Currency exchange during the Renassance

Till about 20 years ago, in England, human beings were taller during medieval times than in the 20th century. This was due to better health and diet. This could sound surprising but the cause of this is from the method of currency exchange being practiced at that period.  Our current system, the centralized currency, was invented during the Renassance period. The intent was to aid early chartered corporations and the monarchs, who gave them the monopoly. This just showed that the day corporations were founded, corruption and greed came with it. There were always two different systems of currency exchange that were active. The centralized system was normally used for foreign and long distance exchanges while as for local trades, a different currency was used.

The people will bring their harvest to a grain store and deposit them. In return they will get a receipt, which was the currency, where they can redeem something else in return at any other stores. But because grains will be lost due to rats and other unforseen circumstances, the value of the grain will depreciated overtime. This encourages the the population to spend and reinvest  the money as soon as possible. This is known as reinvesting with excess money from the present. For this reasons, cathedrals, roads, bridges and other infracstructures are being upgraded or built constantly. Since the currency is being back by a tangible commodity, towns and cities are able to redevelop and create value.  

The aristocracy were not happy with this system as their powers and influences were waning. They petitioned and finally got the monarch to ban local currencies and enforced the use of centralized currency. Centralized currency works by encouraging businesses to borrow from the central bank and then repaid back with interest. The effect was labor creating wealth for the banks and not for the people. Borrowing from the future to pay for the current. The banks then become richer than the value of combine goods. 95% of currency transactions today are made by currency speculators. Money is used to create wealth and not tangible goods such as technology creating the wealth. 

To prove the point, the measured economic output of the entire world in 2006 was around $47 trillion, while the total market capitalization of the world's stock markets was $51 trilion. The difference was just 10% when the value of the stock markets should have been at least double as the stock markets value reflects future profits. Investments were not targetted for future benefits. Lots of money were lost in speculations.The stock market is no different than gambling in a casino. You win the most when you lose the least!