Gold, gold; Finance, accommodation; Financial-gold integration. At all times and all over the world, gold has become the most ideal representative, storage, stabilizer and exchange medium of economic value because of its non-destructiveness, high plasticity, relative scarcity, infinite separability, homogeneity and bright color, and therefore it has become the object that people all over the world love and chase. Nowadays, due to the restriction of circulation, physical gold has given way to more flexible financial assets such as paper money, electronic money and securities.
As can be seen from the above, finance is the general name of financial assets, financial markets and financial systems, and these are all related to the circulation of value, so finance is the circulation of value. Compared with tangible assets, financial assets, markets and institutions are intangible and unpredictable, just like acupoints and meridians of the human body. Therefore, before this, there was no unified and authoritative definition of what finance was, but there were different opinions. A more reliable statement is that finance is the financing of funds; Finance is a credit currency, which can be summarized as the issuance and withdrawal of money, the absorption and payment of deposits, the issuance and recovery of loans, the trading of gold, silver and foreign exchange, the issuance and transfer of securities, insurance, trust, and domestic and foreign currency settlement. Some dictionaries, etymology and textbooks define finance as financial intermediary, financial resources, financial industry, financial instruments and financial media. American textbooks generally define finance as "value-related behavior", and ordinary people generally think that banks and stocks are finance. There are many unreliable sayings, among which finance is the most common and absurd in virtual economy. It is precisely because human beings don't even understand the terms and definitions of finance, let alone the laws of finance, that financial crises are inevitable.
In other words, since finance is a financial asset, financial assets have a certain value, so finance is value. Expressed by the formula: F (finance) = FA (financial assets), FA (financial assets) = V (value), F (finance) = V (value); Because finance is a market and a system, financial assets are traded and circulated in it, and financial assets themselves are values. Finance not only constitutes the carrier or system of value circulation, but also constitutes the circulation of value itself (f = LV), which has the function of value discovery (we know that funds/values are profit-seeking, and where the return is high, they will flow). The carriers, manifestations or representatives of these values are financial assets such as money and securities. Behind these intangible assets are tangible assets and real economy, which means that these intangible assets all come from and depend on tangible assets and real economy. Otherwise, we have really entered a virtual economy and a virtual world that does not exist at all. It is precisely because finance is an intangible asset with strong liquidity and rapid change, and it is often systematic and systematic. Finance is the "blood" of the economy (value cycle); The financial system is the value system in the economic system. Just as a human body can't live without blood, without valuable circulation, the economy will become a "stagnant pool" and it will not work. Therefore, the financial crisis is the crisis of financial assets. When the financial asset crisis develops to a certain extent, it will turn into a financial system crisis, that is, a systemic financial crisis. When the systemic financial crisis develops to a certain extent, it will definitely turn into an economic crisis, and when the economic crisis develops to a certain extent, it will definitely turn into a social crisis.
To sum up, we know that human blood runs through the whole human body and is an inseparable core system of the human body. Blood is both blood and blood circulation channel, and they are an inseparable unity of life and life. Similarly, finance is the "blood" of the economy, which runs through the whole economy and is inseparable from the economy. Finance is not only value, but also the channel of value circulation, and they are also an inseparable unity of life and existence. 15 On September 5, the global financial crisis triggered by Wall Street led to the bankruptcy of Iceland, which was originally highly developed and rich. The reason is that they don't understand what finance is at all and mistakenly separate finance from economy. Although its financial industry is highly developed, it has become a rootless tree and passive water, which will be destroyed. The objective world is first composed of matter, which is very physical. In addition, everything is the product of time and space. So finance is no exception, and it is also very physical.
Specifically, finance mainly refers to financial assets and financial markets and financial systems composed of financial assets. For many people, although financial assets seem to be intangible assets, they are all extensions or evolutions of physical assets, or all financial assets should have corresponding physical assets (otherwise, they will really enter an illusory and virtual world). Therefore, finance also has strong physical attributes and laws. Financial biology is to study and explore the origin, context and changing law of finance from the perspective of physics.