Gold Is Natural Money; Fiat Is Fake
1st September 2023
Aristotle listed four characteristics of sound money: it must be durable, portable, divisible, and have intrinsic value. Gold possesses all of these characteristics, which is why gold has served as money for thousands of years.
It also expands/contracts the ‘money supply’ without reference to the underlying economy, which is why gold (and silver) cause knotty economic problems and why all modern governments don’t use commodity-backed money. Managing a commodity-backed monetary standard takes a lot more work than just shifting a government-mandated interest rate a few basis points here and there, which is why they prefer the latter to the former.