Outstanding Revolving Credit
Whenever someone signs a credit card receipt they expand the currency supply. The currency didn’t exist until that moment and the bank makes a book entry. The unpaid credit card balance is called outstanding revolving credit. When you make a credit card payment the merchant actually receives money (that didn’t exist) and it goes into circulation with the base money supply.
In 1980 the value of Gold covered all money in circulation and credit. Now take a look at the graph and see where the price of Gold is compared to the current money supply and outstanding credit.
What does that tell you about the current price and vale of gold? Gold would have to go over $15000 per ounce to cover all of today’s money and credit supply.
Source: GoldSilver.com
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