Broken Money: Why Our System is Failing Us and How We Can Make it Better

Description

An In-Depth Exploration of the Evolution of Money

Broken Money by Lyn Alden offers a thorough examination of the history and future of money, seen through the lens of technological advancements. While politics may influence money in specific times and places, it’s technology that propels global, lasting change. Alden’s aim is to equip readers with a profound understanding of money’s evolution, both in theory and in practical terms.

The book traces the journey of money from primitive forms like shells and gold, through the development of early financial instruments such as papyrus bills of exchange, to the rise of central banks, and ultimately to the creation of Bitcoin. Alden delves into the essence of money itself, providing readers with the tools to critically assess and compare different monetary systems and theories.

Beyond the technical aspects, Alden also highlights how money influences the lives of individuals and how new financial technologies reshape societal power structures.

In today’s world, despite significant improvements in technology and energy availability, the global monetary system remains outdated. With over 160 currencies in circulation, each restricted to its own nation and often rapidly losing value, saving money can be a daunting task—especially for those born in countries with unstable currencies.

For instance, Nigeria, with over 200 million people, has endured an average inflation rate of 13% over the past decade. In Egypt, the currency’s value halved twice in ten years, severely impacting the savings and wages of its 100 million citizens. Across the globe, many countries have faced extreme inflation, with Brazil experiencing hyperinflation in the 1990s despite being the fifth most populous nation at the time.

Even developed economies haven’t been immune. In 2019, Europe and Japan saw $18 trillion in bonds with negative yields, only to have their purchasing power eroded by inflation shortly afterward. The U.S. Federal Reserve initially downplayed inflation risks following the pandemic’s stimulus measures, only to reverse course when inflation surged, leading to the collapse of major banks.

Broken Money seeks to answer the pressing questions of why our monetary system is lagging in the 21st century and what emerging technologies might offer a better system for the future.