The Origin, Evolution and the Inevitable Demise of Money Part Two

For my Readers who have not read The Origin, Evolution and the Inevitable Demise of Money Part One I suggest that you do so now.  You have to understand the basics about the Origin of Money that we deal with in Part One before you read this one on the subsequent Evolution of Money from where you can proceed to where we are today.

 Secondly, even if you are not one for Statistics you have to at least glance through Colonialism with one click on the blue, or visit my favorite Google links in

 It will be good if you can spend a little time in the links; however, take a good glimpse at the Colonial map of the World in the year of 1800 that I show you below; study as many other maps as you may wish to; more will greatly assist for the overall picture.


Colonialism in the World of 1800

Colonisation 1800.  Note the spelling.

 The origins of money were firmly established by 1760 but the ships still returned to their Home Ports laden with Colonial raw materials before reloading the now empty vessel with the manufactured products for the return journey back to the Colonies; the one usually paying for the other.  It is no coincidence that the Colonial period produced the need for modern money in the colonies that could also be used to pay for Hospitals, Schools, Railroad lines followed by Roads and when diamonds and gold were discovered in Africa the need for each country having its own currency developed.

 The American Declaration of Independence produced the first steps towards independent Nations; it was more of a Trade Document and the right of the Colonist to trade in his own name and be paid for it than the lofty words in which it was written.  It was written by a bunch of Aristocratic Englishmen but their intention was clear to form an Independent Republic of America and that England would in future have to buy their goods.  It was never meant to be a Democracy; in fact it was everything but Democratic for more than a hundred years.

 When America kicked the King out in 1812 and followed with the Mexican and the Indian Wars England went for Africa, joined by a horde of others.  Out of this modern money evolved; countries produced more of their own currencies and the “balance of payments” practice evolved or developed [call it whatever is your want or choice of word that you prefer] backed by solid assets and the Gold Standard.

 Except for the huge financial mess of World War 2 by the time that England started to dismantle the Colonies first with India in 1947 and Nkrumah grabbing Ghana for himself in 1957 the World looked in good financial shape by the time Kennedy took over in 1960.  Fixed exchange rates between independent Countries and the Gold Standard firmly in place, money tied to real hard assets and backed by Gold seemed to make for a good future for all concerned.  In fact Money and the Money Systems that were in place made for a secure World situation in 1960.

 I see that year as the completion of the Evolution of Money.  My next Post will deal with the unexpected disaster that followed and the eventual Demise of Money by 2010.

 By Ike Jakson

Saturday, November 10, 2012

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4 Responses to “The Origin, Evolution and the Inevitable Demise of Money Part Two”

  1. christophertrier Says:

    Did money die or did it re-invent itself? Fiat currency has existed for thousands of years. China was built on it. It goes up, it goes down. Life goes on.

    What I think we are seeing now is a complete re-birth of the financial order. Ideas are fluid and mobile. Much like people they go where they are most welcome. Commodities go where they are most welcome. Singapore welcomes ideas, it welcomes wealth, and it welcomes innovation. If people have something to offer Singapore opens its doors for them. People with skills can go to China, to India, to South Korea, to Taiwan. Hong Kong welcomes them just as well. Canada and Australia have the commodities that the world needs, Russia too.

    The Western-based financial system is done, though. We have ideas but not the capital or even desire to make the most of them. We have the skills but we’ve grown so envious of affluence, of prosperity, that we create a brain-drain and a downward spiral.
    Looking around the United States I see a country with no future — a country with intellectual tuberculosis. The jealousy, the resentment of success and prosperity that was once contained by a healthy society have broken out and are devouring the strength of the host. The useless are gorging on the scraps of a past prosperity. Much like a culturally bereft France, the United States no longer recognises its place in the world and carries on in denial.

    • Ike Jakson Says:

      Hi Christopher

      What a pleasant surprise; you are most welcome.

      I like the start of your second paragraph: “What I think we are seeing now is a complete re-birth of the financial order.” In fact, it has been on my mind for a fourth part in the series; soon as I have done part three on the demise.

      I want to study the rest of your wisdom in greater detail; the topic fascinates me if I read the ignorance in the news. Watch this space!

      What are you up to about your own future moves? Have you ever been to Zurich? Let me know. If you have been there I shall explain why I am asking.


  2. christophertrier Says:

    I’ve been busy and my regular computer was out at shop to get repaired. It’s still in good shape but parts do need to get replaced once in a while.

    At present I am in Central Minnesota but not for that much longer.
    I’ve never been especially fond of the country once known as the USA, now more accurately described as the Democratic People’s Republic of Obamastan. Through a sister of an old contact I am getting leads for stable, decently-paying positions in rural New South Wales. Far enough from Sydney to be away from the folly and madness of the urban world, close enough to break bucolic monotony on occasion. It’s not precisely what I had envisioned but an honest job is an honest job and there aren’t too many of them around. With my native Germany in a bad way (I can explain that in more detail if you’d like), my beloved England even worse, and little hope for a happy result to the current European crisis rural Australia seems a good place to be just to be away from all of this.
    Just being away from a global centre like California makes me realise that I am not missing much.

    I flew in and out of Zurich once, can’t say I’ve ever been too fond of the Helvetic Confederation but am somewhat familiar with the workings of the Alpine workshop. Why do you ask?

    • Ike Jakson Says:

      Thanks Christopher

      It’s a somewhat long story about Zurich. I shall email you. Please allow me a few days for that and to comment on the rest of your views. I feel much the same these days.

      Ike J

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