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Where Does Money Come From?


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There's a very common idea that money comes from the government.

But this is very dangerous.

There have been brief periods when this was helpful.

But there have been many more incidents when government issued money caused way more problems that they intended to solve.

The very first official "money"  was created way back with King Croesus of Lydia made the first coins.

About 500 BC or so.

These were very helpful, because before that happened, you had to KNOW the person from whom you were accepting any kind of exchange.

But once the first official coins were created, economic activity exploded.

But like all good things, there good sides and bad sides.

One of the many reasons for the collapse of the Roman Empire was HOW the government became corrupt.

If you find a coin from the early stages of the empire, it's mostly silver.

90% or so.

But if you get a coin from a later period, a couple hundred years later, it's only 10% silver.

Why the change?

If you work for the government, the only money you can get is by collecting taxes.

(or invading other countries and stealing their stuff).

But some clever Emperors figured out a sneaky way to get money.

They collected all the coins, melted them down, and then made more.

If you start with 100,000 coins of 90% silver, melt them down, you can make 200,000 coins of 45% silver.

That's like getting 100,000 coins for FREE!

One of the reasons the Roman Empire collapses was the money died.

You'll find that this is very common in collapsing societies.

Once they money dies, it's all over.

So, in order for the money to come from the government, you've got to TRUST the government to not pull stuff like this.

But in all cases, government issued money is NOT a new idea.

It's not like people are sitting around, wishing they could buy and sell stuff to each other.

They were already doing this BEFORE King Croesus invented coins.

The coins just made it easier.

The truth is that if you put ANY group of people together, they will FIGURE OUT what to use for money.

This means finding and using money is a human INSTINCT.

Even little kids, when trading things like Pokemon cards, know that some cards are useful, but only because they can be traded for other cards.

Every society that has ever lived have used some kind of money.

Sometimes the government helps this process.

Sometimes they muck it up.

But the most important point is the idea of money exists inside your BRAIN.

And in the brain of everybody else.

Expand this natural instinct, so you can make as much money as you can.

Whatever from it may take.

Learn How:


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