Do you understand economics?
If you are like most people I know then the answer to that question is “a little bit”. Some people claim to understand economics very well, but those who truly do understand this field will tell you that economics degenerates often into a study of humans and their strange financial and business decisions, rather than a clear-cut study of predictable growth or shrinkage of resources. Economics is a very weird, sophisticated creature. This is because of the fact that we humans are very weird, sophisticated creatures, and our behaviors determine our economics. Jobs can increase, income can increase, but a very debt oppressed population cannot spend when it is mired in debt, and this can depress and shrink the economy. Sound confusing? The more you research economics the more you see that it boils down to opinion and speculation, and that is why there are SO many different opinions within economics.
So what is economics to the layman? In our modern world, almost all economics are supposedly based on an exchange of value. This value can be either an exchange of services, materials and commodities, or an exchange of money. Many of us inherently know that money is valuable to us as humans, but do we really know why?
Paper and printed money started as a method of representing gold and silver. People used to carry these valuable resources with them everywhere they went, and carrying a lot of metal is a heavy, cumbersome, and dangerous thing. Eventually nations consolidated their gold and silver (along with other rare metals, which are collectively known as bullion when they represent wealth) and printed out paper money to represent pieces of this store of wealth. Your dollars are supposed to represent a piece of U.S. wealth. The only problem is that it doesn’t.
Our Money Policy = Our Money Problem
Due to the policies of the Federal Reserve and their ideas of economic regulation and money politics, your money is only as good as the word of the Federal Reserve. The system that they implement on our money system is free from the control of Congress, and in the process of doing as they liked these men decided that the dollar should no longer be reliant on the stores of gold the United States owns. This means that there is a tremendous sum of money floating around that represents ZERO real world value, yet we and other nations continue to use it because we all assume it still means something.
How do I know this to be true? The U.S. rate of printing money FAR EXCEEDS the rate at which it acquires valuable resources such as gold and silver bullion. This is the clearest and most obvious sign that tons of our money is printed without commodities to back it up. The next sign is that our dollar used to mean a good deal of wealth (as we know from the old days when a man was well off if he earned $10 a day). Our money means less and less, because we print more and more, and do not continue to acquire wealth to back up all the money that is floating around out there.
Many people, especially financial experts all over the U.S., are taking every opportunity to get out there and snatch up all the gold and silver they can get your hands on. Just look online and find all the sites that have cropped up, as well as all the second-hand buyers who look around for people selling old gold and silver jewelry to be melted down. These people understand that it is absolutely certain that the U.S. dollar will continue to weaken (the Federal Reserve policies guarantee it) and due to this trend it is highly likely, and to some it seems inevitable, that the U.S. dollar will collapse.
When this occurs, all of your retirement, all of your savings, all of your property, and every dollar you own has the potential to mean absolutely nothing. And if it means anything at all it will be valued at a grossly smaller fraction of what it is currently “thought to be valued at”. I put that in quotes because your dollar really is currently worth only a tiny fraction of what everyone thinks it is, the problem is everyone continues to use it as if it worth more because economists tell us we can. Everyone agrees it is stronger than it really is, and because of that we continue to pretend it has high value. DON’T BE FOOLED.
If you have any doubt whatsoever that the value of money could ever be so grossly misrepresented, or if you have any doubt that people would continue to over value money out of simple fear, please educate yourself on the recent Global Financial Collapse of 2008. And you should probably know that Mr. Warren Buffet, a key U.S. investor and economics expert, agrees with my conclusion that the dollar will be worthless, although he admits it would become worthless to EVERYONE if we continue printing more money (the Federal Reserve has already declared its plans to do just that).
What should you do?
Get rid of your dollars at the safest rate you possibly can, and invest in some wealth security such as gold, platinum, silver, or other precious metals that you can hold onto yourself and have in the case of a dollar collapse. There are all kinds of guidelines to follow because this market has become very large, and I am only recently getting into it myself. Find someone who is very experienced in this area, and please do your research thoroughly! There are many scam artists and frauds out there who aim to steal your money and give you no authentic bullion in return.
If you do your research and invest carefully, you can protect your family from the collapse of the dollar. And if you are a perpetual optimist, and don’t believe the dollar will ever fail, then at the very worst you will gain a considerable amount of money by investing in commodities that NEVER drop in value. Bullion is as safe as it gets when it comes to investing, and it is a form of wealth that is safe, predictable, and (for now) easily within reach. Now get out there and secure your family’s financial future.
UPDATE 8/27/11: We are currently in a Gold Bubble, which means that Gold is at an artificially high price right now, and is maintained there by the people who own it so that they can make a considerable amount of money on others who they sell it to. DO NOT BUY GOLD AT THIS TIME, people who own large amounts of it purposefully keep it off the market so that the gold prices can stay artificially high. Instead make a safer investment and buy silver, which is having the opposite happen: it is being kept artificially low. An investment in silver means greater long term security because its price will go up and will not implode like the price of gold.