Discuss “A Brief History of Money” below.
So maddening to see how the massive majority have no input on the debasement of official currencies, yet are affected the most by it.
also - Links to external sites are not set for new tab.
Ad. "Barter Exchange"
I am not a specialist, but I heard that the Barter Economy is probably a myth. Apparently some anthropologists couldn’t find any proof of such economy. Among others, David Graeber should have written about it (Debt - Updated and Expanded: The First 5,000 Years ). Here two articles I found in the web. Maybe it will be interesting for you, too…
ILANA E. STRAUSS. The Atlantic. The Myth of the Barter Economy, FEBRUARY 26, 2016. https://www.theatlantic.com/author/ilana-e-strauss (accessed 25 Mai 2020)
George SelginIs.Is Barter a Myth?: And Is Money to Blame for Slavery and Imperialism? Foundation for Economic Education. FEE. 16 March, 2016. https://fee.org/articles/is-barter-a-myth/ (accessed 25 Mai 2020)
Some videos on Youtue
Barter to money to currency throughout the ages!
Fully agree with you, barter might be done occasionally, but cannot build up an economy. An economy is a big word. If there is no track in history of a case of economy based on barter, that is probably the way we like to imagine the prehistorical time, just because we really do not anything about those extremely ancient times and we think that “should” be happened.
Yup I agree here. It is virtually impossible to “build an economy” based on barter, for which reason until any means of money was invented, there wasn’t even much “economic activity” going on. The invention of money enabled to forming of increasing trade and first instances of small economies.
It is funny how history repeats itself, but always with a bit of a twist. We do have debasement of our own. Is just with some of a twist.
The debasement of money is happening right now with the excess printing (quantitative easing) of the existing fiat money supply.
There was also a system called the Tally system which was a foot long split piece of wood that would have either a contract or monetary value on both sides (you can’t forge a split piece of wood). This was also used as currency so I believe.
Also the first bankers in Europe were the knights templar originally working with the vatican in the 11th or 12th century I think. You could deposit gold etc with them eg if you were planning on a pilgrimage to the holy lands (jerusalem). You would receive a receipt for your deposit that was exchangeable with another Templar Bank, which meant you were less at risk of being attacked and robbed of your money whilst on route. They were eventually rounded up and killed by the king of France, and I read this was because they were becoming too powerful and a threat to the church! Some were rumoured to have excaped to Switzerland creating the famous banking system there, as well as other places.
The other thing I read many years ago were that the Jews had been kicked out of England as they practiced Usury (the charging of interest on loans) which was at the time against Christian law. the king used the tally system to run internal affairs, but needed Gold for international trade and as such allowed the jews back in as they had gold so long as he got a cut of the profits gained from those unable to repay their debts to them. I cannot unfortunately remember where I read that (it was 30 years ago!)
Brief history of money Sea shells , animal skins, gold, silver. then metled down silver and gold with other less expensive metals. parer notes of gold and silver in a Vault. reduced value of the gold and silver to the paper note. and slowly less gold value to the dollar and then France started redeeming the dollar note and was getting gold so in 1971 Nixon took us off the gold standard because the US was getting low on Gold. so Fiat money was born . a dollar backed by nothing. then henry Kissinger made deals with saudi arabia, so they agread to buy the Oil from Saudi and the us sould pay in Dollars. so now noone wants the dollar, because everyone is strarting to know about this. any way since the dollar is/was the primary curency of the world all currencies are now pegged or valued agains the dollar. but now we have bitcoin. Peace for now
All the time the US had the petro-dollar it could print more fiat money to fund it’s wars and act as the world policeman whilst ultimately forcing the bankrupcy of the Soviet union in the arms race. If it had stuck to gold backed dollars it would not have been able to do this.
Thank you to Anil Patel who has the best structure outline of any of the other courses I’ve seen in the academy and hope that the other courses could use this as a learning and have something similar–
You know exactly what sections will be covered, how long they will be - 5 blocks total (~1 hour per block - 30 minutes videos, 15 mins reading, 15 mins assignments)
It’s always nice to know what you are getting into!
It would be great to have this kind of info in the descriptions of the courses as well.
Continuing the discussion from Discussion - A Brief History of Money:
I do not understand the sentence quoted below:
“Moreover, it [cash] can be obtained in unlimited quantities in exchange for bank money.”
It comes from the first paragraph in the IMF document about negative interest rate.
Could you shed some light on what the author meant by this sentence?
When will the Fed’s fiat money printing end?
Will we ever see a currency backed with something else like gold or silver again?
It sure seems like the dollars earned today are worth less tomorrow as we keep printing money to oblivion.
I very much like the outline and structure of the course so far!
The only thing I miss: would love to see Anil in person - but maybe that will happen in one of the videos.
Great content from everyone. If I can add my “two cents” pun intended, lol…the name we have for Dollar today, goes back to the ancients, like in Rome, it was denarius aureus, in Spanish, is dinero (money), in Iraq, the Dinar. Also, I liked the references made to the U.S. - decoupling of the Gold Standard, under Nixon, in order to not payout actual gold to the European countries who were now redeeming.
“Inflation is taxation without legislation” -Milton Friedman
In other words, inflating the supply of currency is existence diverts the purchasing power of the nation by increased taxation into the hands of centralized powers.
Money was intended as a standardised medium to exchange for goods and services.
Looks how it has evolved to become a financial marketplace, with the different currencies, forex pairs, indices, standards, precious metals , how amazing !
Really the Treasury departments of today’s governments debase money by constantly printing more , are we to believe that all of a sudden these treasury departments found a but load of gold they didn’t know was there before ?
The dollar or euro or whatever currency in question is debased every time more money is printed & circulated if in fact older money was not destroyed & removed from circulation to equal the new money printed.