56 of 58 people found the following review helpful
This review is from: Paper Promises: Money, Debt and the New World Order (Hardcover)
This book highlights, in very simple and understandable language, and with great elegance, the complexity of the world we live in. Everybody wants the best of both worlds. Governments want to please the voters through promises, and borrowing money, which they have to return back. Governments are inefficient than the markets, yet, the markets may not exist without them. We all want a comfortable life - working less and consuming more. However, life is hard. And if we try to do everything for ourself, we might end up growing potatoes in the garden, to cook it using wood chopped from the nearby forest. Trading, amongst ourselves or with other nationalities benefits us, but we always want our nations to prosper more than others. There is always a friction. Like Buddha said, we need to find a balance.
Debt is the subject of this book. Debt is a "promise to pay back", sounds simple. But modern debts are promise to pay back in promises to pay back (as fiat money is also a form of debt). This makes the economic system very complex. Money these days can be created by central banks with a click of a mouse. Creating money may cause inflation, but it may be vital to help the economy function property or to help avoid mass bankruptcies in our society. Money is the store of value as well as the medium of exchange, we need to find a balance between the two functions. The futures of debtors and creditors of the world are tied together. And debt is not only the fault of the borrowers, but also a fault of the lenders. All this has implications of the global economy. This book addresses these issues flawlessly.
To sum up, a wonderfully researched book. Acknowledges ides from all political and economic spectrum. One of the most enjoyable reads (went through the book in 18 hours, and could not put it down). I recommend it to everyone interested in issues facing the global economy.
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Initial post: 16 Jan 2012, 10:00:02 GMT
Dr. C. Jeynes says:
Please can you fix the typos in this. I am not always sure I understand you properly
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