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Editor's note: The brief excerpt below comes from Hedgeye CEO Keith McCullough's introduction in today's Morning Newsletter.
“Money is gold, and nothing else.”
That was one of John Pierpont Morgan’s summary investment conclusions before he passed away in March of 1913.
Ironically enough, later that year, Carter Glass introduced modern day central planning of market expectations, currency manipulation, etc. to the US House of Representatives via the Federal Reserve Act.
By 1971, when US Dollar denominated money was fully politicized by Nixon (he outright abandoned the Gold Standard), J.P. must have been rolling in his grave…
Today, I’d say that money is whatever you think you have that can pay for things. In other words, if all your money was denominated in Bitcoins, Burning Yens, or Russian Rubles, you can pay for a lot less today than you could last year.
Money can often be an illusion of wealth, and nothing else.