John Mauldin published one of his best Thoughts from the Frontline. It tells how money was born even if that was not the intention…
Ironically, these transactions were originally recorded on clay tablets, which were broken when the loan was repaid.
When a loan was made, money (the clay tablet) was created. When the load was paid off, money (the clay tablet) was destroyed. Later money was made more complicated using gold instead of clay so it would be a store of value but it was double counting, the loan and the intrinsic value of the gold. No wonder no one gets it any longer.
John Mauldin also mentions two of my favorite economic characters,
- Frederic Bastiat - libertarian or Austrian school economist
- Pierre-Joseph Proudhon - anarchist
More interesting for Economic Fools is the critique of Central Banks, how they created the mess we are in.
Ironically, these transactions were originally recorded on clay tablets, which were broken when the loan was repaid. But numerous surviving unbroken tablets recording unpaid loans give us an idea of their loan terms, which often made today’s credit card companies look generous.
This is likely obvious to you. It certainly is to me. Yet it clearly isn’t obvious to everyone, and particularly to some central bankers and their advisors. This leads to many of the problems I discuss in these letters.
Time Has a Price
The Propaganda of Free Credit