by David Kranzler
Investment Research Dynamics
When you own gold, it’s money that you own. Everything else circulating around here is currency – you don’t really own it. The cash you have in your pocket is Federal Reserve Notes [meaning you possess a liability of the Federal Reserve and your spending power is exposed to counterparty risk]. The money you have in your checking account is a liability of the bank where that money is deposited. But when you own physical gold, it’s money that you own. Your are not dependent on someone else’s ability to make good on that money when you want to spend it. – James Turk on The Daily Coin
The U.S. populace has been methodically trained over the last 100 years, since the erection of the Federal Reserve, to believe that Federal Reserve Notes – otherwise known as U.S. dollars – represents a wealth asset. But it’s just the opposite: it’s a liability of the Federal Reserve backed by the “promise” of the U.S. Government. How much value do you place in that “promise?”