The Ascent of Money - Dreams of Avarice
The first episode “Dreams of Avarice” of the documentary “Ascent of Money” the history of the money throughout the world is amazingly described by highlighting some of the interesting and important events of life.
In this documentary it is interestingly described the need of money in the history of the human alongside the availability of money to spread the mechanic of economy. It is described that barter found inefficient and it was more challenging for the money less society to sustain their existence in the world. In this aspect, the best example was given as “Hunter gathers will not trade, but battle for resources”.
Interestingly it is demonstrated into the documentary that in around 600 BC the Greek Romans and ancient Chinese found to use coins as a unit of account. The lack of silver in the ancient world was just addressed by the conquest of new world. It is also an interesting fact of the movie that tells us about the silver overflow which was as unprecedented inflation in the European region. The concept that money did not unavoidably had to be valued metal was not understood. Following this, the Spanish were found to be the first to use the money in the form of coins which were silver made and found in the Bolivia in 1546. In addition there were around 45000 tons of silver were taken out from Potosi and Cerro Rico from 1556 till 1783. The money was started to use a medium of exchange and it eliminated the use of barter.
Another interesting thing that was discussed in this movie was the Loan Sharks as it reflects that money is a matter of belief even faith. In this regards the Loan sharks a term was used to represent those lenders who are not good risks and loan to people.
The birth of Banking is also described by referring to the Medici family from the 14th century who became magically powerful through banking. To become rich, Medici family used Bills of Exchange. They also started to foreign exchange dealers and traded currencies.
Considering the importance of banking, the documentary highlighted the evolution of banking from 1517 to 1743 which financial innovations are described as “Amsterdam Exchange Bank, Stockholm’s Swedish Riksbank and The Bank of England which were established in 1609, 1656 and 1694 respectively.
Another banking evolution is highlighted in the movie as in the late 19th century a new idea of getting people to deposit their money in the bank became an evolution. Following this the early Bankrupt nations were highlighted including the Tennessee and Memphis.