Computers and Your Money
When it comes to money over time computers were never a factor. Money wasn’t computer digits on a computer screen, but it was linked to material goods. Gold, Silver, and government issued currency has always battled for each other for the top spot on the economic food chain, but lately we’ve seen a new victor emerged. A currency not created or controlled by the government, money that is created and controlled by the world’s central banks which are sovereign to no nation.
This means that when they print money, they do it outside of thee control of the government and with no regard to the inflation that was to follow the excess printing. With the advent of computers, we see that our massive debt can be directly attributed to the efficiency at which new money can be created and issued. Money can now be created in moments with no need to physically carry the supply anywhere since they are just digits on the computer screen. This not only allowed for a global economy, but it also made the holders of the currency at risk to inflation which precedes hyperinflation.
“Paper money eventually returns to its intrinsic value — zero.” – Voltaire
The problem isn’t necessarily the computers, but it’s the bankers and politicians in collusion over the control of exchange and flow of money. This is however, another story for another day.
Aside from this, computers have facilitated personal banking and its prior complexities. People can now withdraw money with ease at an ATM, and people can now move money between accounts from the comfort of their own home. Computers have also helped spread and curb identity theft, making it easier to become a victim of it and to identify if there is someone else posing as you racking up thousands in bills. Many years ago it wasn’t uncommon to he ar of someone that had their stolen from them and only learned of it many years later when an institution verified their credit history.
USA Computer Stores have also played a tremendous role in the financial markets over the past several decades. No longer do traders and investors have to wait a day for their trades to execute. They can now go online, and through their brokerage, buy and sell within moments. This of course, has also opened the door to electronic traders. No longer is the physical person buying and selling to other people, but they are also competing against machines which run on software that anticipates where the price of the stock is going to go. Commonly known as High-Frequency trading, these computer traders don’t trade on emotion or lag. And many times, they can move the market in instants.
Money is even created in banks in ways much simpler than you can even imagine. Our banks for example run on the fractional reserve banking system. This mean s that for every 1 dollar that the bank receives in its depositories, there will be 10 dollars created due to this 1 dollar received. And considering that money no longer needs to be printed, huge quantities of monies can and will be created in moments in the digital bank reservoir. And as you can imagine, with 10 dollars I can go into a bank and deposit it into their system and all of the sudden there’s 100 more dollars afloat. And chances are they will find their way into another bank where the cycle repeats itself. And one must wonder what this does to the currency, well it devalues it. And if left unchecked, it will eventually become impossible to pay off the debt due to the interest alone on the lent money.
Thanks for reading this week’s edition! And if you have any questions/comments feel free to let me know!
Antonio Matsuoka - About Author:
Daniel Ng is senior computer engineer at USA computer Store, Florida and he spends entire day in internet surfing to know about new technology which helps the people to computer repair Fort Lauderdale.
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