Webster defines money as a form or denomination of coin or paper money. After reading multiple articles about the creation of money, how other countries deal with there money problems , and how people from other cultures view and use money. I changed my views on money, I’ve realized that money isn’t worth as much as I treated it as. The value has changed since I was a child, because of inflation every year the value of money goes down little by little. In the 70s a dollar could go along way and could last you a week. Today you are lucky if you could purchase a water for a dollar. Now I views money as numbers in my checking account.
The NRP broadcast 423 The Invention of Money had discussed “that money is as real as the stones on the bottom of the ocean floor.” They claim that money is fiction, Money value can disappear it is not set in stone. Back when we were on the gold standard each dollar correspond to a dollar of gold. Ever since we got off the gold standard the value of money is fluctuated. It has not been constant since. Currency has changed into information, numbers and commas on a computer screen. Another interesting fact is that their are not even a trillion dollar bills in the world. Their aren’t even bills for most of the money that exits according to NRP broadcast. It is sad how much power this idea of money can make people do ridiculous and foolish things.
The way the money imported into our economy is not as you imagine it would be. When I think our economy need money, I think the Federal Reserves sends freshly printed dollars bills to some of the biggest banks in our countries. Unfortunately that is not the case, what really occurs is the Federal Reserves type of how much money they think our economy needs and they put the number into the computer and buys how much of treasury bonds from banks. Just like that Money is sent into our economy according to NRP. They literarily make money out of nothing. Without printing any new bills or anything, they just type in numbers and with a click of a button money is created.
Money journey to come into our economy is still different. The federal reserves doesn’t print a million bills and send into our encamp. Realistically they put numbers into a screen then they send it into a bank and exchange the bank gives them bail bonds. No new money because most of the money out there doesn’t exists out there. So like a magican they make money out of nothing. Its a magical experience for the federal reserve to make money.
As I read other articles, My eyes were opened and I realized that money value is all in our minds. At least it was in this small Island in Micronesia a Germany colony. This people on this very small Island had huge stones as there currency. Not even gold but stones that were round like big stone wheels. Now according to Milton Friedman there was a family on the island that was very wealthy but has never sen the money. But no one on the island has never questioned them about their wealth because of their ancestor. It was known that one of their ancestors went on a search for a stone that would have valuable in their currency. But after coming across a deadly storm they had to let the valuable stone sink all the way to the bottom of the ocean. When he returned from his travels he told all of the people on the island about what he found and what happened when they ran into the deadly storm. Ever since than the family has been wealth because of their ancestors failures. Its crazy to think that because of their ancestor failures the family is well off, with nothing to show for it. This just makes the augment on money being fiction even stronger.
Money has evolved into a fictional thing that people of our society fight, killer, and rob each other over. Recently on the internet the bitcoin has been making moves on the world in the last year. According to Jeff Reeves “the bitcoin has no federal bank to back its value. This means that there is no true value for this, its value is whatever the person is willing to pay for it.”. Every year money value goes’s down so who is to say that the idea of money won’t be relevant in a few more decades.
“The Invention of Money.” 423: The Invention of Money. This Is American Life, WBEZ. Chicago . 7 Jan. 2011.
Friedman, Milton. “The Island of Stone Money.” Diss. Hoover Institution, Stanford University , 1991.
Jeff ,Reeves . ”Bitcoin has no place in your -or any-portfolio” 31 Jan.2015.