[MD] It's all Obama's fault?

[Andre Broersen]

Michael to Andre:

This is exactly what has gone wrong. Government needs to get out of the money business.

Andre:
So it's the Government's fault?

Michael:
This writer doesn't know economics or history.

Andre:
Well, as former Regional Director of the Central Bank of the Netherlands I trust he knows his history, his finances and his economics as well as his statistics Michael.

Michael:
One hundred years ago, the world was still operating on a predominantly gold monetary standard and
international trade was far, far less than it is today.

Andre:
Now I readily admit that I do not know finances or economics but I thought that the link between gold and the American dollar was cut under Nixon. If I remember correctly it was Sri Aurobindo day(August 15),1971.

Michael:
Arbitrage systemically keeps the system clean, by*encouraging*  simultaneity of currency information.

Andre:
Now I have heard of this a bit. I have a member in my family who is currently developing software to get 'the edge' on 'simultaneity of currency information'. They are down to milliseconds and his job is to get as close to zero time as possible. Scary stuff.

Michael:
  
"Money has therefore acquired a different role".

Some truth to it. Again, government has driven it.

Andre:
Okay, this 'different role' refers to the development that:
If earlier money was primarily a medium of exchange representing the value of goods and services provided, today money is primarily commodity from which one can make a large profit. For banks, trade in this commodity has now become their most important source of income. But the production of goods and services has not increased accordingly.

Has Government driven this trend of using money 'representing the value of goods...' to money as a commodity in itself? Is Government responsible for this? Is Government responsible for the financial bubble farces that have gone on over the years?