Understanding the Difference Between Credit and Real Money

Due to its abuse pariculaly by governments, it is credit which presents the greatest risk to our finances today. To appreciate why this is so requires an understanding of what credit represents, and how it differs from real money, which is physical gold without counterparty risk. Credit is always matched by debt: your financial asset is always someone else’s obligation. The collapse of credit’s value happens when a currency (which is also credit) is not attached by exchangeability to gold. That ...