Money Facts & Insights
(This Page is Under Construction - New Information Added Regularly)
000 Money is a medium of exchange, store of wealth and a form of memetic power.
001 "Money" is a meme structure that only exists in the neural networks of human brains linked to material objects or other memetic structures.
002 Commodity Money. A wide range of commodities have served as money in the history of mankind: salt, hides, cattle, slaves, tobacco, metals, silver, gold, etc.
003 Fiat Money. Fiat money replaces commodity money with valueless and inconvertible symbols issued by the state. It ultimately rests on social trust in the ability of the state to enforce payments in this form of money; it also provides a standard unit of account for prices. Fiat money can take several forms varying from cheap metallic coin, to crude paper monies with forced circulation.
004 Credit Money. Credit money is a privately issued form of money that results from credit relations among agents of circulation. It is inherently a promise to pay in the future, a liability of the issuer.
005 End of Gold Standard. August 15,1971 President Richard Nixon, without approval of Congress, suspends US Dollar's convertibility into gold.
006 Petrodollar. October 1973 President Nixon sent Secretary of State Henry Kissinger on a secret mission to meet with King Faisal of Saudi Arabia. Nixon asked King Faisal of Saudi Arabia to accept only US dollars as payment for oil and to invest any excess profits in US Treasury bonds, notes, and bills. In exchange, Nixon pledged to protect Saudi Arabian oil fields from the Soviet Union and other interested nations, such as Iran and Iraq. Faisal agrees. Petrodollar created without approval of Congress.
007 Petrodollar. In 1975all of the members of OPEC agree to sell their oil only in US dollars. Every oil-importing nation in the world needed US dollars to be able to buy oil. This created a high demand for US dollars and the currency strengthened. It forced the world's oil money to flow through the US Federal Reserve, creating ever-growing international demand for both US dollars and US debt, while essentially letting the US pretty much own the world's oil for free, since oil's value is denominated in a currency that America controls and prints. The petrodollar system spread beyond oil: the majority of international trade is done in US dollars.
008 Electronic Money. It is money that is issued privately and its units are stored on electronic devices. Units are purchased by advancing ordinary money at par value. Rapidly growing forms of e-money are prepaid cards, or prepaid software programs used on the internet.