Don’t confuse Money and Currency. It’s like saying that Language and Words are the same thing! Language is a social tool. It’s an abstract concept. Words are the things that comprise this tool. House is not the bricks and the windows, house is the whole thing.
Money is a social tool to facilitate commerce at large scale. How does this tool work? Well this is a little complicated, but to simplify:
(-) You define a unit – let’s say one Dollar
(-) You define a way to represent this units – let’s say physical green bucks, or green bits on a computer
That’s it. People exchange these bucks or bits because it’s easier to exchange them than to exchange sugar or cars or cheese and when they need something they exchange the bucks and bits with things that they need. They exchange the bucks and bits with a portion of the total wealth of the economy.
So Money is a concept, and green bucks and green bits are Currency. Currency is the thing that comprises Money . It’s like the Words in a Language.
Both US and China use the tool Money. And both use the type of Money that is called Fiat, but the US uses the Currency Dollar, and China uses the Currency Renminbi.
It’s important – don’t confuse Money and Currency. Don’t confuse Language with Words, it’s not the same thing!
Eleven Thirty PM 