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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