Monday 21 March 2016

Why money is a commodity (value or debt) ???



Money has been invented in Lydia 2600 years ago and has spread in all the middle east, after the conquest of Lydia by the Persian Empire. …..

In a so massive empire, to make exchanges and offer valuable « money guarantee », for soldiers everywhere, only commodities could work !!! It s the main reason money has been made in precious metal.

The same thing has occurred in the Roman Empire …..

Money became a debt, far later, to control the money supply and the prices of the assets …….

Nowdays, the money supply is inside the Financial Economy, not in the Real Economy which is in deflation and in Recession…..

The Stones Money on the Island of Yap, were focused on one paradigm : The owner of the stone must be recognized by everyone !!!A Stone was a « reserve of compensation », a « guarantee » and, on this way , had a true monetary value


Nowadays, the Central Banks has purchased a lot of bad debts from the private banks and giving them a lot of liquidity. Doing it, the Central Banks are now a threat for their respective currencies …. , because of a unbalanced result. The private banks have used this money to play on the stock exchanges ….. to create benefits for them and wealthy clients.
………….

The Central Banks can no more control the level of inflation and the prices of assets…. The Private Banks can do that by investing in real economy !!!!

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