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The Deadly Effect of Fiat Currency

April 7, 2011 Comments off

wealthcycles

Many of the world’s woes can be attributed to our global fiat currency system—price inflation, food shortages, political instability, and speculative booms and busts. But perhaps the most devastating and horrible of the consequences of our fiat currency system  is the terrible and unceasing prevalence of war. Today, we wince as we watch the U.S. enter into a third current foreign conflict, under the guise of a multi-national, humanitarian Libyan intervention. Yet, with the amount of excess currency flooding the global economy and the U.S. Federal Reserve’s seemingly limitless willingness to create more, history tells us it is practically inevitable that the result would be more war.

It is no coincidence that, even in ancient societies, the invention of fiat currency—currency Read more…

Insider Report: US Government Will Confiscate Gold When It Touches $2000

February 27, 2011 Comments off

It’s no secret that the US government is broke, the US dollar is crashing and losing credibility globally, and the IMF, China, France and others have publicly stated their desire to eliminate the dollar as the world’s primary reserve currency. The IMF, for example, recently issued a call to replace the Federal Reserve’s fiat paper, ironically suggesting that it should be replaced with yet another synthetic instrument known as the SDR, or Special Drawing Right. The SDR is essentially a monetary unit made up of a basket of other global monetary units that include the euro, Japanese yen, pound sterling, and U.S. dollar. Incidentally, prior to the collapse of the Bretton Woods gold-backed US dollar monetary system in 1973, the SDR was actually ‘backed by gold,’ with one SDR being worth roughly 0.88 grams of gold, or at the time, $1 US dollar.

It’s been suggested that a new SDR, which would likely include the Chinese Yuan within the basket, may also require some non-synthetic units Read more…

Wealth Cycle Investments

December 26, 2010 Comments off

Wealth cycles are nothing new, however, the potential of this upcoming cycle will be the largest in the history of mankind impacting that of global proportions. When the financial currencies of the world collapse, the transfer of wealth will happen literally overnight. Those who are invested in gold/silver certificates, bank accounts, stock market, checks, bonds, IRA’s, currency (ie Federal Reserve Note, Euro) are prone to loose everything they have worked so hard for. You must recognize what cycle we are in to avoid the pitfalls. It’s the same as common knowledge, if you were watching the weather channel and the meteorologist says that there will be a record blizzard in 24 hours what would you do? The first thing I would do is to make sure that my house has ample food, warm clothing and lots of firewood. If you don’t take these certain precautions surely you will suffer the consequences of hypothermia, starvation or even death.

Wealth cycles have a long history originating in ancient Greece and Rome.  Every time in history upon the birth of a fiat system when a  government intervened in free markets, the markets would eventually undergo a correction.  You can see that every time a government began devaluing its currency by creating more and more of it, certain events, like inflation or hyperinflation, would follow, every time.  In the case of America the same thing is beginning to snowball.

This current cycle that we are in heavily favors gold and silver. You see it on the news everyday and you read it in the newspaper. Question is, have you ever thought about selling your scrap precious metal to one of those gold buyers you just saw on TV a few minutes ago? If you were to sell your precious scrap metal or coins for the inflated quote of dollars they will give you then the following week the monetary system collapses what would you have gained?

Countries such as China have recognized this cycle.  It recently was announced that China imported 209.7 metric tons of gold during the first ten months of 2010.  That was five times more gold than China imported during the first ten months of 2009.  China is even encouraging its citizens to purchase gold and silver!  Other nations such as India, Russia, Brazil, even Sri Lanka  have been making news by announcing that they all want to build more gold reserves.   When you see large international moves like this, you have to know something is up.

Mike Maloney says “I’m not a gold bug or a silver bug. I’m really a cycles guy. Silver, I believe, is the best way to get a whole bunch of cash flow, real estate, high-dividend-yield stocks, or something that is creating income every single month. What you eventually want is cash flow.”

http://blogs.wsj.com/marketbeat/2010/12/03/gold-demand-huge-buying-from-china/

http://www.prisonplanet.com/buying-gold-why-are-the-chinese-gobbling-up-gold-like-there-is-no-tomorrow.html

What is the true value of your dollar?

December 25, 2010 1 comment

Ever since 1913 when the Federal Reserve was created the dollar has been loosing its purchasing power. Currently you can only purchase at 3 percent today of the 100% that you could buy in 1913 resulting in a 97% loss.  For instance milk was just an average of 32 cents a gallon in 1913.  Today, the average price for a gallon of milk is $4 or more.  Almost everyone tends to think that everything is getting more expensive when in reality the purchasing power of the dollar is going down which is the cause from inflation (which have averaged about 3.3% a year).  It is only a matter of time when these Reserve Notes are declared worthless, hopefully, I pray you were wise enough to invest in physical precious metals.  Remember the age old cliche “Where there’s smoke, there’s fire”.

USD Purchasing Power since 1913

Coinflation.com shows what the actual value of the metal contained in our coins today. At the time of this writing, the market value of each coin is as follows:

  • Pennies are worth $0.0053329 (1/2 cent)
  • Nickels are worth $0.0525026 (just over 5 cents)
  • Dimes are worth $0.0183166 (1.8 cents)
  • Quarters are worth $0.0457932 (4.5 cents)
  • Half Dollars are worth $0.0915876 (9.1 cents)