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The History of Paper Money - 2: Not Just Noodles - Extra History

🕑 Added 2016-10-07 16:34:54 +0000 UTC

Comments

Dave Levy

This also means that we are playing with the representation of more wealth than actually exists. So we are depleting actual wealth (resources, energy) in a way that is not proportional to its actual value and availability (read: unsunstainable), and we are pushing energy into the biggest financial bubble imaginable: that of the financial system itself. When shit hits the fan and people want to liquify massively, everything will collapse. That, or we will manage to find ways to increase actual wealth quickly enough and in a stark enough difference from what we have now as to close the gap. Can't say I'm optimistic :)

Nathan O'Connor

Well yeah. Before advent of coinage Ancient Egypt was originally a barter economy, which means you pay and are payed using base commodities such as food ( i believe grains of wheat were particularly popular ) the advantage of this system is that if you do not have enough commodities to purchase something you can substitute your time and labour to make up the difference, this is also how Ancient Egypt amassed a large enough workforce in a pre-coin era to build their great monuments, Temples and tombs ( such as the pyramids ), people's taxes were due.

Joël Quenneville

I *LOVE* the way you drew Charles 1 <3

Laura Galm

I never thought about paper money this much. Is this series going to make it to the Fiat system we have now? (I assume that means our money is backed by Italian cars, and not Debt. )

Dani McKenzie

Love this episode!

Jim McGeehin

The advent of paper currency would be huge for the financial industry. Interest, fractional reserve banking , and larger foreign trade spurred in some part by the greater money supply (as well as shipbuilding technology, relevant trade industries, everything builds on everything) could spur large loans and a rise in economic activity, which in turn furnished a wealthy, active middle class. The effect this middle class would have on life from the 1500's-1700's is profound, shaping the world as we know it today, from electoral government all the way down to the thriving consumer goods industry.

Timothy McLean

It seems like <i>the origin of</i> banking isn't directly relevant to the creation of paper money. Still, the origin of banking is definitely something to add to the stack.

Kathyrne

Kitty watched Salad Fingers, then Kitty watched paper money.... Kitty's head hurts... :(

David Harkness

"We're cool."

Kyle Clark

<a href="https://en.wikipedia.org/wiki/Knights_Templar" rel="nofollow noopener" target="_blank">https://en.wikipedia.org/wiki/Knights_Templar</a> Essentially, the Crusader orders held onto minor noble's assets in exchange for letters of credit (promissory notes) that could be used to buy stuff in the Holy Land. Do that for centuries and 9+ Crusades later, profit.

Martin Verran

In Ancient Egypt, before the Egyptians started minting Coins, Workers were sometimes paid in, believe it or not, Bread and Beer.

Zachary Taylor

Wait... how did the Crusades create Banking? That I would love to know!

Nessf

Hardly a surprise, really.

Michael Waisfeld

It was Walpole!

maxM@x

Fun fact is I believe a majority of the world's currency, discounting commodites, is still in a form of promissory note. Whether it's a form of Bond, Mortgage, an assortment of micilanious terms, or the National Deficate these are all basically IOUs. I am unwilling to decree a spicific monetary value for this thought as we're getting into speculation over what is the value of 95% of anything you can think to own. Though it's fun when you realize in the end social economic contracts hold more power than governments, banks, or corporations. It's why everyone craves or fears "the will of the market" our global economy's worth basically gets assessed by the principles of mob justice or public opinion. <a href="https://youtu.be/WhI72CFrqEk" rel="nofollow noopener" target="_blank">https://youtu.be/WhI72CFrqEk</a>

Sean Sarff

Are we going to touch on the Templars in this series? They kinda became the bankers of Europe after all. At least until France decided it was easier to kill the bankers than pay off their loans.