W h a t   is   M o n e y ?

Ayn Rand author of Atlas Shrugged:
So you think that money is the root of all evil. Have you ever asked what is the root of all money?
Money is a medium of exchange and is a market discovery traded in exchange for the full extinguishment of debt and stems from the necessity to allow for specialization and division of labor to develop so that wealth and standard of livings can rise. Exchange is the basis of all economic life, without it we would live very primitive lives if at all. Since money is one-half of every exchange, understanding it is important. A monetary price system is a fact of life in the physical world as much as it is a fact that you cannot snap your fingers right now and produce a house. The people in the physical world contained within the known five senses must contend with economic law and pass through a monetary pricing system to evolve. There is nothing magical about it that requires government. To deny economic law is to deny gravity. The laws of economics actually limit what any government can do.

Because of money, an elaborate "structure of production" can be formed in the market process, with land, labor services, and capital goods cooperating to advance production at each stage and receiving payment in money. Since all exchanges are made in money, all exchange-ratios (prices) are expressed in the common denominator of money. This allows people to compare the price of each good and service to that of every other good and service and rationally measure the value of a given exchange to them personally and thereby most efficiently and most effectively individually manage their limited resources and maximize their use.

Although an exchange benefits both parties, exchanges are never equal for if they were there would be no benefit and therefore no reason to exchange. An exchange is made only because each party valued the two products in different order. If I have an excess of food but no lumber I value your lumber more than I value my excess of food. If you have an excess of lumber and no food you would value my food more than you would value your excess of lumber and therefore we would be likely to make an exchange to better satisfy each of our different needs.

Money can be anything but sound money is a commodity used as a medium of exchange. Money allows for the facilitation of a multiplicity of exchanges efficiently which is another way of saying that money serves as an indirect medium of exchange for other goods and services.

Whatever the medium of exchange it evolves in the market process out of bartering into a more efficient medium of exchange and the medium must have wide demand in and of itself meaning a high liquidity as a commodity and not as a medium of exchange, it must have divisibility without losing value, it must be durable, it must have homogeneity of quality, easily transportable, and be limited in supply. Under a free market the most marketable commodities in this regard will become the medium of exchange and the soundest money because their characteristics most easily anchor themselves to a known price and a known demand due to their high liquidity which only a free market can provide.

The biggest problem with our monetary system or the medium of exchange we use is that the money we use to facilitate exchange is not a commodity meaning it has no real capital value (requiring work and sweat to create or obtain) in and of itself. Sound money is a commodity used as a medium of exchange and differs from other commodities in being mainly demanded as a medium of exchange rather than its other uses as a commodity. That is important to know. The money we use is created out of thin air by people who the government says can do it. The worse of the problem is we have no gold standard like when the dollar was at least defined as 1/20 of an ounce of gold as it was at least in the nineteenth century for a while anyway. The other problem is the government's monopoly enforcer role over the medium of exchange even if it is considered constitutional under an individual state legal tender law. The bottom line is you can't vote with your feet once they screw you, which is why people like the central banking cartel king Evelyn Rothschild advocate the regulation taxpayer bailout brainwash and war or war basically.

The market process of free market money has been removed and cartelized into a central plan counterfeiting ring of legalized plunder by the left and right political class who, like always, want power and control over people and legal protection against any resistance of that power.

The soundest money known to man is weighted purity of gold and silver coin, which has an anti-inflation insurance policy built into each one by default, which limits government and therefore protects liberty better than any constitution could ever hope to. Translated, what it all means is that the soundest money is the fastest way known to man to achieve peace, freedom, prosperity, and justice.

The situation can be summed up another way:

Government money is the problem and the Federal Reserve is currently the vehicle and fiat money is the poison.

If there is a printing press that can counterfeit legal tender at will, it will and that is how and the main source of where you lose your freedom and standard of living. Without free market money you just have to learn how to lose because you cannot vote with your feet.