The Day the Machines Went off
The Day the Machines Went off
ECO316: Financial Institutions & Markets (CKK1344A)
Imagine there was a huge electrical storm and all electronic devices stopped working and society had no clue what happened to all of the electronic devices to cease working, what caused the storm, why only electronic devices were effected, how much damage the storm caused, how long will it take to correct the effects, how can society as a whole continue to conduct business and how can the issue be fixed and avoided in the future.
A few of the immediate effects would be the complete shutdown of our financial institution as we know it. There would be no banking transactions, the stock market would come to a screeching halt, and companies around the world would not be able to pay their employees or vendors. Another concern would be how people would be able to account for money they have saved or invested and how would people be able to care for their families when their money is trapped within the banking institutional system. How would people buy basic everyday items they would need to survive?
There are so many things that we as a society depend upon, like the easy usage of a debit card to purchase things that we all would be hard pressed to adjust. I don’t know of anyone who carries or has access to large sums of money at their disposal when they are shopping. Whether they are shopping to furnish their home or to feed their families. Many families would face the possibility of not having a place to live since they are either paying a mortgage or renting their place of residency. Many families would go hungry if neither of the parents or head of households knows how to grow the food that they would need to feed their families.
If society had to suddenly depend upon paper currency to conduct transactions would there be enough paper currency to allow people to continue to conduct their everyday business?
ECO316: Financial Institutions & Markets (CKK1344A)
Imagine there was a huge electrical storm and all electronic devices stopped working and society had no clue what happened to all of the electronic devices to cease working, what caused the storm, why only electronic devices were effected, how much damage the storm caused, how long will it take to correct the effects, how can society as a whole continue to conduct business and how can the issue be fixed and avoided in the future.
A few of the immediate effects would be the complete shutdown of our financial institution as we know it. There would be no banking transactions, the stock market would come to a screeching halt, and companies around the world would not be able to pay their employees or vendors. Another concern would be how people would be able to account for money they have saved or invested and how would people be able to care for their families when their money is trapped within the banking institutional system. How would people buy basic everyday items they would need to survive?
There are so many things that we as a society depend upon, like the easy usage of a debit card to purchase things that we all would be hard pressed to adjust. I don’t know of anyone who carries or has access to large sums of money at their disposal when they are shopping. Whether they are shopping to furnish their home or to feed their families. Many families would face the possibility of not having a place to live since they are either paying a mortgage or renting their place of residency. Many families would go hungry if neither of the parents or head of households knows how to grow the food that they would need to feed their families.
If society had to suddenly depend upon paper currency to conduct transactions would there be enough paper currency to allow people to continue to conduct their everyday business?
References: Bair, S. (2013). INTEREST RATES ARE RISING. CAN THE ECONOMY HANDLE THE SHOCK?. Fortune, 168(6), 67. Struck, H. (2011). Gold Demand Rose 6% In Q3, Central Banks Increased Reserves. Forbes.Com, 19. Walsh, D. (2010). When times are harder, companies barter. Crain 's Detroit Business, 26(11), 14. WHERE IS THE GOLD PRICE HEADING?. (2013). Economic Review (05318955), 44(3), 19-22.