this "arrangement" is not going to last a lot longer.
The world i live in my work = labour & is worth nothing until its done . When i get paid for my work = funds/currency/fiat whatever term u want.... when i use those funds its called capital. I can see the look on a potential business partners face when he asks "How much capital have u got to contribute to the business" & i tell him "I can work forever " lol priceless I think you call it what u want & i'l call it what business people have called it since noah was a boy . If any business person asks me about capital i know they are asking how much cash ive got ....simple So whats "working capital" ? my hours i can work ? hahaha oh dear im out of here . :
wow reno you've outdone yourself this time! I know that for you, capital, currency, money, cash, wealth are all the same thing. So yeah you should probably move on
Thanks vc im glad you appreciate the effort.....sorry i made a mistake my "working capital" should be "1x 20 y/o punk (sometimes when hes not doing drugs)1 x 30y/o gay (who loves his work & the 20y/o equally) & 1x55 y/o neurotic secretary (who seems to function fine considering the amount of prescription medication she takes)"...that should entice them to weigh in with the coin :lol: Oh hang on wait ... thats right they are called "employees " not "capital"
