Money can't buy you taste, and that's really fun to watch and judge! In this self-contained format, each episode will give us a sneak peek inside two millionaires' outrageous homes, cars, & closets. We'll see how people with more money than God (but probably less taste than you!) have chosen to spend their newfound fortunes.
Runtime: 30 minutes
New Money - Fiat money - Netflix
Fiat money is a currency without intrinsic value that has been established as money, often by government regulation. Fiat money does not have use value, and has value only because a government maintains its value, or because parties engaging in exchange agree on its value. It was introduced as an alternative to commodity money and representative money. Commodity money is created from a good, often a precious metal such as gold or silver, which has uses other than as a medium of exchange (such a good is called a commodity). Representative money is similar to fiat money, but it represents a claim on a commodity (which can be redeemed to a greater or lesser extent). The first use of fiat money was recorded in China around 1000 AD. Since then, it has been used by various countries, usually concurrently with commodity currencies. Fiat money started to dominate in the 20th century. Since the decoupling of the US dollar from gold by Richard Nixon in 1971, a system of national fiat currencies has been used globally. Fiat money has been defined variously as: Any money declared by a government to be legal tender. State-issued money which is neither convertible by law to any other thing, nor fixed in value in terms of any objective standard. Intrinsically valueless money used as money because of government decree. An intrinsically useless object that serves as a medium of exchange (also known as fiduciary money.) The term fiat derives from the Latin fiat (“let it be done”) used in the sense of an order, decree or resolution.
New Money - Money creation and regulation - Netflix
A central bank introduces new money into the economy by purchasing financial assets or lending money to financial institutions. Commercial banks then redeploy or repurpose this base money by credit creation through fractional reserve banking, which expands the total supply of broad money (cash plus demand deposits). In modern economies, relatively little of the supply of broad money is in physical currency. For example, in December 2010 in the U.S., of the $8,853.4 billion in broad money supply (M2), only $915.7 billion (about 10%) consisted of physical coins and paper money. The manufacturing of new physical money is usually the responsibility of the central bank, or sometimes, the government's treasury. The Bank for International Settlements, published a detailed review of payment system developments in the G10 countries in 1985 in the first of a series that has become known as “red books”. Currently the red books cover the participating countries on Committee on Payments and Market Infrastructures (CPMI). A red book summary of the value of banknotes and coins in circulation is shown in the table below where the local currency is converted to US dollars using the end of the year rates. The value of this physical currency as a percentage of GDP ranges from a high of 19.4% in Japan to a low of 1.7% in Sweden with the overall average for all countries in the table being 8.9% (7.9% for the US). The most notable currency not included in this table is the Chinese yuan, where its statistics are listed as “not available”.
New Money - References - Netflix