29 September 2011

Useful Primers on Fiat Money and Banking

Our lives are controlled to a large extent by the rules of the fiat money world that we are immersed within. It is better that we understand these rules so that we can anticipate and plan for at least some of the turbulence that may come our way.

h/t Mish's Global Economic Analysis

Banking and Money from KhanAcademy.org

Ron Paul's view of the US' monetary conundrum.

Gold as Money FAQs from the Mises Institute

Wikipedia: History of Money

Description of "History of Money" by Glyn Davies. This is one of the most highly regarded histories of money available.

Video (and transcript): Chris Martenson Crash Course Chap. 7 -- Money Creation
Note: Later in his crash course, Martenson falls unwittingly into the twin traps of "peak oil" and "climate hysteria," but his chapters on money present some key concepts in useful ways.

Al Fin economists and child care specialists feel that it is a crime that all children are not educated in money, exchange, and markets from the earliest age. Trading and entrepreneurialism should be second nature to all children raised in a free society. Each citizen should have a sound intuitive sense of money, and keep abreast of the actions of elected representatives which may influence the value of money and the freedom of trade and markets.

Most citizens appear to be almost entirely ignorant on these points. A bitter price will be paid for this ignorance.

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Blogger yamahaeleven said...

Bernard Lietaer and Silvio Gesell have interesting ideas for new forms of money.

Friday, 30 September, 2011  
Blogger al fin said...

Interesting, thanks.

One can find a more comprehensive reading list here:


Scroll down for English language texts.

Yama-11, I seem to recall that a few years ago you were extremely sceptical of my suggestions to buy gold and silver. Such scepticism is neither here nor there. But it does provide a window into what your ideas about money may have been at the time.

The Davies history of money is excellent, if you haven't read it previously.

Saturday, 01 October, 2011  
Blogger Hell_Is_Like_Newark said...

I read the "History of Money" and a whole lot of other literature on the subject. My conclusion: You will need some sort of fractional reserve / fiat based currency. Similar to the United States Note that was issued with both gold and silver back currency.

During periods of rapid economic expansion, you will subject the country to gut wrenching deflation on a strict specie (gold / silver) standard. Why? Because the economy will expand faster than the supply of gold or silver. This is what happened during the 19th Century (Long Depression). It was a great time if you lent money... but terrible if you borrowed it. You ended having to pay (in real sweat and tears terms) far more back than you borrowed, even after accounting for the agreed upon interest rate.

Saturday, 01 October, 2011  
Blogger patricat said...

I absolutely agree on remark about the economic literacy (or rather illiteracy). Furthermore, it is dangerous as it gains votes for rather radical populists in severe times. Only few basic facts about history of world economics and money can make a big difference.

Tuesday, 18 October, 2011  

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