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The Invention of Money

https://www.newyorker.com/magazine/2019/08/05/the-invention-of-money

newyorker.com

The Invention of Money
When the Venetian merchant Marco Polo got to China, in the latter part of the thirteenth century, he saw many wonders-gunpowder and coal and eyeglasses and porcelain. One of the things that astonished him most, however, was a new invention, implemented by Kublai Khan, a grandson of the great conqueror Genghis.

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Paper Money

Paper Money

The instruments of trade and finance, like paper money, are groundbreaking inventions, put to use by collective acceptance using authority and seals of trust.

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Money's Worth

Money's Worth

The financial crisis of 2008 showed that the system can buckle anytime and money may not always be worth the same.

As we get hyper-connected, the state-backed authority of currency, and what Money is really worth, is being rethought. Society has historically tried to invent new forms of currency, most recent being Bitcoin, a cryptocurrency.

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The Idea of Libra Currency

The Idea of Libra Currency

The idea of Facebook's Libra, an attempt to create a new currency made from the architecture that powers Bitcoin, is that the value of new money is not derived from state authority, but a combination of mathematics, global connectivity, and trust that resides in people using Facebook.

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The Invention of Paper Money

The Invention of Paper Money

The King Williams Administration used to borrow large sums of money used for wars and then levied taxes on ship cargo and spirits to pay back the interest. This gave rise to Banks like the Bank of England, and finally Bank Notes, the currency still used today.

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John Law

“Money is not the value for which goods are exchanged, but the value by which they are exchanged.”

John Law

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The Rise of Paper Money

The Rise of Paper Money

Paper Money was pushed as a 'fiat' currency due to an attractive quality: it was guaranteed to trade by the state authority for a specific weight of gold or silver, and couldn't be melted down or devalued.

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The John Law Economic System

The John Law Economic System

The financial system in use today is a version of John Law’s system:

Each country in the developed world has a central bank that issues paper money, manages the supply of credit in the interest of commerce, uses fractional-reserve banking, and has joint-stock companies that pay dividends.

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Gold

Gold
  • Real money is only gold, and all the other forms of currency in the system are merely different kinds of credit. 
  • Credit is an indispensable part of a functioning economy, so it continues to thrive even with historical setbacks.
  • Gold is the only real 'legal tender'.

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Napoleon Hill’s most infamous claim was that he met and interviewed at length the industrialist Andrew Carnegie in 1908.

Andrew Carnegie's biographer David Nasaw found no evidence of any sort that Carnegie and Hill ever met.

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Napoleon Hill tried his hand at a number of businesses. But at every turn, there was some kind of shady dealing that would cause his business ventures to crumble.

Promoters of Hill claim that it was all a matter of bad luck, and Hill's naivety. However, there are only so many times that a man can be arrested for the sale of unlicensed stock, altering checks, and outright theft, before you have to question the official history.

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Historical Significance Of Florence, Italy

Historical Significance Of Florence, Italy

Known as the ‘Jewel Of Italian Renaissance’, the city of Florence has countless groundbreaking developments, seeing advances in politics, finance, business, engineering, philosophy, science, archit...

The Story Of Florence: The Renaissance City

Now a fashion city, Florence was initially well-known for woollen cloth, creating a central marketplace for the best-quality wool, cleaned to perfection.

The success of the fabric business made the Florentines rich, leading to new financial breakthroughs and innovations, like bank loan facilities, which further enhanced the city’s wealth.

Wealthiest City In Europe

Innovative banking practices like bills of exchange (to facilitate-out-of-city payments) and double-entry bookkeeping, along with the flourishing cloth industry made Florence the wealthiest city in Europe.

The city, flush with wealth, started to focus on art, humanism, creation, enjoyment of life’s pleasures, and intellectual pursuits. It framed itself as ‘The New Rome’ and was a true Renaissance city due to it’s elevated and classist thinking that offered freedom, prosperity and knowledge.

The Great Depression

The Great Depression

.. was a devastating economic collapse which started in the US in 1929, lasting a decade. Europe was already struggling post the WWI recession, while the US was thriving. As borrowings and stoc...

Wall Street Down

On 29th October 1929, the infamous crash of Wall Street happened, where 30 million dollars were lost in a week, leading to customers rushing to withdraw their money, known as the ‘bank run’.

The entire world felt the capitalistic fall and realized that a boom leads to a bust, eventually. The disastrous effects felt around the world showed how economically interconnected the world had become.

A New Deal

In 1933, then-President Franklin Roosevelt promoted his recovery path of Relief, Recovery and Reform, to give shape to the slow and arduous reform process that will take decades.