Banking System and Its Interest — A Case Study on Inflation
How the banking system has set inflation on fire: A scientific and logical assessment of the proof
In the beginning, humans used to trade by giving things in exchange for things called the Barter System. For example, if a person has wheat, they sell their wheat to a person for rice in exchange for a fixed quantity of wheat. But this method was not so reliable.
Further, man invents a standard of gold to determine the value of things which is a precious metal. In this, gold coins were used to transact according to their value.
But then came the time of currencies, and the banking system started. The banks said that you should keep all your gold with us as a guarantee, and in exchange for this gold, we will give you a banknote or a piece of paper that our guarantee will issue, and you will be able to use it as a currency for transactions.
But the question arises as to why the banking system and currencies were brought. Why did we not allow for transactions through gold coins which was always going on? Is anyone handling all these banking systems and currencies, or is it just a coincidence to create better management of wealth? Or there are many benefits only to the rich, that’s why?
