Money And Monetary Policy

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Money And Monetary Policy

So many questions are asked about money. As always, the essentials aren't very difficult. And its important to understand it. We saw, when we talked earlier, that the power of the techno-structure depends on its monopoly of knowledge. Banks and the financial community will have a similar monopoly if you leave all knowledge of money to them. And you can by no means be sure that this monopoly will work to your advantage. It might, as we've seen earlier, work to the advantage of the bankers. It's especially important that no one be put off by the fraudulent air of mystery that surrounds all questions having to do with banks and money.

Money has a long history. So has inflation. But the association is not complete. For most of the last century, for example, the trend of prices was down. Herodotus attributes the invention of coined money to the Greeks - the Lydians - along with some innovative forms of prostitution. But that's because he had no way of knowing of its far earlier use in India and perhaps elsewhere. The history of money divides into three stages. In the first, what we may call original or basic money is in use. This is gold, silver or some other intrinsically desirable commodity. In the second stage, governments and banks become a major factor in the money supply - sometimes, in the case of the banks, without quite realizing it.

But a basic commodity can still be had in specified quantity in exchange for government paper, bank notes or deposits.

Thus the reference to a gold or silver standard.


In the third and final stage, the metallic standard disappears; money becomes strictly a creation of the banks and the central banks and in consequence of what the government borrows.

We don't think you can fully understand money without looking at this history and the way the use of money and its management have developed over time your mind assembles the details as, in fact, they were added over the centuries.

When you get down to our own day, you have acquired the whole story more or less as it actually unfolded; you have been able to absorb and master each new complexity as it came along.

Maybe it would be a good idea to take a few minutes to go a little further into this history.


Interested in France And The United States?

Effects Of Multinational Corporations

We don't think that the corporation, by being multinational, adds anything to the danger of inflation beyond what occurs as the result of the passage of power to the techno-structure.

On whether it causes unemployment or not, there will be more debate.

From time immemorial imports have been held to displace domestic products and the men who made them.

If we import textiles into the United States from Japan, Taiwan, Hong Kong, jobs are lost to American workers. Textile employers who have never been known to feel the slightest compassion for any worker on any previous occasion now... see: Effects Of Multinational Corporations


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