Debt, Money, and the New World Order

[Name of the Institute]

Debt, Money, and the New World Order

Introduction

The book which is written by Philip Coggan has been written on the topic related to the economic history, analyzing the fact that the western economies has been fiercely on debt, since the past forty years. Now it has been quiet evident that in the theoretical perspective debt may have been returned, but in the practical reality shows that the debt cannot be repaid, that has been proved in the crises situations. In paper promises Phillip Coggan, the economist and columnist intended to help all the economic researchers and analysts to understand the basic and ore concept of this messed up economy and how it will be influencing the new set of economy in the global world. The author also tries to explain the fundamental importance and the attitude towards how the debt has eventually changed its face throughout the history, and further explains the basic concept of how it will adopt new set of changes in near future.

Discussion

The author has his own view point, on which the book has been explaining the details of the economic system, the thesis that the author has move on in the book is the one in which the reader can view the economic history, which in term of the author's view point is a war which will never end in the world, according to the author, those people who have taken loans or borrowed money are in a great form of battle with those people who have lend their money to those people. In the practical terms the author has revealed the truth about the borrowers and the lenders, in the war between them, borrower is always a winner, and the lender has no way to let the borrower go. However the author Phillip Coggan has explain this span of time, because of many reasons, it has become a global nature, and has starting abusing the meaning of loans and abusing the value of money. Money and the transaction of the monetary valuables are enhanced with a meaning which can be interpreted that the money symbolizes a fact of a promising note that could be later on claimed on the point that the services or the products will be rendered or delivered in the near future. The concept of time value of money is associated primarily with such financial categories as the cost of the loan or the cost of equity. Hence, the main idea is that the money that is available now will worth more in the future due to the possible earning capacity. According to the author, he has described the two faces of the money; both the sides are conflicting, having the opposite functions that become visible with the passage of time. He also exclaimed that the literal meaning of money is termed as the “means of exchange” that serves as the oil in the machine which helps in lubricating the machine to serve the daily ...