In Money We Trust - A Documentary on Money Basics

An excellent documentary on money and monetary system basics has been released for global distribution by PBS. The title of the documentary is "In Money We Trust?". Readers may think of it as a followup to our earlier article on Money Basics.

The video features a diverse group of experts who walk us through the history of our money in an easy to understand format. Below I have pasted in the introduction text for the video and a direct link to watch it. Following that are some added comments.

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In Money We Trust ?

"In Money We Trust? asks & answers the question, “what is money” and explains how money provides a shared measure of value that facilitates trade and cooperation between strangers. Throughout history, trustworthy money has fueled human achievement from the emergence of philosophy to the high-tech revolution. Featured guests: Alan Greenspan, Paul Volcker, Adam Fergusson, Steve Forbes." (note: Dr. Judy Shelton who we have featured here on this blog is also featured in this documentary)

Please click here to watch the documentary video

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My added comments: 

So why is this important?

If you will take an hour to watch the video linked above, I think it will become obvious why this information is important for all of us to understand. Money has a long history and has been used to do much good and to do much bad. The power to control money and the monetary system people use has been sought after for centuries and still is today. 

Please note as you watch this video how that what happens to money can lead to all kinds of human suffering when poor choices are made. The role of the devaluation of the German currency contributing to the rise of the Nazi regime is a particularly stark example from history mentioned in this documentary (starts just after the 18 minute mark).

When things are normal and the value of money is reasonably stable, the potential for very bad things to happen is reduced. History shows us clearly that when the monetary system fails and the the money used by the general public is substantially devalued, the potential for major social unrest and even major wars increases. Obviously, it's important to understand what causes people to lose trust in the money they use and what solutions might best restore order.

When things go bad financially, the first thing that happens is that people look for someone or something to blame for the crisis. This documentary points that out very well as we have done here many times. 

If the people do not understand what is happening and why during a time of major crisis, they may be led to place blame in the wrong direction by various politically motivated voices. This poor choice (placing blame in the wrong direction) then may lead to major unnecessary (but very real) human suffering if the wrong solutions are adopted to "solve the crisis".

The goal here is to try and emphasize that these issues are important to all of us and can directly impact our daily lives. History shows us that nothing stays stable forever in regards to money and monetary systems. The view here is that the better we understand these issues, the better off we will be when the next inevitable major crisis does arrive. The younger you are, the more likely you are to see the next one. But it's important for all of us to understand as much we can.

Here is the 2 minute "In Money We Trust" video trailer

Added note: Following this article later this month will be one featuring a recent update on where things stand with central bank digital currencies. Are they a form of future money? Not yet apparently based on this latest update.

Additional added note: For those who might want to do a deeper dive into some monetary history, this paper may be worth your time to read. One of the authors of this paper is an economist that I get input from now and then.

Added note 5-21-2019: John Stossel features and reviews this same documentary here on Reason. 

Money and Monetary System Basics - Upcoming in April

This blog was created to watch for any signs of major monetary system change that could directly impact the daily lives of all of us. While the blog does feature a variety of diverse views from some leading experts around the world, the real objective of this blog has always been to try and reach an audience consisting of the average person like myself that does not have an in depth academic background on these issues.

When things are going normally, most of us don't have significant interest in the kind of issues we talk about here. We just take it for granted that the monetary system will function properly in a way that allows us to carry our daily business activities. However, every now and then, we get some kind of major crisis that forces us to become more motivated to learn about what is happening and why. We know something is not right and we need to better understand what it is.

Fortunately, since the last big crisis in 2008-2009, we have avoided the kind of major crisis that could force major monetary system change under duress. But that does not mean the underlying issues have gone away. Simmering below the surface are issues that are contributing to some of great political divide we see around us. Many times we don't realize that these issues related to money and monetary systems may directly underpin clashes that on the surface seem to be political battles.

There is a growing public perception that something is not right or not fair about how our system operates that is creating a massive "wealth gap". Many younger people are more inclined to challenge the present system and we see this discontent expressed in the political arena in proposals such as the "Green New Deal". This is also creating a new debate over old ideas such as whether we should head into the future as a more capitalist system or as a more socialist system. This Economic survey of Millennials indicates they are not confident about the future of our present system (in part due to living through the impact of the 2008 financial crisis) and therefore may be more open to ideas for change.

While it may seem like these are new ideas and new debates, in many ways they are not. They are new to those who are younger because they may be hearing them for the first time. 

All of this emphasizes why it is important for all of us (younger and older) to learn as much as can about these issues. Historically, when nations have made bad choices in regards to money and monetary systems, a great amount of perhaps unnecessary suffering has followed (including being contributing factors to world wars and severe civil unrest). 

Even today, as we look around us, the following questions are quite relevant:

- Is our current monetary system just and fair?

- What is happening in places like Venezuela? What are some root causes of the problems?

- Can we just create as much money as we need to insure general prosperity? If not, why not?

-If we can create money to bail out large financial institutions, why can't we create money to help out those at the lower end of the financial ladder?

-How does money and the monetary system impact the political process?

The premise here is that before you decide what your views are on these issues, a basic understanding of some of the fundamentals would be helpful. In April, we will devote some time to articles that will provide some basics on both money and monetary systems. The articles won't be for those with advanced economic backgrounds.

These articles are especially designed for younger readers that may not have had any in depth exposure to these very important basic concepts. They are not broadly taught now in the formal education process unless you are specializing in economics. They are non partisan in nature and concentrate more on basic fundamental concepts and the fascinating history of how our money and monetary system has evolved over time. Without at least some understanding of this history, it is very hard to understand the issues we face currently and will face into the future.

If you know anyone that might benefit from this type of information (especially younger readers who may be thinking about these issues for the first time), I hope you will direct them to these upcoming articles in April here on the blog (first one is tomorrow).

I asked Dr. Judy Shelton to preview one upcoming article and she offered this comment to use here:

"I hope this kind of information reaches many young people and causes them to reflect on the importance of trustworthy money."  -- Dr. Judy Shelton

Added note: First article on Money Basics is now posted here.