Thursday “For example, money is not consumed after a transaction, but goods such as pork bellies and copper ingots are. Money is not directly comparable to goods.” Keith Weiner One of the tenets of Dawn of Gold is that goods* and money** are different. Money is not the most marketable good. Money is not, never was and cannot be a good. Prior to 1500BC, … [Read more...]
What is Money?
Wednesday I studied economics for three years (2007 -2010). What intrigued me most was that in a room full of students, some of them very bright, none of them could plausibly define money, not even my Professor. Economics is a coarse instrument without the lubricant of money. How could a whole subject evolve around a core concept that everyone and his dog … [Read more...]
The Primary Function
Friday The emergence of Gold from the temples of Egypt, c.1500BC, marked the beginning of the first Golden Age. Not only was the marketplace introduced to a precise measure of value, but, and more importantly, it gained a secure storage for that value. Where is the incentive to create surplus value if there is no means to store that value? Why would anyone … [Read more...]
Sunday I have just read an article repeating the claim that bubbles are a part of the human condition. They are not. They have a very specific and easily avoidable cause. Bubbles are created by the lack of Gold in circulation. Lacking Gold, there is no access to a store of stable value. Without that, people look for other ways to maintain the value of their wealth. … [Read more...]
Gold is the Glue
Saturday Human evolution has not been a series of natural and incremental improvements, one little step at a time, spanning the millennia. Improvements have been dictated by dramatic factors that appeared out of the blue and shattered the status quo. A meteor strike, sudden climate change or contact with a previously unknown and more advanced culture would be examples of … [Read more...]