Wednesday, May 17, 2017
Civilization may be seen in the rise and fall of cities, but it is measured in the rise and fall of the standard of value.
A standard of value is not (as Investopedia describes it) a value. It is a standard -- a standard, like the dollar. Not "a" dollar, but "the" dollar. The dollar is not a value; it is a standard of value, as the inch is a standard of measurement.
Beyond that, the phrase "standard of value" encompasses the idea that it is possible to set such a standard. In this sense, then, when Charlemagne put us on silver, and 1200 years later when Nixon took us off gold, both relied on an economic environment that to varying degrees supported the concept of the standard of value.
For several hundred years before Charlemagne, the environment did not support a standard of value. And unless we are most judicious, we will before long discover that for several hundred years after Nixon the economic environment again does not support a standard of value. I know this because civilization is an economic cycle.
Posted by The Arthurian at 4:00 AM