You Better Read This, Gold & Greece: Not What You Think

Kenneth J. Gerbino & Company ^ | Posted May 20, 2010 | Kenneth J. Gerbino

[dennisw]

I object to his repeated use of the term paper money. In the total, there is not enough paper money to stand for the electronic bits that are actually the money. In today’s world, money is accounting entries on electronic ledgers.

I can remember when our paper money was disparaged as not being gold/silver backed. We are way beyond that simplistic day and age. Today we have plastic money (credit cards) that function a lot like paper currency. We have food stamps on plastic cards.

Paper currency is roughly 10%?? of our money supply these days. You are correct that most of today's money is electronic entries (with redundant paper being dutifully filled away perhaps in bomb proof storage). But prior to that it was entries on paper ledgers. How real was that? In fact it was unreal but was slow and plodding so a lot better than today's electronic notations

 

[bert]

......Today we have plastic money....

I object to the term Plastic money. The plastic is not the money, it is the portable access to the ledger where the electronic bits are stored.

My own personal (and business) experience is that I carry around the paper and even some metal, but I rarely use it. Every where I go the merchant allows me to swipe my cards and all the messing with the physical stuff is dispensed with. I rarely write a paper check. Practically all my transactions are settled by electronic transfer of one sort or another.

[Babu]

The author says to put only 5-10% of your wealth in gold. That’s not a gold bug. He’s more of a fiat money bug.

The Euro is failing and will fall apart and the US dollar will eventually experience hyper-inflation, which will cause the price of gold and silver to skyrocket. It is a mathematical certainty.

Watch this vid of everyday Chinese citizens flocking to buy gold. In China, the gubmint encourages citizens to buy gold for their retirement, as they have no “Social Security” system.

http://www.youtube.com/watch?v=SbUvvfJakfI