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Random Fact # 2

Posted by on Aug. 28, 2013 at 2:45 PM
  • 9 Replies
1 mom liked this

Did you know...

China was the first country to introduce paper money (in 812), but it wasn't until 1661 that a bank (Banco-Sedlar of Sweden) issued banknotes.

  

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by on Aug. 28, 2013 at 2:45 PM
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Replies (1-9):
Boobah
by Nikki :) on Aug. 28, 2013 at 2:57 PM
1 mom liked this
I did not. Now I do :)
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romacox
by Silver Member on Aug. 28, 2013 at 3:12 PM
1 mom liked this

That is interesting Kirbymom. I love learning  these things.and here is more history on money:

Most people have heard that Nero fiddled while Rome burned.  But few realize the creative way he handled the Roman coin to his own benefit, and that still effects us today.  You see, after Rome burned, Nero wanted to rebuild a tremendous complex in honor of himself, but he was short of funds to do so.

He concocted a plan: he collected coins from his subjects  as payment for taxes, and unbeknownst to them, he ordered the coins to be melted down and copper placed in the center making the Roman denarius only 94% silver.  Thus he ended up with more money than he had collected.  With this he was able to  build the lavish complex that his hart desired.  But the chain reaction he set in motion is the important history lesson that few know about.

Emperors that followed loved the idea of increasing their wealth in this manner, and they continued to add more copper. You see the incentive to increase their own wealth was greater than the incentive to improve the value of money to the citizenry.    By the time Rome fell, the Roman denarius had only 0.02% silver, and no one wanted to trade with this worthless excuse for money. Sound familiar?

The Chain Reaction Begins

After Rome many countries tried fiat money, but the fact is that every one of them collapsed, not only the fiat currency but also the economy that housed them. In every case it caused a transfer of wealth from the citizenry to those in power (legal theft).

Even the founders witnessed the effects of fiat currency. In 1690, Massachusetts began issuing colonial notes which  were originally redeemable in gold,  silver and other commodities..  Other colonies followed, and the money quickly became over issued making the money worth less and less (inflation). You see money must actually be backed by something it it is to retain its value. But meanwhile  leaders were well rewarded as was Nero.

The crash of the “continental” like every fiat currency before it  was significant, and something the Founders did not forget. They made it well known that they were totally opposed to the fiat money.  The Constitution says:   

(Congress shall have the power) To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures; (The Constitution, Article I Section 8)

But The Founding Fathers did not stop there.  George Washington wrote into law  the coinage act of 1792 which demanded the death penalty to anyone who devalued our currency as they now have (something most people know little about today).

kirbymom
by Sonja on Aug. 28, 2013 at 8:03 PM
1 mom liked this
That is awesome' I also love to learn. :)



Quoting romacox:

That is interesting Kirbymom. I love learning  these things.and here is more history on money:


Most people have heard that Nero fiddled while Rome burned.  But few realize the creative way he handled the Roman coin to his own benefit, and that still effects us today.  You see, after Rome burned, Nero wanted to rebuild a tremendous complex in honor of himself, but he was short of funds to do so.


He concocted a plan: he collected coins from his subjects  as payment for taxes, and unbeknownst to them, he ordered the coins to be melted down and copper placed in the center making the Roman denarius only 94% silver.  Thus he ended up with more money than he had collected.  With this he was able to  build the lavish complex that his hart desired.  But the chain reaction he set in motion is the important history lesson that few know about.


Emperors that followed loved the idea of increasing their wealth in this manner, and they continued to add more copper. You see the incentive to increase their own wealth was greater than the incentive to improve the value of money to the citizenry.    By the time Rome fell, the Roman denarius had only 0.02% silver, and no one wanted to trade with this worthless excuse for money. Sound familiar?


The Chain Reaction Begins


After Rome many countries tried fiat money, but the fact is that every one of them collapsed, not only the fiat currency but also the economy that housed them. In every case it caused a transfer of wealth from the citizenry to those in power (legal theft).


Even the founders witnessed the effects of fiat currency. In 1690, Massachusetts began issuing colonial notes which  were originally redeemable in gold,  silver and other commodities..  Other colonies followed, and the money quickly became over issued making the money worth less and less (inflation). You see money must actually be backed by something it it is to retain its value. But meanwhile  leaders were well rewarded as was Nero.


The crash of the “continental” like every fiat currency before it  was significant, and something the Founders did not forget. They made it well known that they were totally opposed to the fiat money.  The Constitution says:   



(Congress shall have the power) To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures; (The Constitution, Article I Section 8)


But The Founding Fathers did not stop there.  George Washington wrote into law  the coinage act of 1792 which demanded the death penalty to anyone who devalued our currency as they now have (something most people know little about today).


paganbaby
by Silver Member on Aug. 28, 2013 at 11:34 PM
1 mom liked this

That is so cool!

bluerooffarm
by Gold Member on Aug. 29, 2013 at 8:41 AM
1 mom liked this

 Everyone should learn about fiat money!!  I expected the German example of wallpapering their houses with money to be in that wonderful article, Roma!  :-)

Quoting romacox:

That is interesting Kirbymom. I love learning  these things.and here is more history on money:

Most people have heard that Nero fiddled while Rome burned.  But few realize the creative way he handled the Roman coin to his own benefit, and that still effects us today.  You see, after Rome burned, Nero wanted to rebuild a tremendous complex in honor of himself, but he was short of funds to do so.

He concocted a plan: he collected coins from his subjects  as payment for taxes, and unbeknownst to them, he ordered the coins to be melted down and copper placed in the center making the Roman denarius only 94% silver.  Thus he ended up with more money than he had collected.  With this he was able to  build the lavish complex that his hart desired.  But the chain reaction he set in motion is the important history lesson that few know about.

Emperors that followed loved the idea of increasing their wealth in this manner, and they continued to add more copper. You see the incentive to increase their own wealth was greater than the incentive to improve the value of money to the citizenry.    By the time Rome fell, the Roman denarius had only 0.02% silver, and no one wanted to trade with this worthless excuse for money. Sound familiar?

The Chain Reaction Begins

After Rome many countries tried fiat money, but the fact is that every one of them collapsed, not only the fiat currency but also the economy that housed them. In every case it caused a transfer of wealth from the citizenry to those in power (legal theft).

Even the founders witnessed the effects of fiat currency. In 1690, Massachusetts began issuing colonial notes which  were originally redeemable in gold,  silver and other commodities..  Other colonies followed, and the money quickly became over issued making the money worth less and less (inflation). You see money must actually be backed by something it it is to retain its value. But meanwhile  leaders were well rewarded as was Nero.

The crash of the “continental” like every fiat currency before it  was significant, and something the Founders did not forget. They made it well known that they were totally opposed to the fiat money.  The Constitution says:   

(Congress shall have the power) To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures; (The Constitution, Article I Section 8)

But The Founding Fathers did not stop there.  George Washington wrote into law  the coinage act of 1792 which demanded the death penalty to anyone who devalued our currency as they now have (something most people know little about today).

 

bluerooffarm
by Gold Member on Aug. 29, 2013 at 8:41 AM
1 mom liked this

 I did not know about the bank-notes.  Thanks!

kirbymom
by Sonja on Aug. 29, 2013 at 10:21 AM
1 mom liked this
That Was a nice little tidbit, wasn't it? :)



Quoting bluerooffarm:

 I did not know about the bank-notes.  Thanks!


HappyHomestead
by on Aug. 29, 2013 at 10:36 AM
2 moms liked this
OP and Roma thank you. I love the tidbits!
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kirbymom
by Sonja on Aug. 29, 2013 at 11:10 AM
1 mom liked this
Good morning! (?). :)



Quoting HappyHomestead:

OP and Roma thank you. I love the tidbits!

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