Money: An Unofficial Biography of Money by Felix Martin

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When I was 15, I received a gift from my best friend, Max—a book that would shape my understanding of money. From that day on, my friends knew that books were the way to my heart.

Yap Island’s Unique Currency: Giant Stones and a Trust-Based Economy

In the remote Yap Island, found a hundred years ago, an extraordinary monetary system thrived. The inhabitants used enormous coin-like stones with holes in the center, known as Rai stones, as a form of currency. These stones were immovable, some as large as cars, and were quarried from distant islands and transported with great effort.

What made this system work was an intricate web of trust and communal understanding. Ownership of the stones could change without them physically moving. If someone wished to buy something, like 10 kilograms of fish, they would simply declare the transfer of ownership to the fisherman. Everyone in the community would acknowledge the new ownership and the transaction was complete.

The stones didn’t even need to be seen to hold value. In one legendary tale, a Rai stone was lost at sea during transport, but the community continued to recognize its value, and it remained part of the island’s currency system.

This unique approach to money, rooted in social trust and shared belief, challenges conventional economic thinking and provides a fascinating glimpse into how value can be ascribed and exchanged in diverse cultures.

The Birth of Forwards and Futures: Lyon, 1535

In the bustling market town of Lyon, France, in 1535, an extraordinary transformation was taking place. Amidst the cacophony of sellers peddling meats, fruits, and tools, one man stood out. He had no physical products, just a fountain pen, paper, and an idea that would revolutionize trading.

This man began selling the future by signing contracts to buy wheat at predefined prices and reselling them at higher rates. This practice, known as Forwards or Futures, was a radical departure from traditional commerce. It attracted attention, skepticism, and eventually imitation. Other traders started following suit, and soon, Lyon’s market was flooded with these future contracts.

The city’s reputation grew, attracting merchants and financiers from far and wide. Banks and financial institutions took notice, and Lyon became a hub for innovation in finance. By the end of the century, it was not only France’s financial center but also the heart of Europe’s burgeoning capital market. The man with the fountain pen had set in motion a wave that would eventually shape modern stock markets.

Eric’s Adventure: Risk, Profit, and the Birth of Joint-Stock Companies

Across the sea, in the small but ambitious trading nation of the Netherlands, a Dutch trader named Eric had a vision. He dreamed of building ships to explore and trade with distant lands, but his ambition was larger than his credit. Banks and friends lent what they could, but it was never enough.

Undeterred, Eric took a novel approach. Instead of seeking credit, he asked investors to buy a share of his profits. This was a new concept, and it attracted adventurous and like-minded individuals who saw the potential in overseas trade.

Eric’s first voyage was a resounding success, bringing in profits that exceeded all expectations. Word spread quickly, and more people clamored to invest in Eric’s next expedition. His fleet grew, and so did his reputation.

However, managing the growing number of investors became a Herculean task. There were disputes over ownership, profits, and investment terms. The government, too, struggled to track who owned what and how much tax was due.

The solution was as innovative as Eric’s trading model—a centralized exchange where shares in his ventures, and those of his competitors, could be bought and sold. This was the genesis of the joint-stock company and the stock market, concepts that would define global commerce for centuries to come.

With each new voyage, risks and rewards were shared among an ever-growing pool of investors. The idea spread across Europe, laying the groundwork for modern corporations and investment structures. Eric’s vision had not only opened new trade routes but also charted a course for the future of business and finance.

John Law: The Gambler Who Shaped France’s Monetary System

John Law, a charismatic Scotsman, was a gambler, banker, and economist whose ideas would leave an indelible mark on France’s monetary system. Sentenced to death in Britain for killing a man in a duel, Law escaped to Europe, where his financial acumen caught the attention of France’s regent.

France was in financial ruin after years of war, and Law proposed a radical solution: replace gold and silver with paper money backed by land. He believed this would stimulate the economy and reduce the national debt.

In 1716, Law founded the Banque Générale, issuing paper money that could be exchanged for coins. His ideas were initially successful, and Law’s influence grew. He took over the Mississippi Company, controlling French trade with the Americas, and his paper money fueled a speculative bubble.

However, Law’s success was short-lived. Doubts about the real value of the paper money led to a loss of confidence, and the bubble burst. Law was forced to flee France in disgrace, his innovations leading to financial chaos.

Yet, despite the catastrophic end, Law’s ideas were ahead of their time. He foresaw the potential of a centralized banking system, fiat currency, and the complex interplay of economics and psychology. His story is a cautionary tale about innovation, ambition, and the fragile nature of economic systems, but also a testament to the power of ideas to shape history.

These expanded sections provide a more comprehensive view of the unique currency system of Yap Island and the complex story of John Law. By delving into the details, the narrative paints a vivid picture of these historical phenomena, offering readers a deeper understanding of the diverse and often surprising world of money.

Beyond the Stories: A Rich Exploration of Money

“Money: An Unofficial Biography of Money” by Felix Martin goes beyond the fascinating stories of Yap Island, Lyon, Eric’s adventures, and John Law. It dives into the complexities of debt, the art of printing money (seigniorage), the ideologies of capitalism and communism, the evolution from the gold standard to fiat currency, and the prominence of the U.S. dollar.

This article was edited by ChatGPT, which assisted me in crafting the storytelling, paraphrasing sentences, and verifying facts from both the book “Money: An Unofficial Biography of Money” by Felix Martin and my own memory. The collaboration has helped shape a more engaging and accurate representation of the book’s rich exploration of money and its multifaceted history.

These three books have had a profound impact on my life. I first read them when I was 15 and have re-read them every 2-3 years to remind myself of the valuable lessons they contain. While simply following the rules outlined in these books may not make you a millionaire, they will help you understand the true value of things, become a kinder person, and get more value out of your interactions with others.

Dale Canegie: “How to Win Friends and Influence People”

Don’t criticize, condemn, or complain: This creates animosity and puts people on the defensive.
Give honest and sincere appreciation: People are more likely to respond positively when they feel appreciated.
Arouse in the other person an eager want: Help others see the value in what you’re offering and how it can benefit them.
Be genuinely interested in other people: Show a genuine interest in others and their interests and experiences.
Smile: A smile can go a long way in creating a positive impression and building rapport with others.
Remember that a person’s name is, to that person, the sweetest and most important sound in any language: Use someone’s name when speaking to them to create a connection and show that you value them.
Be a good listener: Show that you’re listening by giving your full attention and acknowledging what the other person is saying.

7 rules of highly effective people

Be proactive: Take responsibility for your actions and don’t just react to situations.
Begin with the end in mind: Set clear goals and work towards them.
Put first things first: Prioritize your tasks and focus on the most important ones first.
Think win-win: Seek mutually beneficial solutions in your relationships and interactions.
Seek first to understand, then to be understood: Listen actively to others and try to understand their perspectives before trying to explain your own.
Synergize: Work effectively with others to achieve more than you could on your own.
Sharpen the saw: Take care of your physical, mental, emotional, and spiritual well-being to maintain balance and effectiveness.

Robert Kiyosaki: “Rich Dad Poor Dad”

Mind your own business: Focus on building your own assets and wealth, rather than relying on a job or someone else’s assets.
Work to learn, not to earn: Seek out opportunities to learn new skills and acquire knowledge that will help you build wealth.
Don’t save money, invest it: Save money for emergencies, but invest it in assets that will generate income and grow in value.
Don’t worry about the price of an asset, consider the value: Look for assets that offer value, rather than just focusing on the price.
Don’t let your ego get in the way: Don’t be afraid to ask for help or advice, and be willing to learn from others.
Don’t let fear hold you back: Take calculated risks and don’t be afraid to try new things.

Financial education is important because it helps you build wealth.
Your mindset plays a crucial role in financial success. The book suggests adopting a wealth-building mindset and being proactive in your approach to money.
Building passive income streams is key to achieving financial independence. Passive income is income that is generated without requiring active effort.
Consumer debt, such as credit card debt, can be dangerous and should be avoided or paid off as quickly as possible.
Long-term thinking and planning for the future are important in building wealth.

I usually publish lists of books about architecture that I recommend to read. All of them are important to understand the value of a house. This article suggest books, minimally required to understand value of a house.

A Pattern Lnaguage, Kristopher Alexander

read it before investing or buying a house. This book describes how the space affects our way of living: how each type of city should look like, how the houses in the neighborhood should be placed and how it affects the ways people behave with each other. Even how the shadows, floor level, density of people, age difference and green parking affects the living in a house and society.

I read the Russian translated version of the book made by ArtLebedev Studio with great illustrations. If you speak Russian, I insist reading this book. This is my favorite book that I recommend to everyone.

Real estate investing 101, Michele Cagan

A dictionary that explains most of the termins and concepts you should know to master in the real estate.

All other books will be added soon. To learn more about the architecture and real estate, read my blog. Write a keyword by clicking on a search button and find “real estate‘, ‘architecture‘, investment‘ or other tags that you are interested in.

Remember, I can’t explain in a blog the same information that is written in huge books – the books I share are written by professionals and scientists who spent years for each book – they provided as much knowledge as they could in the best way. I can only share their knowledge by sharing the book or by taking the main ideas from it. Some books cost 100$, but after reading such books you will learn everything you should know about this theme.

Empire USA, Illegale Kriege, Danielle Ganser

Danielle Ganser is a swiss historian, who analysed NATO expansions and crimes. He wrote 3 main books: “Imperium USA: Die skrupellose Weltmacht”, “Illegale Kriege : Wie die NATO-Länder die UNO sabotieren. Eine Chronik von Kuba bis Syrien”, “Nato-Geheimarmeen in Europa : Inszenierter Terror und verdeckte Kriegsführung”.
The books are available in german and french for now, but they may be translated in the time you read it.

Other books are available in English: “NATO’s Secret Armies: Operation Gladio and terrorism in Western Europe”. Also read some scientific papers. The last one is about Russia and the USA in the Ukrainian conflict

Listen to his lectures, for example, the illegal revolution in Ukraine 2014, or Turkey revolution 1980. They are available in German and Russian.

In these lectures, Danielle explained the NATO hierarchy and its expansion. NATO became the largest military alliance that does not care about any agreements between non-allies. For example, the agreement of non-expansion to the east, which was signed at the beginning of 1990-th, was broken.

NATO is the best alliance in world history. This is because of the hierarchy: The pentagon is the center of NATO. Danielle says that the ministry of defense in the USA is more like the ministry of offense. In each country of NATO American soldier is always the decision maker, only he decides what NATO does.

The USA, and therefore NATO, like to make 2 similar nations hate each other. They do it by showing the greatness, and dominance of one nation over another. America makes people think that people from another nation are no one, that they are not even the people so that they don’t have any rights and may be easily killed. It happened in Turkey vs Kurds, Christians vs Muslims, Albanians vs Serbians, North vs South Koreans, Russians vs Ukrainians, and even Republicans vs Democrats.

By doing so, America does not need to start a war themselves and make Americans dead. Instead, they supply one of the nations with weapons (Americans sell the weapons by giving credits, that some countries can’t pay out. Therefore, America dictates a country what to do in exchange for restructuring a credit. That is what will happen with Ukraine if Ukraine does not vanish from maps). In the end, one country loses by giving up territories and being dependent on the winner, and America gets control and loyalty over the winner. (the credit idea was made by me, Danielle was not talking about it).

Danielle said, that the UN cannot force any sanctions against 5 major countries: the USA, Russia, Great Britain, France, and China. These countries have Veto rights, the right to cancel any decisions. Therefore, such countries can do terrorism, and start wars with anyone and the UN can’t do anything against it.

Danielle also argues about the 9/11 event. The government prohibits discussions about the event. Some scientists and architects dispute the way, how the third building fell. this house fell straight down, that may only happen if all metallic walls are blown. The way, that the government does not want to analyze this case and share the data makes people create conspiracy theories.

Moreover, after 9/11, all Muslims seem to Americans as terrorists and Americans demand revenge. It seems like a reason to start a war with Muslim countries. I want to remind, you that Islam is a more peaceful religion than Christianity, but at the end of the 20th century and the beginning of the 21st century, the perception of Muslims changed.

The prisoners of geography, Tim Marshall

The natural landscapes: rivers, mountains, hills, floods, and even waterfalls affect the civilisation. The location decides whether rhe countries have a war with each other of make a trade.

We will analyze 10 regions: Russia, China, the USA, Europe, Africa, the Middle East, India and Pakistan, Korea and Japan, Latin America and Arctic.

The book explains with examples how geography affects the relationships between nations. It also tells about the dilemma between Ukraine and Russia even though that the book was written in 2017.

Why are we polarized, Ezra Klein

The book tells about American society. The split between Republicans and democrats grows bigger. Before the internet time, people chose the side based on the leader of a party and based on the changes, that each party does. The democrat could choose a Republican president.

Today people are polarized. They are so polarized, that republicans hate democrats and otherwise. People are sure about their point of view and don’t want to discuss or take into account the other point of view. People decided, that there is one truth. Because people talk more with people with their point of view, they make the bias, that only their point of view is logical and right. It goes so far, that one family with different points of view on government can just split.

Ezra Klein explains how that happen, that people became polarized.

I lived my childhood in Russia. And in Russia people, especially children, read a lot. We had to read 15-20 books (stories) each year. But the books had problems – they were old. We read the folk literature, or the books of a Soviet époque, or the Russian Golden Age – the 19th century.

You may guess that such books were not entirely relevant for us – we live in the 21st century and want to know more about actual things and read contemporary masterpieces. Unfortunately, most people and I don’t understand that someone doesn’t understand the need for contemporary reading in childhood, even in adult age.

I am a person who likes to read – I read 40-80 books per year, mostly about architecture, design, business, and non-fiction. Sometimes I read something new – I guess that it is always great to know more about different topics because mostly all the things in our world are connected. You may implement ideas from other spheres to create something innovative.

I wondered about an art bookstore in Museums Quartier located in Vienna, and I was looking for good books. I found four good books that I recommend reading: “Soft City,” “New Move, ‘Michael Schumacher, ‘The Fastest Guide To Architectural Form’, ‘Architects’ Houses. ’

When I chose the books, I started looking around the store. There were hundreds of themes like music, art, sculpture, sustainability. Suddenly my eyes came across stunning covers – covers of biography of famous and influential people. I usually don’t read such literature, but they were written: ‘for children. ’

I took a book about Greta Thunberg, and what you have not thought about her, the book has told her story so simply and interestingly, that I started reading another about Michelle Obama.

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That is an exciting thing – usually, the children’s books are written so simply, without complex constructions and terms, but with excellent illustrations, so that I understand the idea that the author wanted to say perfectly.

Interesting, but many professors or ‘educated ‘people think that the children’s book format is for children only, but that is not true. People want to seem cleverer, so that they invent new words and overcomplicate theorems, that the regular students or people can’t understand what they were asked to understand. This way maybe be more accurate in science, but it doesn’t give the main feature: Be on the same wave with the author.

Let’s come back to our theme. There were hundreds of new storybooks. All of them were a real masterpiece, and my mind and eyes got so much fun. Let’s look at this picture: this is a patterned book so that there is a hole in a book, which makes the story so interesting. It seems like you go forward every time, and some action happens. I wish I could share the pictures with you, but the author’s rights prohibit it.

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Or let’s look at the story of a Black Lives Matter. This is an important event in our society, and it is so important to tell children in the right and neutral way about this problem. This book has solved this problem. The book reveals that we all appeared in Africa and all people have been living there for 2 million years, and only in the recent 200000 years have they started to relocate to the new territories. Later, they tell the story of Africans in America, starting with the Columbus ship and ending with 2020.

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I guess such books could bring me a better understanding of today and tomorrow than the patriotic books of our ancestors.

(This article is still in editing, but I will be happy to hear your thoughts in comments)