Think of this as Volume 18, Number 34 of the newsletter I have written weekly since March, 1997. Enjoy.
This is what I’ve learned over a lifetime of studying money. And most conservatives still don’t get it. They think gold is money. They also think governments are families, or businesses. Governments are banks, not businesses.
But let’s take this one step at a time.
First, gold isn’t money, unless everyone agrees gold is money. For the last 40 years oil has been money, because everyone has accepted it as a medium of exchange, it defines value in trade. But that’s going to change real soon, and then what’s money? The answer is we’ll find out. It’s going to be whatever is deemed most essential in a post-energy economy.
Money is a verb, it’s the exchange. It’s not any particular thing. The thing that’s essential, that everyone is willing to exchange other things (including things called money) for, that’s money. But it’s the exchange that defines the transaction, not any one thing being exchanged. No one thing can be held indefinitely and called “money,” for just this reason.