"They possessed paper gold."

As a metaphor, this is true only if there is trust that the paper denomination is redeemable in gold and can be exchanged to gold. Paper denominations are a receipt for 'something' of value.

Older dollars stated on the paper denomination that it was redeemable in gold. For example, 1928 five dollar bills are special because they were redeemable in gold. They read, “Redeemable In Gold On Demand At The United States Treasury, Or In Gold Or Lawful Money At Any Federal Reserve Bank.” The above phrase is known as the gold clause. This phrase does not make 1928 Federal Reserve note five dollar bills also gold certificates. Gold certificates have a gold seal and were not even printed for the five dollar denomination in 1928. There's more examples than this, but the history of what was printed on dollars tells a story and that is of confiscation of the peoples gold and silver.

Most ordinary people didn't act to redeem the paper currency to gold. They could have, if the chose to do so. They were satisfied with the paper denomination as their receipt for 'something' of value due to the trust in government to make good on their promise.

The Golden Rule: Whoever has the gold makes the Rules. If the individual doesn't physically possess gold and silver, problems of theft will soon after occur. Governments are always very good at doing this. BRICS may give us a set of new problems, but at least it is better than FRBS.

"They possessed paper gold."

As a metaphor, this is true only if their is trust that the paper denomination is redeemable in gold and can be exchanged to gold. Paper denominations are a receipt for 'something' of value.

Older dollars stated on the paper denomination that it was redeemable in gold. For example, 1928 five dollar bills are special because they were redeemable in gold. They read, “Redeemable In Gold On Demand At The United States Treasury, Or In Gold Or Lawful Money At Any Federal Reserve Bank.” The above phrase is known as the gold clause. This phrase does not make 1928 Federal Reserve note five dollar bills also gold certificates. Gold certificates have a gold seal and were not even printed for the five dollar denomination in 1928. There's more examples than this, but the history of what was printed on dollars tells a story and that is of confiscation of the peoples gold and silver.

Most ordinary people didn't act to redeem the paper currency to gold. They could have, if the chose to do so. They were satisfied with the paper denomination as their receipt for 'something' of value due to the trust in government to make good on their promise.

The Golden Rule: Whoever has the gold makes the Rules. If the individual doesn't physically possess gold and silver, problems of theft will soon after occur. Governments are always very good at doing this. BRICS may give us a set of new problems, but at least it is better than FRBS.