Monetary Innovation In The Ancient World

By Keith Weiner – Re-Blogged From Silver Phoenix

We think we are the only generation to be smart. In the 19th century, they did not have the internal combustion engine. In the 18th century, they did not have the railroad. In the 17th century, they did not have the piano. So, most people assume, they were dumb. They did not know about smart phones, so they would not have understood anything. Such as money.

So let’s tell the story of the ancient city of Orinthus. They were innovators in money, millennia ahead of their time…

__________________________________________

Division of Labor

Orinthus was inhabited by the first people to settle down with agriculture and fishing. Soon, a new class of evolved: those who crafted goods out of riverbank clay, animal hides, and even stone quarried from the local hills. With the advent of real production and trade, they soon discovered it’s terribly inefficient if the guy who made leather needed to find a fisherman who needed shoes whenever he was hungry. They realized they needed money.

Continue reading

Advertisements

The Dollar Works Just Fine

By Keith Weiner – Re-Blogged From Gold Eagle

Last week, we joked that we don’t challenge beliefs. Here’s one that we want to challenge today: the dollar doesn’t work as a currency, because it’s losing value. Even the dollar’s proponents, admit it loses value. The Fed itself states that its mandate is price stability—which it admits means relentless two percent annual debasement (Orwell would be proud). So there is no question that the dollar loses value. The only mainstream debate is whether this is good or bad.

Our focus today is whether this is why the dollar doesn’t work, why it’s failing.

Prices have been rising for 100 years. There is no reason why they couldn’t go on rising for another 100. Or 1000. The inflation argument, as we call it, does not reach anyone other than those who already think the dollar is failing. The rest shrug it off. Most people really care only if their income goes up slower than prices go up.

Continue reading

Life Cycle Of Money

By Mickey Fulp – Re-Blogged From Geologist Musings

In the aftermath of the global economic crisis of 2008-2009, governments throughout the world have fostered a tenuous recovery predicated on massive increases in money supplies and debasement of currencies.

Note, however, that monetary debasement is not a recent phenomenon; it is simply the natural life cycle of money.

There are six well-defined stages in the life cycle of money. This progression has occurred in every dominant civilization over the 5000 years of recorded human history:

Stage 1: A Barter Market Begins.

Continue reading

The Gold Standard For Skeptics

By Keith Weiner – Re-Blogged From http://www.Gold-Eagle.com

A skeptic said to me recently, “The dollar is money and gold isn’t.”

I asked, “OK, how do you define money?”

He responded, “You use dollars to buy groceries, not gold.”

He defines money as the accepted medium of exchange. Let’s drill deeper into that.

The government forces gold out of circulation. Taxation is one way (there are others). If the price of gold rises, it’s taxed as a capital gain. The result is that gold cannot circulate, because no one wants the possibility of a tax bill on every transaction.

Continue reading