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The Invention of Money
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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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.
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.
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.
John Law
“Money is not the value for which goods are exchanged, but the value by which they are exchanged.”
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.
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.
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'.
SIMILAR ARTICLES & IDEAS:
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Key Ideas
Hill was a charlatan
Napoleon Hill was said to be an advisor to two presidents: Woodrow Wilson and Franklin Delano Roosevelt.
In fact, there’s no evidence whatsoever outside of Hill’s own writings that Hill ...
Hill and Carnegie
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.
Serial swindler
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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