Inflation And The Economic Crisis

You are not, you are not within the category of non believers thinking the government will save you. Doing your best pretending the day of reckoning is never going to return upon your doorstep, no matter all the evidence you might need heard or examine. Regardless what level of defiance you carry around with you history will always be on the side of the truth. There isn’t any prejudice here that can enter the equation regardless of what you think you can be entitled to. If I am sounding somewhat pessimistic, then I am making my point. There may be nothing that may keep this economic crisis from coming and there may be a lot hard evidence and monetary history surrounding this to look the other way.

Some facts which are not open for any analyzing or debate.

?Fiat Currency – this is currency that’s backed by the good faith of the government that issues it. It has no real or tangible value. It’s printed “out of thin air”

?All national currencies are fiat currency.

?A universal example of a non-fiat currency. Gold and Silver are real money. Governments are incapable of creating this kind of money out of thin air. Gold and silver cannot be granted a “value” after which suddenly have that value removed or reduced by any action government or otherwise.

?The last “Real Money “within the United States was from 1944 -1971. When the US. Dollar was backed by 10% gold. In 1971 President Nixon signed an Executive Order that suspended the Bretton Woods Agreement that took the US. Dollar off the gold standard as much as this day.

?Fiat currencies have a 100% failure rate throughout history. 11th century China was the first country to use and issue fiat currency.

All national currencies including the dollar, yen, euro, and pound are all fiat currencies. And remember, this subject cannot be analyzed or debated upon: Every single fiat currency that has ever been created throughout history wound up eventually being mismanaged and destroyed by world governments that created and controlled it.

Why it’s that fiat currency has a 100% failure rate?

All through history world governments have been unable to keep up their currencies. There have always been two sides to any government constantly driving an escalating and tumbling dynamic. With this you will have those that don’t need taxes or new taxes and on the other side you’ve those who want the federal government to offer you everything for free.

In theory a sensible government might actually tell the truth to their citizens. Letting them understand that taxes are the value of evolution and progress and we aren’t in any business of handing out free meals. However the truth of governments is fat cat politicians enjoy living the high life on tax payer money. So no way would they turn sensible.

So consequently for the elected government politicians only one choice really exists. Lie to everyone, promise the moon and borrow into tomorrow so your kids and grand kids get stuck with all the bills. Believe it or not after enough time has passed people actually start to believe that is normal and nothing out of the ordinary is actually wrong because they see businesses growing, taxes level off or drop and government hand-outs given to all.

The big problem with the economic crisis is governments having to borrow their way into financing their massive spending habits while not allowing taxes to extend enough to pay for new programs creates deficits. It is easy when you “Own” the printing presses, by flipping the “ON” switch you possibly can generate all of the “Money” that will ever be needed to satisfy any and all debts and obligations. The Federal Reserve purchases US debt from the US Treasury in the type of bonds, then they lend out the money to the markets with a simple push of a button from a computer. Then Bam that money is now in the money supply.

We’ve got two groups, those opposing taxes along with those in favor of spending getting what they need year after year while little ever gets noticed, at the very least not instantly. But there’s a small reduction in value of the currency which was attributable to the rising supply demand. All things being what they’re all governments will in time choose the second course which with only a few exceptions creates a continuing lack of confidence in every national currency. This known as inflation.

Inflation might be like a drug over time the space in between tax and revenue grows just as dependency on that drug grows over time using it. While spending, borrowing and generating more currency demands grow interest rates begin to increase.

This causes inflation to hurry up eventually causing the strategy of currency debasement or the annihilation of individuals’s savings. The currency is then abandoned by all, who at the identical time are attempting to spend it or convert it into more secure forms of money as quick as then can. This situation causes the worth of the currency to plummet while driving up costs for even essentially the most basic items comparable to milk, eggs, bread and sugar to skyrocket. As this happens the savings of a complete generation might be destroyed. Thus the fate of all fiat currencies.

Here at this point is where you stand now. Each year, each decade you may have noticed the purchasing power of your currency keep buying you less and fewer. The fact for people within the United States is they have been living in a hyperinflation society ever since President Nixon took the dollar of the gold standard in 1971 killing our money and changing it into fiat currency. Because the dollar was taken off the gold standard the dollar has actually lost 80% of its purchasing power. Remember the dollar just isn’t money it has no value, the only thing the dollar has is a pre determined fate.

What has value is gold and silver. Which have been used since man left the cave. Throughout history gold and silver have always been a storage of true value. One 1 ounce gold coin back in the Roman Empire would have been able to buy food for a small family for about 2 months. That same one ounce gold coin today can still by a small family food for about 2 months. During these insane economic times buying physical gold and silver are your best chance to ride out the economic crisis and come out on top. “Cash is Trash” a quote from Robert Kiyosaki. Do not reserve it as it has no value, owning hard assets is the key.

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