Central Banking Explained for Startup Entrepreneurs and Small Business Owners
Money is no longer a treasure
The economy of the world is basically controlled by 5 central banks; the Federal Reserve (USA), Bank of England (England), European Central Bank (EU), Bank of Japan (Japan), and People’s Bank of China (China). These entities determine the value of your money.
This means that whatever you earn in the currency of your country is subject to whatever the central bank says it is. The good news is that whatever decision they make is passed on everybody. But there is bad news too.
The bad news is that you can exchange good money for bad money. And it all has to do with timing.
There are still those who are working hard trying to make a living with money. They are oblivious to the fact that the rules of money have changed.
The old rule is to work hard, create value and make money as a result. But that rule is obsolete now.
The New Rule of Money
The new rule of money is the inverse of the old rule. It says this:
You use money to create value
Can you spot the difference from the old rule? The old rule says you create value to make money. The…
