Sunday, August 23, 2009

Law of Conservation of Money

I believe in the law of conservation of money. It states...

Money can neither be created, nor be destroyed. It can only be transformed from one form to another.
By money, I don't necessarily mean the monetary system prevalent in the economy, rather the power of buying. A simple thought in all the different scenarios of day to day life actually says that such a law exists (I might be thinking out of the box !!!). For instance, we get salary, we spend that in buying something. So, the money actually got converted into the form which we bought. I buy a burger, eat it. So, money got transformed to the pleasure of eating, then to the nutrients (if any) which the burger contained. I buy a T-Shirt, wear it. Money got converted to a T-Shirt which gives us pleasure and comfort. So, actually money was never destroyed or created in the process. It got converted from one form to another. So, the rule of thumb is, no one should run behind creating money. Because, money can never be created. We should try to convert it from one form to another. And conversion process always follow the rule of L.H.S=R.H.S. If, this rule is forcibly violated, its bound to face the consequences. Think about Abdul Karim Telgi. He violated the rule and at the end of the day he is doomed.

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