Unlimited currency expansion and devaluation

Our purchasing power has been legally confiscated from us and our ancestors for over 100 years! This is caused from excessive money creation, bailouts, and quantitative easing. Our dollars have been devalued so much that in 2015 a dollars purchasing power was worth just 2 cents on the dollar in regards to actual buying power. This is caused from inflation. Inflation is the steady rise in prices caused from a devaluation of our specific unit of account. Basically the more money that’s printed the less the currency in circulation, our wallets, and savings is valued.

Devaluation of  our specific units of account is a means of saying money printing. As they poof as much currency into circulation as they wish it leads to more units of account (currency) competing to purchase the same goods and services. Supply and demands then inevitably accounts for the expansion. We the people then pay for it with rising prices. 

In 1933 Franklin D Roosevelt signed the executive order which made it illegal to hold gold coins, bullion, or certificates. This meant that the people had to turn in their gold into the government. The stated reason for the legal confiscation was caused from Economic hard times. These difficult times drove the people to run on banks and hoard gold. They were then ordered to turn over their gold in exchange for the official price of just $20.67 an ounce. The government then later raised the price to 35$ an ounce and used resulting profits to set up the Exchange stabilization fund. They used 2 billion of the 2.8 billion of net profit. 2 billion dollars is about 51 billion dollars in today's currency. 

11 Years after legally confiscating generations of our ancestors gold they then decided in 1944 to establish The Bretton Woods system. The US dollar became the world's reserve currency which was coincidentally backed by gold. Most other currencies were then backed by the US dollars.

This went on until 1971 when Nixon closed the Gold window which ended the Bretton Woods system and began the modern day free floating fiat currency system. Although most people agree that it was a terrible decision Nixon was left with little choice in the matter. You see at this point in history Federal Reserve Notes in circulation were redeemable certificates you could take into the bank and exchange for gold. The problem is that they created more of these redeemable certificates into circulation than they had gold to back them. 

A free floating fiat currency is just paper. It's just money printed out of thin air! Currency is not backed by anything tangible...

Over 2000 fiat currency have been created into circulation. To date every single one that is currently not in circulation has returned to it's intrinsic value. Intrinsic value is the actual value something is worth. So in this case if a currency returns to it's intrinsic value its basically just worth the value of the paper it's printed on. 

The best way to explain all this is to think about a fleet of hot air balloons. Gold represented the anchor that protected the purchasing power of the people. It limited the ability to devalue our hard worked for units of account.

US dollars represents the first hot air balloon which was tied to or “Backed” by a golden “anchor” Every other currency then represents a fleet of hot air balloons all tied to the first US dollars hot air balloon since every other currency was backed by US dollars.

My question for you now is, "What happens to this fleet of hot air balloons when you snip the golden anchor?"

They Rise! The rising represents the unlimited amount of currency which can now be created into circulation.

This is why the idea of saving currency is obsolete. Most people call dollars money because they have been told their whole lives that it is money. It’s actually not money though. It’s a currency...

A Currency was created to acquire commodities or assets. It was not created to be saved. Saving in a currency is financial suicide. The interest rates a central bank will pay you for saving your acquired value is much less than the amount inflation will take annually. Although over time you will see more units of account or currency in your account the problem is that by the time your savings create that meager cash flow the amount of money it takes to acquire the same goods and services has risen.

Savers are losers in this economy. The only practical method of leaving a real legacy for future generations is to put a stop or a put in your money. We call this hedging your value. Gold periodically maintains its purchasing power over long periods of time. Basically gold has always been able to purchase about the same amount of goods or service regardless of the amount of currency it takes to acquire said gold. Can you say the same for your currency? Just think about how much prices have risen in your lifetime....

The real problem is if gold is confiscated again like it was in 1933 the official price of gold is just 42.26 per ounce as of 2015. This means if you are the bearer of coins, bullion, or certificates you will be forced to exchange it for the official price and lose 97% of your saved value.

I Taylor Richey however hedge my devaluing dollars by exchanging them for currency grade gold in small denominations with immediate availability. This gold is also private issued. This means only you and the company know you have it. It’s also certified and assayed for weight and purity.

Simply visit www.synergygoldteam.org to learn more.

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Hedge to maintain purchasing power but gain in currency

During these times of inflation and volatility it is critical that you DO NOT just invest your acquired value. It is essential that you hedge a small percentage of your acquired value! A hedge is sort of like a stop or a put. It's just moving value into something that has maintained it over long periods of time for purposes of recouping much later.

The best hedge against devaluation of our specific units of account is precious metals! Gold has maintained it's value and purchases about the same amount of thing as it did 2800 years ago!

It's not that the gold is worth more over time. Throughout history it takes the same amount of gold to acquires "goods and services." It's just as time progresses it takes more and more currency to acquire "goods and services"

This makes gold the next great opportunity. The inevitable continued expansion of the US currency supply means that saving in a currency is financial suicide. Gold will inevitably rise in price due to the fact that it constantly takes more dollars to acquire the same thing that gold consistency acquires.

Every new dollar they print or mark up on the balance sheet takes from the value of the dollars previously in circulation.

Think about it like this. A Lamborghini is an expensive car right? For this example let's say a Lamborghini costs 1 million dollars. Imagine if one day I poof into existence 100 million of them. They are no longer a rare car. The price decreases tremendously due to excess supply and less demand.

It's kinda the same thing with our currency. As they poof trillions of dollars into circulation every dollar that was previously circulating is then competing with those additional created dollars to purchase the same goods and services. This is why we see rises in prices.

If your looking for the ultimate means of hedging your acquire value visit this link or send me a direct message. http://bit.ly/1Uda6vF

www.synergygoldteam.org

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Currency vs Money

US dollars are what is known as a currency. A currency represents a number that is directly linked to spendable value. These numbers are known as units of account. A unit of account is a unit that represents our acquired economic energy. We receive these units for participation in the labor force, return on investments, gifts, or maybe an inheritance. You can use your acquired economic energy to purchase goods, commodities, or assets at the current rate of exchange.  Most people foolishly call these units of account money. These Federal Reserve notes in circulation are in fact not money. They are a currency. This is because the rules of money changed in 1971.

A currency is a medium of exchange. We as humans have come a long way from the traditional barter system of our ancestors. If prior to units of account I needed a fur pelt to stay warm for winter but I only had a few cows I wouldn’t wanna trade a cow for just a couple furs. I mean I need to stay warm in winter but that cow can feed my family for months. I then have to find someone who is willing to exchange my cow for something of less value. That item of less value also has to be exactly what  the person who has the furs wanted or they would not accept it as a means of payment for the good or service.

This creates many obstacles and difficulties in trade. It really slowed economic growth and innovation. That was until the first real medium of exchange surfaced about 2800 years ago. It started with bits, pieces, chunks of gold. Somehow the world collectively started recognizing this precious metal as a means of exchange for goods and services. Gold was the first real form of money used by humans. The same gold those first traders used actually purchase about the same amount of goods and services today as they did then. Mediums of exchanges are a great tool that has surged efficiency in economies and trade.

A currency is known to be durable and portable. Being durable allows it to be exchanged thousands of times. Could you imagine if we used goldfish as currency? What’s gonna happen to your pocket full of goldfish on a rainy day? Value being portable is a must for participation as a role of currency or money. For example oil has purchasing power and could in theory be used as a form of money. It has value anywhere you go on earth. But could you imagine what it would be like going to the grocery store and trying to purchase goods or services with a barrel of oil?

Money and Currency must be divisible. The differences in prices in goods and services in modern day trade creates the need for giving change. Just imagine if all we had in circulation was 1 dollar bills. Purchasing expensive items would become very difficult and time consuming. Larger units of accounts such as the $20, $50, and $100 dollar bill have sped up this the process.

Lastly a currency is Fungible. Fungible means that if I hold the same unit of account that you hold it will purchase the same amount of goods and services as if you held the same unit of account. This means that my $20 bill buys the same amount of stuff and is worth the exact same as your $20 bill.

As you can see a currency possesses some very incredible characteristics. A money is almost the exact same thing. The only difference is the additional trait that money has. Money is a store of value over long periods of time. This is why currency is not a money. Currency was created to acquire commodities or assets. It was not created to be saved. Saving in a currency is financial suicide.

A store of value is any commodity, asset or money that holds value that can be recouped periodically. Very few things throughout history have ever maintained the value placed upon them. For example thousands of fiat currencies have been created into circulation. A fiat currency is a currency printed out of thin air. They have nothing tangible backing them. They are simply put pieces of paper that represent our earned economic energy. This energy can then be exchanged for goods or services.  Every single one of these fiat currencies ever created that is currently not in circulation has returned to their intrinsic value of 0.

Intrinsic value is the actual value something is worth. If a currency returns to its intrinsic value it’s basically just worth the paper it’s printed on. 

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