![]() ![]() Wealth became promises to deliver money-what I call “financial wealth. While watching the fight, it is important to remember that we are only partially through the first round of this new struggle for control of the world order and that nothing is assured. Rules for lending changed and new types of money were made: cash deposits, bonds, and stocks that looked pretty much like we know them today. The alchemy of lending as we know it today was first created in Italy around 1350. It was an effective incentive-based system for getting rich. The explorers and those who backed them split the profits. ![]() ![]() That’s how the greatest fortunes were built at the time. A century or so later, in the Age of Exploration, explorers went around the world collecting gold and silver and other hard assets to make more money. As a result of this lack of lending, currency was “hard” (gold and silver). “Up until around 1350, lending with an interest rate was prohibited by both Christianity and Islam-and in Judaism it was banned within the Jewish community-because of the terrible problems it caused, with human nature leading people to borrow more than they could pay back, which created tensions and often violence between borrowers and lenders. ![]()
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