Metallic Money (Gold/Silver) vs. Credit Money: Know The Difference

Zero Hedge:

You've probably read many articles about money--what it is (store of value and means of exchange) and its many variations (metal, paper, etc.). But perhaps the most important distinction to be made in our era is between metallic money and credit money.

Longtime correspondent Jeff W. succinctly explains the difference between metallic money (gold and silver) and credit money:

We use credit money every day. It’s the only kind of money we have. But because people in Europe and America have historically used metallic money for over 2,500 years, we still have cultural habits that come from the gold money era.

When the U.S. removed gold and silver coins from circulation in the 1930’s and 1960’s and replaced paper gold certificates and silver certificates with Federal Reserve notes, the paper money looked very much the same. But the thing that the paper money represented changed dramatically. The paper money now represents units of credit money that have no guaranteed relationship with the prices of gold or silve r or anything else.

Because the nature of credit money and metallic money are not well understood, and because money is so important in our lives, it is worthwhile to examine and discuss how these two kinds of money are different.

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HAT TIP: www.orlytaitzesq.com

The coming financial panic

According to the article, the following large banks are represented at these meetings: JPMorgan Chase, Goldman Sachs, Morgan Stanley, Bank of America and Citigroup.

When the casino finally goes "bust", you will know who to blame.

Without a doubt, a derivatives panic is coming.

It will cause the financial markets to crash.

Several of the "too big to fail" banks will likely crash and burn and require bailouts.

As a result of all this, credit markets will become paralyzed by fear and freeze up.

Once again, we will see the U.S. economy go into cardiac arrest, only this time it will not be so easy to fix.

The Coming Derivatives Panic That Will Destroy Global Financial Markets

After U.S. financial markets closed on Friday, S&P announced credit downgrades for nine European nations

Over the past several months we have seen quite a few credit downgrades all over Europe, but we have never seen anything quite like what S&P just did. . .

In addition, there was another really, really troubling piece of news that came out of Europe on Friday.

It was announced that negotiations between the Greek government and private holders of Greek debt have broken down. . .

Already there are indications that foreigners are starting to dump large amounts of U.S. debt. If this trickle becomes a flood things could become very bad for the United States very quickly.

We are on the verge of some very bad things. The kinds of "financial bombs" that we saw dropped today are going to become much more frequent. As governments, banks and investors scramble to survive, we are going to see extreme amounts of volatility in the financial marketplace.

Things are not going to be "normal" again for a really, really long time.

Hold on tight, because 2012 is going to be a very interesting year.

Bam! Bam! Bam! Huge Financial Bombs Just Got Dropped All Over Europe

Tens Of Millions Of American Families Are Living On The Edge Of Desperation – And The Economy Is About To Get A Whole Lot Worse

Back during the early 1930s, the flow of credit was greatly restricted and that was one of the primary causes of the Great Depression. Back in 2008, another massive credit crunch just about brought the financial world to its knees.

Well, now it is starting to happen again. . .

But instead of doing something to prepare for the coming economic crisis, members of the U.S. Congress are focused on stripping even more of our liberties and freedoms away from us.

As I wrote about yesterday, a new law (S. 1867) is being pushed through the U.S. Senate that is extremely frightening.

If this bill becomes a law, the United States of America would officially become part of the "battlefield" in the war on terror, and any American citizen could easily be flagged as a "potential terrorist".

Once identified as a "potential terrorist", the U.S. military would be able to arrest you, take you to a foreign prison and detain you for the rest of your life without ever having to charge you with anything.

What in the world is happening to America?

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Mark of the Beast finally here???

Wells Fargo Tests Microchips for Globetrotting Card Clients...

Or is it a picture of Obama implanted in our brains (dictators always make their subjects have pictures of them everywhere or they get tortured and/or killed)...

MarkBeast.com

The least surprising event of 2010 was that, in the wake of new federal limits on how credit-card issuers can price risk and adjust interest rates, more Americans had to go to payday lenders, pawn shops and local loan sharks in order to get credit.

WSJ: It's simply the latest installment in the old story of regulators thinking they can wish away the unintended consequences of consumer credit regulation...

OPT OUT

I was, once again, going through that pile of junk in a hall nook (or is it a cranny?) since hubby finally turned his sights on My Stuff as I predicted he would when his own bout of Spring Cleaning Fever abated.

I'm an info junkie and found a precious piece in a July 22, 2007 L.A. Times (not subscribed anymore) article about how to "opt out" of all the junk mail and stuff we are drowning in.

Now, I immediately had a moment of panic when I realized that here was--yet again--another piece of paper I couldn't bear to part with (although, to be really honest, I hadn't used it to opt out of anything because it's been in that pile since 2007).

Voilà! "I shall put it on my blog" came a voice in my head. Then I shall always have access to it until that day that, ceasing to bear my relentless reports of The One's foibles and treasons, the big "G" will erase this blog (G-d forbid).

And then: I shall post to you, my faithful readers, about how I am vigilant about providing you all with great information because I believe in...whatever.

Well, of course, it was for me...but can you use it? If so, just scroll down to this new category right under (for now) the big red-white-blue "OSH*T" logo.

(PS: I actually have used the National Do Not Call Registry and it works like a charm!)