Hello friends! Hmmm…. What to write about in the second post of my blog? What interesting things are happening in relation to gold and our everyday lives today? Well, I am a news junkie, and among all the ballyhoo, outrage, and “fake news” stories about the changing of the guard in American power this week from the Obama administration (not a fan) to the Trump administration (fingers crossed), I found a little gem that talks about the possibility that America may be forced to back the mighty dollar ($$$) with gold. Some of you might say, “I thought it already was backed by a lot of gold. Don’t we have a bunch in Fort Knox?” Well, the US does supposedly or officially have thousands of tons of gold in a shoe box under the bed in a little bunker called Fort Knox, but that gold does not directly back up the dollar. And there are many that claim that gold has been moved, transferred, hypothecated away to central banks anyway. But gold in Fort Knox, whether it is there or not, has almost nothing to do with the dollar. And neither does the gold that is held in banks or by people across the country.
The fact is, our Federal Reserve can print money (or create it out of thin air inside computers) at the drop of a hat, not matter how much or how little gold we have. And they have been printing trillions of dollars of it the last 15 years to cover up other economic problems. The other disturbing fact is we have allowed our US government in Washington to spend way more money than it takes in in taxes on all kinds of junk programs, wars overseas, and outright waste. This has been happening so badly that we are now $20 TRILLION in debt as a nation. It is a well established fact from observing history that creating way to much currency, and letting a government go into too much debt, has ruined strong currencies and demolished strong countries and economies over and over since the dawn of time.
From these two problems, many smart people in our own country and in other countries are very concerned that we are weakening our dollar too dramatically. They point to the alarming fact that the dollar has lost 98% of its purchasing power over a short span of decades. In other words, even though most people still like using the dollar across the world, more and more people are starting to lose confidence in it, and in the US government’s wisdom and ability to manage it. Therefore many people, banks, and countries are now starting to say they want a world currency that cannot just be printed, but must be backed by some amount of gold so that everyone can have confidence in it.
We have been hearing discussion of the Chinese buying up thousands of tons of gold to push its own currency as a competitor to the dollar. We have been hearing discussion at the World Bank and International Monetary Fund of a “Basket of Currencies” that would include gold that would replace the dollar in international trade and other transactions. All of these things could be devastating to the dollar, and the wealth of anyone who has their money, investments, and assets (carts, houses, etc) in the dollar. In other words, everyday Americans.
If there is a shock to the dollar because the world moves toward a gold backed currency from China or the International Monetary Fund, Americans could experience the same thing that happened in Argentina in the middle of the 20th century. Everyone but the very wealthy lost all their purchasing power, and those who thought they were well enough off became very poor in a very short period of time.
Many Americans think this is impossible, that there is no way it could ever happen here, to us. But more and more articles are coming out indicating that the odds are increasing for a real crisis in our dollar and economy. And this article saying that the US should consider backing its dollar with gold is the latest in that vein. The huge amounts of dollars we have printed and the huge amounts of debt we have run up in Washington are like a huge snowstorm that has covered the mountains above our village (economy) with huge amounts of snow (dollars). We know that devastating avalanches can occur and wipe out our town on the edge of those mountains when there are millions of tons of snow clinging to the cliffs above us. Who knows what it will take to cause it to come crashing down. This is a perfect description of where we are at with the dollar, and our economy. The time has come to start preparing for what might happen when all the debt and money printing cannot be sustained up on the mountains of power in America.
Don’t let yourself be completely crushed if these conditions breakdown. Start preparing for a financial crisis by having a small portion of your finances in gold. You can save in gold and spend in gold using a safe and insured gold metal account and prepaid spending card from Brinks Vault, the same vault used by Central Banks the world over, using Goldmoney. Everyone should do this. It is easy, as safe or safer then having a bank account at a bank, and smart. The wealthy protect their yacht money and villa money by having a small portion of their money in gold. Shouldn’t you protect your food money, mortgage money, or kids college money with the same protection?
Get a personal account at Goldmoney today!
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