The Fed’s answer for this cataclysm the actual world making might well be its answer for electrical devices these days: cut and print. Cut rates and print more dollars. The thinking obtain that cut and print will outcome even weaker dollars, subsequently cheaper looking stocks to foreigners and-the Fed earnestly hopes-an eventual rising market. And that would include the regular Joe’s and Jill’s 401ks.
Throughout history both silver and gold coins have functioned as dollars. As commerce became more sophisticated, various means of dealing with gold came to exist. One such way were pass on gold receipts as negotiable financial string instruments. The process was not difficult. You stored your gold with a goldsmith who issued you with a receipt for the same. Now you pass on that receipt to another – and pass with a claim to your personal gold. In this way gold became the backing for such receipts – including the easy carrying and transferring valueable. Of course coins were also common – like dollars of in these days.
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It wasn’t that simple, because while all types of things were used as a medium of exchange, these were all basically called “money” and around 25 years until coins and paper notes were developed that money as we will suggest it today became deals . accepted to be a medium of exchange.
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