The Phaserl


Gold is Not Money

from GoldSeek:

Gold was money in the distant past and it will probably be money in the distant future, but there is no developed economy in which gold is money today. In this post I’ll explain why.

People who argue that gold is money often confuse what should be with what is. They explain why gold-money would be vastly superior to any of today’s fiat currencies and their explanations are probably 100% correct, but they are sidestepping the issue. There is no doubt in my mind that gold is far better suited to being money than something that can be created at whim by commercial banks and central banks, but the fact is that gold is presently not money.

Part of confusing what should be with what is sometimes involves the claim that governments can’t determine what is and isn’t money. This is akin to someone claiming it can’t rain while standing in the middle of a rainstorm.

The hard reality is that governments routinely do many things that they shouldn’t be able to do. Governments shouldn’t be able to force people into slavery, but they sometimes do it. They call it conscription or the draft. Governments shouldn’t be able to steal, but they do it on a grand scale every day and call it taxation. Governments shouldn’t be able to monitor almost all financial transactions and most internet communications, but they do. They call it national security or keeping us safe from terrorists and drug traffickers. Governments, either directly or via their agents, shouldn’t be able to siphon away the purchasing-power of savings and wages, but they do it under the guise of economic stimulus. Governments shouldn’t be able to put obstacles in the way of peaceful, voluntary transactions, in the process greatly increasing the cost of doing business and thus reducing living standards, by they do it every day and call it regulation. One particular government (that of the US) shouldn’t be almost continuously intervening militarily in multiple countries around the world, but it is. They call it peace through strength or keeping the world safe for democracy.

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5 comments to Gold is Not Money

  • Eric

    Please read the comments section on this one. Gold has been money for 5000 years. Gold will be money for the next 5000 years. Gold doesn’t stop being money just because a government comes along and calls something else money. I’ve never had any trouble giving away a silver eagle or using them in exchange for other goods and services. Can I go use it at Walmart today? No. But I hate Walmart. A “government” is just a corrupt group of psychopaths and sociopaths with no real skills that are organized to control your mind, apply force, and steal your wealth.

    He tries to make the argument that it is a store of value and that other things are a store of value which is true. But other stores of value haven’t necessarily been used for 5000 years. It’s a LONG TERM store of value.

    • Eric

      Best Comment…

      Sorry but your definition of money is a partial definition to suit a non argument. JP Morgan declared gold as money as did John Exter and Al Greenspan was in no doubt about the Ponzi game he played. Please see the Goldcore article today on gold as independent money with value, versus the central banker’s Ponzi paper:

      Money is defined as any good that can be used in exchange for other goods and services and as payment of a debt. It must be a tangible asset to provide a reliable unit of measure that can properly value other goods and services, to be accepted as a recognizable stable monetary unit of wealth in conducting
      international or national trade and to provide a reliable store of value that protects wealth.

      Counterparty money is someone else’s liability, it is the liability owed to the issuing central bank and it has no value apart from a legal stipulation that prevents real money from being used in competition.

      I would add:
      Falsely pretending something that does not have value as monetary worth is a crime, a sham and a fraud intended
      to take something valuable from another person.

  • Ed_B

    IMO, money is whatever both buyer and seller agree to use to settle a trade. If that is silver, gold, cattle, or a chunk of land, then that is what they are using as money. No, this will not ever be officially designated AS money but it is in effect money nonetheless. Governments want us to use things that only they control so they can thus control all trade as well. This is why governments hate gold and silver – they put control into the hands of the people and remove it from government hands.

    If a person needed or wanted $25,000 from their 100 years ago, they could specify that in gold coin or in paper gold certificates at their choice. There would have been no argument from the bank as it was not the bank’s place to interfere in private business. Their only function would have been to facilitate it. Likewise, it would not have been any business of the government whatever that you wanted more than $10k of YOUR money placed into your hands. Why you wanted this was none of anyone else’s business.

    Today, however, bureaucrats and lawyers “working” for the government contend that it IS their business and that if you do take more than $10k from your bank account, they want to know all about it via mandatory paperwork that the bank MUST complete and send in to them. Their reason for this unnecessary intrusion into your life? Well, you might be up to something illegal with that money, so must be watched just in case. This is not how liberty works. This is how a busybody nanny-state works.

    Personally, I prefer liberty to nanny-statism every time, even at the risk of doing something that is not in my best interests now and then. Those who are allowed to stub their toes from time to time learn to walk more carefully than those who are not. Since learning is a valuable experience for us all, it is good to have the opportunity for it.

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