You can’t pick up a paper, turn on a radio or tv and not hear dire economic predictions. Unfortunately, that is a sign of the times. Quite simply, the US and Global economies are in the worst shape in history. The practice of politicians, world wide promising, and delivering "social enhancement" programs, (buying votes) with no thought or concern on how those programs would be paid for. That my friends, is a practice that has gone on since the end of WWII by all political parties in countries across the globe. The hackneyed idiom "the chickens are coming home to roost" accurately sums up the US and global economic scene today. The bills on all those decades of un-funded promises are all coming due and there isn’t enough money to pay the bills.
When that happens, what can a government do? The first step is enter the global debt pool. They borrow money, and borrow, and borrow until the world banks and lenders say, NO to future borrowing.( see Greece, Iceland, Spain, Portugal, Ireland) The next step in the process is the ramping up of the printing presses. Just print more money to pay the bills. That works for a while, until the inevitable devaluation caused by too much currency chasing the same products and services creates civil un-rest (see Greece, United Kingdom, Turkey, Zimbabwe).
The term inflation is mis-cast. Inflation indicates that something is getting larger. When news outlets use the common term "inflation", they are saying that prices are going up. The true fact is the value of the product or service has remained the same, it’s just that more currency in the economy devalues the currency overall requiring more currency to buy the same product or service. Therefore, the more accurate term is currency devaluation. It’s not as "pretty" a term, so main stream media avoids that in favor of "inflation".
Closer to home, what does that dollar devaluation look like in real time. Pres Nixon in 1971 unilaterally canceled the direct convertibility of the United States dollar to gold that essentially ended the existing Bretton Woods system of international financial exchange. That act opened the door to the most reckless 40 years of government spending ever seen in this country, and around the world. Since that date, the 100 cent dollar has diminished in value to 18 cents. Gold was the anchor that kept the dollar sound and solid. Gold’s removal as that anchor converted the dollar to another piece of paper with pictures and symbols. It’s only a matter of time before the dollar reaches it’s true value of zero. Gold in the meantime has risen in value from $35 to $1550 or 98% increase.
In 1971, only a scant few people were farsighted enough to buy some gold as a hedge against what they knew would be future dollar devaluation. A $1,000 purchase of gold then would be worth $44,286 today. Let’s see, a person could convert $1,000 to $180 or take that same $1,000 and convert it to $ 44,000.
What did you do?????
Even at today’s prices gold is still the only store of value that has a 6,000 year run which outdistances the longest running fiat paper currency by about 5,900 years. With that track record, is it any wonder central banks worldwide are net buyers of gold. In fact the University of Texas endowment fund just purchased 1 billion dollars worth of gold replacing dollar based investments.
"WE'RE IN THE TERMINAL STAGES OF THE WORLD'S MOST GIGANTIC PYRAMID SCHEME," set to vaporize the assets of the average citizen.
Heed the clear warning signs here and protect what's left of your ever dwindling nest-egg, before the dollar collapses even further, rendering dollar-denominated assets VIRTUALLY WORTHLESS!
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