58 pages • 1 hour read
Peter ZeihanA modern alternative to SparkNotes and CliffsNotes, SuperSummary offers high-quality Study Guides with detailed chapter summaries and analysis of major themes, characters, and more.
Tracing the origins of currency, the text notes that not until the seventh century BCE was barley replaced with something of value, such as a metal. It is essential for a government to build trust in its currency. If people believe that a currency is not exchangeable for something of value, financial collapse is likely. However, the text explains that even good economic management can culminate in currency collapse. The more economic growth a country has, the more need it has for supplies of a precious metal. At some point, obtaining those supplies is impossible. The text cites two examples. The first is the Spanish Empire’s loss of access to silver mines when Peru gained independence. The second is the US’s inability to back the dollar with supplies of gold by the 1970s. At that point, President Nixon “cut the cord” (178) and removed the gold standard; the dollar was backed solely by the “‘full faith and credit’ of the U.S. government” (178).
With the US’s abandonment of the gold standard in 1971, the rule that money exists in limited quantities ended. In a world of fiat currencies, the Asian model made finance a tool of the state.
Books on U.S. History
View Collection
Business & Economics
View Collection
Community
View Collection
Globalization
View Collection
Immigrants & Refugees
View Collection
Memorial Day Reads
View Collection
Military Reads
View Collection
New York Times Best Sellers
View Collection
Political Science Texts
View Collection
Politics & Government
View Collection
Safety & Danger
View Collection
YA Nonfiction
View Collection