Currency Collapse

by Dennis Bradford

in financial well-being

There’s a currency collapse coming soon – or so I believe.

If that’s correct, then there is still some time to take action that may ameliorate its negative effects on your life and the lives of your loved ones.

When will it occur? Nobody knows.

I believe it will be in this decade, probably within the next 1 to 5 years. If so, there’s not a lot of time to take effective protective measures.

It’s important to be clear.  What is currency?

As Robert Kiyosaki, Michael Maloney, and others emphasize, it’s important to distinguish between currency and money.

The noun “currency” derived from “current.” Something such as a river or electricity that has a current is always moving. A currency is a means for moving value from one asset to another.

Historically, many different kinds of physical objects have been currency, from beads and shells to livestock and paper. Dollars are currency.

By way of contrast, money has intrinsic value. Historically, only gold and silver are money.

All the different currencies in use today throughout the world are “fiat” currencies. Someone or some group issued a declaratory fiat that that person or group had the authority to use a specific currency as money even though it wasn’t backed by gold or silver!

That explains why news reports about investor confidence or what the market believes are so frequent: since nothing is backing any currency except faith, people are always fearful that that faith may be collapsing. It’s like being fearful not to create a breeze near a house of cards.

Many experts predict that that faith is about to collapse. If they are correct, and I think they are, then there soon will be a currency collapse.

If you agree, you should make it a policy to keep currency flowing. In other words, do not save it.

To protect yourself from the forthcoming currency collapse, I suggest using currency to transfer your wealth into GOLD, silver, or other hard assets (such as apartment buildings that generate cash flow).

Why do many experts predict that there will soon be a currency collapse?

It’s because they think that the future will resemble the past in that respect.  Historically, all fiat currencies have collapsed. It’s not a matter of whether there will be a currency collapse, it’s just a matter of when it will occur.

Of course, politicians don’t talk about this. Since they want to gain or hang on to political power, even if they understand it, it’s not in their interest to talk about it. Since it hasn’t happened and, so, isn’t yet news, even if they understand it, the people in the news media don’t talk about it either.

Most people also don’t talk about it. Most of them probably don’t understand it. If they are not too ignorant, then they are probably just too distracted.

Most people, though, do notice when prices inflate (due to an expansion of the supply of currency in circulation) or deflate (due to a contraction of the currency supply).

With inflation, everything gets more expensive except, of course, currency itself. Inflation is a kind of insidious robber that works silently and stealthily. (When currency was money, there was no inflation.)

This leads to another critical distinction, namely, the one between price and value. The price is an item’s value in currency. The value is an item’s real worth such as its monetary (or sentimental) value. Value matters; price doesn’t.

Here’s a very important point: a currency collapse destroys a currency, but it doesn’t destroy monetary wealth. In any kind of financial upheaval, monetary wealth is never destroyed; instead, it is simply transferred.

Therefore, there is no reason to fear the forthcoming currency collapse. If you understand what is happening now and what will happen then, the forthcoming change may be a real opportunity for you to increase your monetary wealth. Anyone (or institution) who is unprepared will lose monetary wealth.

If you want to gain monetary wealth, educate and prepare yourself. If you don’t care about losing monetary wealth or being broke, do nothing.

What’s the best single step you can take immediately to prepare yourself to be among the financial winners?

Transfer most of your assets into gold or silver.

(If you understand what you are doing [and, if you don’t, you can learn], purchasing large apartment buildings is also an excellent idea.)

Why?

After the crisis, the new currency will likely be pegged to gold.

How?

I suggest starting immediately by buying U. S. Eagles or Canadian Maple Leafs and, assuming you have a good home safe, keeping them in your home safe. You’ll have it in your private possession and be able to lay your hands on it immediately. Nobody needs to know you have it, either.

Don’t wait to buy gold and silver.  Buy gold and silver and wait. (That’s a paraphrase of what Robert G. Allen used to say about real estate.)

Speed of implementation is a characteristic of successful people. If you wait too long to take action, you’ll find yourself in the middle of the currency collapse and it will be too late.

Then read some books and begin seriously educating yourself. Michael Maloney’s Guide to Investing in Gold & Silver is a very good initial one. It’s a few years old, but it’s still right on target.

Why, though, think there will be a currency collapse?

To my mind, there’s lots of evidence. Today, there are plenty of books on this topic. The one that initially helped me change my context was Robert T. Kiyosaki and Sharon L. Lechter’s Rich Dad’s PROPHECY. Mike Dillard’s “2011 Year-in-Review” was very helpful in what follows.

Here’s a few recent trends you might do well to notice.

Our debt in the U.S.A. now exceeds 15 trillion dollars and our deficit is growing by over 1 trillion dollars annually. Since our gross domestic product is 14.6 trillion, we owe more than we make in a year.

The recent housing bubble isn’t over. It keeps sucking credit out of the system. This has a tendency to contract the currency supply and cause deflation.

Baby Boomers (like me) are beginning to retire. Ooops! This creates two huge problems.

First, our social entitlement programs are underfunded. Social Security, Medicare, and Medicaid will soon owe over 100 trillion dollars. Where is that money going to come from?

Second, when they retire Baby Boomers are required by law to begin pulling their wealth out of the stock market. They own most of the wealth in the U.S.A. in their retirement accounts, primarily in 401K and IRA plans. Who is going to purchase all that stock when they begin unloading it? Once prices begin falling, everyone will see it and also try to get their money out. Stock market crash!

Furthermore, there is no more easy oil. Even though there is a finite supply of it and oil is in great demand because it’s used to make everything from plastics to tires, don’t worry that we are running out of it. However, in 1979 we passed the point of diminishing returns: there is no more easy oil. It’s getting harder and harder to obtain. The amount of new oil being found has been rapidly declining since 1970. Global oil production is declining by over 9% annually.

A perfect financial storm is brewing. A currency collapse in imminent.

There’s nothing you or I can do to prevent it. Even, if he sees it, President Obama can’t prevent it.

I don’t know what you should do. As for me, I’ll keep learning and, meanwhile, begin to purchase gold and silver.

You cannot say nobody warned you!

I encourage you to let all your friends and other loved ones know about this post. Doing so might just save them from a lot of hardship and heartache.  Sharing is caring.

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