Currency is a State’s IOU’s. Money is the medium of exchange, based on Energy.

Money is a fiction created as an exchange medium. The problem is that within a Country, we need to think in terms of currency rather than Money, which is a term best used when talking in Global terms.
Within a country, Currency is printed by the State. If it prints more Currency, then this is not a big problem in a closed economy. It’s just a form of taxation, where The State is obtaining more Goods and Services, without making any contribution. Everyone feels richer and saves more, with those nearest the teat, getting richer earlier.

The problem arises, when Goods and Services have to be obtained from other Countries, when the Laws of Supply and Demand come into play.
The most important international commodity is energy. In our non-slave economy, this is usually translated in terms of barrels of Oil, which is why all recent conflicts have tended to centre on those nations which have it.
Money is to a large extent based on the supply of energy.
Some countries have lots of oil (Saudi Arabia), some have lots of Gas (USA since it started exploiting fracking), some have lots slaves (China and the sub-continent), some have lots of nuclear (Japan & France), some have lots of Sun (Saudi Arabia), some have lots of HEP (Norway) etc., etc.
Most have a modest amount of some variations of these.
The richest countries are those which can supply energy to others, either in terms of exporting the energy, or exporting Goods and services produced from that energy.
This is where the concept of Money arises and hence the concept of National Debt.
When we had The Steam Age, we (UK) were top dog, because we had coal and Iron and were able to exploit them.
When Oil was discovered in Texas, The USA achieved ascendancy and strengthened its position by exploiting Nuclear energy. Saudi Arabia was then found to have 60% of the World’s reserves of Oil and has been struggling to achieve ascendancy. China is now about to flex its muscle, based mainly on a subservient and exploited populace, but bolstered by its rapidly increasing exploitation of Coal and Shale Gas reserves.
Long term, China will likely out-muscle the USA.
Fracking is the big game changer at the moment, although, if we ever get fusion power, then the game changes again.
(It’s politically interesting to note that Israel is reported to have large, offshore, shale gas deposits, which would provide more energy than Saudi Arabia’s Oil field’s).
Essentially, if a Nation is energy sufficient, then it can it can balance its import and exports and print as much currency as it wishes. it’s only fear would be invasion.
If it is deficient in energy but can trade up its products, by trading on its skills (Swiss banking, uK trading and insurance etc) then it can emulate a country, which is energy sufficient but only until its markets are lost to competition. Such a country is treading water and if it prints too much money, it could soon find itself facing a nasty Economic shock, when it loses its trading position. (Most of Western Europe)
A nation, with excess energy but lacking the political stability to get the best value for it, will become impoverished and find its resources being raped (the basis of much of the West’s (led by the USA) foreign policy.
This was to be the fate of Russia, after the fall of Communism, but the political elite soon became a new hardline, hardnose Government, which prevented this.
China watched what happened in Russia and, having the same political background, its political leaders are gearing up to compete and using their wealth (of energy) to buy up the resources of those nations, with corrupt Governments. Not just in Africa but in Europe, where the attempt to shore up the Euro-zone (i.e. artificially inflate the value of an overprinted currency) has led to them borrowing money (an energy exchange medium, not a currency) from China and paying with State assets (privatisation).
Long term, the only evidence of this will be more Chinese tourists, around the World and their public figures becoming seen as the new 1%.

Cassandra moment
Western Europe will sink back into Victorian slums. North and S.America will become politically alike. Africa will become a farm for China, except the desert regions, which will be exploited for Solar Energy, to process Africa’s mineral wealth.
Australia will become a holiday home for the (Chinese) 1%.
I imagine that our grandchildren will all be speaking Mandarin.

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