A gentle reminder of the role of credit

This article reminds us of the relationship between credit, including currencies, and gold. It all goes back to Roman law from which our common laws arise

Due to its abuse particularly 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 is the danger facing the entire dollar-based financial system today, now that we see the US dollar is ensnared in the US Government’s debt trap.