A. Understanding Money through History
Just like us today, our early ancestors lived in a credit economy. Back then, this functioned due to social constraints, whereas today it is based on a modern legal system.
The history of money is intended to illustrate how this development took place.
Money is Credit
“History reports that the men who can manage men manage the men who can manage only things, and the men who can manage money manage all.”
Owning money essentially means that the “economy” owes you a certain amount of goods or/and services. It is a huge achievement of humanity, that money does not need to have intrinsic value, i.e. does not have…
From the Barleycorn in the Clay Jar to the "Original Sin"
“Let me issue and control a nation's money and I care not who writes the laws.”
Over the course of 5,000 years, leading up to the abolition of the gold standard, money faced numerous challenges and embarked on a tumultuous journey. It usually experienced the greatest setbacks when it was abused by rulers or when the commodity it w…
From Central Banks to the Gold Standard
“It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”
The gold standard was an expedient solution to cope with unprecedented economic growth that placed a heavy burden on the monetary system.
B. Cornerstones (under construction)
Intertest Rates
Inflation
Central Bank Money
C. Common Misunderstandings
Lending Out Reserves
Credit Presupposes Savings
Inflation is Covert Theft