Understanding currencies stands as one of the most pivotal aspects of our lives, yet paradoxically, it remains one of the least comprehended by the masses. This lack of understanding isn’t coincidental but rather a deliberate oversight. A currency, whether in the form of money or paper, operates as the perfect instrument for indebtedness. It’s widely acknowledged that currencies dictate our way of life. Consequently, in this inaugural module, we delve into exploring how currencies collectively shape the most expansive market ever to exist.
The Genesis of Currencies
Currency
“No worries, let’s make the exchange.”
Like numerous other human advancements, the genesis of currencies sprouted from necessity. Simply bartering goods and services wasn’t adequate; a method was required to accumulate and retain “value.”
The inception of the first currency dates back to roughly 2,000 years BC in the form of paper notes. Nearly 500 years later, the first coins—crafted from gold, silver, and bronze—began to circulate. A gold or silver coin, to this day, retains its inherent value.
In the 6th century, China introduced the first paper currency, akin to what we use in contemporary times.
Since that time, each subsequent banking system has been established with the primary aim of printing paper currency as a means of facilitating massive indebtedness.
However, there are limited exceptions, such as the Central Bank of 16th century Netherlands, which was overpowered by the current banking dominions of England. The trajectory for the rest has been a repetition of the same cycle.
In the early stages of monetary systems, this paper currency was typically backed by gold.
At present, very few currencies are backed by this material. It’s often elucidated that the demand for currencies relies on the quantity of imported goods and services. Simultaneously, the supply of currencies hinges on exports and foreign investments.
While undeniably accurate, these activities aren’t random nor at the whim of importers, exporters, or investors. It’s akin to deceit through omission—a simplistic rhetoric designed to befuddle and misguide perceptions about currencies and the broader economy.
All currencies are under the control of the issuing central banks. A currency augments its monetary foundation at the behest of the authorities governing that bank, not due to the astuteness of importers, exporters, or investors. Quite the contrary.
The central bank provides the intoxicating elixir for the revelry, and the aftermath is paid for by the people—manifesting as a reduction in currency liquidity, a surge in living costs from price inflation, and an up tick in taxes.
Module 01 Lessons
[01-01: The Market
[01-02: Strategies
[01-03: Styles
[01-04: Fundamentals
[01-05: Technical
[01-06: Risk
[01-07: Psychology
[01-08: Brokerage
[01-09: Scams
[01-10: Costs
[01-11: Requirements
[01-12: How to Get Started