First you say this: > Gold .. has stability of value and is durable. Later you say this: > Money itself is not wealth. It is the goods and services behind it that is the true wealth. These two quotes are incompatible with each other. Money is a good just like any other good. For example gold: if it were not a useful good in society, then it would not be used as money. Government money is also a good. Holding government money provides subjective value to its owners. It's value-construction is a bit different from a commodity good: if you don't have sufficient government money, then the government police will put you in jail. Staying out of jail is the value that holding government money supplies. This is why printing more government money doesn't create more wealth in society and only restructures wealth in society; as opposed to your reasoning: > .. This is precisely why printing and borrowing more paper currency does not and cannot ever lead to more real wealth. See also: [The theory of money in the tradition of Carl Menger](http://bit.ly/1Iyqy2H)
- Nielsio
link: http://bit.ly/1OT9nK0