6139008-History-of-Money

Note Ellen Brown’s explanation on how the Wizard of OZ was an allegory about defeating the Banking Cartel: “Accordingto later commentators, the [Wizard of Oz] tale was actually written as a monetary allegory, at a time when the "moneyquestion" was a key issue in American politics. In the 1890s, politicians were still hotly debating who should create thenation's money and what it should consist of. Should it be created by the government, with full accountability to thepeople? Or should it be created by private banks behind closed doors, for the banks' own private ends?” Unfortunately,upto now, we are losing our freedoms to the Banking Dynasties.Overview of MoneyToday’s dollar is undefined unlike before, where it was defined as being 1/20 th of an ounce of gold. Thus, themeasure we use to trade goods and services is elastic and not stable. Keep this in mind as you read further.Money is an essential element or object required to simplify, facilitate and expedite the exchange or trade of goods andservices we produce. Money can be any marketable good or token used by a society as a store of value or credit, amedium of exchange, or a unit of account. It could be gold, silver, a piece of paper, a promissory note, a certificate, etc.,i.e. anything as long as it is readily accepted by most people in exchange of goods and services they deliver. Since theneed arises to exchange goods and services with ease and simplicity, societies create a money object when none exists.In some cases, a central authority creates a money object; this is more frequently the case in modern societies with papermoney. However, that central authority has always been under the control of criminal mafias behind the scene who areknown as the Money Changers or Banking Dynasties.Commodity MoneyCommodity money bearing intrinsic value was the first form of money to emerge. Under a commodity money system, theobject used as money has inherent value. It is usually adopted to simplify transactions in a barter economy; thus itfunctions first as a medium of exchange. It quickly begins functioning as a store of value, since holders of perishablegoods can easily convert them into durable money. In modern economies, commodity money has also been used as a unitof account. Gold-backed currency notes are a common form of commodity money. The supply of the commodity moneyobject, e.g. gold, silver, etc. must be readily available or major issues can arise. Paper receipts can be issued for storedcommodity money.Commodity Money is usually a scarce good that is in continuous demand. Many items have been used as money, fromnaturally scarce precious metals, shells, etc. through cigarettes to entirely artificial money such as banknotes. Modernmoney (and most ancient money too) is essentially a token -- an abstraction. Paper currency is perhaps the mostcommon type of physical money abstraction today. On the other hand, goods such as gold or silver retain many of theessential properties of money.Token/Fiat Credit MoneyThe alternative to Commodity Money is Fiat money which is a credit money financial instrument created from “a promiseto pay”. A central authority creates a new money object that has no intrinsic value, i.e. a piece of paper orledger/computer account. The public's use of the money exists only because the central authority mandates the money'sacceptance under penalty of law. In cases where the public loses faith in the fiat money, the adoption of other substitutemoney objects will arise.Today, most money is actually credit money and is referred to as money. Credit money or fiat money is a moneysubstitute and not money proper because it doesn’t represent an existing store of value and its value in terms ofpurchasing power keeps declining. This distinction between money and credit causes much confusion in discussions ofmonetary theory. In lay terms, credit and money are frequently used interchangeably. Even in economics, credit is oftenreferred to as money. For example, bank deposits are generally included in summations of the national broad moneysupply. Any detailed study of monetary theory needs to recognize the proper distinction between money and credit.To function as money in a modern economy, a good or token should possess a number of features, i.e. it must be cheapto transact with, it must have a stable value, it must be difficult to counterfeit, it must be easily storable in a small spacewithout deteriorating, divisible and transportable, and it must be fungible (one artifact of the token or good must beequivalent to another). When using money anonymously, the most common methods are cash (either coin or banknotestokens) and stored-value cards. When using money substitutes in such a way as to leave a financial record of thetransaction, the most common methods are checks, debit cards, credit cards, and digital cash.If money is kept in a safe and goes unspent, it reduces economic activity and loses its value due to inflation. If money iskept in a bank account, it allows the bank to create credit money as much as 9 to 10 times the deposit amount. Theamount of money in an economy directly affects inflation and interest rates and hence has profound effects. A monetarycrisis can have very significant economic effects, particularly if it leads to devaluation of a currency or total monetaryfailure and the adoption of a much less efficient barter economy. Modern economics also faces a difficulty in deciding whatexactly 'is' money or money supply. There have been many historical arguments regarding the combination of money'sfunctions.The Hidden History Of Money & New World Order Usury Secrets Revealed at last! Page 22