Saturday, September 25, 2021

A History of Money and Debt

 From Newsmax:

Money creation and distribution is and will always be the exclusive privilege of the state, for no other reason than to manipulate its value for international commerce needs. The tempting ability of the state to create too much credit is widely practiced, except too much credit debases the value of paper money as one finds out when going to the grocery store.

The intrinsic value of currency in the Middle Ages held up quite well since it was based on gold or silver coins whose supply was controlled by private bankers such as the Medicis in Italy and the Fuggers in Germany. During this period, there were only two major periods of inflation.

One, after the Black Death created severe labor shortages and, secondly when Emperor Charles V flooded the country with silver coins from a newly discovered silver mine in Bohemia.

This system finally collapsed once the state invented paper money and then printed and distributed it starting in the 17th century.

You might think that paper money was invented in Europe; not true, it was in invented in China during the Tang Dynasty (618-927) AD.

The temptation to create too much paper money led to the fall of Louis XVI in France.

The British in the early 19th century invented bonds to finance their overseas expansions. They issued bonds (called Gilders because they were backed by gold) and were sold to investors due to the promise of interest. (Read more.)


More HERE.


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