Economics Questions

Re: The Purchaing power of money

laminustacitus — Mon, 26 Jan 2009 22:57:44 GMT

I'll try my best to edit this to make it readable:

Jimmy :

Well to being first of all, simply, thoroughly, and to give a better understanding of the main pillar of American society: money.

Money, what is it, what is its background, and why do we see it as a window to never ending happiness. Our journey takes us back to the land of Israel, Egypt, and Greece many of the first major civilizations to introduce silver, gold, and even copper coins as commodities to supply the needs of either the producer or the consumer. Also, even before gold or silver, sea shells were used to barter with, being accepted by societies needs that they could use them for a specific purpose, and of course solving the problem of trading various commodities that didn't satisfy the individual’s needs.

One thing most are curious of is: why is gold, silver, platinum, or copper valued so highly by the more intelligent intellectuals than us. The answer to that firstly would be that nations accepted it for over a 1000 years, secondly it gives people a work incentive that creates productivity, it supplies certain places in the world their needs, and it helps people survive and prosper in life. One very important key to this whole situation is always supply and demand. The interesting thing about world currencies today is that, they are all paper, with no backing by no solid commodity assets, and are based mostly on a system of trust and perceived value in them. Take for instance iron, gold, silver, or copper even, they could be melted down into making weapons of warfare in the past, used to try to impress people, used to build infrastructure, or event most creating the demand for a workforce to mine all of it. But new discoveries, inventions, and inventions brought about evil men with clever minds to deceive commonly good people into devising wealth schemes to make people rich, keep money safe from robbers, hide it from taxation, and ways to keep the fruits of their labors. Well then in a not so well connected world, education a thing for only priests, kings, and the very wealthy, families, men, and women would think reasonably and say yes to the bankers incentives for giving them their money, to keep safe.

An infamous example of paper money was in Spain & Italy, around the 1400 and 1500s, due to a shortage, and the devious scheme of the amount of gold would be worth one bank note. Beause of the heavy burden of using metal coins and the costs of transporting heavy metals, bankers had to judge what the exchange rate would be for one ounce of gold for one bank issued note. Thus, when locals would accept this Bank note for instance in Rome, you go to the bank, and they would give you a specific amount of gold or silver it was redeemable for. Also what coincided with this system of money was, Capitalism which was highly spoken of by the Economist Adam Smith, and a Republic which proved by Rome to work efficiently, benefited society, and gave opportunity to anybody. Well here ends of introduction, and for simple representation of how our Global economy work, this is basic simple example of our (USA) economic system works.

Re: The Purchaing power of money

Sage — Mon, 26 Jan 2009 21:52:52 GMT

Jimmy :
Well to being first of all, simply, thoroughly, and to give a better understanding of the main pillar of American society....money.

After reading that sentence and seeing you wrote 500 words in two paragraphs, I died a little inside.

Someone call the Underground Grammarian...

"Rape of the mother tongue will be punished."

Re: The Purchaing power of money

kiba — Mon, 26 Jan 2009 00:27:14 GMT

Stop producing wall of texts! GAH!

The Purchaing power of money

Jimmy — Mon, 26 Jan 2009 00:15:11 GMT

Well to being first of all, simply, thoroughly, and to give a better understanding of the main pillar of American society....money. Money, what is it, what is its background, and why do we see it as a window to never ending happiness. Our journey takes us back to the land of Israel, Egypt, and Greece many of the first major Civilizations to introduce Silver, Gold, and even Copper coins as substances to supply the needs of the producer or the consumer. Also even before gold or silver sea shells were used to barter with, being accepted by societies needs that they could use them for a specific purpose, and of course solving the problem of trading various foods that didn’t quell the individual’s needs. One thing were most of curious of is, why is gold, silver, platinum, or copper valued so highly by the more intelligent intellectuals than us, well that would be Nations acceptance of it for over a 1000 years, secondly it gives people a work incentive that creates productivity, it supplies certain places in the world their needs, and it helps people survive and prosper in life. One very important key to this whole situation is always supply and demand. The interesting thing about world currencies today is that, they are all paper, are back by no solid commodity assets, and are based mostly on a system of trust and perceived value in them. Take for instance iron, gold, silver, or copper even, they could be melted down into making weapons of 1generation warfare, or used to try to impress people, used to build infrastructure, and most importantly it created a workforce to mine all of it. But new discoveries, inventions, and inventions brought up evil men with clever minds to deceive commonly good people into devising wealth scheme’s to make people rich, keep money safe from robbers, hide it from taxation, and ways to keep the fruits of their labors. Well then in a not so well connected world, education a thing for only priests, kings, and the very wealthy, families, men, and women would think reasonably and say yes to the bankers incentives for giving them their money, to keep safe.
Well an infamous example of paper money was in Spain & Italy, around the 14 & 15 hundreds, due to gold & silver shortages, and the devious scheme of the amount of gold would be worth one bank note. Cause of the heavy burden of using metal coins & the cons to transporting heavy metals, bankers had to judge what the exchange rate would be for one ounce of gold for one bank issued note. Thus when locals would accept this Bank note for instance in Rome, you go to the bank, and they would give you a specific amount of gold or silver it was redeemable for. Also what coincided with this system of money was, Capitalism which was highly spoken of by the Economist Adam Smith, and a Republic which proved by Rome to work efficiently, benefited society, and gave opportunity to anybody. Well here ends of introduction, and for simple representation of how our Global economy work, this is basic simple example of our (USA) economic system works.