The Ascent Of Money Nail Ferguson Summary

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Book Review Nail Ferguson: Scottish Historian Publication Date: November 2008 Publisher: Penguin Group (USA) Incorporated The Ascent of Money “Bread, cash, dosh, dough, loot, lucre, moolah, readies, the where-withal: call it what you like, money matters. To Christians, the love of it is the root of all evil. To generals, it is the sinews of war; the revolutionaries, the shackles of labor. But what exactly is money?” Ferguson's strategically themed structured book starts with the origins of money, and then shows, in successive chapters, how money found a way of multiplying itself through the development of banking, bond, equity, and insurance markets. Money, according to Ferguson, is not a thing but a relationship; above…show more content…
Ferguson writes: "Chimerica," China plus America, seemed like a marriage made in heaven. The East Chimericans did the saving. The West Chimericans did the spending. Cheap Chinese imports kept down US inflation. Chinese savings kept down US interest rates. Chinese labor kept down US wage costs. As a result, it was remarkably cheap to borrow money and remarkably profitable to run a corporation. Thanks to Chimerica, global real interest rates...sank by more than a third below their average over the past fifteen years. Thanks to Chimerica, US corporate profits in 2006 rose by the same proportion above their average share of GDP.” Basically the more China was willing to lend to the United States, the more Americans were willing to borrow. Chimerica, in other words, is the underlying cause of the surge in bank lending, bond issuance and new derivative contracts that Planet Finance witnessed after 2000. It was the underlying cause of the hedge fund population explosion. It was the underlying reason why the US mortgage market was so awash with cash in 2006 that you could get a 100 per cent mortgage with no income, no job or…show more content…
He argues that history is often a product of economics and he illustrated the financial booms and busts behind the down of the Renaissance, the French Revolution, the defeat of Napoleon, and the outcome of the Civil war. Overall Ferguson’s book had choppy and uneven structure and it also had a script like format that you would use for a television series. He was very clear with his historical details but his explanations were like narrative detours and were sometimes very
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