The Laws of Money

The Law's of Money

1. Barter is to exchange, that which one has in surplus, for that which one desires, for the net mutual gain of both parties and their society without the use of a medium of exchange, such as a currency. 

2. Barter transactions  "moves objects between the regimes of value", meaning that a good or service that is being traded may take up a new meaning or value under its recipient than that of its original owner.

3. Barter has no real way to value each side of the exchange. Bargaining taking place, not relating to the value of each party's good or service, but because each party to the transaction wants what is offered by the other.

4. Barter exchanges, are predicated upon neither party having an advantage over the other, and both are free to leave the exchange at any point in time, until the exchange has become unconditional, which is the point at which change in possession of both exchange objects occurs.  

5. Barter based transitions only clear, if both parties have that which the other desires and each has in surplus to their individual needs.

6. Barter based exchanges clear, without the need for any dependency upon money, or currency.

7. Currency provides a solution to the case where a barter based exchange cannot clear, by deferring payments between trading parties across space and time, via a neutral numeraire with face value or medium-of-exchange. Hence the non-fungible commodity exchange C-C, becomes  a becomes  fungible deferred currency exchange C-M=>M-C at a mutually agreed exchange value determined in the face value of the fungible currency. The numeraire does not affect the exchange value of the deferred exchange.

8. Barter exist without the need for money, or currency, but has the inherent friction of not being guaranteed to always clear a trade based exchange of commodities 

9. Money is born from trade (C-M-C) as subjective exchange value. Without trade, money cannot exist.

10. Money is not a commodity, since it has neither value or use-value.

11. Money cannot be created from money as M'-M must always equal Zero. 

12. Money neither a Production Good nor a Consumption Good.

13. The Sin of Usury is defined when M'-M > 0, as this represent the injustice of selling money (M) twice, or selling the non-existent.

14. As every trade involves money, which has a money price. Therefore whoever by agreement, tacit or express, takes for a loan of money anything else that has a money price, the taker sins against justice as if he had taken money. 

15. Money cannot be store of value, as no excess objective value, can be created from subjective exchange value.

16. Money cannot be scarce, as it originates and terminates with people based trade, hence money cannot exist as debt detached from an instance of trade.

17. Money exists, exclusively as a numeraire, which compares via monetary value, non-monetary items within a trade..

18. Money has no use-value at all, but only subjective exchange value. In contrast to commodities, money would never be used unless it had an objective exchange-value or purchasing power. The subjective value of money always depends on the subjective value of the other economic goods that can be obtained in exchange for it. Its subjective value is in fact a derived concept. 

19. Money represents ‘subjective exchange value’(C-M-C), while currency represents an ‘objective exchange value’ (C-M => M-C); the intersection being the currency area, standard currency unit of account or face value (Money ∩ Currency). 

20. Money is only capital, if it buys a commodity whose consumption brings about an increase in the exchange value of the commodity, realised in selling it for a surplus exchange value [or M - C - M'].

21. Commodity-money or currency does not function simply as a numeraire, but as a vehicle for articulating social relations of exchange, via the mediation of these social relations through private payment transactions within trade.

22. Market “price” represents a relative measurement of market value (objective exchange value). The price of one good (“the primary good”) in terms of another good (“the measurement good”) is determined by the market equilibrium of value of the primary good relative to the market value of the measurement good. According to the law of value, the trading ratios of different types of goods reflect a cost structure of production (M-C-M'), and this cost structure ultimately reduces to the socially average amount (M' - M) as surplus value required to produce different goods in trade exchanges.

23. Currency must have a local domain, or currency area, within which it represents the most liquid of all available choices in currency within a deferred payment, hence no currency may flow across a currency area domain boundary.

24. All cross currency area border,  trade based payments, must always clear within the local currency of the seller who choses to defer a trade payment.

25. Currency is not a  legal or formal right over anything or anyone, but a claim over a nominally equivalent share of societies wealth, to be exercised under free will.

26. Currency is special because its 'face value' is not subject to to change, it is  information-insensitive.

27. Currency face value is constant, its volume in circulation, varies with the economic production surplus value, of the currency area.

28. Currency circulates with constant face value, such that no one finds it profitable to produce (private) information about the face value, and everyone knows that this is the case. Should the intrinsic value of currency exceed its face value, then the currency reverts to the use value of a commodity and becomes information and market price sensitive.

29. Currency is the accepted objective measurement good, or “standard invariant” unit of market value, within a currency area. Hence a currency cannot be used outside of the defined currency area as a deferred payment.  

30. Commodities have use‐value (as  they satisfy some form of human wants, whether ‘natural’ or socially constructed) as well as exchange‐value, and are produced for exchange rather than self consumption. The condition, that they must be produced, means that they must embody, and hence be the container of economic production or the surplus value (M-M'). The value of commodities does not rise through storage, but rather the diminution of their value is less when they are stored than would otherwise be the case. Hence the value of a commodity is maintained via circulation via its exchange value. 

31. The objective exchange value or market price of any commodity (including currency) is determined exclusively via supply vs demand.

32. Currency is the thing which serves as the generally accepted by its community and commonly used medium of exchange. This is its only function. All the other functions which people ascribe to currency are merely particular aspects of its primary and sole function, that of a medium of exchange.

33. The objective exchange-value of currency must always be linked via the Regression Theorem, with a pre-existing market exchange-ratio between money and other economic goods (since otherwise individuals would not be in a position to estimate the object exchange value of the money, which has a face value), it follows that an object cannot be used as money unless, at the moment when its use as money begins, it already possesses an objective exchange-value based on some other previous use. 

34. The Regression theorem is the means by which the subjective theory of value (money) is transformed across time, to become the accepted 'standard unit' for objective-exchange value (currency), within a deferred payment.

35. Currency must have intrinsic value, stability, and elasticity, in order to render to man the highest service of which it is capable. If a currency exists as a commodity within a previous trade, and if its free circulation be not thereafter interfered with, it will have intrinsic value, which, combined with freedom of circulation, will give it stability and elasticity. The stability of currency must rest upon the value of the economic production it represents, as then it will fluctuate only with the fluctuations of the currency area GDP, which is the highest degree of stability it can possibly acquire. The wide range of trades it mediates enhances its "elasticity," which term is used to express the readiness with which currency responds to the liquidity exchange demands upon it.

36. Currency is, a collective good, because it is accepted within a deferred payment by a social convention, but it is also an item of individual private property, because with respect the original title of ownership, it is attributed to the bearer by "legal induction". 

37. Currency is considered economically fungible as long as a $1 is easily converted at parity of face value units into 5 x 20 cents or 10 x 10 cent coins. Even if the commodity that constitutes a currency is non-fungible i.e. copper cannot be interchanged with silver at parity (1 face value unit = 1 face value unit). 

38. A commodity cannot circulate as a currency without a face-value, The addition of face value, to a commodity, enables parity of currency unit exchanges, which makes a non-fungible commodity, a fungible currency unit.

39. Currency must be 'neutral' within all exchanges, as currency mediates trade, and hence cannot effect the objective exchange value of the two commodities subject to exchange within a trade (C-M-C equals C-M => M-C equals C-C). 

40. All deferred payment currency, must exist as a tangible commodity/object,  in order to achieve universal payment finality via 'chose in possession' and hence clear without the need for any associated clearing or settlement system introduced counter party risk. 

41. Currency will only be accepted as a  means of payment, when the sum of the opportunity cost and the transactional cost of using it in exchange, drops below the cost of completing a trade without it.

42. No currency area can have more currency supply, than that which it can create through economic production (C-M-C always represents net zero surplus value). 

43. Currency is in its most perfect state when it consists of an equal value of capita (economic production)  which it processes to re-present.

44. Currency supply, reflects the level of economic production, which mediates deferred  payments; as defined within the equation of capital: M-C-M'.

45. Any commodity in circulation within a currency area has the potential to become a currency. Currency mediates a deferred exchange value payment, across space and time, within a currency area; as the most liquid of all commodities within circulation.

46. Currency payments are predicated upon acceptance by its users; as represented by C-M-C => 'C-M =>Time=> M-C'. 

47. Without the ability to achieve, unconditional payment finality, no currency can support a deferred payment, as the trade will never determinately clear. 

48. If currency does not possess the property of market value, then one will not accept its face value as payment for one's services, and others will not accept it in payment for their goods and services. 

49. Humans measure the market value of a currency in terms of either, (a) another currency exchange rate, or (b) a basket of goods and services in demand within a currency area.

50. Within a currency area, the market value which a currency can mediate, is determined by the currency area economic production, representing the future benefits within trade, someone in possession of currency expects to receive upon disposal within a deferred duration payment (in the future). 

51. A deferred currency payment does not represent a store of value, rather it reflects a human perception of future value; based upon a previous positive experience of value transfer, across the 'time duration' which separates deferred payments.

52. The change in value of a Currency intended to be converted into Capital, cannot take place in Currency itself, since in its function of means of purchase and of deferred payment, it does more than realise the price of the commodity it buys or pays for, as it is face value is petrified and never changing..

53. A Digital Currency or Digital Coin supply, must exist as a tangible object, with use value, via redeemability and liquidity as a commodity with a previous, currency area accepted market value, in order to circulate, as a Digital Currency.

54. If the currency unit is divisible, any supply is sufficient to meet all currency mediated payments within a currency area.

55. Currency supply has no economic correlation to currency area asset or capital value, its supply is directly correlatable to currency area gross economic production, in order to guarantee currency area payment liquidity, and hence clear.

56. No concept of a stable coin can exist under any economic conditions, outside of face value; as currency must by definition remain neutral, to guarantee all mediated payments are subject to the laws of supply vs demand with regard to the deferred exchange of market value.

57. All currencies exist solely as a closed system, hence no currency can flow across a currency area boundary. All currency base payments must stop at the currency area boundary.

58. The trade equilibrium of each currency area is maintained, via and equal and opposite value flow of capital, to offset the aggregate flow of  goods and services. Trade imbalances are offset via the adjustment of the trade weighted currency exchange rates to maintain a currency area equilibrium.

59. Legal Tender, based deferred payments, always results in a state of payment finality, via a human observable change of possession, and hence the payment unconditionally clears. 

60. Legal tender is not an English noun, it exist solely as an adjective (payment is the noun), and hence  cannot be assigned by statue and or be subject to, or subordinate of any currency area court. 

61. A legal tender payment, relies not upon the issuer of a currency, but upon the acceptance of the tendered currency within a deferred payment by the recipient.

62.  Legal Tender deferred payments, do not require any clearing or settlement function, as the 'observable change of possession' represents unconditional payment finality.

63. Legal Tender payments are not subject to any future, or post trade appeal, as the payment represents unconditional legal finality.

64. A Coin, is defined as a bearer tangible object, with face value, which relate a Coin to the currency area monetary units [‘currency’] named in verbal or written transactions, so that they represent these for all legal payment purposes. 

65. The principle virtue of a Coin, is that it is accepted for settlement of any kind of monetary obligation, within a deferred currency based payment, in preference to all other monetary instruments in circulation within a currency area.

66. A Coin as legal tender, is accepted by all payment parties at full face value, if it is tendered as payment, via chose in possession based deferred payments within a currency area. 

67. A Coin must have a non zero intrinsic (positive exchange value) and hence cannot exist as debt in any currency area.

68. A Coins' face value imposition, transforms a non fungible tangible commodity or object, into a fungible unit of currency.

69. A Coin has a universal trait that can be 'freely exchanged" into any goods or services, as such it has the specific protection and legitimate expectation, which is derived from the protection of property by civil rights within a currency area.

70. A Coin is not Money, rather a Coin exists as a payment neutral, tangible object (bearer private property), which moves solely via possession; to enable universal payment finality of a deferred trade or exchange, without the need for any contract (via chose in possession).

71. A Coin has no legally defined form, and hence can exist in both the physical and digital worlds concurrently, without the need for any supporting digital payment network. Any form of a Coin must always represent tangible property, and hence move via possession by legal induction.

72. A Coin movement between people, via a currency based deferred payment, represents a censorship free, movement of 'Capital Value' between the wo parties to a trade or exchange.

73. A Coin cannot be spent, hence it cannot be double-spent.

74. Capital is the means to store 'exchange value', across time, via the equation of capital M-C-M'. The final goal of M-C-M' is the circulation of capital via M' - M as surplus value (economic production).

75. Capital represents value in circulation, the pattern of value moving to create more value, which Marx calls a valorization process. It's a limitless process: capital tries to expand to create more surplus-value forever; within the sphere of circulation, that is, in a market where value based exchanges take place.

76. Capital cannot be scare, as it is born from the continuous cycle of the economic production of people (M-C-M' => M'-C-M").

77. The distinction between money and capital becomes clearer when expressed in symbols:
    “M” represents money,
    “M - C(MP+LP) ... P ... C’ - M’” represents capital (value in continual motion of expansion),
    while M-M ... M’-M’ represents financialization  of money outside of payments in exchange or trade.

78. Bullion is commodity based store of value, it is not Money, or a Currency as it is non-fungible.

79. Any flight into bullion, is a flight from debased Currency, as part of a flight from Capital.

80. Capital flows, via the Law of One Price, by eliminating price differences through arbitrage opportunities between markets. Market equilibrium forces the convergence of the price, in each local currency units, of all commodities traded.

81. Wealth is represented via an accumulation of real world tangible assets or property, which has universal intrinsic value to others in their society, and which can be subjected to the equation of capital M-M' to create excess value; and which is readily converted into a capital form, that circulates within a society to support trade based transactions.

82. Financial Wealth cannot exist, as financial wealth is derived solely from a contractual right. In contrast, real wealth is derived from a real asset which has a tangible form, and its value derives from its physical qualities (intrinsic value). All Financial Wealth can self deprecate at any point in time, and no value within the real world can be affected by its existence or otherwise.

83. Inflation is the result of a manipulated economy, which is unable to achieve an equilibrium between supply and demand for goods and services within its currency area. The disequilibrium is caused by currency flows being unmatched with the flows of consumer goods and services, via the creation of a surplus of currency or goods and services. Prices are the messengers within a market economy they convey information regarding any mismatch of supply vs demand within an economy. Inflation does not exist in a non manipulated market economy, which always seek to optimize supply vs demand via a free market equilibrium price. Inflation mismatch causes unintended redistributions of purchasing power, and blurred price signals until equilibrium is restored. 

84. Inflation cannot (by definition) affect the capital stock, circulating within an economy, in the long term.

85. Free-market equilibrium price: The price established through free market competition, such that the amount of goods or services sought by buyers is equal to the amount of goods or services produced by sellers.

It is worthy of mention that barter cannot exist without the spontaneous emission of money, as it is the relative measure of the two commodities being traded and its existence is ephemeral (no medium of exchange, or standard unit of account). C-M-C without a payment appears to the exchanging parties as C-C, but it is always C-M-C. Hence no barter trade can be deferred across space or time via C-M=>M-C this is the basis for the existence of a currency to mediate a deferred payment, and remove the friction of barter, via a commodity, which is guaranteed to be the most liquidity commodity in circulation. Currency exist to remove the friction from capital circulation, within a currency area community

These laws are extracted and posted, with permission, from the original work as published within ISBN: 9798511489537.

The Law's of the Banksters->Ledger Money

1. Ledger Money represents a unsecured claim solely upon a private bank's liquidity

2. Ledger Money cannot exist as Legal Tender or be considered as a Currency

3. Ledger Money requires a pre-existing contract between all of the parties using Ledger Money, it operates solely via "Chose in Action" 

4. Ledger money is a pure Financial Instrument and the sum of the debits and credits must always net to Zero.

5. Ledger money is not a promissory note, as there exist no guarantee of repayment of the deposit, as banks can become illiquid and go into bankruptcy.

6. Ledger Money has no intrinsic value and cannot exist as tangible property

7. Ledger Money cannot be currency within any deferred payment, unless convertible upon demand for a central bank coin at face value. according to the regression theorem.

8. Ledger money is not backed by central bank reserves

9. Ledger money is irredeemable for any tangible asset or commodity. it must pass though the central bank clearing system to achieve a deferred payment. Hence Ledger Money cannot self clear.

10. The value of a banks Ledger Money, cannot be redeemed by the bank depositors, due to the existence of a fractional reserve.

11. Ledger Money is crated by a commercial Approved Deposit Institutions (ADI)  from zero assets, there exist no requirement for any reserves to pre-exist in order to create a ledger money deposit. They are literally created from zero assets or redeemable for any commodity

The Rights of Humanity to Currency within Payments

1. The rights to privacy in transactions that involve no harm to others

2. The right to keep one’s savings, or spend one’s money, anywhere without censorship or paying usury to a third party or institution;

3. The right to economic participation without a bank account;

4. The right to economic participation without a credit history;

5. No institution or state, should be able to, or have any constitutional right to, limit access to, or restrict movement of anyone's currency;

6. Currency supply should not be used as an instrument of monetary or political policy, but rather aligned solely to currency area GDP and hence economic production

The Law of One Price

The law of one price is an economic concept that states that the price of an identical asset or commodity will have the same price globally, regardless of location, when certain factors are considered.

The law of one price takes into account a frictionless market, where there are no transaction costs, transportation costs, or legal restrictions, and there is no price manipulation by buyers or sellers. The law of one price exists because differences between asset prices in different locations would eventually be eliminated due to the arbitrage opportunity.

The arbitrage opportunity would be achieved whereby a trader would purchase the asset in the market it is available at a lower price and then sell it in the market where it is available at a higher price. Over time, market equilibrium forces would align the prices.

The monetary laws have evolved over millennia, based upon values intrinsic to humanity and societies social interactions via trade based exchanges, which can be deduced and applied independent of any external party, all people have inherent rights according to these monitory laws. Some of the implications of these laws, involve accidental truths, false existentials, the correspondence theory of truth, and the concept of free will. In social psychology, reciprocity is a social norm of responding to a positive action with another positive action, rewarding kind actions and increasing social cohesion. Thus the laws support the freedom to trade, that which one has in surplus, for that which one desires; for the mutual gain of both parties and their society. 

The Regression Theorem, first proposed by Ludwig von Mises in his 1912 book 'The Theory of Money and Credit', states that the value of currency can be traced back ("regressed") to its value as a commodity in trade. Regression theorem is the theorem by which Mises applies the subjective theory of value (money) to the objective-exchange value (currency), within a deferred payment.

With reference to this second element, Mises ([1912] 1953, p. 110) states:

If the objective exchange-value of money must always be linked with a pre-existing market exchange-ratio between money and other economic goods (since otherwise individuals would not be in a position to estimate the value of the money), it follows that an object cannot be used as money unless, at the moment when its use as money begins, it already possesses an objective exchange-value based on some other use.

In its simplicity the first person, who buys the good as a medium of exchange, buys it from a person who treats it as a good, rather than as a medium of exchange. At this point, there is no monetary demand – only its subjective use-value. At the point of payment discharge the medium of exchange has objective use value, the regression theorem conditions has enabled a human to accept the medium of exchange within  a deferred payment across time; via the linkage of  subjective theory of value (money) to the objective-exchange value (currency).

It is important to emphasize that what Mises refers to in this passage is the origin of a new money—de novo—i.e. from a pure state of barter, where there are no existing money prices. To that end, the second part of the regression theorem only explains the genesis of a new money where none existed before. It explicates how a barter economy—where all economic calculation is conducted ordinally—becomes a monetary economy in which calculation is performed cardinally. Mises fully recognized that a new medium, such as a fiat currency, can piggyback onto any existing price framework, and that in this case, the new currency need never have been valued directly as a commodity itself. The only requirement is that the paper money’s exchange value can be traced back in time, sequentially, to when only a commodity money existed, and ultimately to the point when that commodity was last used solely in barter.  In this way, confidence is created in the public that the new medium will be accepted in exchange. It then becomes a currency. Hence it would be imposable for fiat or paper money to come into existence unless it was redeemable in a pre-existing commodity form of currency. But as Mises makes clear, a paper currency can continue its monetary function even when it is no longer redeemable, provided the public continues to have confidence in its acceptability. Nor is it deducible from the logic of action that once this confidence has been established, the fiat currency can continue to function as money after the redeemability has been eliminated. Historically, these sequences of events have certainly occurred, but because they are dependent on the confidence of the public, they are merely psychological phenomena. 

What praxeology has to say, and what matters as far as the regression theorem is concerned, is that it is logically impossible for any new currency to emerge and circulate within a currency area unless there is some sort of existing valuation experience in place. Without prior exchange value based market prices, present in some form, actors cannot calculate using the new currency. And, therefore, if no price ratios have been established monetarily between the various goods and services, they can only be obtained through a process of direct exchange in the barter economy. This is the crux of the regression theorem.  

For many economists, a marginal utility explanation of money demand would simply be a circular argument: We need to explain why currency has a certain exchange value on the market. It won't do to merely explain this by saying people have a marginal utility for currency because of its purchasing power. After all, that's what we're trying to explain in the first place its objective value—why can people buy things in the future with a currency ?

Mises eluded this apparent circularity by his regression theorem. In the first place, people trade away real goods for units of currency  (C-M), because they have a higher marginal utility or liquidity for the currency units than for the other commodities in circulation in the currency area. It's also true that the economist cannot stop there; they must explain why people have a marginal utility for currency . (This is not the case for other goods. The economist explains the exchange value for a Picasso by saying that the buyer derives utility from the painting, and at that point the explanation stops.)

People value units of currency because of their expected purchasing power; currency allows people to receive real goods and services in the future (C-M-C => C-M...M-C), and hence people are willing to give up real goods and services now in order to attain currency. Thus the expected future purchasing power of currency explains its acceptance within a deferred payment based upon its  current purchasing power, and liquidity.

But haven't we just run into the same problem of an alleged circularity? Aren't we merely explaining the purchasing power of currency  by reference to the purchasing power of currency ?

No, as Mises pointed out, because of the elapsed time element (C-M...time...M-C). People expect currency to have a certain purchasing power tomorrow, because of their memory of its purchasing power yesterday. We then push the problem back one step. People yesterday anticipated today's purchasing power, because they remembered that the currency could be exchanged for other goods and services two days ago. And so on. This is the basis upon which human trust in currency is formed, its via previous positive trade experience interaction with a currency.

We can trace the purchasing power of currency back through human history for over 4000 years, until we reach the point at which, coins as currency, first emerged from a state of barter. And at that point, the purchasing power of the currency commodity can be explained in just the same way that the exchange value of any commodity is explained. People valued gold for its own sake before it became a currency in an exchange, and thus a satisfactory theory of the current market value of gold must trace back its development until the point when gold was not a medium of exchange. Hence the basis of currency within a deferred payment is the reality of human nature and and the ability to self determine use value of a commodity in use as a currency.

The human reality, which must be faced by all, is that no fiat-money or cryptocurrency can exist as a currency within deferred payments,  if  it does not have a previous existence as a commodity or guaranteed convertibility into a commodity; that which had a use value in trade before its use as a currency to defer payments across space and time. In fact it is debatable that fiat paper money could have existed without the previous exitance and guaranteed convertibility into metallic coins with "intrinsic value" embedded within the coin itself. In order for crypto currencies to exist as currency acceptable for a deferred payment, humanity must be capable of assessing the use value of an infinite set of identical set of digits as follows: d5082a5a979a506c471f315b58ad42f866c7ba354ccb5efcd28fdf146ca72bed. No digital data set can be scarce and can be infinitely copied without any ability for any human to determine a copy from the original. A dataset cannot regress to any form of knowable exchange value. 

In summary, for a cryptocurrency to have "objective value" there must exist a definable means to value the following digits: d5082a5a979a506c471f315b58ad42f866c7ba354ccb5efcd28fdf146ca72bed if no known method or formula exists than its value is entirely subjective, and hence it cannot function as a currency which mediates a deferred payment between parties separated in space and time. The regression theorem simply states humanities need for human based past experience as a definable and accepted  relationship across time that links subjective and objective value of a currency. This lack of any binding between subjective and objective value within any cryptocurrency is typically manifested as exchange value  volatility, as the cryptocurrency has no basis to determine objective value in a pure supply vs demand determined market price.

According to Aristotle there are four defining characteristics of 'currency': durability, portability, divisibility and having intrinsic value., the circle is complete and internally consistent.  Humanity has no ability to comprehend the use of a cryptocurrency  within a deferred payment when its exchange value can vary 10% to 20% between the first stage M-C and the final stage of the deferred payment namely  C-M.  There is no dispute cryptocurrencies has a last price, but the existence of a last price does not allow any party to predict a future price, hence it cannot defer a payment across the  time which must exist between C-M time... M-C. Bitcoin is therefore not a currency, people accept it, only because it can be converted to their national currency, through an exchange service, to finalize a payment.  

The Law of Value

The law of the value of commodities known simply as the law of value, is a central concept in Karl Marx's critique of political economy first expounded in his polemic The Poverty of Philosophy (1847). Most generally, it refers to a regulative principle of the economic exchange of the products of human work, namely that the relative exchange-values of those products in trade, usually expressed by money-prices, are proportional to the average amounts of human labor-time which are currently socially necessary to produce them. When Marx talked about "value relationships" or "value proportions", he did not mean "the money" or "the price". Instead, he meant the ratio of value (or 'worth') that exist between products of human labour. These relationships can be expressed by the relative replacement costs of products as labour hours worked. The more labour it costs to make a product, the more it is worth and inversely the less labour it costs to make a product, the less it is worth. Money-prices are at best only an expression or reflection of Marx's value relationships—accurately or very inaccurately. Products can be traded above or below their value in market trade and some prices have nothing to do with product-values at all (in Marx's sense) because they refer to tradeable objects which are not regularly produced and reproduced by human labour, or because they refer only to claims on financial assets. 

Wealth

Adam Smith, in his seminal work The Wealth of Nations, described wealth as "the annual produce of the land and labor of the society". This "produce" is, at its simplest, that which satisfies human needs and wants of utility. In popular usage, wealth can be described as an abundance of items of economic value, or the state of controlling or possessing such items. An individual who is considered wealthy,  is someone who has accumulated substantial wealth relative to others in their society or reference group.

Wealth is hence represented via an accumulation of real world assets or property, which has universal intrinsic value to  others in their society, and which can be subjected to the equation of capital M-M' to create excess value and readily convertible into a form, that can be used within deferred trade or exchange transactions. In Marxian economics, the rate of accumulation is defined as (1) the value of the real net increase in the stock of capital in an accounting period, (2) the proportion of realized surplus-value or profit-income which is reinvested, rather than consumed. Hence wealth accumulation can be measured as the monetary value of tangible assets that can be readily converted to a currency within a deferred trade payment. Wealth accumulation is predicated upon property relations which enable objects of value to be appropriated and owned, and trading rights to be established.

The United Nations definition of inclusive wealth is a monetary measure which includes the sum of natural, human, and physical assets. Natural capital includes land, forests, energy resources, and minerals. Human capital is the population's education and skills. Physical (or "manufactured") capital includes such things as machinery, buildings, and infrastructure.

The aim of capital accumulation is to create new fixed and working capitals, broaden and modernize the existing ones, grow the material basis of social-cultural activities, as well as constituting the necessary resource for reserves and enhancing economic activity within a society. 

If more wealth is produced than there was before, a society becomes richer; as the total stock of wealth increases. But if some accumulate capital only at the expense of others, wealth is merely shifted from A to B. 

Financial Assets are a Zero Sum Game...

Financial assets cannot represent any form of wealth  or surplus value; as the accounting equations states that the Sum(assets) = Sum(liabilities) = Zero.  A zero-sum game is a situation where, if one party loses, the other party wins, and the net change in wealth is zero. This demonstrates that when any financial asset is created there must exist and equal and opposite financial liability. Zero-sum games are the opposite of win-win situations—such as a trade or exchange of real world commodities (tangible assets with intrinsic value).

Wealth can only exist outside of all financial instruments or assets, and the zero sum game, via a trade (C-C) of commodities..

Matching Pennies
The game of matching pennies is often cited as an example of a zero-sum game, according to game theory. The game involves two players, A and B, simultaneously placing a penny on the table. The payoff depends on whether the pennies match or not. If both pennies are heads or tails, Player A wins and keeps Player B’s penny; if they do not match, then Player B wins and keeps Player A’s penny.
Matching pennies is a zero-sum game because one player’s gain is guaranteed to be the other’s loss.