Yeah, why was that? Why was gold (among other things) used as money? If you were in 15th century Italy, and you got some local currency there, what would that currency be worth in China? Nothing. Modern monetary and banking systems didn’t exist. That paper money from Italy would have been worthless. But gold didn’t corrode, and would have been accepted in exchange for goods and services, so it was used internationally with trade. That started to change when we started to develop modern financial markets and monetary systems. It was possible by the 20th century or so to get paper money in Italy and to use, or exchange that, for goods, services or local currency in China. Gold in the 19th and 20th century was used as a means of managing the flow of money through economies, and it was an important part of what elites wanted to be a self-regulating market. A country would fix the value of its currency to an ounce of gold and when it had a deficit with another country, it would ship gold to that country. When it did so, its domestic monetary base would shrink, and deflation would set it. When a country received gold, it could expand its monetary base and it could spend more on goods and services. Gold was simply used as a means of managing the monetary system with the government having little power, outside of being a clearing union. You have romanticized gold, and like I said, it makes no sense in the 21st century to contract or expand the monetary base in that way. We have an environmental crisis, and have to consider things that humans didn’t in centuries past.
No, I live in the real world. Money is a store of value, it is a medium of exchange and a unit of account. It provides many functions. You still haven’t explained at all why money backed by a commodity has “value” but fiat currencies don’t. Everything, including gold, has value based upon how much we collectively think it is worth, which is why gold bubbles build then burst. You expect that gold is worth something, you might exchange a good or service, but then the value of gold collapses and you wouldn’t because the amount of gold offered wouldn’t be worth those goods or services anymore. How is fiat currency any different? It isn’t, and US bonds are literally the safest investments in the world. Gold is not, and neither is Bitcoin.
First off, the Fed and the Treasury work together to spend what our politicians determine the government is to spend within our “democracy”. Our system is corrupt and the people in government don’t represent us, but the amount of money we spend is determined within the political system. The Fed doesn’t have real independence, it has to work with the Treasury, whose spending is determined by politicians in government. Maybe you aren’t aware of that. And I cannot just print money out of my checking account because no one will accept JoanRobinson dollars in exchange for goods and services, and I don’t have to fund the building of roads, bridges, schools, hospitals, and other things the government does. And people don’t need JoanRobinson dollars to buy stuff they need to survive.