The USA is the only government in the world allowed to print as many dollars as it needs to pay its bills because the currency of the world is currently based on U.S. dollars. This has been the case only since the end of World War II. For hundreds of years the world’s currency was based on Britain’s currency because it was the most trustworthy currency. However, after WWII Britain had no money and the U.S. propped up Britain and gave them the money they needed to rebuild at the same time while the socialists in Britain were taking control of British industry. Consequently, the U.S. dollar became the indisputable currency of the world….until now!
Since the 1980’s the U.S. has printed so many dollars the dollar has become so devalued that the world is now slowly but surely losing confidence in the dollar. Understand that the rest of the countries of the world, before it can buy goods from around the world, must convert their currency to the U.S. dollar meaning they cannot spend what they do not have, unlike the U.S. which can simply print as many dollars as it wants since the U.S. dollar is what world currency is based on because in the past the world could trust the U.S. dollar more than any other currency in the world to have value.
Since the last financial crisis of March 2009 the U.S. has printed and, to date, continues to print 85 billion dollars a month, so much so that the countries of the world are waking up to the fact that the dollar becomes worth less and less which costs them more and more when they have to convert their own currencies to the U.S. dollar to trade for goods around the world. The leading countries of the world are currently holding not-so-secret meetings to come up with a new world currency to replace of the U.S. dollar, a new currency which will be based on numerous currencies of the world.
Of course, U.S. politicians and policy makers that control the Federal Reserve Bank and the U.S. government cannot admit that “one day” in the not so distant future they will have to say the U.S. currency will no longer be the currency of the world. Of course, up until that one particular day they will have to deny it is going to happen so they do not cause a financial panic. For the public good, it is better to suffer the consequences of a panic that happens overnight than to cause a panic that happens over months or years if they were to warn the public of what is coming.
The best course to take is for the U.S. government to stop spending money it does
not have but that cannot happen because the U.S. citizenry wants the government to continue paying for everything possible and will not elect politicians that want to stop spending.
The “day” that the U.S. dollar is officially not the currency of the world, and it will literally happen overnight, is the “day” that most everything you own, for example, cash, stocks, bonds and even your home will be worth from 25%-50% less than what it is worth today! You are already seeing inflated food, energy and health care prices. You may also be around to witness food, energy and health care rationing like Britain experienced when their currency was officially devalued as the currency of the world at the end of World War II. So what are the safest ways to protect your wealth?
First, once a financial crisis occurs your best bet is to have a skill that is in demand so you can continue to have an option to work because when the currency is worth less or worth much less or very little, only a skill that people need will earn you some kind of income to get through a crisis. Remember, by the year 3000 we may be back to being a feudal, farming society anyway once the basic materials of the earth have become depleted, meaning we will once again be back to celebrating a good crop and if you do not work you do not eat by the year 3000!
In the meantime, you should research the best ways to buy gold and silver and also protect it. Yes, you will need to learn how to best protect it too since the U.S. government can legally confiscate privately owned gold and silver. Farm land is also a good bet since crops will always need to be grown and traded to feed you and the rest of the world. Another good bet is to buy stocks in the options market but this is risky and very difficult for the “mom and pop” investor to learn and figure out how it works. Good luck and God bless America.
SUPPLEMENTAL SOURCE: STANSBERRY AND ASSOCIATES INVESTMENT RESEARCH MARCH 2013