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Money doesn't necessarily make someone powerful, but it's definitely a means to power.
Powerful people though are typically rich.
Acquiring knowledge is what makes someone powerful. What one does with that power is entirely up to them.
--scientia potentia est
Money represents nothing more than a claim on society's resources. The more of it you have, the more you can steer those resources to your will. That is power.
The only other type of power is political/social power. In this case, people give up their resources voluntarily to you because they feel it benefits them somehow.
Both types of power are often intertwined.
They feed on each other. It's a loop.
So... It's a chicken/egg situation...
Assuming that power is the ability to get the things you want, then there are three types of power.
Physical, Social, and Mental.
Physical power is the ability to physically beat some one into giving you what you want. No matter how smart you are, or how much money you have, if you are caught by a mugger with a gun, they pretty much have you owned.
Social. This is for all your buddies in congress. Favors for favors. Trading men like currency, as Ayn Rand is wont to say. The ability to connect people and get them to do what you want in favor for other favors is a very powerful force.
Then of course, their is mental power. This should be self-explanatory, but their is a reason men walk the earth and dominate all the other creatures. Pure, mental superiority.
This basic structure is found throughout most philosophy (From Plato's Theory of the Soul to Ayn Rand's Atlas Shrugged), and even scientific theories such as Maslow's Hierarchy of Needs.
Money is a means to an end. Money can buy you that gym membership or a weapon to give you physical power. Money can get you invited to charity events and political dinners where you can meet influential people to trade favors with. Money can buy you an education. Money can buy you all these things. Yet, if you forget that money is a means to an end, and instead think of it as an end in itself, you will become a slave to money, and no matter what you choose to buy with it, you are still a powerless slave.
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