The Crucial Distinction Between Special-Purpose Money and General-Purpose Money

The low currency value also gives us an impression the goods and services in that country are expensive,again strenghtening the impression of "economic mess". It would be hard to build trust in a low value currency or a currency that frequently falls in value. I expect people will quickly understand and get used to this within a year if BI is able to provide new money to replace the old currency. If this redenomination success, this is which will make Rupiah more dignified and prestigious.

Now, i want to discuss about trader. What is traders? They are traders, investors or a gambler? When i say that i'm a trader, people always judge me as a gambler. Because the stock market is like a casino. Some may say like that and i understand because they don't understand. Trader who's not enough money but want to increase their saving by investing their money in stock market, they calculate, take risk and learn the financial report and statistic. 

The investor who have a lot of money, but didn't expert to invest their money. And gambler, who have money and want to be rich and richer without thinking too much, calculating data and anything else. So, what's the point trader with the title, special purpose money and general purpose money? Yes, the milenials didn't want to take the risk. Some didn't invest their money. They're too scare. They spend money to buy clothes, watch, etc. General purpose money! And trader? Special purpose money! They spend and invest! Some may say trader is like a gambler in casino! It's ok. It's your opinion. But let me explain you about the risk taking. The logic sense. Consider the following thought experiment. Here we go, let's say one hundred people go to casino (let's say to Genting Highland, Malaysia) to gamble a certain set amount each over a set period of time, and have complimentary gin and tonic. 

I have ever seen casino first time in my life in Genting. So, it's casino. I see how people go crazy, spend their saving, spend their money, all in, and drink whiskey, tequilla, etc. This casino didn't allow local people come in. Well, it's casino. They're gambler. Some may lose, some may win and we can infer at the end of the day what the "edge" is, that is, calculate the returns simply by counting money left in the wallets of the people who return. We can thus figure out if the casino is properly pricing the odds. Now assume that gambler number 25 goes bust. 

Will gambler number 26 be affected? NO! You can safely calculate, from your sample , that about 1 percent of the gamblers will go bust. And if you keep playing and playing and playing, expecting to win something, you will be expected to have about the same ratio, 1% of gamblers going bust, on average, over the same window. You get my point? No matter how good you are, you can safely calculate that you have 100 percent probability of eventually going bust. The point is all about probability. If you lack of knowledge, then investment go like a casino, even in casino, when you play poker or anything else, you can calculate something, you can calculate your probability as long as you push aside your emotion on that table. 

I love number by the way and statistic. That's why i'm curious about anything else in life. I do believe that everything can be calculated by statistic. Now, when you read material by finance professors, or banker making recommendation based on the long term returns, beware. Even if the forecasts were true (they aren't), no individual get the same returns as the market unless he has infinite pockets. To take a stock, a situation is deemed non-ergodic when observed past probabilities don't apply to future processes. The problem is that if there is a possibility of ruin, cost benefit analyses are no longer possible. To be a trader, something force us to lose some money more than we plan to lose.

We may lose some money when we became a trader, investor or gambler, but how, when it comes to a company? The so-called deficit. Yes, some company show that their financial report is deficit. I give you a clear example. BPJS. We all know that the purpose of the company is to make profit. The budget they have made, is a special purpose money. They spend, to make profit. 

The way the health care scheme works, a person seeking medical assistance would first go to a public health unit (puskesmas) which, unless it can handle the case, will send the patient to the hospital for further treatment, free of charge. BPJS will then reimburse the hospital for any charge incurred in curing the patient. A good and a simple system that especially benefited low income people. BPJS was designed for self sufficient, with its operational costs covered by dues from both unemployed and employed individuals, as well as employers. But no sooner had the scheme become operational than BPJS began to face financial problems. Besides the usual government inefficiency and poor transparency, one reason for BPJS deficit is said to be late payment of member's dues. Some members paid dues only after they needed medical treatment. I have to say that they fail to use the special purpose money.

This is my very short article I spend one hour 40 minutes to finish this article. This is all about the distinction of special purpose money and general purpose money. The first, how the e ktp mega corruption case, the budget and the money shoul.d be used to build system, as general purpose money. But in fact, some asshole make that project to be a special purpose money. 

Corruption! When we give em stage, they always shout like a hero "atas nama rakyat", "ini untuk rakyat". Same old same shit different people. And the second story is about redenomination, the special purpose money to increase the value of Rupiah and to make rupiah more prestigious. And another story in this article is relevant to the title. Well, we should know that money is the top reason of divorce (maybe. Based on my logic sense) and the number one of cause stress. 

Money, too, makes people likely to steal from the office. Self control is a matter that deserves special attention when we address how we think about money. Even if we manage to clear the many internal and external hurdles between us and rational financial decision,a lack of self control can trip us before we reach the finish line. We might be able to determine the correct value of our options but our inability to control ourselves will end up nudging us to make the wrong choice.