The basic concept of the business or economic student should know in economic subject is, the supply and demand concept.
Whatever product is on high demand, the value will be skyrocketed or increased, as the demand is > supply. This means, many people are chasing a product. Therefore the product has high value. D>S, the P up.
In the other way round, whatever product supply is exceed then the demand, the value of the product will decreased or goes down, since too few money are chasing a product. Therefore, the product is not valuable. S>D, the P down.
This concept could apply to every aspect in our life, I believe. This is the reason why, I disagreed with the United Stated to print more money, with this policy, the most Asian country, which have great number of US dollar as their foreign reserve, their effort will be diluted. In the other word, their effort has not been appreciated, because the value of the Dollar will goes down as the United States government decided to print more money.
As the supply of the Dollar goes up, then the value or the price of the currency will goes down since the demand of the Dollar is down.
Go back to Gold Standard? Maybe yes, because the supply of the gold is limited, with this, it can guaranty the supply of the currency will not exceed or over limit, maybe our wealth can be protected by keeping in form of gold.
Some might argue that the limitation of the supply of gold also will limit the economic activities, because the supply of gold itself has limit. Well, maybe we can use gold and bank notes together as a medium of transaction and tool to keeping the value of the effort. As long as the quantity of the supply of the currency is well monitored, I think it should not be a problem.
Like other thing, love also can be applied in supply and demand concept. A handsome guy or beauty, I guess, the demanded of love must be very high, because they are attractive, or some can be attracted easily.
The problem is, weather the handsome guy or beauty wanted to supply their love to the demanded. If the handsome guy or beauty supply the love to every demanded person, then they are over supply, it will cause their love depreciated. Like the Greenback, no more value. This means, their love is not valuable, since the S>D, P goes down.
So, to keep our love in high value, we must limit our supply of love, but could we? (^_^) whatever that we done in love, if we done this to a lover, but then we done it again to another lovers, this will cause our effort diluted since we can do it to every lover, for example, “I LOVE YOU”, such a romantic term. If we told this to one person, then the value of the “I LOVE YOU” is 100%, or the term is fully protected because the supply is limited.
But if we say the term to 2 people in the same time, then the value of the term is 50%, they are sharing by two people, unless you withdraw from one of them so that the term can 100% be protected, otherwise, the value of the “ I LOVE YOU ” is depreciating. But how could we withdraw a word that came out from our mouth?
Likewise, if we say “I LOVE YOU” to 3 or more people in the same time, then the value will goes down and down, until it has no value, because the supply of the “I LOVE YOU” is over limit.
So, whatever we do, we must keep our love limited, or we could not simply say “I LOVE YOU” to someone who you are attracted, hold it, and until you think the person is deserve this very valuable term. Otherwise, you will be just like the Dollar, losing the value by printing too much. Your “I LOVE YOU” also will lose the value by saying too much.
Since I would like to keep the value of the hand-make present that I have gave, I declare that I will not give any hand-make present anymore. Unlike the Federal Reserve, who always prints money. Me, the Meng Loong Reserve is always try to protect the value of the present that I have gave out , so that the value of the present can be maintained or even appreciated, since the supply of the hand-make present is strictly control now.
Few of you are very lucky, haha, because you got my present before the policy is implemented, just keep well. Do not worry the value of the given present is low because of me, over supply it. Not more than three people got it. As a chairman of Meng Loong Reserve, I have the duty to protect the value of the given present, so your value of the present already guaranteed.
Maybe I will supply it in one day, who knows? But I think she must be very very attractive enough until I changed the implementing policy, otherwise, I will not simply give out another hand make present.
Now I know something about water and diamond. Water is important to every creature; no one can live without water, but how come the price of water is lower than diamond? I believe is because of the supply. From here, I learned, we must control the supply of everything including our love, “I love you”, and the hand-make present, otherwise, your love or your present is no more valuable.
The Federal Reserved really also need to learn from this.
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