Coined: The Rich Life of Money and How Its History Has Shaped Us
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118. Joanne S. Gowa, Closing the Gold Window: Domestic Politics and the End of Bretton Woods (Ithaca, NY: Cornell University Press, 1983), pp. 34–40.
119. Rickards, Currency Wars, p. 78.
120. Miller Center, “American President: A Reference Resource,” http://millercenter.org/president/lbjohnson/essays/biography/4.
121. Stephen Daggett and Nina M. Serafino, “Costs of Major U.S. Wars,” Congressional Research Service, 2010, http://www.fas.org/sgp/crs/natsec/RS22926.pdf.
122. Leonard Dudley and Peter Passell, “The War in Vietnam and the United States Balance of Payments,” Review of Economics and Statistics 50, no. 4 (1968): 437–42.
123. Julian E. Zelizer, “The Nation: Guns and Butter; Government Can Run More Than a War,” New York Times, December 30, 2001, http://www.nytimes.com/2001/12/30/weekinreview/the-nation-guns-and-butter-government-can-run-more-than-a-war.html.
124. Robert J. Samuelson, The Great Inflation and Its Aftermath (New York: Random House, 2008), p. 4.
125. Ibid., pp. 63–65.
126. Benjamin Klein, “Our New Monetary Standard: The Measurement and Effects of Price Uncertainty, 1880–1973,” Economic Inquiry 13, no. 4 (December 1975): 461–84.
127. Allan H. Meltzer, “Origins of the Great Inflation,” Review (2005): 145–76, http://research.stlouisfed.org/publications/review/05/03/part2/Meltzer.pdf.
128. Joseph E. Gagnon and Marc Hinterschweiger, Flexible Exchange Rates for a Stable World Economy (Washington, DC: Peterson Institute for International Economics, 2011), pp. 12–13.
129. Gowa, Closing the Gold Window, pp. 140–50.
130. President Richard M. Nixon, “Address to the Nation Outlining a New Economic Policy: ‘The Challenge of Peace,’ ” August 15, 1971, http://www.presidency.ucsb.edu/ws/?pid=3115#axzz2fZeubBDa.
131. Rickards, Currency Wars, pp. 85–93.
132. Roger Lowenstein, “The Nixon Shock,” Bloomberg Businessweek, August 4, 2011, http://www.businessweek.com/printer/articles/870-the-nixon-shock.
133. Steil, The Battle of Bretton Woods, p. 353.
134. Henry Ford, My Life and Work (Garden City, NY: Doubleday, Page, 1922), p. 179.
135. Board of Governors of the Federal Reserve System, The Federal Reserve System: Purposes and Functions (Washington, DC: Publications Committee of the Board of Governors of the Federal Reserve System, 2005), p. 1.
Chapter 6. Back to the Future
1. Alex Crippen, “CNBC Buffett Transcript Part 2: The ‘Zebra’ That Got Away,” CNBC, March 2, 2011, http://www.cnbc.com/id/41867379.
2. Erick Schonfeld, “Jack Dorsey on Charlie Rose: ‘It’s Really Complex to Make Something Simple,’ ” Tech Crunch, January 11, 2011, http://techcrunch.com/2011/01/11/jack-dorsey-charlie-rose.
3. Peter H. Diamandis and Steven Kotler, Abundance: The Future Is Better than You Think (New York: Free Press, 2012).
4. Andrew Ross Sorkin, “A Revolution in Money,” New York Times, April 1, 2014, http://dealbook.nytimes.com/2014/04/01/a-revolution-in-money/?_php=true&_type=blogs&_r=0.
5. Nick Barisheff, $10,000 Gold: Why Gold’s Inevitable Rise Is the Investor’s Safe Haven (Mississuaga, Ontario: John Wiley & Sons Canada, 2013).
6. Ibid., pp. 164–68.
7. Natasha Lennard, “Ben Bernanke Tells Ron Paul What Gold Is,” Salon, July 14, 2011, http://www.salon.com/2011/07/14/bernanke_ron_paul_is_gold_money.
8. John C. Williams, “Cash Is Dead! Long Live Cash!,” Federal Reserve Bank of San Francisco 2012 Annual Report, http://www.frbsf.org/files/2012_Annual_Report_Essay.pdf.
9. Robert Lee Hotz, “Why You Shouldn’t Put Your Money Where Your Mouth Is,” Wall Street Journal, April 18, 2014, http://online.wsj.com/news/articles/SB10001424052702303456104579489510784385696.
10. Mark Koba, “$2 Trillion Underground Economy May Be Recovery’s Savior,” CNBC, April 24, 2013, http://www.cnbc.com/id/100668336.
11. John Cook, “After Bootstrapping to $10M in Sales, BizX Scores Real Cash for Virtual Currency,” Geek Wire, April 16, 2013, http://www.geekwire.com/2013/after-bootstrapping-to-10m-in-sales-bizx-scores-cash-for-virtual-currency.
12. Meritxell Mir, “In Hard-Hit Spain, Bartering Becomes Means of Getting By,” USA Today, February 20, 2013, http://www.usatoday.com/story/news/world/2013/02/20/spanish-bartering/1894365.
13. John Stonestreet, “Spain Barter Economy Wins Followers in Grip of Crisis,” Reuters, February 20, 2010, http://www.reuters.com/article/2012/02/20/us-spain-barter-idUSTRE81J0NJ20120220.
14. Rachel Donadio, “Battered by Economic Crisis, Greeks Turn to Barter Networks,” New York Times, October 1, 2011, http://www.nytimes.com/2011/10/02/world/europe/in-greece-barter-networks-surge.html?_r=0&adxnnl=1&pagewanted=all&adxnnlx=1381862981-8waQus1MLcdWO4mVYjdxsA.
15. Ibid.
16. Mir, “In Hard-Hit Spain, Bartering Becomes Means of Getting By.”
17. International Reciprocal Trade Association, “Modern Trade and Barter,” http://www.irta.com/index.php/about/modern-trade-barter.
18. Michael Burawoy and Pavel Krotov, “The Soviet Transition from Socialism to Capitalism: Worker Control and Economic Bargaining in the Wood Industry,” American Sociological Review (1992): 16–38.
19. David M. Woodruff, “The Russian Barter Debate: Implications for Western Policy,” PONARS, 1998, http://personal.lse.ac.uk/woodruff/_private/materials/pm_0038.pdf.
20. Barbara A. Cellarius, “ ‘You Can Buy Almost Anything with Potatoes’: An Examination of Barter During Economic Crisis in Bulgaria,” Ethnology (2000): 73–92.
21. Mary Mellor, The Future of Money: From Financial Crisis to Public Resource (New York: Pluto Press, 2010), pp. 152–76.
22. “Confidence in Institutions,” Gallup, June 1, 2013, http://www.gallup.com/poll/1597/confidence-institutions.aspx#1.
23. World Bank, “Participatory Budgeting in Brazil,” http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2009/11/03/000333037_20091103015746/Rendered/PDF/514180WP0BR0Bu10Box342027B01PUBLIC1.pdf.
24. Dana Khromov, “Ithaca Hours Revival Would Require Community Support,” April 13, 2011, http://www.ithaca.com/news/article_175100c4-65d6-11e0-bd73-001cc4c002e0.html.
25. Gretchen M. Herrmann, “Special Money: Ithaca Hours and Garage Sales,” Ethnology 45, no. 2 (2006): 125–41.
26. “The Birth of the Dollar Bill,” NPR, December 7, 2012, http://www.npr.org/blogs/money/2012/12/07/166747693/episode-421-the-birth-of-the-dollar-bill.
27. “Funny Money,” Economist, December 20, 2005, http://www.economist.com/node/5323615.
28. Cary Stemle, “Starbucks Reports Continued Growth in Mobile App Usage,” MobilePaymentsToday.com, January 24, 2014, http://www.mobilepaymentstoday.com/articles/starbucks-reports-continued-growth-in-mobile-app-usage.
29. Paul Kemp-Robertson, “Bitcoin. Sweat. Tide. Meet the Future of Branded Currency,” TED, July 2013, http://www.ted.com/talks/paul_kemp_robertson_bitcoin_sweat_tide_meet_the_future_of_branded_currency.html.
30. Thomas H. Greco, The End of Money and the Future of Civilization, Kindle ed. (White River Junction, VT: Chelsea Green, 2009), loc. 3442.
31. Kathleen Gallagher, “Peer to Peer Lending Sites Attracting Investors,” Milwaukee Wisconsin Journal Sentinel, November 9, 2013, http://www.jsonline.com/business/peer-to-peer-lending-sites-attracting-investors-b99137303z1-231300731.html.
32. Greco, The End of Money and the Future of Civilization, loc. 3486.
33. bitcoinmining.com, “What is Bitcoin Mining?,” April 9, 2013, https://www.youtube.com/watch?v=GmOzih6I1zs.
34. “Getting Started,” Bitcoin Mining, http://www.bitcoinmining.com/getting-started.
35. “Frequently Asked Questions,” http://bitcoin.org/en/faq.
36. David Woo, Ian Gordon, and Vadim Iaralov, “Bitcoin: A First Assessment,” Bank of America Merrill Lynch, 2013.
37. Steven Perlberg, “Bernanke: Bitcoin ‘May Hold Long-Term Promise,’ ” Business Insider, November 18, 2013, http://www.businessinsider.com/ben-bernanke-on-bi
tcoin-2013-11#ixzz2nDsX0xSR.
38. Paul Krugman, “Bitcoin Is Evil,” New York Times, December 28, 2013, http://krugman.blogs.nytimes.com/2013/12/28/bitcoin-is-evil/?_php=true&_type=blogs&_r=0.
39. Robin Sidel, Eleanor Warnock, and Takashi Mochizuki, “Almost Half a Billion Worth of Bitcoins Vanish,” Wall Street Journal, February 28, 2014, http://online.wsj.com/news/articles/SB10001424052702303801304579410010379087576.
40. Patricia Hurtado, “Ex-Bitcoin Foundation’s Shrem Indicted After Plea Talks,” Bloomberg, April 14, 2014, http://www.bloomberg.com/news/2014-04-14/ex-bitcoin-foundation-s-shrem-indicted-by-u-s-after-plea-talks.html.
41. Scott Lee, “FBI Seized $28.5 Million In Bitcoins from Silk Road Owner Ross Ulbricht,” TechBeat, October 29, 2013, http://techbeat.com/2013/10/fbi-seized-28-5-million-bitcoins-silk-road-owner-ross-ulbricht.
42. Richard Rubin and Carter Dougherty, “Bitcoin Is Property, Not Currency, in Tax System: IRS,” Bloomberg, May 25, 2014, http://www.bloomberg.com/news/2014-03-25/bitcoin-is-property-not-currency-in-tax-system-irs-says.html.
43. Michael Carney, “Bitcoin, You Have a China Problem,” PandoDaily, November 6, 2013, http://pando.com/2013/11/26/bitcoin-you-have-a-china-problem.
44. Alex Hern, “Chinese Bitcoin Exchange Closes Deposits After Central Bank Clampdown,” Guardian, April 3, 2014, http://www.theguardian.com/technology/2014/apr/03/chinese-bitcoin-exchange-closes-after-central-bank-clampdown.
45. Matthew Philips, “Bitcoin Isn’t Really Banned in China—and It’s Quickly Gaining Ground,” Bloomberg Businessweek, March 20, 2014, http://www.businessweek.com/articles/2014-03-20/btc-chinas-bobby-lee-bitcoin-isnt-really-banned-in-china-and-its-quickly-gaining-ground.
46. François R. Velde, “Bitcoin: A Primer,” Chicago Fed Letter, December 2013, http://www.chicagofed.org/digital_assets/publications/chicago_fed_letter/2013/cfldecember2013_317.pdf.
47. Marc Andreessen, “Why Bitcoin Matters,” New York Times, January 21, 2014, http://dealbook.nytimes.com/2014/01/21/why-bitcoin-matters/?_php=true&_type=blogs&_r=0.
48. Brian Fung, “Marc Andreessen: In 20 Years, We’ll Talk About Bitcoin Like We Talk About the Internet Today,” Washington Post, May 21, 2014, http://www.washingtonpost.com/blogs/the-switch/wp/2014/05/21/marc-andreessen-in-20-years-well-talk-about-bitcoin-like-we-talk-about-the-internet-today/?tid=pm_business_pop.
49. A good explanation is in Andreessen, “Why Bitcoin Matters.”
50. Timothy Carmody, “Money 3.0: How Bitcoins May Change the Global Economy,” National Geographic, October 14, 2013, http://news.nationalgeographic.com/news/2013/10/131014-bitcoins-silk-road-virtual-currencies-internet-money.
51. Kevin Fitchard, “Square Retools Consumer Mobile Payments, Replacing Wallet with a New App Called Order,” GigaOm, May 12, 2014, http://gigaom.com/2014/05/12/square-retools-consumer-mobile-payments-replacing-wallet-with-a-new-app-called-order.
52. Jane Martinson, “Apple’s In-App Game Charges: How My Kids Ran Up Huge Bills,” Guardian, March 26, 2013, http://www.theguardian.com/technology/shortcuts/2013/mar/26/apples-in-app-game-charges-kids-bills.
53. I was engaging in a CNP (card not present) transaction, which is riskier (and less profitable for Square and Visa) because the vendor can’t verify that I actually have the credit card. Several cases of fraud have been reported.
54. Edward Bellamy, Looking Backward (New York: Dover Thrift Editions, 1996).
55. “Credit Card,” Encyclopaedia Britannica, http://www.britannica.com/EBchecked/topic/142321/credit-card.
56. Jack Weatherford, The History of Money (New York: Three Rivers Press, 1997), pp. 225–32.
57. US Census Bureau, “2012 Credit Cards—Holders, Number, Spending, and Debt, 2000 and 2009, and Projections, 2012,” http://www.census.gov/compendia/statab/2012/tables/12s1188.pdf; Tien-tsin Huang, “Payment Processing: Payments Market Share Handbook,” J. P. Morgan, 2013.
58. Emily Steel, “Using Credit Cards to Target Web Ads,” Wall Street Journal, October 11, 2011, http://online.wsj.com/news/articles/SB10001424052970204002304576627030651339352.
59. “War of the Virtual Wallets,” Economist, November 17, 2012, http://www.economist.com/news/finance-and-economics/21566644-visa-mastercard-and-other-big-payment-networks-need-not-be-victims-shift/print.
60. “Secret History of the Credit Card,” Frontline, PBS, November 23, 2004, http://www.pbs.org/wgbh/pages/frontline/shows/credit/etc/script.html.
61. Bradley Johnson, “100 Leading National Advertisers,” Advertising Age, June 20, 2011, http://adage.com/article/news/ad-spending-100-leading-national-advertisers/228267/.
62. “MasterCard Advisors’ Cashless Journey,” MasterCard, September 2013, http://newsroom.mastercard.com/wp-content/uploads/2013/09/Cashless-Journey_WhitePaper_FINAL.pdf.
63. Steve Barnett and Nigel Chalk, “Building a Social Safety Net,” International Monetary Fund, September 2010, http://www.imf.org/external/pubs/ft/fandd/2010/09/pdf/barnett.pdf.
64. Shan-Jing Wei, “Why Do the Chinese Save So Much?,” Forbes, February 2, 2010, http://www.forbes.com/2010/02/02/china-saving-marriage-markets-economy-trade.html.
65. Simon Kuper, “Debt: Another Word for Guilt,” FT, January 14, 2011, http://www.ft.com/intl/cms/s/2/a2c51e14-1ded-11e0-badd-00144feab49a.html#axzz2zOkYgJ7C.
66. Huang, “Payment Processing.”
67. Mark Zandi, Virendra Singh, and Justin Irving, “The Impact of Electronic Payments on Economic Growth,” Moody’s, February 2013, http://corporate.visa.com/_media/moodys-economy-white-paper.pdf.
68. Scott Schmith, “Credit Card Market: Economic Benefits and Industry Trends,” Visa, March 2008, http://corporate.visa.com/_media/ita-credit-card-report.pdf.
69. Chris G. Christopher Jr. and Erik Johnson, “Emerging Consumer Markets: The New Drivers of Global Economic Growth,” Supply Chain Quarterly, 2011, http://www.supplychainquarterly.com/columns/201104monetarymatters.
70. David Humphrey et al., “What Does It Cost to Make a Payment?,” Review of Network Economics 2, no. 2 (June 2003), http://www.riksbank.se/Upload/Dokument_riksbank/Kat_foa/Cost%20of%20Making.pdf.
71. Community Merchants USA, “The Benefits of Small Business Card Acceptance,” http://communitymerchantsusa.com/resources/the-benefits-of-small-business-card-acceptance.
72. But until credit card companies make the economics more favorable, there may not be mass adoption among small merchants.
73. International Telecommunication Union, 2013 Facts and Figures, http://www.itu.int/en/ITU-D/Statistics/Documents/facts/ICTFactsFigures2013.pdf.
74. “Gartner Says Worldwide Mobile Payment Users to Reach 141 Million in 2011,” Gartner, July 21, 2011, http://www.gartner.com/newsroom/id/1749114.
75. Huang, “Payment Processing.”
76. Ibid.
77. Jennifer Van Grove, “Square Sets New Record: $2M Processed in One Day,” Mashable, April 29, 2011, http://mashable.com/2011/04/29/square-payments.
78. Leena Rao, “Visa Makes a Strategic Investment in Disruptive Mobile Payments Startup Square,” Tech Crunch, April 27, 2011, http://techcrunch.com/2011/04/27/visa-makes-a-strategic-investment-in-disruptive-mobile-payments-startup-square.
79. A Square merchant can be a high risk. Square is a “merchant acquirer” that aggregates all of its customers. In order for it to be profitable, it needs to have favorable rates from the credit card companies. The problem is that Square’s customers turn over quickly, so credit card companies charge Square high fees.
80. Donna Tam, “PayPal Wants to Get Rid of Your Wallet,” CNET, May 21, 2013, http://www.cnet.com/news/paypal-wants-to-get-rid-of-your-wallet. Square has launched its “Order” application, which enables users to order ahead from restaurants.
81. Jason Del Rey, “Starbucks Has Bigger Plans in Mobile Payments Than Most People Realize,” Re/code, July 17, 2014, http://recode.net/2014/07/17/starbucks-has-bigger-plans-in-mobile-payments-than-most-people-realize.
82. Sarah Clark, “NTT Docomo to Take Japanese Mobile Wallet Global,” NFC World,
October 11, 2012, http://www.nfcworld.com/2012/10/11/318353/ntt-docomo-to-take-japanese-mobile-wallet-global.
83. Bill Siwicki, “It’s Official: Mobile Devices Surpass PCs in Online Retail,” Internet Retailer, October 1, 2013, http://www.internetretailer.com/2013/10/01/its-official-mobile-devices-surpass-pcs-online-retail.
84. “Why Does Kenya Lead the World in Mobile Money?,” Economist, May 27, 2013, http://www.economist.com/blogs/economist-explains/2013/05/economist-explains-18.
85. Fiona Graham, “M-Pesa: Kenya’s Mobile Wallet Revolution,” BBC, November 22, 2010, http://www.bbc.co.uk/news/business-11793290.
86. “Mobile Threats Around the World,” Lookout, retrieved April 20, 2014, from https://www.lookout.com/resources/know-your-mobile/mobile-threats-around-the-world.
87. “Mobile-Payments Fraud Concerns Consumers,” ISO & Agent, July 14, 2011.
88. Jon M. Chang, “PayPal Galactic Looks to Solve Payments in Space,” ABC News, June 27, 2013, http://abcnews.go.com/Technology/paypal-galactic-launches-answer-questions-space-transactions/story?id=19498683.
89. “Galactic Credit Standard,” Wookieepedia, retrieved November 12, 2013, from http://starwars.wikia.com/wiki/Galactic_Credit_Standard.
90. “PayPal, SETI Launch Program to Explore Space Currency,” International Business Times, June 27, 2013.
91. Matt Peckham, “Space Payments: PayPal Galactic Aims for Infinity and Beyond,” Time, June 27, 2013, http://techland.time.com/2013/06/27/space-payments-paypal-galactic-aims-for-infinity-and-beyond.
92. “New Currency for Space Travellers,” BBC, October 5, 2007, http://news.bbc.co.uk/2/hi/business/7029564.stm.
93. Brian Dodson, “PayPal Galactic—Don’t Leave Earth Without It,” GizMag, July 2, 2013, http://www.gizmag.com/paypal-galactic-financial-infrastructure-for-space-travel/28116.
94. Paul Krugman, “The Theory of Interstellar Trade,” July 1978, http://www.princeton.edu/~pkrugman/interstellar.pdf.
95. “Starship Enterprises,” Economist, October 23, 2013, http://www.economist.com/news/science-and-technology/21588350-dismal-scientists-also-speculating-about-space-flight-starship-enterprises.