Additional money is being used in countless countries on our planet. They make the economy much more resilient by helping to clear swaps between people and businesses. We thought we needed to do more to get to know the principles and systems that make the lives of millions of people more predictable. The following description of the new money to read a new book on the world, you can be free to download here or can be ordered here.
If your dear reader does not fully understand how money works, you may be slightly comforted that you are not alone. Most of us, from leading economists and financial gurus to ordinary lay people, have never really learned about money. Given today’s stake, it is high time, and it is in the interest of all of us, to pull off this eternal mystery.
The mystery of money
All modern societies, regardless of their cultural or political background, have accepted the current financial system. When the French Revolution of 1786 and the Russian Revolution of 1917 overthrew the existing order, the revolutionaries changed almost everything in the country except money.
All societies have fundamentally rebuilt their legal systems. The French even replaced their entire system of units and created a metric system; in fact, an attempt was made to change the calendar. And the Russians wanted to completely eradicate private property and nationalize all their banks and companies.
Nonetheless, the financial system remained completely intact
Except for new heroes and slogans on the new banknotes. Over the last half century, Mao has carried out a communist turn in China and hundreds of colonial countries have gained independence, but the same process has taken place everywhere: these countries have simply copied the national currency system , which has since become standard.
Few people can see that virtually all national currencies today, regardless of which country is pressed, what the dollar, the euro or the peso is made of, what material it is made of, its shape and design, are actually the same type of money.
Money and magic
Often money seems to have magical properties. Karin Lissakers, director of the IMF in the Clinton era, gave this saying: “Money is magic and the leaders of central banks are magicians. And no magician loves to reveal his secrets. ” Are you thinking about real magic or simple magic tricks? Maybe both.
One example: no reporter in the repertoire who gives himself something can miss the vanity stunt that money, especially nowadays, can do quite spectacularly! Once upon a time, when money was predominantly represented by gold and silver coins, banks began issuing paper. These papers were simple vouchers of how much precious metal was stored against the voucher and where.
The disappearing stunt has since become much more sophisticated: paper money is beginning to disappear and is transformed into bits and bytes on the computers of bankers, brokers and financial institutions. There is a serious possibility that he will soon retire completely to the virtual world . Perhaps when the last dollar, euro, or yen is lost forever, we finally realize that money is not material.