Money – A philosophical view

What is money or cash?
A philosophical view

We all know (at least these days) money as cash as legal tender (notes and coins) or as bank balances, credit limit on a card, digital currency (that is equivalent of money) or anything that stores value.

Typically money is liquid and fungible (1000 in your wallet is the same as the 1000 in my wallet, even if they are different serial number notes)

so how does one receive or pay money, in any form?
Cash – we hand over or receive the notes
Cheque – we instruct our bank to pay someone else or deposit a cheque drawn on us
Bank transfer – we authorize the bank to make a transfer
Credit cards – we are authorized by the issuer and hence entitled to pay for a purchase as we have been given authority up to a certain limit

The key point is money is nothing but the power of instruction over a store of value and is used to convert one store of value by using that instruction to purchase another store of value such as an asset (gold, property, stock, bonds, art, vehicles, etc.)

Theoretically if we want money the easy way is we instruct our bank to increase our balance! Unfortunately the bank will not accept our instruction 🙂

That is the key – money gives one the power to instruct. Cash notes are nothing but bearer cheques with the instruction provided by the central bank (e.g. RBI, Fed Reserve, Treasury, etc.)

Keeping this concept in mind, we can understand any currency, digital or bank based.

So e-wallets give one the power to instruct (for a transfer) after one has generated a balance by transferring from a bank or thru a credit card, etc.
E-wallets themselves may actually store the value in a bank !

The power to instruct comes from a bank (or the central bank), the wallet or the credit card issuer.

So all of us work to get more power to instruct !! 🙂


MCX (Multi-commodity exchange of India) – A snapshot

The Multi Commodity Exchange of India Limited (MCX), is a commodity derivatives exchange that facilitates online trading, and clearing and settlement of commodity futures transactions. The Exchange, which started operations in November 2003. It is listed on the BSE. Currently with a market capitalization of ~Rs 5448 crores.

Most active products are

  • Crude oil
  • Zinc
  • Silver
  • Copper
  • Natural Gas
  • Lead
  • Crude Palm Oil
  • Cotton

Key commodities futures product are as below. Options on these are expected to be introduced soon.mcx products


Cricket (off topic)

Rambling thoughts

The recent loss to Aus by 333 runs at home 

is a big blow. We were deceived by the current team’s performance, largely at home.

Weaker or not is not  the issue. 
Australia is not the strong team they were, 

lost to SA at home recently

Pakistan fought well there but lost to Australia.

NZ beat them too. 
Overseas – we have had some bad bad losses
We have had some horrendous performances over the last 30-40 years.

42 all out – India vs England 1974 (Wadekar led)

England thrashing us 3-0 in that series

We lost badly to Pakistan (2006), Australia (2007), South Africa 

at home
We did not have strong teams always.

It took a long time to build one – a lot changed after Kapil came into the scene
Kapil won in England 2-0

Dravid won in England 1-0

Dravid won in Pakistan and West Indies.
No other captain has won in England – not even Dhoni !

We got thrashed in England and Australia (Dhoni led!!)
The team of Sachin, Dravid, VVS, Sehwag, Ganguly have seen lots of defeats and showed great mental strength to fight – Kumble, Harby, Srinath, Prasad did their part
2001 Calcutta was the turnaround – Amazing performance by VVS and Dravid. And Harby

This was like 1983 world cup win.

Steve Waugh’s team had 16 wins in a row !!
Sadly there is a lot adulation around Sachin not enough appreciation of Dravid, Laxman
Virat is a great batsman yet as a captain he needs to show the transformation

Secondly why not make Ashwin vice-captain? 
We may come back in the series but the team is still brittle. This is where captaincy matters.

Virat is not a Brearly or a Waugh. 

His own performance will come under pressure. 
This is also a mental game. 

Our opponents are traditionally stronger in that department, at least as things stand.