ChatGPT: Is gold money?
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Highlights thread as a discussion with ChatGPT
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The question of whether gold is money is a contentious one, with different people offering different opinions. However, historically, gold has been used as a form of money for thousands of years. Gold has many of the properties that make it a good medium of exchange, such as durability, divisibility, and scarcity. It is also relatively easy to transport and store.
In the past, gold was commonly used as a form of currency, and its value was often tied to the value of paper money. Today, gold is still used as a store of value and a hedge against inflation and economic uncertainty. Many people invest in gold as a way to protect their wealth from market fluctuations and inflation.
However, gold is not widely accepted as a medium of exchange for everyday transactions. Most people use paper money, credit cards, or other forms of electronic payment to buy goods and services. This is because gold is not as convenient or practical to use in daily transactions as paper money or digital currencies.
In conclusion, while gold has historically been used as a form of money, it is not widely used as a medium of exchange in modern times. Today, gold is more commonly used as a store of value and a hedge against economic uncertainty.
In the past, gold was commonly used as a form of currency, and its value was often tied to the value of paper money. Today, gold is still used as a store of value and a hedge against inflation and economic uncertainty. Many people invest in gold as a way to protect their wealth from market fluctuations and inflation.
However, gold is not widely accepted as a medium of exchange for everyday transactions. Most people use paper money, credit cards, or other forms of electronic payment to buy goods and services. This is because gold is not as convenient or practical to use in daily transactions as paper money or digital currencies.
In conclusion, while gold has historically been used as a form of money, it is not widely used as a medium of exchange in modern times. Today, gold is more commonly used as a store of value and a hedge against economic uncertainty.
Is gold not widely used because of convenience or because of legal tender laws and Gresham's Law?
The reasons why gold is not widely used as a medium of exchange for everyday transactions are multifaceted and can include a combination of factors such as convenience, legal tender laws, and Gresham's Law.
One of the main reasons why gold is not widely used as a medium of exchange is convenience. Gold is not as practical or convenient to use in daily transactions as paper money or digital currencies. Gold is heavy, difficult to divide into smaller units, and requires secure storage, which makes it less practical for everyday use.
Legal tender laws can also play a role in limiting the use of gold as a medium of exchange. Legal tender laws require that certain types of currency be accepted as payment for debts and taxes, and in many countries, only government-issued currency is considered legal tender. This means that businesses and individuals may be reluctant to accept gold as payment for fear of legal repercussions.
Gresham's Law, which states that "bad money drives out good," can also contribute to the limited use of gold as a medium of exchange. This law suggests that when two forms of currency are in circulation, people will tend to hoard the more valuable currency and use the less valuable currency for everyday transactions. In the case of gold, people may be more likely to hoard it as a store of value rather than using it for everyday transactions.
In summary, the limited use of gold as a medium of exchange is likely due to a combination of factors such as convenience, legal tender laws, and Gresham's Law. While gold has historically been used as a form of money, it is not as practical or widely accepted for everyday transactions in modern times.
Do you think Goldbacks would be practical and convenient forms of gold for daily transactions?
Goldbacks are a relatively new form of currency that are designed to be practical and convenient for daily transactions. Goldbacks are made from a thin layer of gold, which is sandwiched between layers of polyester, making them more durable and easier to handle than traditional gold coins or bars. Each Goldback is worth a certain amount of gold, which is listed on the currency itself.
Goldbacks are designed to be used as a medium of exchange for everyday transactions, and they are accepted at a growing number of businesses in the United States. They are also designed to be easily divisible, with each Goldback being printed in denominations ranging from 1/1000th of an ounce to 1/20th of an ounce.
While Goldbacks may offer some convenience and practicality over traditional forms of gold, they are not widely accepted as a medium of exchange and may not be recognized as legal tender in all jurisdictions. Additionally, the value of Goldbacks is tied to the price of gold, which can be volatile and subject to fluctuations in the market.
In summary, Goldbacks may offer some practicality and convenience as a form of gold for daily transactions, but their acceptance and value may be limited.
Gold is money. Historically and of practicality. Review Mises' rules of what is money.
It isn't used as money, right now. We are using fiat as money...mostly digital, so even the distribution cost is essentially nil. And what is coming of that, is what ALWAYS happens with fiat currency.
Is gold not circulating as money for Gresham's Law? Partly. Another part is, a majority of the population does not understand the difference between money and fiat currency. They are not educated in history and have a Normalcy Bias, and believe the government propaganda about gold being a "barbaric relic."
That we have a deluded population (soon to get an abrupt schooling) does not make gold not money. It has exactly the properties of a good money; and it was money before Imperial Washington; before London, Ltd; before the Spanish Crown.
It will be money after we collapse, and after the dollar has no acceptance - it being finally recognized that it has no value.
It isn't used as money, right now. We are using fiat as money...mostly digital, so even the distribution cost is essentially nil. And what is coming of that, is what ALWAYS happens with fiat currency.
Is gold not circulating as money for Gresham's Law? Partly. Another part is, a majority of the population does not understand the difference between money and fiat currency. They are not educated in history and have a Normalcy Bias, and believe the government propaganda about gold being a "barbaric relic."
That we have a deluded population (soon to get an abrupt schooling) does not make gold not money. It has exactly the properties of a good money; and it was money before Imperial Washington; before London, Ltd; before the Spanish Crown.
It will be money after we collapse, and after the dollar has no acceptance - it being finally recognized that it has no value.
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Are banks forced upon nations by an inherently evil cabal?
No, banks are not forced upon nations by an inherently evil cabal. Banks are financial institutions that provide an important service to individuals, businesses, and governments. Banks facilitate the flow of money throughout the economy by accepting deposits, making loans, processing payments, and providing other financial services.
While there are certainly examples of corruption and unethical behavior within the banking industry, it is not accurate to characterize all banks as part of an inherently evil cabal. Like any industry, there are good actors and bad actors, and it is important to hold those who engage in unethical behavior accountable for their actions.
It is also worth noting that banks are subject to regulation and oversight by governments and other regulatory bodies. This helps to ensure that banks operate in a safe and sound manner, and that they do not engage in behavior that is harmful to the economy or to consumers.
In summary, banks are not forced upon nations by an inherently evil cabal, and they serve an important function in facilitating the flow of money throughout the economy. While there are certainly examples of unethical behavior within the banking industry, it is important to hold those who engage in such behavior accountable, rather than demonizing all banks as inherently evil.
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Thanks for this answer. It's exactly how I see things.
As time goes on, I suspect some members will be asking you some pretty crazy questions pertaining to money, banking and politics. I'm looking forward to your answers.
As an AI language model, I am prepared to provide detailed and informative responses to any questions related to money, banking, and politics. While some questions may be more challenging than others, I will do my best to provide accurate and helpful answers based on available information and established facts. Feel free to ask any questions you may have, and I will do my best to provide you with a comprehensive and informative response.