The most important thing to remember when studying economics is that Money, technically, has no real value. Money, it's self is a tool of measurement for for things of value. Much the way that a ruler is not a distance but measurement of distance.
Think about that for a second.
So, going back and looking at the earliest uses of money it was simply a token or a marker.
For example a wood cutter would go into a town, city, keep, or where ever a market would be set up and check in at the warehouse or wherever a storage facility would be set up. The market manager would issue tokens with a mark representing a pre determined amount of wood. The wood cutter would then take the tokens into the market and trade and barter their lumber as per usual. Then, at the close of market the wood worker would take their remaining tokens back to the market manager and return the tokens that were not traded as well as tokens for other bulky trade goods like bags of wools and sacks of grain that would have had tokens issued for them.
One of the misconceptions about money that many people have in the current market place is that trade and barter are no longer practiced. That's both true and untrue. It is true because many of the goods and services represented in the market have established values but the bartering comes in the form of the logistical side of the market. In the barter of work wages and the value/cost of production of trade goods. The barter and negotiation process is done on the production and labor side creating what is supposed to be a more stabilized marketplace.
The reason we've had market crashes in the capitalist market since the removal of the slave trade as it's basis of value is because slaves are essentially a never ending, exponentially multiplying "trade good"
It's a cold and analytical way of looking at it, but it is how the market was established. Each of the replacement standards have had finite pools and storage capability but the market never readjusted to compensate.
In recent years digital goods and services have taken over as the trade good of value and has stabilized the market in the short term.
But we also run into a larger problem with the digital band-aid is that digital goods do not match up to the physical goods that are needed to be distributed in the "market" or rather, in the world.
The strength of capitalism as an economic system is that is brutally efficient at calculating supply and demand. However that brutal efficiency was based on and developed around the basis of exponential growth in a time when land was considered boundless and would never run out. When the only real limitation was how quickly that land could be developed. However, under the capitalist market, with the aid of industrialization it has been very harshly discovered through economic hardship and famine that the land and space available on the earth is also finite.
Moving into the modern era two forms of government rose to prominence to fill in the labor gap that was created by the absence of slave labor. Communism and Socialism. Both direct responses to the industrialized economy.
Where as socialism arose under slightly different circumstances which I'll get to momentarily.
After the end of World War II capitalist nations such as the U.S. grew out of nations largely untouched by the ravages of the war. Communist nations out of the nations that lost much of their ability to produce food to feed themselves and had to develop severe austerity measures to survive.
Socialist nations and practices grew out of a balance between the two. Nations and that were ravaged by the war but had trade and support from outside capitalist markets that fed their excess resources and goods into them to facilitate the socialist supports that helped them recover after the wars.
Many of the places where fighting is still taking place is based on the two extremes capitalist and communist governments are clashing over which is the better form of management and recovery while socialist nations have been slowly stabilizing.
That's the odd thing though. Socialist nations could not exist without a capitalist market and communist regimes would not have gotten such a strong foothold if the period of extreme scarcity that was seen by the world during the period of late 1800 to early 1900's.
Capitalism is a brutally efficient and flexible way of handling goods and resources but it's success and management method is based on "limitless" labor and resources.
Communism is an equally brutal and efficient method based on authoritarianism that is given it's foothold and legitimacy by scarcity of stable food sources.
I'm still working out how to get this argument on a more understandable level but it boils down to this.
For our economy and world to be able to stabilize and adequately a capitalist and free market place is needed to facilitate innovation and quickly adapt to market needs where as a socialist work force is needed to keep that market functional and stabilized.
The only thing that is necessary to fully stabilize that market is addressing what it is that gives dictatorships and authoritarian communism their footholds in the world. And that is access to clean water and healthy and adequate food sources.
So arguably the new gold standard needs to be established to keep the market from outgrowing it's self.
A plan and concept that I argued a few years ago.
Water, storage, food, medical care.
Need and balance.
The hard and scary part is preventing another population boom. The world can't handle it and is currently suffering from the hardships of one caused by the prosperity and relative peace that industrialization brought to the world.
Still working on how to find a balance between the three systems to avoid the one child rules later 1900's China and the brutal dictatorships that grew into the voids caused by the over production of early industrialization.
Because we have entered into a new period of history. The Industrial period that helped develop the ways and means for producing enough goods and resources to meet the demands of the worlds population and into what is arguably the Digital Era. An period of unprecedented prosperity that has been tasked with managing and stabilizing the logistical hurdles of distributing the goods and resources that industrialization has made available.
It's funny.
The problems of the early world was pure and simple survival.
Then after survival was figured out through agriculture and irrigation.
We entered into a world of exploration.
The world explored, or at least the boundaries within which that exploration could be done it was figuring out how to provide for large and settled and populations and industrialization took hold.
Now the boundaries of exploration established, the ways and means of providing for a world population developed the task before the current generations is finding fair and humane ways of distributing the goods and resources while still giving the world the room to breath and inhabitants the freedoms to explore, learn, and develop.