- In 1944 the US Dollar was chosen as the worlds reserve currency. The world agreed to fix currencies to the Dollar which was tied to gold at $35 oz. For every dollar printed in 1944 there was Gold to back it.
- During the years between 1944 and 1971 the US began to run large budget deficits resulting from the Vietnam War and the Great Society Program under Lynden Johnson. Foreign countries and Central Banks began to exchange their currencies for Gold because they were concerned that the US was spending more money than they had in Gold Reserves.
- In August of 1971 to prevent the outflow of Gold from American vaults Richard Nixon called for an emergency suspension of the Gold convertibility system ending the Dollar Gold Standard and converting the Dollar to what is called Fiat Currency, meaning that the Dollars was no longer backed by Gold but only Government Promises!
Fiat Currency only works until people lose confidence in the Currency. All world currencies are fiat currencies since 1971.
Fiat Currency is literally created out of nothing.
The more fiat currency the government creates to feed their massive spending, the purchasing power of that currency declines.
This isn’t only true for the money in your pocket; it is also true for the money in your bank account. If the government can print money to buy stuff and in so doing cause prices to rise, the resulting increase in prices causes money you own to lose value. The government has effectively taxed you to pay for the stuff it bought.
When the government can print as many dollars as it likes, it has the ability to impose an “inflation tax.”
In what way is inflation a tax? When the government prints money, prices rise. When prices rise, money loses value. For example, if a tank of gas costs $20, then the $20 bill in your pocket is worth a tank of gas. If the price of gas rises so now a tank costs $30, then the $20 bill in your pocket is only worth two-thirds of a tank of gas. The increase in the price of gas caused the money in your pocket to lose value.
The inflation tax is insidious because it is usually unseen (when inflation is moderate, people tend not to notice it and, when they do, fail to appreciate that it is in fact a tax). Furthermore, it is impossible to avoid. Understanding that inflation is also a tax leads us to a fundamental truth: The only way the government can obtain money is through taxation.
HOW CAN WE PROTECT OURSELVES AGAINST CONTINUED DEVALUATION OF THE DOLLAR AND A POTENTIAL COLLAPSE OF THE ECONOMY?
THE ANSWER IS GOLD & PRECIOUS METALS LIKE SILVER
Why does gold make a great hedge against inflation? There are many reasons, but for the sake of relevancy to what has been outlined above, YOU CANNOT PRINT GOLD. Gold is a physical, tangible asset that you cannot make appear out of thin air like the Fed does with the U.S. dollar. Therefore, it is a lot more difficult for gold to devalue. Due to inflation, 100 U.S. dollars in the year 2000 would only buy you $82 worth of groceries in 2013, while $100 in gold in 2000 would buy you $470 in groceries in 2013.
Learn how you can protect your wealth by investing in Gold and Precious Metals like Silver and build a business that will generate residual income!
Trust me…you will be glad you did!
Gold and Silver are Financial Insurance
Note: I am not a financial advisor and it is not my intention to give financial advice. I believe that when contemplating investment decisions and strategies that one should make every attempt to be as informed as possible, including researching multiple sources of information, evaluating the pros and cons and seeking the advise of qualified financial advisors as it relates to their investment decisions.
7k Contact Information:
7k Metals LLC | 3540 S. Yellowstone Hwy., Idaho Falls, ID 83402-2587 | (208) 314-2587 | www.7kmetals.com
Disclaimer: I am a 7k Associate and am not an employee of nor am I in any way affiliated with management or operation of 7k Metals LLC. I do not represent 7k Metals LLC and any information provided herein are for informational purposes only for those people that I share the 7k opportunity with. It is intended to provide them with the convenience of information that can be quickly and easily accessed as a means of learning and understanding the benefits of becoming a 7k Associate themselves in conjunction with the 7k web site which is the primary source of the information provided herein. I strongly advise that you do your own research on the 7k website and/or by contacting 7k Customer Service to answer any questions you may have and to verify the information provided to your own satisfaction for correctness and accuracy and that you do not rely strictly on the information shared herein.