Lets first discuss how money evolved through this meaningful timeline infographics on origins of money . If I ask you how old is human h...
Lets first discuss how money evolved through this meaningful timeline infographics on origins of money.
If I ask you how old is human history, you will never be able to give an exact date and time because the span of recorded human history is roughly 5,000 years i.e. 30th Century BC.
Humans living during Old Stone Age were mostly hunters and nomads with no system of writing or accounting (ledger recording). Their sole purpose of life was survival through hunting, gathering food, fishing or scavenge wild animals.
Since there was no medium of exchange (money) people would rather exchange (barter economy) one product for another near 9000 BC. A hunter would give another hunter meat, stone axe or leather for an exchange with a good of equal importance in value. Thus exchanging food for food, tool for tool and clothing for clothing.
But as time passed and humans grew wise, their lifestyle changed from that of hunting and gathering to one of agriculture and settlement. With Agricultural Revolution between 8000 and 5000 BC, most humans transitioned from a nomadic to a settled lifestyle as farmers living in permanent settlements in large villages.
Humans living in large groups lead to the problem of “Coincidence of Wants”. One person having surplus food and looking for exchanging it for a tool, could do so only if there was someone who could accept his food for a tool. Thus this clash of wants introduced commodity economy as the first medium of exchange(money). Where instead of only exchanging a product for another product, they started accepting a useful good such as wheat, grain or salt as commodity/money in exchange for a product or service. That useful good could then later be used to buy new products.
Examples of popular ancient commodities include agricultural products used fro micro transactions such as cotton, wheat, grain, seeds, salt, sugar or dates. They could either eat it, store it for future use or trade it when in surplus.
In fact the word “Salary” is originated from the word salt. In ancient Rome, Salary meant the amount of money allotted to a Roman soldier to buy salt, which was an expensive but essential commodity.
Domestic animals were also used as a commodity for macro transactions such as goat, sheep, horses, donkeys, pigs or cow. Same concept here: eat it / use it, store it, or trade it.
It was commodity economy which first gave birth to a free and fair market with transparent circulation of wealth.
Near 1200 BC, humans started using Cowry Shells as more direct medium of exchange. Shell currency was first used in China and then in societies living off the coast of the Pacific and Indian oceans.
Cowries were a popular medium of exchange in Asia and it was considered as money for as long as early 19th century in India. Cowry also called “kaudi” in India was used till 1805 which was then replaced by the British East India company which was one of the major causes of “Paik rebellion” in 1817.
In western Africa, shell money was a legal tender up until the mid 19th century. Western nations, through the slave trade, introduced huge numbers of Maldivian cowries in Africa.. Cowry was also called as the currency of the Kingdom of Kongo locally “nzimbu”.
Cowries were smooth, shiny, portable, divisible, durable and arguably rare at that time thus they survived a much longer time to be used as both currency and jewellery.
Why Cowry Shells are no more used as Currency?
Though cowry shells had most of the characteristics of money but they lacked true intrinsic value and could be extracted easily from Indian ocean over time. Currency looses its value when it is in abundant supply and this was the reason why Cowry shells could not survive long enough and were permanently replaced by a much better hard commodity that was extremely difficult to extract (rare in nature) and had unimaginable practical uses in centuries to come. Yes I am talking about Gold!
Bitcoin worshippers often quote cowry shells to defend the zero intrinsic value of Bitcoin. Cowry could not survive as currency because it lacked true intrinsic value, it had no other major use except being used as a medium of exchange or as jewellery. Like all bogus currencies it could be created on will by breeding snails!
Snails reproduce every six weeks throughout the year. Snails can lay between 30 and 140 eggs at a time; that's nearly 480 snails a year! Thus 480 cowry shells in your pocket! Who said money can not lay eggs? Because it did in the past as humans are being fooled by the elite time and time again...
Thus two wrongs does not make one right. Both cowry and paper is bogus money with zero intrinsic value and using them as defense to prove Bitcoin right is the same brainwashing tactic being used by the elites to keep fooling the layman.
In 700 BC Gold and Silver coins were first used in ancient Lydia (modern day Turkey) and coastal Greek cities. It was a usual State practice to stamp the coins with pictures of gods and emperors.
Civilizations which had abundance of Gold reserves and good defense, always remained the super economies on earth and this applies even to this date of 21st century.
Gold is the ultimate stable currency and the true wealth. Mankind strives so hard to find (mine) it even to this date because it’s the only currency which is deflationary in nature and does not loose its purchasing power even if you dig it underground for 5000 years. Gold will always retain its truth worth for millenniums to come thanks to its money characteristics and chemical properties.
Gold and silver is a perfect medium of exchange, store of value, portable, durable, rare, unit of account, divisible, fungible and which has a true intrinsic value. Most importantly you can’t counterfeit or imitate gold using even the best of 21st century science and technology.
Who Invented Paper Money and who Corrupted it?
In China copper coins were designed with square holes in the middle so that they could be carried on a string. People would then trade by calculating the price in strings of coin.
For large macro transactions, as these strings of coins (gold, silver, copper) became heavy to carry, the traders would deposit the heavy strings of coins with a trustworthy agent (bank), who would record how much money the merchant had on deposit on a slip of paper (banknote).
This paper slip was a promissory note / claim check that could then be traded for goods or redeemed back for the strings of coins anywhere across china.
These banknotes were mostly in the form of privately issued bills of credit or exchange notes. In 1265, the Song government officially introduced a national paper currency, which was backed by silver or gold.
This gold-backed currency only lasted for nine years, as Song dynasty fall to the mercy of Mongols in 1279.
The Mongol Yuan Dynasty issued its own form of paper currency called chao which was not backed by gold or silver.
The Mongols started printing paper currency on will to overcome its growing government expenditures. This was the first time in human history when a government cheated its people by printing more paper currency than its reserves of precious metals. This is when the first fiat currency was born.
As the currency supply increased, its purchasing power reduced thus leading to run-away inflation. The Yuan dynasty could not survive longer and thus collapsed in 1368.
As financial crisis increased and Chinese learnt the lesson of what happens when you “print paper on will”, the Chinese government eliminated paper currency completely in 1455 and wouldn't adopt it again for next five hundred years (till 1890s). During that time, gold/silver was adopted back as the currency of choice.
Goldsmiths in England were both money changers and money lenders. Merchants would store their hoards of gold with the goldsmiths in 17th Century, who would then charge a fee for providing that service. Just like Chinese, the goldsmiths also issued promissory notes or claim checks certifying the quantity and purity of the metal deposited.
The goldsmiths would charge no fee or even pay interest on the deposits, if the depositor allowed the goldsmith to relend on his behalf. The depositor’s gold could be lended on interest to someone else looking for a loan.
The promissory notes (banknote) were payable on demand but the loans which were given by goldsmith to his customers were repayable only over a longer time period.
This is the modern day example of fractional reserve banking where you can create a current account or savings account with the bank. The banks invests your money from the savings account by giving you a monthly share of the profit or provides you services by charging you a fee on your current account.
The goldsmith were supposed to create banknotes equal to the total amount of gold deposited in their vaults. Not a receipt less or more, because every banknote was a promise from the goldsmith that each note is backed by equal amount of gold present in his vault.
The goldsmith knew that since depositors keep their gold with them for a longer time period like for months or years, and that they will certainly not all rush back at once on a single day to redeem the banknotes for their deposited gold, the goldsmiths started creating banknotes out of thin air and distributed them as loans to borrowers at an alarming rate.
The borrower could use the banknote to buy goods and services in the market, the seller of that good or service would willingly accept the banknote as a legal tender because everyone thought that these banknotes could actually be redeemed to gold on demand as promised by the goldsmith.
Inspired by the trickery of London goldsmiths, many private banks started operating and issuing banknotes with the same bogus promises.
This dark practice of fiat banking even reached United States in 19th century. During that time in USA there were more than 5,000 different types of banknotes issued by private banks, each containing the false promise that said: “repayable to the bearer on demand.”
Later only national governments were authorized to issue bank notes.
- In England the right of issuing banknotes was granted to Bank of England in 1694.
- In the United States, the Federal Reserve Bank took the charge in 1913.
Both US dollar and sterling pound were partially backed by precious metals and were only theoretically repayable to the bearer on demand (redeemable into gold or silver).
The Goldsmiths (Bankers) did not stop poisoning the Gold standard which partially existed between 1870-1930 AD.
After Rothschild sponsored World War II ended and using the artificially created Great Depression as an excuse, the banking elite gathered all leaders of 44 allied nations to create a more stable monetary system. This conference was called the Bretton Woods Conference which was held in United States in 1944.
The world was promised that both these two institutions are established solely to achieve these common missions:
- Eliminate extreme poverty,
- Facilitate international trade,
- Reduce unemployment,
- Achieve greater financial stability,
- Promote sustainable economic growth.
But wait... these are just lollipops that the richest elite gives to the smaller countries to cash their emotions. Exactly same bogus promises are given by crypto-gods to cryptocurrency holders to liberate them financially.
The recent examples of nations bullied by IMF include the sanctions on Venezuela, North Korea and Iran by disconnecting them from the global financial system and disrupting cross-border flows including trade finance and remittances.
Through Bretton Woods System the U.S. Dollar was established as the world's reserve currency because thanks to WW1 and WW2, so much gold had fled to USA from European countries that USA had two-third of all world gold reserves.
All major world currencies were pegged to the dollar by a fixed exchange rate, while the dollar itself was pegged to gold at $35 per ounce, This weird currency relationship was called (bogus) "The Gold Standard"
Due to the same poor habit learnt from the Goldsmiths, USA was printing more and more dollars secretly and would pump it overseas to pay for government expenditure on the military and social programs.
Dollar pegged rate to gold was no more $35/oz. thanks to worthless dollar bills spread all across the globe. Instead of accepting their mistake, USA blamed the unstable rate on gold being sold out at lower prices on free market and black markets. (I have discussed it in detail later in this chapter)
When the member countries started asking for their gold by redeeming back the worthless dollar. Uncle Sam shocked everyone in 1971.
From 1971 onwards, the world's currencies were all floating, with not even a single currency having a fixed value. A weird economic system that led to the establishment of foreign exchange markets(Forex).
The effect was such that within next 10 years, dollar devalued from $35/oz. of gold to $800/oz in 1980.
Foreign reserves of poor countries got eroded. It was the greatest scam and fraud on the world where the richest countries flooded the world financial system with worthless paper dollars. And this fraud continues to this date.
On 15 August 1971, Nixon issued Executive Order 11615 pursuant to the Economic Stabilization Act of 1970, unilaterally imposing 90-day wage and price controls, a 10% import surcharge, and most importantly "closed the gold window", making the dollar inconvertible to gold directly, except on the open market. Unusually, this decision was made without consulting members of the international monetary system or even his own State Department, and was soon dubbed the Nixon Shock.
When a nation’s money is given in control of few men (banks), poverty, hyper-inflation, unemployment and chaos becomes the fate of that nation and its ripple effect also causes crisis in all other nations who depend on them for trade and commerce.
The life of every American is controlled by the Federal Reserve Bank (FED) which is a privately owned bank. When the US Government fails to pay its national debt, they seek FED for help. FED then simply creates virtual money out of thin air by typing few digits on a computer screen through a process called “Quantitative Easing”.
Can you guess what that means? It means that every American from a kid to an adult, poor to rich, man or woman, owe a total debt which is $64,579 per citizen, and $174,191 per taxpayer....
Wait it does not end here... The US national debt is 110% higher than the total GDP of USA which is just 19 Trillion.. If the American nation even decides to pay this debt at $10,000 per second, it will take them 67 years to pay all the debt provided that there is no interest applied on the debt by the FED....
All nations have a national debt but few understand what it means or who we owe.
Watch this great sermon given in Sept 2003 by Pastor Rod Parsley at Breakthrough Church in Columbus Ohio, where he explains in plain English how Banks enslave and control a nation by printing worthless paper currency.
Founding Fathers of USA, Thomas Jefferson warned the American nation some 200 years ago about the consequences they will face if they give the control of national currency to the greedy banks.
"I believe that banking institutions are more dangerous to our liberties than standing armies,"
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around(these banks) will deprive the people of all property until their children wake up homeless on the continent their fathers conquered."
"The issuing power of currency shall be taken from the banks and restored to the people, to whom it properly belongs."
— Thomas Jefferson (Third President of the United States from 1801 to 1809)
The two oldest and most vicious goldsmith families that has survived over 200 years and still present today are the Rothschild and Rockefeller families, who currently own the biggest corporations of the 21st century and have a net worth in trillions of dollars.
These are the same greedy dynasties who are now financing cryptocurrency and blockchain startups through their usual psychological art of deception to achieve their agenda of a completely cashless society.
Before discussing who exactly created bitcoin and who is sponsoring it, lets first understand why the banking elite hate a monetary system backed by gold!
Why am I discussing so much History?
Because the original monetary history is never taught in schools or intentionally made complex to understand, it is censored in main stream media and without understanding it, you will never get what have they planned once they impose cryptocurrencies on all of us to snatch even that 10% of the financial freedom that we currently enjoy.
Now when you have read the thorough history of money from Barter to Bitcoin (cryptocurrencies), you are in a position to understand why the banking elite hates real Gold.