Longtime correspondent Jeff W. succinctly explains the difference between metallic money (gold and silver) and credit money.
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…
View original post 1,784 more words