What Is The Criteria For Money?


Money, to some extent, is in the eye of the beholder.  Throughout history, money has been accepted in the form of sea shells, salt, even Kent cigarettes in Poland back in the 1980’s.  Ultimately, there must be some kind of standard and criteria for money, to have orderly markets.  The following is a list of criteria that true money must have in order to function effectively over time.

1.)   Hard to come by

2.)   Durable

3.)   Easily Divisible

4.)   Limited in supply

5.)   A store of value

6.)   Commonly accepted voluntarily or by force of law

Let’s examine Bitcoin and crypto currencies.  They have #3, but not really any of the others.  You can’t make jewelry out of crypto currencies, and you can’t hold them in your hand.  They do not have a store of value, and the supply is easily manipulated.  They are not limited in supply, as there can be as many crypto currencies as people desire to create.  It’s possible that crypto currency could have #6, as that would be a tremendous boon to the bankers who would then be able to control everyone and everything in the world.

Obviously sea shells and salt don’t fill the bill.  You can break sea shells, and salt can perish.

How about the dollar?  The dollar does have #’s 3 and 6 also, and #1 for the common man, but not the bankers who create the money out of thin air at a whim.  One key stroke on a computer, and a banker can create billions, or even trillions of dollars. Historically, every paper currency has collapsed – no exceptions.   See this earlier post below to show how corrupt this is.


So what does fit the definition and criteria of money?  Gold and silver are both very hard to come by.  Gold and silver coins from two millennia ago or more are still around, so they are obviously durable.  Today, you can obtain gold in 1 gram, 1/10 oz., 1/4 oz., 1/2 oz., and 1 oz. denominations, so it is very divisible.  Silver, for smaller denominations, can be obtained in dimes, quarters, half dollars and 1 oz. silver eagles.  So they are easily divisible.  Gold and silver are not only limited in supply, but they are becoming more limited and harder to come by.  Gold and silver are a store of value.  An ounce of gold from 2000 years ago, is still an ounce of gold today.  A U. S. Treasury dollar bill printed in 1900 bought one dollar’s worth of products – for example one ounce of silver.  Today, it will cost you close to $20 dollars in Federal Reserve Notes for an ounce of silver.  If the banks were not suppressing the price of silver and gold by short selling paper contracts, silver would be going for $200 an ounce, and gold would be going for $10,000 an ounce or more.  Lastly, gold and silver have been commonly accepted as money for over 5000 years of history throughout the world, and it still is today.  Meanwhile, many countries around the world have stopped using the dollar.

A cursory reading of the United States Constitution will show you that the only money Congress was allowed, and mandated, to make was gold and silver.  Gold and silver reveal the corruption of paper currency.  Originally, all of our paper money could, by law, be exchanged at any bank for gold and silver at a fixed price.  The banksters obviously didn’t like that, and they have taken away the gold and silver backing of the dollar over time.

From 1919 to 1923, the price of gold in the Wiemar Republic of Germany  went from 160 Marks to 87 trillion Marks.  What changed?  Was it the gold or the paper that changed?There’s a very tangible example in the recent past as to how paper currency can deteriorate rapidly.  Look at the Bolivar of Venezuela – they are suffering hyper-inflation right now!

Now you know the basics of money.  What are you going to do about it?


Pensamiento Peligroso writes the truth as he sees it, and if it upsets you, then it makes you think!

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