Loading ...WRONG: GOLD IS MONEY, Correct: MONEY IS GOLD
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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.
Money comes into existence like every other good and service. They all are a result of labour diligently applied to a task completed over time to produce a useful outcome. A farmer produces food, a builder a house, a manufacturer a car, and so forth. All of these items are useful products. Similarly, useful services are provided by a barber cutting hair, a waiter serving food, etc. And to address Mr Morgan’s point, a gold miner expends labour and time to produce a useful good we call money.
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 recognise 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 labour. 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.
https://www.goldmoney.com/research/goldmoney-insights/what-did-jp-morgan-mean