Money and Society
History

Money in primitive times were represented by natural resources. People where trading resources that the other tribes had no access to. People were trading wood, rocks, food, weapons, and inventions.

To jump through time not too long ago, powerful people in the "ruling class" developed their own currency. It was the only way property was exchanged. In return, the king provided security. Later, kingdoms were trading amongst each other so they eventually agreed on a common resource to represent some value. They even went on further to develop this system by putting the leaders heads on these coins that where traded. You can identify a trader this way. A trader with a lot of money could have been paid by another kingdom.

Behind the scenes a gold smith was developing these coins. The gold smith needed to secure his gold in a vault from thieves. As gold coins where being exchanged, people where collecting a lot of gold. Gold was heavy and took up a lot of space so people began stealing gold from each other and going to the gold smith for help because they knew the gold smith must have his gold secure. So the gold smith said "OK". He gave the peasants receipts so he could keep track of peoples gold. As the goldsmith out grew his capacity, he needed to expand to make room for more gold and better secure it. He started charging people a fee to keep their gold in safe keeping.

One day the gold smith had a idea from watching outside his window. Less and less people where coming to him to take out their gold. He noticed outside his window that these people where exchanging the receipts. They where making transactions using this paper. The goldsmith started righting receipts for gold he didn't have to back up. Nobody knew how much the goldsmith really had. The receipts where just as good, weighed less, and easier to manage. The goldsmith became more powerful than the king and he had everyone's gold.

After a while, people started catching on to his game. They all came at once to take their gold for him. He didn't have enough gold to back it up (exactly what caused America's great depression). The goldsmith was in big trouble, so he let a few people in on the deal. They became the board of directors and then at this point Banking was Born!

These bankers in control of the wealth then where in a position of great power where they could buy the king and the people. They can influence both parties with paper money that has no real value. As long as people think their paper with graphics has value, these people stay in power and influence local, national, and world politics.

Where they gain the most power is the invention of debt. They allow people to do things without money. They can do this because the money didn't have any value to begin with. So the person in debt really never had anything of value in his hands. Just permission from the ruling class.

In today's modern society, there is not enough physical gold to match each dollar of every currency of the world. Gold is now obsolete. These paper receipts are the authority. It costs $5.00 dollars to make a penny? Something does not add up here.

The system today is so mature that we are ready for a cash less society. There is so much control over the monetary system that the bankers of the world can punish us and weaken societies by limiting the amount of money in circulation. This is what causes hard times. The bankers wait until most of the paper money circulates back to them. At a certain point, those with less money will be broke because there is a price tag on everything in a capitalist society. Less loans, less credit, less cash to change hands means you have less.

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Slobodan "Steve" Lohja - October 31 2008