FINANCIAL FOUNDATIONS

The Road to
SOUND MONEY

An interactive journey through monetary history—from the creation of central banking to the 2008 collapse, Bitcoin's emergence, and the future of finance.

MONETARY HISTORY CRYPTO HISTORY
"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner... or later as a final and total catastrophe of the currency system involved."
— LUDWIG VON MISES, 1949

Interactive Timeline

Click on any event to learn more

FOUNDATIONS
1912

The Theory of Money & Credit

Ludwig von Mises publishes his groundbreaking work explaining how credit expansion by banks inevitably leads to boom-bust cycles. He warns that fiat money systems are inherently unstable.

KEY FIGURE
Ludwig von Mises
Read at Mises Institute
CENTRAL BANKING
1913

Federal Reserve Created

The Federal Reserve Act establishes America's central bank. Sold as a way to prevent panics, it instead becomes the engine of perpetual inflation and boom-bust cycles. The dollar has lost 97% of its value since.

IMPACT
The beginning of institutionalized monetary manipulation.
Federal Reserve History
DEPRESSION
1929

Black Tuesday & Great Depression

The stock market crashes 25% in two days, triggering the Great Depression. The Fed's credit expansion in the 1920s created an unsustainable boom. Government intervention prolonged the crisis for a decade.

STAT
DJIA fell 89% from peak to trough. Unemployment hit 25%.
Investopedia
CONFISCATION
1933

Executive Order 6102: Gold Seizure

FDR orders Americans to surrender their gold to the Federal Reserve at $20.67/oz. After confiscation, the government revalues gold to $35/oz—a 69% overnight devaluation of the dollar.

KEY LESSON
"Not your keys, not your coins" has historical precedent.
Original Executive Order
BRETTON WOODS
1944

Dollar Becomes World Reserve

44 nations establish the Bretton Woods system. The US dollar is pegged to gold at $35/oz, and other currencies peg to the dollar. This plants the seeds for future monetary instability.

KEY INSIGHT
Hayek warned this system would fail as governments couldn't resist printing money.
IMF History
NIXON SHOCK
1971

"WTF Happened in 1971?"

Nixon ends gold convertibility, abandoning Bretton Woods. The dollar becomes pure fiat currency. This moment marks the beginning of unlimited monetary expansion—and the erosion of purchasing power that continues today.

THE RESULT
Since 1971, the dollar has lost 87% of its purchasing power.
WTF Happened in 1971
OIL CRISIS
1973

OPEC Oil Embargo

OPEC nations embargo oil to the US, quadrupling prices overnight. Combined with Nixon's money printing, this triggers "stagflation"—high inflation with economic stagnation. Gas lines form across America.

STAT
Oil rose from $3 to $12 per barrel. US inflation hit 12%.
Federal Reserve History
RECOGNITION
1974

Hayek Wins Nobel Prize

F.A. Hayek receives the Nobel Prize in Economics for his work on monetary theory and economic fluctuations. His book "Denationalization of Money" proposes competing private currencies—a precursor to crypto.

KEY FIGURE
Friedrich A. Hayek
Nobel Prize
BLACK MONDAY
1987

Stock Market Crashes 22% in One Day

October 19, 1987—the Dow falls 22.6% in a single day, the largest one-day percentage drop in history. Computerized trading and portfolio insurance amplify selling. The Fed introduces the "Greenspan Put"—bailing out markets.

KEY INSIGHT
This established the precedent that the Fed would rescue markets from crashes.
Federal Reserve History
CONTAGION
1997

Asian Financial Crisis

Thailand's currency collapses, triggering a domino effect across Asia. Indonesia, South Korea, and Malaysia face severe recessions. The IMF provides $118 billion in bailouts. Millions lose their savings overnight.

STAT
Indonesian rupiah lost 80% of its value. Regional GDP fell 30%.
IMF Report (PDF)
HEDGE FUND COLLAPSE
1998

LTCM & Russian Default

Long-Term Capital Management, run by Nobel laureates, nearly destroys the global financial system. $4.6 billion in capital controlled $125 billion in assets with $1.25 trillion in derivatives. The Fed orchestrates a bailout.

KEY LESSON
"Too big to fail" becomes official policy. Moral hazard is institutionalized.
Federal Reserve History
TECH BUBBLE
2000

Dot-Com Bubble Bursts

The NASDAQ crashes 78% over two years. Trillions in market value evaporates. Companies with no revenue had been valued at billions. The Fed's response? Lower rates to 1%, inflating the next bubble—housing.

STAT
NASDAQ fell from 5,048 to 1,114. $5 trillion in market cap destroyed.
Investopedia
GLOBAL CRISIS
2008

The Great Financial Crisis

Lehman Brothers collapses. The housing bubble—fueled by years of easy credit and low interest rates— brings the global financial system to its knees. Central banks respond with unprecedented money printing (QE).

THE PATTERN REPEATS
Credit expansion → bubble → bust. The same pattern that caused 1929.
Federal Reserve History
SOVEREIGN DEBT
2010

European Debt Crisis

Greece nearly defaults, threatening to collapse the eurozone. The "PIIGS" nations (Portugal, Italy, Ireland, Greece, Spain) face existential debt crises. The ECB and IMF intervene with massive bailouts, imposing austerity on millions.

STAT
Greece's debt hit 180% of GDP. Youth unemployment reached 50%.
ECB Explainer
BAIL-IN
2013

Cyprus Bank Deposits Seized

In an unprecedented move, Cyprus confiscates depositors' savings to bail out failing banks. Anyone with over €100,000 loses up to 47.5% of their deposits overnight. Bitcoin surges 10x in months.

KEY LESSON
"Bail-ins" prove money in banks isn't truly yours. Bitcoin offers an alternative.
BBC News
MONETARY MADNESS
2020

The Great Money Printing

In response to COVID, central banks print more money in months than in the entire previous decade. M2 money supply explodes. Bitcoin and crypto become mainstream hedges against inflation.

STAT
40% of all US dollars in existence were printed in 2020-2021.
FRED M2 Data

The Minds Behind Sound Money

The economists who shaped our understanding of money and markets.

🎓

LUDWIG VON MISES

Austrian Economics

🏆

F.A. HAYEK

Nobel Laureate

📈

MILTON FRIEDMAN

Monetary Theory

📚

THOMAS SOWELL

Economic Analysis

ESSENTIAL READING

The Library

Curated books from economists and crypto pioneers. These texts form the intellectual foundation for understanding money.

01

FINANCIAL FOUNDATIONS

Sound Money & The 2008 Crisis

📕

Economics in One Lesson

Henry Hazlitt

The best introduction to economic thinking. Destroys common fallacies and teaches you to see the unseen consequences of policies.

DIFFICULTY: BEGINNER
📗

The Creature from Jekyll Island

G. Edward Griffin

The definitive history of the Federal Reserve. Understand how the central banking system was created and why it inevitably leads to inflation.

DIFFICULTY: INTERMEDIATE
📘

Human Action

Ludwig von Mises

The magnum opus of economic theory. Dense but transformative. Understand why central planning fails and free markets work.

DIFFICULTY: ADVANCED

🏛️ HISTORY OF MONEY

📚 RECOMMENDED
Debt: The First 5,000 Years

David Graeber (2011)

Revolutionary anthropological take on money, credit, and debt.

🌍 PBS SERIES
The Ascent of Money

Niall Ferguson (2008)

Broad narrative from ancient Babylon to the 2008 crisis.

📖 ACADEMIC
A History of Money

Glyn Davies

The standard academic reference work. Thorough and reliable.

💡 ENGAGING
Money: The Unauthorized Biography

Felix Martin (2013)

Money as a social technology rather than just coins and notes.

🏆 PULITZER
Lords of Finance

Liaquat Ahamed (2009)

The bankers who broke the world. Gold standard & interwar chaos.

🔓 FREE ONLINE
The Denationalisation of Money

F.A. Hayek (1976)

Short but influential argument for competing private currencies.

CLASSIC ECONOMICS

📜

The Wealth of Nations

Adam Smith (1776)

The foundation of modern economics. Smith's invisible hand, division of labor, and free trade principles remain essential reading.

FOUNDATIONAL
🛤️

The Road to Serfdom

F.A. Hayek (1944)

Hayek's warning about centralized economic planning. Explains how government control inevitably leads to tyranny. Nobel Prize-winning insights.

MUST READ
💡

Basic Economics

Thomas Sowell

Economics explained without jargon. Sowell makes complex concepts accessible. Perfect for beginners wanting to understand how markets really work.

BEGINNER FRIENDLY
🎯

Economic Facts and Fallacies

Thomas Sowell

Debunks common economic myths with data and logic. Covers housing, income, race, third world, and more. Sharp, evidence-based analysis.

EYE-OPENING
⚖️

Free to Choose

Milton Friedman

Nobel laureate Friedman makes the case for economic freedom. Covers money, trade, education, and welfare. Companion to the PBS series.

CLASSIC
🏛️

Capitalism and Freedom

Milton Friedman

The relationship between economic and political freedom. Friedman argues that free markets are essential for a free society.

ESSENTIAL

📖 SUGGESTED READING PATH

Start with Graeber or Ferguson for accessible introductions, then dive into Davies or Menger for depth. Continue to Crypto for the digital evolution.

BEGINNER INTERMEDIATE

Ready to Continue?

Now that you understand the foundations, continue to crypto essentials to learn how digital money is reshaping finance.