No that is not at all true. Money was created to eliminate the double coincidence of wants. Money, more specifically M1, is currency in the hands of the public and demand deposits. Many things have been commodity money: oxen, sugar, nails, beer, and yes gold in the form of coins. But today that is not the case. Today money is currency (dollars bills and coins in the U.S.) and demand deposits (checking accounts, NOW accounts, etc.). Today, in the U.S., Gold is not money (M1), Diamonds are not money (and would be a horrible to use and never have been), no commodity is M1.
Should the US return to the Gold Standard?
- Thread starter Touring Mars
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No that is not at all true. Money was created to eliminate the double coincidence of wants. Money, more specifically M1, is currency in the hands of the public and demand deposits. Many things have been commodity money: oxen, sugar, nails, beer, and yes gold in the form of coins. But today that is not the case. Today money is currency (dollars bills and coins in the U.S.) and demand deposits (checking accounts, NOW accounts, etc.). Today, in the U.S., Gold is not money (M1), Diamonds are not money (and would be a horrible to use and never have been), no commodity is M1.
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- JacksHereR
Should the US return to the Gold Standard?
^without reading 17 pages I suspect the question is 'Could' not should. There isn't enough gold in the world to back America's debt let alone currency... ahh I know, lets sell futures of mining gold from asteroids 8)
^without reading 17 pages I suspect the question is 'Could' not should. There isn't enough gold in the world to back America's debt let alone currency... ahh I know, lets sell futures of mining gold from asteroids 8)
- 1,654
- UK
- JacksHereR
haha soz, yeh maybe BITCOIN is better discussion.
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