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Disappearing Currencies

Dear Readers,

I’d like for you to consider the following questions when it comes to the subject of money or currency:

  1. Does the US Dollar – a dominant world reserve currency – have real value?
  2. Do you believe that the US Government creates money scot-free & worry-free?
  3. Is your local currency, wherever you may be, safe by investing in the US Dollar?
  4. Do you believe that your currency is safe from inflation?

If you answered YES to any of the above questions, it is time for a reality (and fact) check. I write all this because I really want everyone to wake up to face reality head-on instead of playing dumb and ignoring the inevitable:

FACT: The US Dollar, along with all other world fiat currencies, is worth absolutely nothing. It is not backed by anything of value, such as gold, and that paper money is created with the following meaning:

  • any money declared by a government to be legal tender;
  • is not convertible into anything other than itself (you can’t exchange currency for gold);
  • is money without intrinsic value

Look at your average US Dollar very closely. We went from “greenbacks” that stated the note was a “bill of credit” inserted into the US Treasury interest-free and was backed by gold… to notes back by debt purchased from the Federal Reserve at interest. Note the distinction: one was interest-free, tied inextricably to a gold standard; the other is backed by and purchased with debt.

The distinction is very very clear. Money and currency are not the same, nor do they have the same level of value and purchasing power in realistic terms.

FACT: The US Government doesn’t create your paper money. The Federal Reserve does. And around the world, it would be your country’s central bank. I’m not going to reinvent the wheel when you can watch this movie (it’s on Netflix). I like the movie Zeitgeist as well, but many think it’s “too sensational and rightist”. Anything that gives you more knowledge, especially information that is simple to verify if you do the research, is fine in my book.

toilet paper money

Source: www.imagitiel.com

Needless to say, this is something most people don’t understand about where their money comes from. It’s this mysterious, god-like set of paper and coins in our pockets that brings purchased happiness and instant gratification. We’ve seen how troublesome money can be for each individual when worrying about jobs, debt and one’s purchasing power, and certainly, with each piece of paper money created, our worry levels increase exponentially. With each new dollar introduced, the value of that dollar decreases because it is inherently debt plus interest due back to the Federal Reserve. This model is inherently flawed and unsustainable. How can you spend money based on debt? That, of course, makes zero sense. Should you be worried? Absolutely. It’s akin to staring at a $100 bill and realizing your toilet paper is worth more.

FACT: Your local currency, if it invests in any way, shape or form in the US Dollar is at risk of the impending rise of inflation and devaluation. As the associated debt with the Federal Reserve increases and as foreign obligations become increasingly difficult for the US to meet, we will see the tremendous strain on the currency system render the whole useless. Call it fatalist if you want, but it is going to inevitably fall apart. It’s only a matter of time. Sadly, nothing is going to change this. There are only a handful of ways to secure yourself against the fall of the dollar, one of which is purchasing commodities such as gold. It is a good safe haven and hedge bet against the craziness that is going to happen.

There are a number of strategies out there and while I’m not providing any financial advice here, your safest bet really is keeping your investments and savings away from exposure to the US dollar as much as you possibly can.

FACT: If you want to see an example of how inflation eats away at currencies, read this brief from the Cato Institute about Zimbabwe’s situation back in 2008. Inflation is what transformed our ability to maintain a certain standard of living in the USA, one where a single-earner household was sufficient, to one that requires both parents to work to survive in an environment where jobs are scarce and career movement has become next to impossible. That is not to say that we, the individuals, are not responsible for some of our issues. We are. We spend beyond our means. We buy things we don’t really need. The sheep that we are have become readily lead by the same organizations that seek to drain our pockets, our hopes and our livelihoods. In an environment where our economies are judged by how much consumers spend — the beloved CPI (consumer price index), inflation has nowhere to go but into the average person’s pocket as another sort of tax draining away purchasing power.

The irony is that it is purchasing power based on a currency of nothing. I could almost laugh at the foolishness of it all, but it is dead serious business.

I’d like to see the average person become more knowledgeable and informed about what is really happening out there. Go ahead, look it up. Do the research. I dare you to.

When the fiat currency system finally comes to an end, it will be utter chaos, there’s absolutely no doubt about it. (Read the transcript of this very candid speech from Detlev Schlichter about “Watching your money disappear” from a UK perspective.) The big-whigs (also known as the “one-percenters” – I hate that term by the way) would have done their profit-taking and secured their interests, leaving the average person — YOU — holding the debt bag. There will be no more dollar, no euro, no more reserve currencies – not in their current incarnation anyway.

How you end up on the other side of this impending catastrophic situation is entirely up to you.