. Prior to 2008, I sent out a letter warning that the monetary system in the United States was broken and that it was about to implode. I suggested that people take a portion of their assets and buy silver and gold ( or open a bullion or metals IRA), the only real insurance policy against the falling dollar. Some did and made over 30% on their investment, while others didn’t and lost anywhere up to 45% of their portfolio. While the market has come back and has lulled many into a false sense of security, the real problem facing the future of your assets and wealth is: THE VALUE OF THE DOLLAR CONTINUES TO FALL!
We’re now in a worse position then we were in 2008! Today we are living in a world of “financial terrorism”, and I continue to warn people that the monetary system is still broken and there is a very good chance that we will have another catastrophic monetary event within the next 6-12-18-24 months, where the dollar will loose it’s remaining value and collapse, and will probably loose it’s World Reserve Currency status ( already been planned )! Sound impossible? Google the Weimar Republic in Germany during the war, and read what happens when a government continues to print money ( fiat, paper currency ) out of thin air with nothing ( gold or silver ) backing it.
You think Bernie Madoff’s Ponzi scheme was big? The United States Government is running the largest Ponzi scheme in history. It has to keep creating money out of thin air to cover the enormous debt ($40 trillion which cannot be paid back ) it’s creating through uncontrolled spending, and then needs even more money ( 1 trillion dollars a year now ) to service the debt ( that foreigners don’t want to buy anymore!). All this phony money creation does is create inflation, which in the end, devalues the dollar, which devalues all your dollar denominated holdings and investments. When Wall Street or your broker says you need to be diversified, if all your investments and holdings ( stocks, cash, bonds, money market, etc.) are dollar denominated, you are not diversified and will be in trouble. To really be diversified, YOU HAVE TO BE OUTSIDE OF THE DOLLAR! Not only that, the government, which is broke and can’t pay it’s bills, will be going after the “wealthy class” through many new taxes and laws in order to extract new money to keep it afloat. They’re even talking about nationalizing retirement accounts!
There is an old saying: Some people traded their money for wealth, and some people traded their wealth for money. PAPER MONEY IS NOT WEALTH! Those who took their dollars and bought land, buildings, artwork, diamonds, gold and silver, etc. traded or exchanged their paper, which has no intrinsic value, for things that do. That’s wealth! Those who only kept their paper, regardless of the amount, will have a rude awakening when what they thought was it’s value disappears , and, we are now in the final cycle of that value disappearing. Before something becomes worthless, it first moves through a cycle of becoming worth less. Since 1913, our dollar has lost 97% of it’s value and the remaining 3% is slipping away. A $20.00 dollar bill bought about 68 gallons of gas in the 50’s. The same $20.00 now buys about 5-6 gallons ! Money is supposed to be a storehouse of value and a medium of exchange. Paper money, while still a medium of exchange, has and is losing it’s storehouse of value. Only gold and silver has retained both for the last 5000 years, and when the smoke clears over the next few years, those with physical gold and silver will still be standing in a much better position then those with only paper money.