Buy Gold, All Your Money is … err … Debt!
I was planning to post this a couple of months ago, better late than never.
From what I remember from school, the value of currency was tied to the amount of gold held by central banks. Modern economy however relies on floated currencies which I always thought meant money is created or destroyed when a central bank steps in to keep the interbank call rates at target levels.
There is more to it of course, this video however explains everything in very simple terms. A must watch under the current situation.
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Its true, the paper money that is in circulation today is not backed by the gold or silver bullion in storage. It is simply printed whenever the balance needs to be met which is why the Dollar has dropped so much recently with the sudden influx of cash by the federal reserve.