Why is Gold a Better Form of Money Than Paper?

Note*** – The LPSC is not endorsing any company or service presented herein, but presenting this for informational purposes only.

Presented By Schiffgold.com – http://schiffgold.com

May 2nd, 2017

You’ve probably heard people say gold is real money1, but what does that actually mean? Is there some fundamental difference between gold and the green pieces of paper stuffed in your wallet that we call money? As investment guru Doug Casey put it2, “The dollar is, technically, a currency. A currency is a government substitute for money. But gold is money.” So, what is money? Simply put, it is a medium of exchange and a store of value.

Almost anything can be used as money, and, in fact, many things have served the purpose. Cattle, salt, cigarettes, and even seashells have been used as money throughout history. But as Casey points out, some things work better others. You can’t just exchange things nobody wants; there are other practical considerations. Over the last millennium, precious metals – primarily gold and silver – have evolved into the best form of money in existence.

These are the reasons why gold is the best money. It’s not a gold bug religion, nor a barbaric superstition. It’s simply common sense. Gold is particularly good for use as money, just as aluminum is particularly good for making aircraft, steel is good for the structures of buildings, uranium is good for fueling nuclear power plants, and paper is good for making books not money. If you try to make airplanes out of lead, or money out of paper, you’re in for a crash.”

Aristotle listed five properties that make something suitable for use as money. Casey outlines them in his article:

Durability

You don’t want your money to fall apart, or dissolve when it gets wet. It has to last over time.

Divisibility

You need to be able to split it into smaller increments without it losing value. That’s why a painting doesn’t make good money. Half a Van Gogh isn’t worth a whole lot!

Convenience

At one time cattle were used as money. But it’s not very convenient to haul cows with you everywhere. Good money packs high value into a small package and is easily portable.

Consistency

Money should be easily recognizable, with each piece identical to the next. This property is sometimes referred to as fungibility.

Intrinsically Valuable

Good money should be something a lot of people want or can use. In other words, it has a useful purpose and value based on something other than its role as money.

When you look over this list of Aristotle’s criteria, it becomes clear why gold and silver have taken on the role of money for hundreds of year. Both precious metals are durable, divisible, convenient, consistent, and possess intrinsic value.

It also becomes clear why paper really doesn’t make good money. It meets the first four criteria, but it fails utterly at number five. Paper has no intrinsic value. Gold can be made into beautiful jewelry, and it is increasingly being used in environmental3, scientific4 and healthcare5 applications. Dollar bills aren’t good for anything – unless you just happen to like pictures of dead presidents.

We can also add a sixth property to Aristotle’s list: scarcity. Money should be rare and hard to find. You can’t use gravel for money because you can pick it up everywhere. Everybody could get as much as they want. Gravel money makes for a fun fantasy, but it certainly wouldn’t work in practice, despite the Federal Reserve’s attempts to make the dollar just as plentiful through money printing.

Herein lies one of the biggest problems with paper money. Yes, it’s scarce, but that scarcity is artificially created. The government can print more paper money on a whim, as much as it wants, whenever it wants. From the government’s perspective, paper money is just like gravel. But gold is real money.

Footnotes:

  1. https://schiffgold.com/interviews/gold-is-money-not-a-commodity-if-you-want-money-have-some-gold-video/
  2. http://www.internationalman.com/articles/doug-casey-on-why-gold-is-money
  3. https://schiffgold.com/key-gold-news/gold-new-green/
  4. https://schiffgold.com/key-gold-news/gold-reflecting-light-universe/
  5. https://schiffgold.com/key-gold-news/healing-power-gold-silver/
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We Denounce The Air Strikes On Syria

The Libertarian Party denounces last night’s strikes on Syria.

Purportedly these strikes were a retaliation for the release of a chemical agent which wounded and killed many Syrians earlier this week.

The use of chemical agents against civilians is abhorrent but, according to news reports, the cause of that chemical release is uncertain. It is believable that the Assad regime could have purposefully caused it but when war and peace are at stake, as they are now, we must not jump to conclusions, no matter how natural they may seem.

The situation in Syria is very complex. There is no clear, straight-forward path to peace. Additional air strikes will just kill more people and further inflame an already highly volatile situation.

For decades, the United States has pursued a foreign policy based on the idea that we can play policeman for the world. Time and time again we have seen this fail. Sadly, our intervention into Syria will be no different.

Launching missiles into Syria risks pitting the US against Russia in a proxy war. There is no way in which a proxy war can be beneficial for humanity, the United States, or Syria. Such a war will only elevate Russia on the world stage, further destroy Syria and Syrian lives, and cost the US many American lives and resources.

If the President wants to help the Syrian people, he should facilitate more refugees entering the United States to find safety here rather than demonizing them and hampering their escape from the dictator that is slaughtering them.

Since World War II, American foreign policy has been highly interventionist. This has dragged our country into many wars and conflicts that were not in the best interest of the American people. These wars and conflicts have cost many thousands of lives and billions of dollars and have not made the American people any safer. Our military is very powerful but these issues are too complex to be solved by military might.

The Libertarian Party calls for an end to interventionist foreign policy.

Specifically, the Libertarian Party recommends ending American military aggression in Syria and the rest of the Middle East. Our actions there, while meant to reduce terrorism, instead often serve as a rallying cry for terrorists and facilitate terrorist recruitment.

Sincerely,

Nicholas Sarwark
Chair, Libertarian National Committee

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Have A Laugh With The LP!

LPSC Fundraiser May 7th!

Get tickets by contacting any Suffolk LP member, or going to one of our meetings, or buy there here, and pick them up at the show!




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And THIS Is Why We Can’t Have Nice Things

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Fill Federal Election Commission Vacancy With A Libertarian

For immediate release
February 28, 2017

The unexpected resignation of Ann Ravel from the Federal Election Commission (FEC) offers an ideal opportunity for President Trump to “drain the swamp” by appointing a Libertarian commissioner. And because he is considering filling the entire commission with new blood, he could appoint a Libertarian to any of its six seats.

The law requires that no more than three members of the commission come from the same political party. Presidents typically appoint members who are either Democratic or Republican, or closely aligned with one of those two old parties.

But the country consists of much more than just Republicans and Democrats. There are many millions of independent voters, and November’s election saw 4.5 million voters casting their ballots for Libertarian candidate Gov. Gary Johnson. These voters also deserve representation on the FEC.

The Libertarian Party is the nation’s third-largest political party. Through its strength and popular support, it was able to overcome significant hurdles and place its presidential candidate on the ballot in all 50 states and the District of Columbia.  It would be entirely reasonable and consistent with the law for President Trump to appoint a Libertarian.

Speculation has already begun as to which Libertarians could make President Trump’s short list of prospective replacements. One obvious possibility is Richard Winger, the long-time publisher and editor of Ballot Access News, and nationally recognized expert on independent and alternative-party election issues.  Winger would certainly bring a fresh and much-needed perspective to the FEC.

A more diverse FEC would likely curb the self-serving behavior of the Commission on Presidential Debates (CPD), which was brought to light this month when a U.S. district court judge ordered the FEC to adequately respond to a complaint that presented mounds of evidence of CPD’s bias in setting criteria for inclusion in presidential debates.

Polls consistently show that a majority of Americans want alternative candidates included in the debates. Yet the FEC has allowed the CPD to exclude them in violation of the FEC’s own regulations.

Adding a Libertarian to the FEC would begin the process of giving American voters real choice at the polls, so that they—rather than political insiders—will control the federal government’s agenda.

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