Chapter one. Are gold and silver real money?

What did he know?
Ron Paul asked Federal Reserve Chairman Ben S. Bernanke if gold was "money". Bernanke said NO!

Was he right, or was JP Morgan right?

Long before the invention of printing, people had money. The ancient Egyptians used gold for exchange. It wasn't yet in the form of a coin, but it was recognized as real "money". Much later the Greeks and Romans used precious metals in coin form, with each coin being hand stamped with a design on front and back (obverse and reverse to use numismatic terminology). Much more recently, Spanish pieces of eight were stamped out. Each part was a called a "bit". Eight bits in a dollar coin. Those coins were made to be broken into pieces - pieces of eight! Still today we use the term "two bits" for a quarter.

These were all used as currency for many years. They all were made of precious metals - at first . . .

After a time the Romans and others began to "water down" the precious metals by mixing in copper. As times got tougher for the government, they became "fiat" coins or currency with little, then zero, precious metal content. Rome fell in no small part because of this.

So the question is: Is gold and/or silver still real money? Or, is paper with a number printed on it real money?

You decide for yourself.

Choose wisely!
You know what I think!