there is a lot of evidents and arguments that the dept came first and the money came later when people started to use there dept token and dept sigils as money. now why would this be the case,wel it would be logical becose of seizonal production. in acient societys food and productional products came on to the market on different times,so the farmer has perhaps not jet harvastet the cherrots,while the hunter had not a refrigiator to store its shooten pray for meat. so what did they do now the farmer took the meat from the hunter while they made a agreement that he would pay from the charriots later when they where ripe and availeble. so at this moment the farmer has accepted a dept wich was a promis to pay the hunter later in the future.
so here we have a relation between a creditor and a deptor now yuo can imagine that in a bigger society and in a world with differnt products i gets a lot more complicatedsituation becose you get a complicated web of dept in relation that needs a regestration of what the dept is what interrestform when it needs to be payed of and so on,so for al thiyou need a system that records this al so the upshot is that as soon you get different transactions with different products and different people at different times of the yer he yo need to record credit and dept or what we now call double entry bookkeeping.
albert einstein had sad that humanity has made three major rvolutions and that was the creation of language the control of fire and coocking and the double entry bookkeeping. while this is al interesting but why do we need to know al this, well money is nothing else than the dept tokens that is used as payments afteral a pept is a claim on future unsalved paymenses and so money as token is realy worth something and you can pay with it. lets say the dept is written on a clay tablet the hunter the hunter can now use the tablet to pay somewere else like a fisherman and as the tokens are desepeared becose of the interaction the interaction now olso needs a proclaimer like a king or chief proclaiming the valeu of the money this also opens up the posebillety of central clearing wich realy simplefies things . for example ; if a has a claim on b and b has a claim on c while c has a claim on a than they could all could pay eachother the claytablets but it is also posseble without any of thes depttokens to change hands the teplets could also be left in a main central storage while only the ownership over the tokens in dept change hands now society can handle a much larger number by central depts and its relations becose you can salve it by clearing you dont need to carry it al around in fact thats why in the acient society called soemeria thousents of claytablets where found in agient templeruins they where the central banks of those days wich means our money system is already thousents of years old
here in fact is explaned why this matter so much to us in current times becose nothing has changed just as in agient times money is dept this is why money for us is so important for exchange and economic growth.on a brittish pound is written a text with a signiture of the banker for this note i hand the owner one brittisch pound now nobody is gonna bring that bill to the bank becose he wil get another pound back but this prooves that money is dept and dept is money there is another way to see that money is dept becose new money apears when people increese their depts the quantety of money in circulation increeses as banks make new lones there is nothing secret about that you can read about it on the websites of central banks but it is a bit confusing sins the word lending sugests that it is something that already exist sinse you can only lend out money that you already have but this isnt the case by the lending of money by banks banks dont lend money they create money and they create it out of tin air
but how does the quantety of money increese as bank make new lones? well lets take a example suposte that i want to buy a new car wich costs 220000 euro wich i do not have at the moment so i go to a bank and ask for a loan in this case a consumption lone i wil have to show my creditcard and the banker types some numbers in the computer and the bank just has loaned me 220000 euro nowi go to the dealer and buy the car but i dont gonna carry a huge bag of cash over street instead i just show my creditcard to the cardealer and the cardealer accepts the sail now the bank transfers the money to the account of the car dealer for the car dealer this is real money he can buy food and products with the money and the money supply just increased with 220000euro now the money didnt existed before i asked for the loan so the bank simply created the money out of nothing and this is treu becose lets supost that i changed my mind this morning and it wasnt such a good idea to buy a new car than i wouldnt ask for a loan and wouldnt pay the cardealer the 220000 euro and the car dealer wouldnt have the money and couldnt buy food from it the monney suply would be 220000 euro lesser than when i did buy the car so lending does realy create new money and you may ask yourself but what is it that gives this new created money its valeu wel to that the answer is the money that already existed the new created money steals its valeu from the existing money and this is actualy a secret hidden tax that the people have to pay for al the new created money becose when the total money suply is increesed the valeu of money decreeses becose the money suply gets increesed without the askfor peoples demands and services so to keep this al in equalibrium prices of products rize and lower the power of purchase of each individual dollar or euro this is referred to as inflation
