How is Money Created? – Everything You Need to Know

By Aera Sylph

Ever wonder where money REALLY comes from? 
This book peels back the curtain on the secret world of money creation, revealing truths that will:
Shatter your preconceptions: Discover the hidden mechanisms that pump trillions into existence, seemingly out of thin air.
Raise your eyebrows: Explore the players involved, from central bankers with magic wands to shadowy algorithms whispering financial spells.
Spark your curiosity: Dive into the consequences, both intended and unintended, of this monetary alchemy.
Is money a tool for prosperity or a recipe for instability? This book equip you to ask the right questions and navigate the ever-shifting financial landscape with newfound awareness.

• Language: English
• Publisher: AERA
• Release date: Feb 23, 2024
• ISBN: 9791223010686

Book preview

How is Money Created? – Everything You Need to Know By AERA

Chapter 1: From Barter to Bits: A History of Money's Wild Ride

Imagine a world where you haggle for groceries with chickens, pay your rent with seashells, and invest your savings in pointy rocks. Sounds crazy, right? Yet, for most of human history, this preposterous barter system was the reality. Exchanging goods directly was cumbersome, inconvenient, and downright awkward (try explaining why your prized cow isn't a fair trade for a haircut).

But humans, being the ingenious creatures we are, craved a better solution. Thus began the epic journey of money – a journey filled with glittering gold coins, silk scrolls bursting with promises, and now, even lines of code dancing on digital screens.

First Stop: Commodity Cash: Forget Bitcoin, the first currencies were tangible goods with intrinsic value. Think salt, spices, grain, even cattle! These served as both a medium of exchange (you could buy stuff with them) and a store of value (they wouldn't rot away like your week-old fish). Remember those pointy rocks? The Yap islands in Micronesia used massive stone discs called Rai stones as money. Talk about carrying the weight of your wealth!

The Metalmorphosis: As societies grew, lugging around sacks of salt became impractical. Enter precious metals like gold and silver. Shiny, durable, and (relatively) rare, they became the gold standard (pun intended) for money. Coins were minted, empires rose and fell on their metallic might, and pirates plundered ships not for spices, but for chests overflowing with these shiny treasures.

Paper Promises: Fast forward to China in the 7th century AD. Imagine the emperor saying, "Hey, lugging