Some eighteen months ago, I wrote here on “Money as a Social Construct“. Most civilizations over the millennia have found it expeditious to move from simple, immediate barter of physical objects like cows to some system involving “money”. But what is money? Wikipedia gives the following standard definition:
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given socio-economic context or country.Themain functions of money are distinguished as: a medium of exchange; a unit of account; a store of value.
For convenience, the “thing” used as money is best if it is portable and durable and of limited amount. Gold and silver have historically served these purposes. Even though these are physical objects, their actual value in usage (e.g. how much gold does it take to buy a cow) is arbitrary. Its value…
View original post 596 more words



In March 1848, Prussia faced a revolution (one of the revolutions of 1848 across Europe), which completely overwhelmed King Friedrich Wilhelm IV. The monarch, though initially inclined to use armed forces to suppress the rebellion, ultimately declined to leave Berlin for the safety of military headquarters at Potsdam. Bismarck later recorded that there had been a “rattling of sabres in their scabbards” from Prussian officers when they learned that the…



Recent Comments