samhill wrote:OK, just where does it come from Jpete, just where & why was money ever invented? Just exactly what is CAPITAL?
Investopedia explains 'Capital'
Capital is an extremely vague term and its specific definition depends on the context in which it is used. In general, it refers to financial resources available for use.
How can money be "available for use" is no one is saving?
If everyone does what you want, and spends instead of saves, the velocity of money goes up. And that is usually a bad thing.
Investopedia explains 'Velocity Of Money'
Velocity is important for measuring the rate at which money in circulation is used for purchasing goods and services. This helps investors gauge how robust the economy is, and is a key input in the determination of an economy's inflation calculation. Economies that exhibit a higher velocity of money relative to others tend to be further along in the business cycle and should have a higher rate of inflation, all things held constant.
Money is whatever people agree that it is. Could be paper, gold, tobacco leaves, or sea shells. Some money has more "value" than others but they are all just place holders in a barter system.