What is good money?
Robert Vitye, founder and managing director of the SOLIT Group (including GoldSilberShop.de), gave an interesting lecture at the World of Value 2019 value conference in Frankfurt/M. with the topic “Stable money order instead of money socialism”. Among other things, he will discuss the question of what constitutes good money. The general acceptance and trust of its users, he emphasizes besides the technical requirements (as a good medium of exchange, unit of account, store of value) as an important factor.
Gold enjoys trust
Throughout history, gold, and generally precious metal in physical form, has enjoyed this trust among free men across all cultural and religious boundaries. “In this respect, we can rightly claim here that precious metals are the money of free markets and free people,” says Vitye.
Today’s money (dis)order
On the other hand, there is today’s money order. Vitye: “One should rather speak of monetary disorder”. In this context, he speaks of a monopolised penalty payment, the structure of which was not based on the voluntary choice of market participants, but on legal coercion. Many were not aware that this centralisation and monopolisation of the monetary system was ideologically based on the communist manifesto by Karl Marx and Friedrich Engels of 1848. Even then, a centralist monetary order under the control of a state national bank had been demanded.
The victim of this monopolistic centralism is monetary stability. The speaker presents a graph showing the development of consumer prices before and after the abandonment of the gold standard. Vitye: “I am always amazed at how, in view of these facts, it has been possible to define the past 100 years as monetary stability. This is a propagandistic masterpiece. He then explains how money was organised at the time of the gold standard, how our current monetary system came about and why gold is the ultimate currency.