Interpreting the language of today's money is a daunting task if we do not understand its underlying foundations in regards to key concepts and terms interconnected to it. It is necessary in current times to know key terminology in regards to money to understand what is happening to both our global and national economy. Although this brief article will not cover all the terms, it will consist of the most crucial basics of the language of money. The first
Although the government claims that deficit spending stimulates the economy, the long-term consequences will be devastating even to future generations. Furthermore, interest rates rise as the government continues to go deeper into debt with other countries using the method of deficit spending.
The second term is called “debasement.” This term is applied when the government lowers the value of the currency supply. The government does this to gain at the expense of its civilians. A classic example of this is the debasement of the gold coin where the value was decreased. This happened to the point where the gold had been heavily reduced and replaced with metals of lesser value. With debasement, an inflation of prices is sure to follow.
in which there is a cancellation of the currency causing a transfer of wealth over to precious metals like gold.
