[ThomPaine]

Great post man, not that I understood it all, but it seems like you do, so let's break things down a bit, maybe based on common concepts, which may also be misconceptions, so please correct me if I am wrong.

Consideration: The inducement into a contract, typically motive, price, influence, etc. Basically the reason for entering a contract.

Example: I want to acquire a dirt bike and a friend offers to sell his for $1000 which I think is a good deal, so I give him $1000 in FRNs. He has $1000 and I have his bike, both agreed they have something worth $1000 and are happy. I could have traded him a sofa that was 'worth' $1000 for his bike that was worth $1000 just as easily, so long as we both agreed on it, its a valid contract.

Valuable Consideration: A class of consideration, upon which a promise to pay may be founded. It entitles the promisee to enforce his claim against an unwilling promisor.

Example: I agree to pay my buddy $1000 next week when I get my bonus and he says I can go ahead and take the bike. I dont get my bonus and cant pay him or refuse to, so he can take back the bike, as it was never paid for. Likewise if I never brought him the sofa.

Credit: The right granted by a creditor to a debtor (or buyer) to defer payment of the debt.

Without getting into lots of technicals, everyone has a concept of credit, whether on a gas card or credit card or receiving goods for a business and then paying an invoice at some later time. In accounting, credit increases revenues, liabilities and equity and decreases assets and expenses.

Currency: Coined money and banknotes or other paper currency as authorised by law, circulating as a medium of exchange.

Money: Coins and paper currency, circulating as a medium of exchange, but does NOT embrace notes, bonds or evidences of debt.

I am sure this discussion could go on and on and on about how banks create credit, how the FED works, etc., but I am thinking that we should run with your Banking 101 concept and make this a very simple and basic explanation that everyone can understand. Maybe even a Banking 100 with definitions of terms and concepts.