This is a little scary, especially when you see how it is already going for some countries in Europe.
The US Dollar and the European Union’s Euro are fiat currencies, meaning that they have no intrinsic value and are not backed by anything that has intrinsic value. They have value only because the respective governments declare that they do. Fiat is a Latin word meaning “let it be done” or “it shall be.”
All fiat currencies throughout history have failed.
According to Wikipedia, the first fiat currency was issued by the Yuan Dynasty of China under Kublai Khan. Toward the end of the Yuan Dynasty, they printed more and more un-backed fiat currency to finance themselves, resulting in hyperinflation.
Sound familiar? The Federal Reserve has been printing more and more dollars and the US government keeps buying them.
Did you catch that? The Federal Reserve, a privately owned bank, prints the US currency and the US government buys that currency and puts it into circulation. Every $1 Federal Reserve Note represents $1 of debt owed to the private Federal Reserve Bank. We don’t use money to buy groceries and gas and pay our mortgages. We use federal debt.
Consider this. When the US Dollar was backed by gold under the Bretton Woods system, the value of dollar was tied to gold at $35 an ounce. At the current spot price, gold is worth about $1,590 an ounce. The value of the US Dollar has dropped a loooooooong way in the last 40 years.
What I am doing to protect myself is increase my income through network marketing and affiliate marketing. Any extra currency I have left over at at the end of the month goes to buy gold or silver.
There are gold and silver network marketing companies that I could work with. I have decided to stay with my wellness-based MLM because it is easier to convince people that they need to take better care of themselves than convince them that their dollar is less than worthless.
What are you doing to protect yourself? Leave me your advice in a comment below then share this post with your followers on Twitter and Facebook.