QWAK,abrandt151, WRONG -- it is about what is MONEY and what is NOT money! :( -------------------------------------------
Stop! What is Money?
The money that the world uses today is created by private banks lending non-existent money called credit. This credit has never, does not, and will never exist, except in theory on computer screens. People starve and die all because they do not have enough digits on a computer screen. All of this credit, created by the private banks, is owed back to those same banks, plus interest. By design, there is never enough credit in circulation to pay back all the principal plus interest on the loans outstanding, which is why the concept of bankruptcy is built into the system.
Using the simple system above, banksters are given the ability to manipulate the world's economies into 'boom and bust' cycles. In essence, the only difference between a boom and a bust is the amount of credit in circulation, or, rather, the net amount of numbers on people's computer screens. Initially, banksters create a boom by increasing the supply of credit in the economy. During this boom period, individuals and businesses are encouraged to take on more debt as they are more confident of increasing their income in the future. All this extra credit in the system leads to moreactivity, which in turn creates more confidence in the system, with many getting into more debt. This boom is akin to a fishing trawler; the bankster throws out a credit line and waits, once the bait has been taken the bankster begins to wind in the credit by taking credit out of circulation, it's gone. The economy then moves into a slump or recession, simply because there are not enough units of credit in circulation. The banksters are then able to trawl from people the wealth that does exist, in exchange for money that never existed in the first place. 
The whole economic system is all about the level of confidence that the population has in it . . . and that confidence all starts with the people and banks that run it. What we have seen so far in 2011, particularly in early August, is a string of increasingly negative statements about the worldwide economy, both in the media and from governments. There has been a rapid decline in the confidence levels of individuals and businesses in the system, and it appears that we could be only one or two negative statements away from a breaking point. As a friend of mine observed after the 2008 global financial crisis, "it will be like all the money suddenly went to money heaven." -------------------------------------
Don't blame ME, I have tried to explain and educate about the DIFERENCE!
Duck, all money is about "Trust". All money is about "Trust". TRUST.
It doesn't matter if it is gold or green printed paper.
Your posting is backwards and actually conflicts with itself. The difference between a boom and bust is not credit. It is about the market participants having confidence and trust in the present and future economic prospects. Credit creation and removal is an influence.
Credit creation or removal occurs whether we have a fiat money system or one based on gold. So confusing "credit" with the type of money system is wrong. Repeating such nonsense, after one has been advised to stop repeating nonsense, is treasonous.
Lose trust in gold, and gold "money" loses value - just as it did in the '80s and '90s. As it did when kings who issued gold money were perceived to be weak.
Why is the USD the world's reserve asset? Because we are not perceived weak, irrespective of your dogma. That could change too.
Come on Canoodle. Do you really believe your own nonsense:
<Credit creation or removal occurs whether we have a fiat money system or one based on gold. So confusing "credit" with the type of money system is wrong. Repeating such nonsense, after one has been advised to stop repeating nonsense, is treasonous.>
Treasonous. Really. Yes its frustrating arguing with a True Believer, but still. Tresonous!. Youre losing it ole gurl.