Money supply Timelines: Geld-Dollar-en

The fixed relationship between the amount of money in circulation and a reserve value deposit in sufficient quantiy generates the trust of the people in the value of the money.

In the case of a gold standard, the real value of the money is the gold reserve.

Only if the relationship of the money to the tangible assets is considered as secure and the money can be exchanged at any time in the corresponding amount of the tangible assets, the money will be accepted for any trade.

The value of money is therefore essentially determined by mental factors and intellectual value assessment of people.

A very strong economy, with many hardworking people that have great skills and new technologies, new products and services, it is necessary that a sufficient quantity of money is in circulation, so that the full potential of this economy can be realized.

What can nation do that do not have gold reserves? They can at least exchange goods and services to another nation or sell it for gold. Barter or compensation business are other options.

Money has indeed prevailed in the history of humanity, because the handling of trade has been greatly simplified. However, the uncertainty of its real value has been addressed. These uncertainties should be reduced by a gold standard.