Discover The Truth About Why The Dollar Is Collapsing And How to Profit From It

This is not some unexplained phenomenon. Martians have not invaded the US Treasury. There are real, measurable reasons behind the dollars demise, and its not rocket science. Many of you may not remember when gasoline was.25 per gallon. There was a time, if you do not remember or were to young to remember, that was the case. Some people think the value of gas has really gone up ten times since then, but has it really? Or is there some other, sinister power at work here? Interestingly, when you could buy four gallons of gas for a dollar, we also had a very different type of money.

The USD once upon a time was 'backed' by gold and silver, which meant that you could take a 'silver or gold certificate' (what our money used to be called) and hand it in at the US Treasury, the the Treasury was Required to give you silver or gold for it.

Today's systems is very different. If you pull a dollar bill out of your pocket, and you look at the top, you will see that is saying "Federal Reserve Note". What does that mean? Well a note, in financial terms, is a promise to pay something of value at a later time. The question here is, pay what?

Today, if you took your Federal Reserve Note to the US Treasury, and asked them to give you something of value 'for your' Note ', what do you think would happen? They would probably call the police and have you carted off, is what would happen.

So back to the point of the article, why is the Dollar Collapsing in value? The answer is, that because the dollar is no longer backed by anything of value, then the government can create as much of it as it wants.

So what affect does this have on the Dollar's Value? Well simply, whenever there is more of something it is worth less. One of the fundamental requirements of money is that it remains scare. If Dollars were as common as rocks lying on the ground, they would not be worth very much now would they?

We see this taking shape in the form of less demand for Dollars, all around the world. OPEC is in discussions of de-pegging from the dollar, oil producing nations are starting ask for payment in oil in currencies other than the dollar, China has indicated it intends to diversify is national reserves out of Dollars and into other assets, and you have Trillions of Dollars in newly created Sovereign Wealth Funds, which sole purpose is to buy hard assets around the world with 'surplus' Dollars before the Dollar becomes worthless. It has gotten so bad, in fact, that the Dollar, once honored and coveted in China, is now seen as your neighbors garbage.

It can not be that bad, you say. Well actually, it can. Since 1913 when we created the Federal Reserve System, the Dollar has lost 96% of its purchasing power.

So if you think about it, its not that gasoline, food, real estate, vehicles, etc have actually gone up in value, perhaps its more like your dollars buy much less than they did even 4 years ago, so maybe it takes more dollars To buy the same thing?

So now that you have me really depressed you might ask, what the heck is the solution?

The solution dear reader lies in gold and silver. Gold has retained its purchasing power for thousands of years, while Governments have messed with various currencies that go up and down in value. An ounce of gold thousands of years ago would clothe a man very well. Today, and ounce of gold will also clothe a man quite nicely.

If you really want to reserve your wealth, take a serious look and investigate gold.

Source by Alex Stanczyk

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