Tuesday I listened to a speaker a few days ago explain that Gold was money because it was ‘the most marketable good’ (the preferred trading good in the marketplace). He then explained that silver was what was actually used as most people didn’t own Gold and it was too valuable for marketplace trades. If Menger’s theory that money is so by virtue of the fact that it is … [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...]
Money is Not a Good 2
Tuesday Oh dear; I hate disagreeing with this man as I am a big fan of his work, but he is repeating the hoary old mantra that money is a good. It is not, was not and will never be. The ‘most marketable good’ is the best trading good, but still a good, not money. Fiat is a good, though with a value far more unstable than most goods, but a good nevertheless. Crypto … [Read more...]
What is Money?
Sunday “Money is gold, and nothing else” J. P. Morgan (1912) I only learnt this original quote when reading an excellent article by James Turk today. He said that the quote was often erroneously stated as: “Gold is money, and nothing else.” Indeed it is, because that is the only quote that I had ever seen and it is not only misleading; it is wrong. Mr. Morgan’s … [Read more...]