The first book describes the common misconception between money and assets. The concept of asset doubling when gold is used as money is presented in an exciting way. The failure of many people to understand this important but never presented before concept, ultimately hastened the demise of the gold standard. The origin of money is explained carefully with illustrations, and how money is used in our everyday lives, from the original issuer, right to the end user. Explanations on why money must come from debt and the misconception on money’s intrinsic value can also be found. Gold which is a subset of, or just another “type” of asset is studied in detail and why it must never be confused as money.
The first book of the series also listed more than twenty conspiratorial claims, which will be answered throughout the whole series. In this first book, the authors took on several of these claims such as whether money should be made from valuable items (such as gold) or whether the imposition of interest would suck money out of the system.
Topics covered in this section:
Money Creation From Asset; includes Lesson 1: Can you have your cheesecake and eat it too?
Central Bank or Government as Issuer of Money; includes Lesson 2: Money Origination and Propagation Simulation and Lesson 3: Barter Economy
In this section, the most basic of our economic activities are beautifully explained. Why money is needed and how it initially appear in the economy, is explained thoroughly. If money is created from another asset class, for example rare metals, the amount of assets in the economy will need to double. This doubling will occur, without any corresponding increase in the real, actual wealth in the economy. It is a false increase and therefore not practical. This section also explains why money must come from debt where all money issued, must be matched to the assets that is backing it. Finally it will explain the misconception on why paper money has no intrinsic value and why no modern money can have intrinsic value.
There are also three video lessons introduced in this section, both available for download in the digital section.
Topics covered in this section:
Not Fair If Someone Found Gold In The Ground
Gold’s Failure to Represent Assets Of The Economy
Mismatch between Gold Supply and Money Demand; includes Lesson 4: Gold Movement Between Two Countries
“Gold Standard” Actually Still Exists To This Very Day
In this section, public perception that places gold as a precious asset is challenged. Gold is compared to simple everyday item and failed miserably to show its supposed intrinsic value. The misconception that those who have gold are rich is debunked for good. From economics standpoint, gold has little value, especially if it is stored and hid away somewhere. The problem of using gold as money is then explained thoroughly, clearly and wonderfully with plenty of drawings plus with accompanying online movie presentations to bury this wrong perception once and for all.
The worldwide Great Depression in the 30s was explained as well and those countries that abandoned the gold standard saw their economies improved. The section closes with a very interesting piece, revealing that the so called gold standard actually still exists today and the result can be studied extensively! Thus, it is not true when those gold proponent who say that we should change to gold first, in order to see the ‘benefits’, it is still here and the result can really be seen (it is not pretty of course).
A new concept presented in this series is that, apart from hundreds of illustrations, there are lessons introduced in the books as slides images with explanations to facilitate and simplify concept introductions and explanation. These lessons have their own video presentations in .wmv formats which can be downloaded freely.