Since gold has been stated to be officially demonetized, does it unofficially still posses monetary qualities?
Gold has served as a form of money for over 5,000 years, Federal Reserve notes for 86 years. Lets not be fooled, gold always has been, still is, and always will be the greatest store of value. Currencies come and go, gold is forever. Does a gold standard guarantee a sound currency? Not necessarily. A gold standard provides a framework for note issuance. Only a certain proportion of notes can be issued in relation to gold held in reserves. Unfortunately, this ratio is often lowered until the gold standard becomes irrelevant. Since a “note” is a promise to pay, what does the Fed promise to pay for their notes? In the past it was a promise to pay gold, then it became a promise to pay silver, then it became a promise to pay nothing. How did this come about? Early on gold and silver were used as money. Since gold is very cumbersome, goldsmiths with large vaults began to store peoples gold. They would issue “notes” verifying a persons deposit. When a depositor wanted his gold they would give
Related Questions
- Is the Mystical Order of the White Rose (MOWR) a completely independent organization, or is it officially or unofficially affiliated with a church, group or organization of some kind?
- What was the date that slavery ended in Pennsylvania, officially and unofficially. Also, what was the method?
- What qualities must the winners posses?
