RUDEBOY said:
Socrates, you seem like a very interested person, and i think i like your style. The markets evolved around money, yes or no?
Yes and no.
Markets have always existed. In the beginning it must have been very difficult to buy or sell anything because the idea of currency had not been developed properly. I will come back to this in a minute.....
So in the early days markets operated on the basis of what is called barter. This meant that people would meet to exchange food, or goods or animals with each other in prearranged places at prearranged times.
The difficulty was to establish how to value the food, goods, or animals against one another, and then how to accomodate the differences. This must have been very stressful and must have led to a lot of argument, even wars.
As civilisation progressed, some bright spark thought of the idea of using tokens. Those tokens were the earliest coins, that is the earliest form of currency.
Now there arose another problem, and that was to create coins or tokens that could not be counterfeited, to prevent cheating. I think it is at this stage in human consciousness that coins became synonymous with value, and as an extension of this idea, with demonstrable and tangible wealth.
Gold and Silver were two favourite metals in the beginning used as tokens, because it was believed that because as uncommon metals that their supply would be restricted, but as history unfolded this was slowly discovered not to be exactly so. And then another problem arose; Cheating.
Some unscrupulous individuals discovered it was possible to make alloys using gold and silver in order to unfairly maximise the new concept of "buying power" each of these tokens could command. All these developments slowly tilt humanity towards the concept of a love of money, you see.
So some method had to be devised to stop people cheating either by scraping the edges of coins to make more on the side, or to stop them cheating by making "fake" alloy coins. Along comes Archimedes, who was given the task by his monarch to discover a way to stop the cheating.
And so one day he sat in his bath and the water rose and he had a realisation. He discovered the principle of displacement. He realised that the amount of water his body displaced could be weighed. By this simple fact he reasoned that the weight of the water he displaced had an equivalent of his own body weight, and that this would be a constant.
If gold was immersed in water there would also be a constant existing between the weight of gold and the water it displaced. He actually discovered the principle of density, for want of a better description. In his excitement, he ran down the street in his birthday suit, dripping wet, yelling "Eureka !". "Eureka !" (Which in Greek means "I found it !".)
I am telling you all these things because this further brings to the notice of people that coins made of gold now are not just tokens but have a value of their own, that is, they now become a medium of exchange and a store of value. The awareness of humanity as to their desireablity is now stimulated even more than previously.
And so through the ages this love of money, and the benefits it can be percieved to bring, becomes rooted worldwide in the consciousness of mankind in societies that use it.
Now it happens that the Middle Ages come and go, and commerce begins to flourish
(Commerce is different to Business, because in Commerce the object is to deliver value,
whereas in Business the object is not to truly to deliver value but to pretend to deliver it but not really to do so (and may involve cheating, squirreling, thieving, plaigarism, unfairness, character assasination, pretence, lying and lots of nasty things well disguised) - it took me a long time to discover this fact as a consequence of believing to be conducting commerce but coming across individuals who were doing business, but that is another matter, but it is relevant to your question so I am including it, because you will understand later.
Now we progress in history but all sorts of objects are made by hand, books are written with quill pens, and nothing is mechanised.
Suddenly many things happen in quick sequence. The printing press is invented, the cotton loom, steam, amongst other early inventions. Suddenly there is a boom involving new ideas.
These new ideas are revolutionary because they change everything. Money is needed fast to fund all these new ideas, including exploration,engineering,trade,mining,manufacturing,and so venues are established in which people can meet to raise money for these ventures. This is the birth of the exchanges, The Stock Exchanges, The Commodities Exchanges, Exchanges for Insurance, for Underwriting of Risk, for Metals, for Wool, and many other "instruments" necessary to keep economies running.
So the markets, all these market evolved around a need. Each one developed and was established to serve a particular need. This need was for a mechanism to be put in place where buyers and sellers could transact their business. As this mechanism developed, so it became more and more sophisticated, until it became what it is today, worldwide.
This is the nature of commerce.
But what happens is that the love of money gets in the way because of its perverse ability to corrupt. What happens is that what started off as commerce also as a consequence becomes corrupted and evolves as business in the public awareness.
Now what happens is that rules have to be put in place to stop abuses and malpractices.
The members of these exchanges are bound by a code of conduct that is very strict. These members have to carry out their business and at the same time maintain order flow and preserve liduidity. Often they have to do things that are not understood clearly by most people because the perception of the public is different to the reality of what takes place.
And these conditions create a horrible misconception. This misconception causes people to misunderstand that money is only a fuel used to drive the engine of supply and demand.
In their hast to acquire money, the public forgets that. They begin to chase it by not fully understandinging and accepiting all of this I have explained to you.
Now is when the problems really start. The public, which is conditioned to chase money, at any cost, do not generally view acting within a framework of reason and logical deduction as necessary, they just want the money. In chasing the money, they forget how it is they ought to behave. They get impatient, aggressive, and so on.
The key is to understand first and then the collection of money, which is the reward for being right, consistently right arrives later, and not the other way round.
So you are right in asking the original question, yes, to some extent the markets evolved around money, but the internal and external perceptions of it, it's existence, utitily. and value are totally opposite.
If you are a trader, you must lose your love of money first in order to acquire it.
I hope and expect that this clarifies the matter for you.