Broken Money

"Broken Money" by Lyn Alden offers an in-depth analysis of the evolution and current state of the global monetary system. The book begins with a gripping story from the 2022 Lebanese economic crisis, where rampant inflation led to desperate measures like bank robberies for accessing frozen savings. Alden uses this as a springboard to explore similar economic crises in Nigeria, Egypt, Turkey, Argentina, and Brazil, highlighting the widespread impact of financial system failures.

Alden traces the origins of money back to ancient Mesopotamian ledgers, showing how early money was based on trust and the recording of transactions. She discusses the evolution from commodity money like shells, feathers, and beads to modern financial systems. Intriguingly, Alden also explores how unconventional items like video game objects can take on the role of money in certain contexts.

The book emphasises the lasting value of gold and silver as money due to their high stock-to-flow ratios and their historical role as safe havens for storing value. Alden discusses how sovereign coins have made these rare metals more popular and accessible over time.

Throughout the book, Alden critiques the current state of the global financial system, pointing out its inadequacies and the need for an overhaul. She delves into the role of technology in shaping money and its value, underscoring the impact of technological advancements on the monetary system.

Why We Love This Book

In "Broken Money," the reader is treated to a comprehensive and engaging journey through the history and future of money, making it an essential read, especially for those new to financial literacy. The book meticulously traces the evolution of money, providing vital context to understand our current financial systems. Author Alden's examination of recent financial crises adds a layer of relevance and engagement, offering real-world insights into the effects of monetary policies. A significant aspect of the book is its focus on the role of technology in shaping and redefining our financial systems, a topic that is both enlightening and thought-provoking. Alden's ability to present complex financial concepts in an accessible manner makes this book an excellent introduction for those who are just beginning to explore the realms of finance and money. More than just a theoretical discourse, "Broken Money" also delves into the human aspect, highlighting the impact of monetary systems on everyday life. This blend of historical depth, current relevance, technological insight, approachability, and human perspective makes the book a great read.

"Broken Money" is an essential read for anyone looking to deepen their understanding of the financial system's intricacies and the challenges it faces in the modern world. Alden's ability to connect historical events with current financial issues provides readers with a well-rounded view of the complexities of money.