From gold standard to oil standard, now mixed pattern

From gold standard to oil standard, now mixed pattern

Coin hedging standards, better, money, since precious metal coins were valued for their weight and purity of gold, silver, bronze, platinum and other noble materials such as: stainless steel, vanadium, titanium, so a chinese did the absurd, invented a piece of tissue paper painted with a value and called it money, and the most incredible thing is that humanity laughed, mocked the toilet paper called money and what seemed absurd and improbable turned into the biggest revolution in the financial world that was the money printed by a mint that is worth nothing except for the numbers printed there displaying a number that should represent an exchange value and payments, so the rest was the creation of banks to receive and multiply money, and change civilization as the first printed book did.

So some skeptics atavistically insisted on resurrecting the precious metal currency standard and created the fiction of the backing of paper money with no intrinsic value circulating forced by the government and its monetary authority these atavistic and distrustful lords created the backing in gold and silver in the vaults of central banks.

Even knowing the money multiplication mechanism by bank accounting that can create virtual money of five times or more for each unit of money or currency deposited, so they started to do the math to know what part of the money that was being guaranteed by the gold standard : whether it was the value of demand deposits put into circulation by the money printing house, or whether it was the values ​​of circulating media?

There is no way of knowing whether it was the aggregated virtual money that was being backed by gold, or whether it was the money put into circulation directly by the mint that was protected by the gold backing to guarantee the primary circulating medium or M1.

What a mess! No government can guarantee the intrinsic value of the currency in precious metals, so the M1, M2, M3, M4, M5 emerged, which are derivatives and the currency initially issued in the form of money by the mint.

What difference does it make for citizens and businesses?

But this atavism became more evident when the first virtual money appeared, without its physical correspondent in currency or paper, called virtual currency, in fact, it already existed in bank accounts, and in the market, it was only formalized with the name of crypto. -Bitcon currency.

Etherium, Petrum, and the family of virtu-currencies continues to grow, still having to share with old concepts of monetary base, and backing in gold, oil, nuclear weapons, gas, commodities, participation in the world market, industry oligopolies of tires, microprocessor industry oligopolies, nuclear weapons oligopoly, rare earth oligopoly, uranium oligopoly, titanium oligopoly, lithium oligopoly, automobile oligopoly, then humanity broke up into very specific oligopolies like Microsoftware software, Google , Oracle, LG cell phones, Samsung, Apple, Motorola these titans produce virtual currencies in the form of dominating captive markets which they still control without fully understanding how, unlike the Porsche company that understood that its business is not to design, manufacture and sell cars, but the financial movement that its industrial park is capable of leveraging in the financialized world, only now are other large monopoly companies o learning to discover that your business will always be just money, like: Coca Cola, Mc Donalds, but other transnational companies still have a lot to learn to train the minds of their executives that the only business that exists after the invention of money , and the money.

oberto da Silva Rocha, professor universitário e cientista político