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Uploaded by on Mar 11, 2010

http://www.lendinguniverse.com/fast_commercial_hard_money_loans.htm bad credit money loans In effect, the bank had exchanged its promises to pay for those of the business firms to whom it lent. It was able to collect interest on this exchange because it was prepared to meet its promises to pay on demnad. The banker "created" money but he did not create wealth. The fact that debts circulate as money and that banks do create money seems at least as odd as the use of sharks' teeth for money among primitive peoples. But the development of bank-note currency was the culmination of several hundred years of experience with the use of various kinds of evidences 11 of debt to avoid the risks and inconveniences of carrying and storing coin. It was also a response to the generally poor state of the coinage and the willingness of business and government to pay high enough interest rates to make banking a worthwhile occupation. Money is one of man's greatest inventions. Try to imagine the operation of a complex industrial society-especially a democratic one-without money. That almost all but the simplest human societies have used money proves that it is an essential tool of civilization. But useful though it may be, money has always been a problem. Inflations and depressions have been among the most serious upheavals of industrial societies-and defects in our monetary arrangements have played an important part in every major inflation and in every major recession we have suffered. In their efforts to repair the apparent defects in their monetary arrangements, governments have erected elaborate systems to control the issue of currency and the operation of banks. Moreover, the victims of inflations, deflations, devaluations, and financial panics have understood that their troubles were in some way connected with the monetary system, but not exactly how. As a result, monetary disputes become disputes over articles of ideological faith. To most people "sound money" has the same standing as home and mother. But exactly which monetary policy is the "sound" one is not so well-agreed. And on the fringes of the debate there are always a few monetary cranks-the faith-healers of economics -who have found the one monetary system which will solve all I ' the world's problems.
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