Gold, Silver, Currency, Inflation, and the Great Wealth Transfer
Silver is used in medical equipment, cell phones, batteries, computers, cds, dvds, and TONS of other stuff. It is also a trusted form of money that investors use to “hedge” against “inflation”. Inflation occurs when governments “print” excessive paper currency (think U.S. dollar) to cover expenses. When this happens, the price of commodities and precious metals such as silver rise in price because the paper dollars are actually loosing value.
Investors will run to gold and silver to protect their buying power from being wiped out by the inflation. Currently, the U.S. government has printed trillions of dollars and will need to continue printing in order to cover social security, medicare, military, and various other expenses (income tax is used to cover interest on the national debt, not services).
Ultimately, the dollar will reach it’s true value which is 0. When this happens, a new currency will have to be created or the dollar will have to go back to being backed up by a hard asset. That asset will be precious metals (gold and silver). This is a cycle that happens throughout history and about every forty years or so, the United States has a change in currency.
In fact, to prove this, in 1971 (40 years ago) President Nixon removed the United States dollar from being backed by gold (aka “The Gold Standard”). We have been on a paper or “fiat” currency since then. The United States has been borrowing fiat currency from the private central bank known as the Federal Reserve which is neither federal, nor does it have any reserves. In fact, the creation of fiat currency within the U.S. is actually illegal as stated in the United States Constitution Article 1 Section 10.
The United States dollar is currently the world’s reserve currency and as the government continues to spend borrowed fiat currency, that currency will fall in value and since it is the world’s reserve currency it will pull all of the other currencies down with it. As this happens, fiat currencies throughout the globe will loose value and the people will ultimately demand an asset backed system using gold and silver.
Throughout history, there have been many fiat currencies and each one has eventually returned to it’s true value which is zero. The difference today is that almost every country is on a fiat currency system and unlike the past when only kings, nobles, and extremely wealthy individuals were able to hoard gold and silver, today anyone can purchase it. So this puts a huge demand on these metals (especially silver as it is consumed daily in mass quantities) and the supply of these two precious metals has never been lower. Factor in inflation, investor demand, collector demand, industrial use, and a manipulated stock price and you have a huge wealth transfer.
It now boils down to you deciding which end of that transfer you wish to be on. Do you want wealth transferred to you or from you? If you want it transferred away from you, keep holding paper currency. If you want wealth to transfer to you, well, we’ll let you figure that one out on your own!
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Hello, my name is Mike Pagach and I am the founder of the The Numis Network Review. I live in Sunny Ventura, CA where I enjoy calm breezes, music, and art.
Related Links:
How Rome Destroyed Itself Through The Debasement Of Currency
The Insanity of Tulips
How Great Civilizations Fall By Debasing Their Gold And Silver Money
How Currencies Are Created
The Battle Between Fiat Currency And Precious Metals
Gold And Silver Cycles, What You Need To Know About Precious Metals
Inflation, The Invisible Tax
Gold And Silver, The Perfect Storm
Fractional Reserve Banking
Why Gold And Silver?
$16.4 Trillion Debt By 2013

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