Understanding Money - Part 2 - The Functions and Requirements of Money

[newthoughts]

I would not like to like to buy a car or house with gold.

[newthoughts]

The price of gold is not the price of gold, any more than the price of a loaf of bread is the price of a loaf of bread. Also gold can be debased because it is easily melted and other metals can be added to make less pure.

[newthoughts]

You forgot one very big requirement of money. That is cannot be limited, there must be enough gold for all of the people to be able to obtain it. Gold is very limited and therefore most of the people will be unable to obtain it.

[Amnahx133]

I don't quite understand. :/

So this video is saying that only gold is money?

'cause as far as I, and my textbooks, are concerned money is anything that's generally acceptable in exchange for goods and services and in the settlement of debts.

Or is it just saying that gold is the best kind of money?

[larsiemannen]

@Amnahx133 Gold and Silver is a total unpolitical currency which we human use for trade. i've read somewhere that Gold are made by nupernovas clashing together, and small particles hit the earth as gold. The ammount is stable. Men don't temper with it. And no politicians can try to controll it. It's a free market that works best, for each one of us. Politicians try to overrun the market. It doesn't work! And Yes. Money is not other than laboured material traded with each other.

[FrankiePoker]

@Amnahx133 Money is a media of indirect exchange. There are a few different types : Fiat, Commidity, Bank Notes

[mousehead2000]

ironic that a subject that so prominent in all our lives holds such little interest. no wonder the financiers are laughing all the way to their banks...