An old friend swung by the office today to chat. She is a rather well known in certain circles, a savvy investor who has done very well with miners and precious metals.

We discuss the economy, inflation, markets, oil. Near the end of her visit, she proceeds to tell me that the paper money I have is worthless, and that Gold is the only currency of any value.

“May I see your purse?” I ask.

She hands it to me.

“And your wallet is in the purse?”

She pulls out the wallet.

I open it up, remove all her cash — about $1000 in 20s and 50s — and then toss it right in the waste paper basket.

“That’s worthless, right?”

She immediately sees my point, smirks, and to prove her point, gets up to leave — without the cash. As she heads out the door, she says, “I need cab fare.” and fishes a $20 out of the garbage.