Money is necessary to determine the difference between inputs and outputs.  Paper money makes that more and more difficult to do.  A money that’s a store of value makes calculation possible.  Many pseudo-economists and so-called experts don’t understand this, maybe willingly.  They push the idea that calculation can be done with paper if the state says so.  People accept paper because there legally required.  They’d choose real money if they could.

Money is just a medium of exchange.  So, yes, it’s possible to use paper to exchange, but only if it’s been decreed.  Just because paper is used today doesn’t mean it’s always been like that.  Paper was forced on the masses after the precious metals were selected.  The quantity of paper changes frequently—drastically.  The precious metals don’t.  The constant change in value will make exchange with paper money problematic.

Of course, they’ll make excuses in an effort to demonize gold.  They will call it a “pet rock”; “barbarous relic”; and whatever else they can come up with.  However, they won’t critique it.  They can’t.  They will attack you personally for being honest about money.  Even the so-called intellectuals will do this.  Every individual is faced with substituting one state of affairs for another.  Real money is necessary for this.

“Monetary calculation is the guiding star of action under the social system of division of labor.”  It’s like being in the ocean without navigation equipment.  Paper money is destroying that navigation equipment.  Only individuals can exchange one state of affairs for another.  Social welfare and social profits are entirely fictitious.  Only an individual can improve his welfare.  Only an individual or individuals can profit, not the state.

Action is directed at improving your condition.  Therefore, you are exchanging one thing for another.  If exchange is problematic with paper, the people who push paper money desire you to have problems.  If you have problems, a politician will propose to solve those problems.  They count on you never learning the truth about money.  Them getting elected is dependent on that.  Understand money, don’t be fooled.

Reference

Ludwig von Mises; Human Action