The latest BullionBuzz includes a summary from an article in commodityonline. Here is an excerpt:

In 1705, John Law submitted a proposal to the Scottish Parliament that a new bank be set up that issued interest-bearing notes to replace gold and silver coins as currency. He told a friend, “I have discovered the secret of the philosopher' stone; it is to make gold out of paper.” The Scots rejected the proposal, but France adopted Law's scheme with disastrous results. Paper money only works as long as there is faith in the creditworthiness of the country issuing the currency and debt.

John narrowly escaped prison for his 'bright' idea when it all fell apart. This is a very interesting story from history, not only because it is true and fascinating, but because we are doing something similar today — at least our Central Banks are. Print too much money and you run the risk of it becoming worthless. Read the full BullionBuzz here: BullionBuzz

Do you have some bullion for security?