THE TRUTH ABOUT

MONEY
K180147
MUHAMMAD TAHA MIR
 EARLY AGES AND THE BARTER
SYSTEM
• In early ages people used exchange their Goods with one another.
DRAWBACK
 SOLUTION

WE NEED TO FIND A 3RD GOOD THAT WE BOTH A UNIVERSAL 3RD GOOD THAT EVERYONE WANTS
WANT AND CAN TRADE FOR
 HERE COMES THE ’MONEY’
• SO MONEY IS THE 3RD GOOD THAT DON’T SPOIL AND WE ALL AGREE HAS
VALUE,THUS BECOMING THE UNIT OF EXCHANGE.
 MONEY’S OF THE PAST
• In the past many weird things have been seen as money.
• Like Cattle , Alcohol , Metal tools
• The form of money that has been used the longest and widest is
• “Cowrie Shells”
• Its Durable , not easy to acquire , unique.
 GOLD AND SILVER
• Gold and silver are very popular money of past and even in today’s age.
• They have an INTRINSIC value.
• SYNONYMS OF INTRINSIC: Inherent,innate,inborn,natural,native,inbred.
 LIMITATIONS OF GOLD AND SILVER
• Fear of being robbed.
• Not easy to carry.
 HERE COMES IN THE PAPER
MONEY
• In about 1200 AD in the period of MONGOLS in china , during the reign of
• “THE GREAT KHAN” or “GENGIS KHAN”
• ‘CHAO’ was introduced.
 ESTABLISHMENT OF BANKS
• From china this practice spread outside .
• In Iran paper currency was used.
• Modern banking originated in Italy around 1150.
 ESTABLISHMENT OF BANKS
• Big businessmen issued their receipts ,their receipt had value because others
knew that businessmen can give the gold afterwards , this was among the
businessmen only.
• 1640 in Europe businessmen and Goldsmith’s made an idea.
• Goldsmith’s had space.
• Goldsmith’s said to businessmen put your gold in my space and I will give
you receipt ,you can take your gold back anytime by showing the receipt .
we will charge some fee for this.
• This made Bank.
• Receipt was divided according to people needs and banks notes were
made.
 SUCKING THE REAL WEALTH BY
LENDING CREDIT & FRACTIONAL
RESERVE BANKING
FIAT MONEY
 CURRENCIES LINKED
• 18th 19th century England ,all world troops send ,need common currency
• Current currency only national not international
• For eg people from one country visit other country both have different notes
and notes were not accepted and they don’t know which currency has
what value?
• To link currencies ,gold standard was introduced
• A country can print notes according to amount of gold it has.
• Conversion will be done on this standard from one to another currency.
• Now country’s cannot print notes as many as they want.
 CURRENCIES LINKED
• If a country need to go at war they need money and don’t have.
• Then they will print’’ money but now they cannot do it much because
otherwise economy will damage.
• Now every country can buy any thing from another country
• Every one knows what is the value of others notes.
• Every country want more gold and do trade in gold to improve their
economy.
• Ww1 country need money they set aside gold standard and printed more and more
money
• These countries don’t want that people come to them and ask for their gold
• England said to their people please do it for your country don’t ask for your gold.
• Few countries like America was still on gold standard
• Ww2 many countries back broken
• Few countries including America was still exporting more so they were still trading in
gold.
• Ww2 end many countries economy broken
• Approx all world gold was in America
• Other countries economy recover and try to get back to gold standard
• But not succeed in going again to gold standard because they didn’t had enough
gold
• But America dollar was still at gold standard
• Other countries linked their currencies to gold
• If other countries want to convert their currencies to gold they need to have
dollar because otherwise their currency will be raddi
• Dollar became over valued as other countries growed .
• Dollar demand high
• In 1965 Charles de gaulle
• Why not ask America for gold in return for dollars
• France navy full ships of dollars go and come back with gold.
• Others countries did the same
• In 1971 America realized that matter is getting worse
• Dollar is already overvalued
• Because of vetinam and korea wars our money is going and also gold is also
going to other countries.
• Richard Nixon removed gold standard behind the dollars .
• All currency depending on dollar and dollar depend on nothing
• But small countries still kept there currencies linked to dollars
 CONCLUSION : THE HIDDEN PLAN
• https://youtu.be/uWcVxssAs2g
THANK YOU