A History of Bank And Money, Review From Me

Post by : NGDlover

When exactly did the idea that the community realize they need an institution called the bank? I think when people realize that it easy to borrow goods from one person and lend it to another person, and for the sake of this effort as a middleman, you can take some penny from the man who lend from you. It called interest.

But in the history of loans and money, there was a big problem laid down. When first time money created, a bill is always backed up by a number of gold with a value equal to the value stated in the bill, so if you hold a money with a value $10 that similar to the gold price $10. But after some people found that they can take some advantage from borrowing and lending others people gold and money, that gold back up is no longer true anymore.

People who founded the bank has used the authority as a place to save and holding the gold to make money as much as they can, and at the same time they told others people that they can use this money to replace gold as much as the value listed in the money they hold. This is the big lie which was became the starting point of today's inflation.

When the banks can not get enough gold to back up all of their money that created by them, they avoid others people to know what is really happening with their gold. That's make the bank could continue their operating safely.

In fact, if everyone took their gold deposits in bank at the same time, gold would not be enough for everyone. If that happens, the financial catastrophe will emerge, and the bank would be blamed.

That is the piece of the story you'll read if you open the url address below, a good article telling about how the history of money and bank that always covered secretly by the bank anywhere in the world. please check : http://www.articlesbase.com/finance-articles/a-history-of-money-and-banking-secrets-that-banks-dont-want-published-27642.html NGDlover archives