Executive Pay: The Curious Case of Carlos Ghosn’s Arrest
February 12, 2025
Facebook is a company which has been growing at a breakneck speed. Within a decade, the company has already started dominating the advertising industry. However, now, Facebook has decided that it needs to diversify from the advertising industry. Following the example set by Chinese companies, Facebook also believes that communication and payments go hand in […]
Globalization of Supply Chains and its Implications We have discussed how the globalization of the world economy has made the globe more integrated and interconnected. While this has both positive and negative effects on the way global trade and commerce takes place, there is one critical aspect that needs our attention. That is to do […]
Disaster Recovery and Business Continuity have become an integral part of the ongoing business process with most of the Organizations that consider it important to do risk assessment and risk mitigation to safeguard their business from all sorts of threats and crises. DR & BC plans can be drawn up in detail and elaborately to […]
The Roots of the Present Economic Crisis The global economic crisis that started in 2008 has its origins in the events of the 1970s. That was the time when the United States reneged on its commitment to work under the Bretton Woods Agreement, which stipulated that countries must peg their currencies to gold and must […]
When analyzed in financial terms, it turns out that the world is in a precarious position. However, there seems to be no sense of urgency amongst the people. This may be because of the fact that newspapers, as well as other forms of media, are not warning the people that a recession might be around […]
The past few generations have become used to money being issued by the government. Hence, there is an implicit assumption that maybe this has always been the case. However, this is not the case. Many people will be surprised to know that creating money was not always the job of the government. Private money was a reality before the government took it over.
Seeing the lax government policies, many critics believe that there should once again be a private money market. Anybody should be allowed to issue money and then the market should be allowed to decide amongst various monies like they decide amongst other products.
In this article, we will understand the concept of privately issued money.
At the present moment, the government has the monopoly over the issuance of money. Hence, if you live in the United States, only the federal government can issue money. Any other attempt at issuing money is called counterfeiting and is punishable by law.
However, this need not necessarily be the case. In the past gold and silver was considered money. Goldsmiths had created brands which allowed consumers to trust the purity and value of the gold that they were receiving. The dollar was originally a specific weight of silver! There is no reason why private parties cannot issue private money. Once again, the credibility of their money will be evaluated by the market. There are several major benefits of having a private money issuing system.
Private money markets are likely to have their fair shares of problems as well. Some of them have been listed below.
To sum it up, it is unlikely that modern governments will allow the fiat money system to be replaced by private money. However, it is possible to have such a system. In fact such a system has existed for most of recorded human history.
Your email address will not be published. Required fields are marked *