MONEY AND FAITH
No wonder the first banks were temples.
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All economists agree that the first money systems were barter-based systems, using commodities--goods and services. It worked. But it was inefficient because there had to be what is called a coincidence of need. How do you trade a cow for chicken with a guy who has chicken, but too many cows, already.
Until recent times, even paper money was back by barter. I have some old bills which say: THE BANK OF CANADA WILL PAY THE BEARER....This meant that the bank was supposed to sell you metal for your paper. You know why that system failed, eh? Metals began to get more and more expensive.
And how come: When they sucked all that silver out of your coins they did so without telling you it was happening? Modern coins are tokens, like paper, without much real intrinsic value. This is why the price of metals, especially gold, are rising?
FIAT--IT IS WORTH ONE DOLLAR BECAUSE WE SAY SO
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Today, we have what is called FIAT money. Look on a bill. It simply says: THIS IS LEGAL TENDER (Because we, by fiat, say so.)
BTW, does this mean that coupons are illegal? I don't think so. Interesting. CCC is based on the common law principle that coupons are legal
Experts agree
Money is created by a kind of a perpetual interaction between concrete things, our intangible desire for them, and our abstract faith in what has value: money is valuable because we want it, but we want it only because it can get us a desired product or service.
