"Aftershock is a superb exegesis of how our damaged economy is in for further difficulties. Since the authors hedge their predictions not at all, a second event in which they will have been proven correct will lead to a very special stature."

Stanley Goldstein , Founder , New York Hedge Fund Roundtable
"Aftershock makes a compelling argument for a chilling conclusion. Their track record demands our attention."

Sam Stovall , Chief Investment Strategist , Standard & Poor's

Chapter 8 - Elements of STEP Theory.

STEP Evolution will be explained more fully in a future book. Here is an interesting look at how this powerful theory can be used to analyze the macro view of the evolution of money. What is key here is not the history of money, which is summarized in the STEP Matrix below, but the causal link between Science, Technology, Economics, and Politics (the horizontal arrows) at each period of history.

The STEP Matrix for the Evolution of Money

Evolving Science Evolving Technology Evolving Economics Evolving Politics

Pre-History Age of Stone 1.7 million yrs ago - 4000 BC	Knowledge of ways to manipulate stone	Chipped-stone tools, which created wood-working, animal skins, and weapons	Rudimentary trade, development of BARTER	Development of tribes, marriages, medicine men
Distant Past Age of Metals 4000 BC - 1500 AD	Knowledge of ways to manipulate metals from the earth	Metal tools and objects, such as axes, saws, armor, ships, containers, printing press	Increased trade, development of METAL COINS	Development of kingdoms, laws, and monarchies
Past Age of Mechanization: Steam Era 1500-1900	Knowledge of chemistry and physics, particularly the properties of air and water	Steam-powered ships and trains, internal combustion engines, mass-produced cars, assembly line factories, and many other technologies	Greatly increased trade, development of banking and PAPER MONEY & CHECKS	Development of dictatorships and democracies, fewer monarchies
Recent Past Age of Mechanization: Electricity Era 1900-2000	Knowledge of electronics and early computing	Electronic devices, computers, digital devices and many other technologies	Global trade, development of Electronic Transactions	More and more democracies, fewer and fewer dictatorships and monarchies
Future Age of Mechanization: Information Era 2000-2200	Knowledge of more advanced computing	Increasing sophistication of computers and other information devices	Monetary Evolution, global recession, development of International Currency	Political upheaval
Far Future Age of Mechanization: Global Technology Era 2200 - 2500+	Greater knowledge of large-scale parallel processing, Super-conducting computing	Worldwide advanced computing system, global transportation system, and other large-scale technologies	Stabilization of global trade, development of Global Electronic Money	Global democracy