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The Money


Barter was the first method of exchanging goods. People simply traded goods with each other. The pros of barter are that you trade for exactly what you were getting. However, bartered goods are not very portable. And it's hard to get change. Also the capacity to carry out barter transactions depends on a coincidence of wants. If nobody wants what you produce today no deal. So around 40,000 years ago you a new medium of trading evolved. People began to use money.


Money is any means of carrying out transactions involving a medium of exchange. Money can be any clearly identifiable object that will be accepted as payment for goods or services. Money in and of itself is worth nothing and can be anything. It can be a coin a shell or only a piece of paper but the value the place on it has nothing to do with the physical value of money object itself.


Fiat Currency and Financial Services.


Absidian is a hard glassy shiny material. It was used as a raw material for Stone Age tools and was traded for money from around Middle Eastern Turkey around 1200 BC. Cattle and grain began to be used as money around 10,000 BC. Cattle are probably the oldest of all forms of money and are still used in parts of Africa in the middle of the 20th century.


Banking originates in Babylonia around 3000 BC out of the activities of temples and palaces which provided safe places for storing valuables, grain, tools and precious metals. Cowries used as money in China, Cowries are a shell and has been used as money in different places at different periods including parts of Africa is still being used for this purpose as recently as the middle of the 20th century. 


The first true coins were produced in Lydia Asia minor around 650 BC. These early coins consisted of electrum a naturally occurring amalgam of gold and silver.  The Greek philosopher Herodotus criticizes the gross commercialism of the Lydians. Who are the first people to coin money and Open shops. The first Greek coinage appeared on the island of Agina sometime around 600 BC. By 350 BC Greeks are charging interest on loans. 10% on prime investments and 20 30% are usury rates at the time.


Silver coins were minted by the Romans and widely circulated. However because of the enormous demand for coins to pay its military, the Roman rulers the debased precious metal coinage purity and rate of production which caused rampant inflation. Around 250 BC China introduces the standard cash coin. The cash coin was a rounded shaped copper coin with a square or circular hole in the center of prototypical Chinese cash. In ancient times of Jerusalem pilgrims visiting the Temple on holy and change some of their money from standard Roman currency for Jewish or triany money. The latter two are the only accepted form of payment. This angered many people as it seems that they were forcing them to give up gold and silver for base metal.


In 207 A.D. silver content of Roman coins fell to only 4%. By 410 AD Roman had fallen to the Visigoths and abandoned banking is abandoned in Western Europe and doesn't come back until the crusades of the 1400's. In China Emperor Han Sun makes the first felt paper money due to a severe shortage of copper to make coins. This money is the first fiat money. Which a Latin term for "let it be done." Fiat Money has been defined as any money declared by a government as legal and tender. The state issued money is not convertible or attached to any other thing of fix value in terms of any objective standard. Money is a virtual commodity which is controlled by the state and has no intrinsic value.


In 1455, Chinese paper money after well over 500 years of experience with paper currencies during which the repeat episodes of inflation currency reform was abandoned. China ceases to use paper money. In 1619 tobacco used as currency in Virginia barely 1000 years after its introduction and continues to be used for the next 200 years.  1637 wampum becomes legal tender in Massachusetts this is only for sums of one shilling. This is a type of shell used by Native Americans as currency was adopted by the St. Louis. In 1633 to 1672 saw the rise of Goldsmith bankers. Some British goldsmiths by letting the safes use for deposits of valuables. Goldsmiths banks began being used as evidence of ability to pay. This evidence by a bank marks the start use of banknotes in England. In 1694 the Bank of England is the main correspondent bank to raise money for more like taxation and by a new financial instrument called interest by which interest is paid and principal is never paid. This form of debt forever lending is still practiced today.


By 1797 Bank of England notes I made its money inconvertible which means you cannot exchange notes for precious metals anymore. In 1811 Parliament rejected a clause to restore convertibility of notes. The government argued successfully that restoring convertibility with payroll of British war effort coincidentally leaving old gold and silver denominated. On December 23, 1913 the Federal reserves created in America. As an independent central bank is permitted to make policy independent of the president or anyone else in the executive or legislative branches of government. In 1933 Pres. Franklin D Roosevelt using the trading with the enemy act 1970 issued an executive order requiring that in less than one month all person's in possession or control of gold coin gold bullion or gold certificates are to return their gold and silver to the Federal Reserve Bank or member bank of the Federal Reserve system and thus putting the quiet end to the gold standard.


In 1940 and the British notes issued and gold is withdrawn from circulation new one pond intentionally notes are issued for the success of the note was signed to withdrawal gradually from circulation. In 1995 Mondex electronic cash cards introduced trials among Mondex cash card which is intended as a replacement for cash beginnings Swinton in Britain. In 1990 Mark Twain bank adopts DIGI cash this is an anonymous form of money developed by the cryptographer David Chalm probably very first crypto currency.


In 2002 new euro coins and notes are introduced by the European Union. These replaced the national collegiate banknotes of old countries which adopt a single European currency backed by private finance and the issuing of interest-bearing Poems paid by all the people of Europe. In 2009 crypto currency becomes available. Crypto currencies incorporate principles of cryptography to implement distributed decentralized secure information economy. No group or individual may accelerate stunt or kill or abuse the production of money. Only a certain amount crypto currencies are produced. At a rate which is defined publicly known. In essence bit coin is a fiat currency. But its independence of decentralization makes it less likely to be devalued by any state.



Central Bank


The US central bank makes the world go round. Every $20 bill you spend is a vote to support a complex organization called the Federal Reserve System. The Federal Reserve System is the central Bank of the United States. It was created 1913 its mission in this country was to establish and maintain public confidence or foundation for monetary fiat based banking system. In the 1800s any organization that wanted to print its own money could. As a result the states did. At one time the people of New York at one time had over 30,000 different varieties of currency in circulation.


This created confusion. More over some where redeemable in gold and silver and others were backed by bonds issued by regional governments. Many people tried to withdrawal their deposits at once sometimes. The banks had to in times of shortage set up a moratorium on paying the depositors.


Then when money completely ran out even closed and people lost their entire savings. Regional economies suffered. Witnessing this instability as a threat to our nation, something was done at the end of 1913. President Wilson signed into effect the Federal Reserve act. This act created the Federal Reserve System to provide a safer and more stable monetary and banking system that was designed to be a decentralized central bank.


The Fed consists of two primary parts, the board of governors which guides policy and 12 regional Federal Reserve banks and their operating branches which serves to provide services to banks and the public in their regions. The Fed has a public private structure and operates independently within the government but is not indifferent to it. The US mint actually makes the physical money. The money is sent to the treasury. That money is then sent to the fed.


The board of governors appointed by the president and confirmed by the Senate represents the public sector or governmental side. 12 reserve banks have local citizens on their boards of directors represent the private aspect. The structure provides accountability while avoiding centralized government making policy the regional reserve banks with the board of governors to establish and implement monetary policy for the nation. Their purpose is the supervision of banks and bank holding companies. Their main goal is to foster a stable economy. A stable economy in this system is characterized by higher employment and production steady growth and overall stable prices.


The Fed develops and implementing a monetary policy. A committee, the Federal open market committee, meets make decisions that a United States. They regulate how much money and credit is available for our economy.

As the supply of money grows, demand for goods grows. If the supply of money out paces the production of goods and services, prices increases and the possibility of inflation increases. If the supply of money decreases the demand decreases and the possibilities of a recession increases. The goal (monetary policy is to stabilize the patient supply of money and credit to prevent both inflation and recession away the Fed does this by buying and selling government securities securities before treasury bills and bonds represent investments in the United States government began his visual of the Federal open market committee sets guidelines for sale or purchase of the securities on the open market if the Fed determines that there is too much money in circulation situation that could lead to inflation will sell securities takes excess money destabilizing, conversely if there is too little money circulation the session was spent twice as much money into circulation again stabilize, every business that the Fed gathers information to determine just how much money needs to be added or subtracted from action supply these printers then make the actual sales or purchases securities that affect the supply result of stable economy characterized by higher employment and production steady growth and overall stable prices.


Congress establishes rules that govern the supervision and regulation of banks operating the United States Ln. purpose to promote the safety and soundness of banks which in turn enhances the public confidence in the banking and financial system enables the Fed together with other bank supervisory agencies that has the responsibility of making sure these rules are followed.


Fed plays a vital role in the nation's payments system. That is transferring funds or payments from one bank to another. This is done with cash or checks or electronically. This makes the Fed the banker’s bank. The Fed collects Federal taxes and is responsible for issuing servicing and redeeming treasury securities. The Fed monitors how much currency is actually in circulation which is about $1 trillion including the amount of our currency used in other countries. The Fed makes sure that there's always enough money circulation. The Fed issuers the currency that is in circulation is genuine and in good condition.  When you write a check, on your bank account or receiving a check the bank insures that the owner have that funds from your bank have to be transferred to the bank receiving a check deposit the transfer of the value from one banks account for the other bank is called settled. This occurs 24 hours a day six days a week. The is clearing checks the Federal Reserve System and handles over one third of all checks that are cleared. With the advent of automated the Fed is faster and more accurate.

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Hola, is Rosa still alive? No? Well this is not my day. Look at us, crying like a couple of girls on the last day of camp. Great, now I'm gonna smell to high heaven like a tuna melt! Te quiero. English, please. I love you! Great, now I'm late. Perhaps an attic shall I seek.



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