The Origin of Money

Nurseries of Economics – Stanley Ravi

The primary business of a king or ruler is:

To protect a territory with defined boundaries.

Protection becomes essential during of shortage of food
and water in neighboring regions. Climatic change
effects regions without considering political boundaries.

During shortages (particularly for addictions or sustainability of the species),
we do away with rules and agreements, cross territories and boundaries,
at first stealthily and later defiantly.

A person who can organize to protect and sustain
at a time of food and water shortage for a significant
number of people consistently, will establish himself or herself as the ruler,
he or she will demand and get allegiance.

A simple way get allegiance is to issue a token.
This token can be a piece of leather, a metal and something that
cannot be duplicated easily. Any attempts to duplicate
can lead to great punishments.

This token, coin or currency is issued by the ruler in exchange
for goods and returned for the protection of an individual’s
family and property. Can this token of protection be
The Origin of Money?

During the conflict, usually after immense blood shed,
loss of life and property; after a lower demand for resources
takes shape. Many hard and difficult lessons are learned.

After the conflict is resolved. The ruler's authority gets more
established and recognized. He or she issues more tokens, gets more
gifts and products from more territories, the token issuer or ruler establishes
more territories, offers more benefits for the people, makes territories look more 

attractive and organised. The ruler displays his or her strength to opponents.
He or she uses methods and resources to constantly keep this territory
brimming with activity. Can we call this economics?
Is this how and where money originates?

It is inconvenient to exchange my hard work in extracting
precious metals for your hard work of producing grains, fruit, vegetables
and maybe meat. When I have plenty of food I won't mind
exchanging food for ornaments, but your gold won't work during a food shortage.

Connecting barter with money is missing a link.
The king's head doesn't fit into the barter system.

Please consider this, when my house, my livelihood,
my children, their food and water is threatened,
I will give anything to the anyone who protects my territory.

The protector issues the money with his or her head.
Money applies only within a territory of governance and protection.
When the territory goes, the money vanishes.

It's a long story, about modern money, a currency pegged
to a barrel of oil? Threatening and capturing territories
with fast and heavy transportation. Luring territories with
quick and heavy cultivation of food, using more than
10 calories for every calorie of food, possible only with crude oil,
the production of crude is almost in absolute terms
connected to global economy.

Time and Space are Money

All life grows in Time and Space
Time is Money. Yes, Space is also Money.

Any space that supports life.
Life adapts to the space, life survives.
Plant life and animal life. Right upto
the Poles.

But there is also less life where water
and oxygen is rare. There are territories
and boundaries in those places and the
subdivisions are few and far apart..

As potable water and oxygen
become abundant the territory
becomes valuable and MUST be
protected at all costs.
Because, it sustains life.

The cost of protection is MONEY.
That is MY face said the king.

I will continue ... tomorrow.

The Three Vice Men and Their Money

Three Men Fruity, Meaty and Rooty, they ate and they

exchanged their goods, wished each other well,

and well, were they afraid of each other?
Did they know to trust?

Trust! The common forms of trust happens across the

counter in the bank.I'm yet to hear anyone go in to a bank and say,

"I don't trust you, give me the cash first and I'll give you the cheque later."

So I find it hard to imagine how two tribes first

played split and join or how they exchanged their wares,

How they became vegetarian and how they became a carnivorous..

It takes a lot of my imagination to start a trade or even exchange

with my brother, cousin, neighbour and then do business
with the people in another nation.

But a few thousand years ago when Fruity, Meaty

and Rooty lived. Trade, must have been easy.

It must have been pretty simple. One stretches his hand out.
in order to get "What's in it for me?"

So with so many missing links in the Economy with a

real bad start, to imagine money popping out because of a

piece of leather, skin, wood, metal or earth.

This is fine but would I give my fruits or roots

for your piece of leather so that next time you give it back to me?

Or you give it to ABC, or XYZ and then it comes back to me.

This is pretty nonsensical until the next blog.

Then there was Freud who out spoke

Sex, many of us don't even speak about it today.

What about sex in those barter and pre-barter days?

Guys wait! No I'm not talking about the world's oldest

profession. But what about spreading the seed and

protecting, developing, modification, mutation for
the benefit of the species?

These are innate concerns over money or economy.

Where's money coming son?

Money and The Barter System (B.S)

Do a search for Origin of Money.
All economic schools of thought that arise state:
Money came in to address the problems of barter.

Maybe someone accidently stepped over the
whole economic humanity into buying this.

Why would three stone age guys

Fruity, Meaty and Rooty.

(I am not going to explain what they ate,

but I'll tell you these guys were my forefathers)

Fruity lived near mountain above the river

where all the fruit trees grew.

As he climbed the mountain he looked upwards
and saw the fruit hanging in the trees.

Meaty lived near the river below the mountain,

where all the animals came for a drink

He had too much of deer skin from looking at
them straight in the eye and throwing
sharp sticks and stones.

Rooty lived near the desert at
the end of the drying river.

where all the roots and dry sticks showed up.

The typical deserters.

Rooty had plenty of sticks and stones.

Looking down stripping off all the roots.

Making more desert all the time.

As time went by they wandered cautiously
into each other's territories, one would
chase away the other One wanted fruit and
the other wanted skin, they exchanged became
friends and started exchanging.

At times of shortage the exchange would
get difficult for one and easy for the other,
or maybe difficult for both or easy for both.

They misunderstood and understood.

They also had other Meaties and Fruities to go to.

Sticks and Stones could be exchanged
for skin and meat. Rooty was in the desert,
fruit and meat was always welcome there.

With Meaty in the middle strikes
Deal One:
Skin and meat in exchange for fruit.
Deal two:
Fruit, meat and skin for Sticks and Stones.

The lessons of the desert are expensive.

Meaty finds Rootys sticks are better
to hunt deer. He also becomes the middle man.

That is the origin of the middle man.

We can even sub-blog this, just about the two guys

exchanging meat and fruit and all the
possible social outcomes of the two.

But there is Still no sign of Money.