The blog http://coinsize.blogspot.com will be a log of my view about economy, socioeconomics, and impact of money on other subtle issues. Issues that we all homo sapiens face in the world in 21th century.
I am a believer that money and in particular 'currency' shapes the way we people spend our life and shape the society.
Coin Size highlights my view that some wise, simple, and fundamental thoughts pave the way for us in the future. Often there are negative forces that behold decisions for our human race and planet at large. Sometimes, it is the random outcome of self interest of million and billions of people that shape our market place. They may be investors, consumers, or people misguided/misled by their (political) leaders and even democratically selected governments.
I believe that the most important handle of all is the currency. Roughly, upto 1870s there was no paper currency is wide circulation. Then came the US dollar notes. And the economic and social landscape changed for ever as paper currencies were devalued by governments from time to time and currently all major world currencies are fiat currencies.
To understand more about currency, fiat currency, US dollar notes read the following:
Fiat currency simply means a currency not pegged (measured) against some physical commodity like gold. It is a currency which government has declared to be a legal tender for financial transactions.
Earlier gold coin where the currency. Gold can't be printed by any individual or government at will. Now, say that the government is under debt and it can't pay government employees, soldiers. Or the government wants to rescue some people or organizations under debt. Then what. Government can't print gold coins overnight in large proportion to existing base even by mining gold from earth. Here comes the paper currencies and further down the lane comes the fiat currencies. We will be discussing currencies very often on this blog and musing some thoughts about how to play the economic environment we have been handed.
Some gentleman said that in economics if something can't work that way, it won't remain that way. (Not exactly the same words :) ). But, the duration can be much longer than our life span. Cumulative imbalances have been building in western economies since decades. Credit Boom bust have brought fun and sorrow to many countries. So, the path we take is more important than the final destination.
Hope you will enjoy the blog.
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