Friday, August 19, 2016

What Did J.P. Morgan Mean?
GoldMoney's James Turk provides perspective on the exchange that occurred back in 1912 between J.P. Morgan & the U.S. Congress .. "Money is gold, and nothing else" was the famous quote .. his statement simply highlighted how gold is used, not what it is, which can be defined as a natural element ranking number 79 on the periodic table .. "Mr Morgan was defining more than just money. He was revealing the essential nature of the process by which people are paid for their labour, which in turn is the backbone of our capitalist society. Money comes from the market process, not government .. Bankers in stark contrast spawn money-substitutes called dollars, euros, francs, pounds, etc., but just like artificial sweeteners are not sugar, money-substitutes are not money. These currencies are forced into circulation by legal tender laws, which perforce have largely displaced the circulation of gold as currency. The unfortunate result is that gold’s inherent features and attributes have become unfamiliar to many who then fail to recognize gold’s true nature and usefulness .. All debt-currencies have counterparty risk, but gold does not. The reason is simple. Debt-currencies are a financial asset. They are not tangible, nor is their value derived from expended labor. More precisely, they are liabilities of banks, and as any accountant knows, it is a bank’s assets – and not its liabilities – that have value .. Throughout history gold has been mined because it is used as money. Even though gold today does not circulate as currency as widely as it did in 1912, it still is money."
LINK HERE to the essay

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