5 ms·

Somehow civilizations and empires flourished before modern financial instruments.

bayesianhorse 13y ago
They actually didn't. Banks have been around for centuries and where instrumental in any economic growth beyond medieval farming methods...
- icebraining 13y ago
  But "banks" aren't a currency. They may have issued their own currencies during the gold standard, but then again nothing prevents banks from issuing their own currency in an (absolutely hypothetical) bitcoin standard.
  - bayesianhorse 13y ago
    The gold standard had to be abandoned because it didn't work. For that matter, a new "Dollar Standard" is popping up, with all sorts of countries using the dollar as legal or quasi-legal tender...
    - oleganza 13y ago
      "Had to be abandoned"? Threat of 10 years in prison in 1933 does not sound like "people decided gold sucks". I guess, government had to take gold by force precisely because people trusted gold more than paper. http://en.wikipedia.org/wiki/File:Executive_Order_6102.jpg http://en.wikipedia.org/wiki/File:Executive_Order_6102.jpg
      - hencq 13y ago
        Isn't that exactly an argument why it had to be abandoned? The government couldn't increase the money supply, because dollars had to be backed by gold.
        icebraining 13y ago
        Well, some people disagree with the idea that the inability of the government to increase the money supply means the system doesn't work.
        hencq 13y ago
        Fair enough, but I think most economists agree on the problems with a gold standard [1]. This is moving off-topic, but it's interesting that this seems to be one of many topics where there's a rare consensus between economists, but the general public holds a different opinion [2]. 1. http://www.igmchicago.org/igm-economic-experts-panel/poll-results?SurveyID=SV_cw1nNUYOXSAKwrq http://www.igmchicago.org/igm-economic-experts-panel/poll-re... 2. http://www.economist.com/news/finance-and-economics/21569378-if-economists-agree-something-public-will-almost-certainly-think http://www.economist.com/news/finance-and-economics/21569378...
        gamechangr 13y ago
        I posted this article. This is a little off topic, but I like the links. Karma point to u.

They actually didn't. Banks have been around for centuries and where instrumental in any economic growth beyond medieval farming methods...

icebraining 13y ago
But "banks" aren't a currency. They may have issued their own currencies during the gold standard, but then again nothing prevents banks from issuing their own currency in an (absolutely hypothetical) bitcoin standard.
- bayesianhorse 13y ago
  The gold standard had to be abandoned because it didn't work. For that matter, a new "Dollar Standard" is popping up, with all sorts of countries using the dollar as legal or quasi-legal tender...
  - oleganza 13y ago
    "Had to be abandoned"? Threat of 10 years in prison in 1933 does not sound like "people decided gold sucks". I guess, government had to take gold by force precisely because people trusted gold more than paper. http://en.wikipedia.org/wiki/File:Executive_Order_6102.jpg http://en.wikipedia.org/wiki/File:Executive_Order_6102.jpg
    - hencq 13y ago
      Isn't that exactly an argument why it had to be abandoned? The government couldn't increase the money supply, because dollars had to be backed by gold.
      - icebraining 13y ago
        Well, some people disagree with the idea that the inability of the government to increase the money supply means the system doesn't work.
        hencq 13y ago
        Fair enough, but I think most economists agree on the problems with a gold standard [1]. This is moving off-topic, but it's interesting that this seems to be one of many topics where there's a rare consensus between economists, but the general public holds a different opinion [2]. 1. http://www.igmchicago.org/igm-economic-experts-panel/poll-results?SurveyID=SV_cw1nNUYOXSAKwrq http://www.igmchicago.org/igm-economic-experts-panel/poll-re... 2. http://www.economist.com/news/finance-and-economics/21569378-if-economists-agree-something-public-will-almost-certainly-think http://www.economist.com/news/finance-and-economics/21569378...
        gamechangr 13y ago
        I posted this article. This is a little off topic, but I like the links. Karma point to u.