Beau Severn Philosophy 101 CCBC Essex Spring 2018 Ascent of Money by Niall Ferguson Chapter 1 of this documentary by Niall Ferguson focusses on the "Dreams Of Avarice." Throughout human history, we see the need for money in all societies, from hunter – gatherer, to more refined civilizations that trade and have commerce. The world became a place smeared with the mechanics of an economy. Even though some civilizations ran their economy differently, they all tie into each other and have a role to play in the global financial cycle. Societies with hunter – gatherer economies tend to engage in war for their goods, whereas places with more structured mixed markets tend to export and import goods. The Turks, Greeks and Romans were the first people to use a currency, in the form of coins. They used silver and sometimes gold to make coins so they couldn’t be forged as easily by people without the money. This backfired eventually, because silver inflated in Europe because of the lack of distribution. The silver mines were all owned by big companies who stopped selling as much of it to the money makers. This led to an increase in trade; goods for other goods. Yes, this was seen as a step backwards but with the global economy always going up and down people couldn’t rely on gold and silver coins to keep their value. In today's society, money isn't very tangible. Only 11% of the worlds money is actually in cash. The rest of the money is in a credit system.
Chapter 2 talks about human bondage. Bond markets aren't as exciting as the stock market, but it has shown itself to be very powerful. This is because states issue bonds at a set interest rate, so the buyer is certain they will receive their money unless there is a major economy collapse. The states need money, and the only way to make money is to spend it, especially in an economy like the USA's. States only run out a certain number of bonds so when it's time to pay they know they will have the funds to do so. A long term bond rate sets the economic rate for the country as a whole, because now the economy has a path that will show exactly how much the people spent on the state and how much the state is giving back. If the
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