Learning resources

Money, Credit, Debt

Detailed explanation over what money, credit, debt are.

All money today is credit. It does not exist. Credit is very simply the power to spend. With a credit card, the moment you spend it, you create debt. Debt is a mutual agreement that you will pay back. The trouble is most people do not pay back.

Before 1973, people worked for the money. At that time, this US dollar was back by Gold.(Will Pay To The Bearer On Demand as written on banknotes)

After 1973, money became credit because the US dollar was no more indexed on the Gold standard.

"Money" (fiat currencies) is a fake asset. Money is fake gold.

Gold and Silver are real money. There are limited of them. They cannot be printed indefinitely. They keep their power of purchase over time.

It losts its power of purchase over the time.

Credit is money. The Central banks keep printing money to boost the economy. Despite economic tensions, the long term solution is to increase the country's productivity. More difficult to implement than printing money.

The higher your financial IQ, you don't need money. So if you need money, you're not using your brain because it doesn't take money to make money. Since 1973, I borrow money.

Will Pay To The Bearer On Demand

Accounting

Finances

Index