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"There has never been a one to one match between money and stuff." Depends on how you define money. In the case of hard assets like gold there is a one to one
by 0x445442 9y ago
"There has never been a one to one match between money and stuff."
Depends on how you define money. In the case of hard assets like gold there is a one to one match because gold represents energy already spent.
- cirgue 9y agoPeople want gold not because it took energy to mine, but because other people also want gold. Gold is like any other currency system, except that the process that controls supply is basically stochastic (and there is a small industrial demand for the commodity itself, but this is negligible).
- smaddox 9y agoIf you define money as hard assets, you don't understand money. I suggest reading "Debt: the 5000 first years".