Throughout our lives we are taught a few basic principles, study hard, get a job, save your money, get married and happily ever after. I'm sorry to burst your bubble but this does not apply to today's society anymore. Your 'money', the dollars you hold are currently under attack. I will not link the word money to your dollars because the dollars you and i possess are just currency. This article i feel is not only important to those ambitious to gain wealth, but also for the average Joe to simply survive an impending economic crisis.
In order to discuss about Gold and Silver investment opportunities, it is important to start from the basics. Lets discuss about the state of the economy. I will explain in simple terms.
The State of the Economy
Whether you believe it or not, the economy is not improving, it is crumbling. I do not care about the various 'official information' fed to all of us to make us believe the economy is improving. The fundamentals of an economy are being violated. This violation is a direct consequence of the measures the world is handling money. My money, your money.
Inflation
This occurs when the money supply circulating is out of control and floods the economy. Currency/dollars is being printed without being backed up by anything. This is fiat currency, the 'money' we use today. The only thing keeping this concept afloat is the government's authority that makes these pieces of paper legal tender.
Effects of inflation: A burger 10 years ago might cost 50 cts to a dollar, today it is around 3 dollars. Property prices a few decades ago were less then a few hundred thousands, today the same property might be worth a million dollars.
Understand this fact: Things are NOT becoming more expensive, your Dollars are becoming weaker in purchasing power.
Lets take a look at the purchasing power of the dollar. The world's Reserve currency, the currency that is supposed to be strong and ideal and where all other nations' currencies are compared and pegged to. the US dollar.
For those who cannot interpret this graph it simply means for the last 75 years, the dollar has been dropping in its purchasing power by around 95%. And it is still dropping! The dollar 75 years ago is now worth less then 5 cents today. I know this is hard to digest, but too bad, this is happening to you and me.
Your paycheck today might not sustain you tomorrow.
Why is this happening?
This is happening not because of some big conspiracy or cover up, this is occurring in front of our very eyes.
Heard of the Gold standard?
Of course you haven't, well you might but understand this, we have gone away from the gold standard from the year 1971. The worlds currencies was pegged to the US dollar which was in turned pegged to Gold. In other words, your dollars were redeemable for gold. However, not any more, President Nixon of USA ended it in 1971. The reason in my understanding and opinion, is to allow a then Bankrupt USA (due to fighting the Korean, Vietnam and World War 2 battles) to artificially grow their economy. See the graph again, before the end of the gold standard, the dollar was at least marginally stable.
The World Banking System
Firstly i am not criticizing any system, i am just laying down the facts. You can decide for yourself. To me banks are the 8th wonder of the modern world. Why? Very Simple: Fractional-reserve Banking.
Ok i will explain it in very simple terms, want to see the full article regarding it, go wikipedia it. Basically if 10 million dollars was deposited into Bank A, the Bank (having a fractional-reserve ratio of 10:1) has the ability to conjure up 9 million on top of the 10 million it already has deposited by a customer. This happens as only 1 million is needed to guarantee the 9 million that was 'created'. If a new customer takes this 9 million dollars loan and deposits the money in his own bank B. This process repeats itself with 8.1 million of new money being 'created'.
Disclaimer: I might be wrong, this system might be truly a wondrous gift to mankind by the banks or it might be just downright wrong. Its up to you to judge. Just ask yourself, can you create money from thin air? If you can, then earning money is nothing more then a magic trick, means your money is worthless.
I do not know if Singapore Banks practice fractional banking at all, if to any degree, but i am convinced that major commercial banks that influence the world practice it to a large degree, especially American Banks.
The American Situation
This part of the article is perhaps one of the most important points i would like to mention. This is not only USA's domestic problem, the world is interconnected, especially so to Singapore. America's problem is our big problem.
In 1913, The Federal Reserve act was first established. This is to allow literally the printing of money to be controlled by an entity separate from the US government. The Federal Reserve is no more federal then Federal Express, it is owned by overseas Banking cartel which comprises of European nations and Saudi money.
The US government has to go through the Federal Reserve for any creation of money by selling its government bonds (essentially a debt), the Federal Reserve will then print money according to the value of this debt and exchanges this money for the government bonds. Hence new money is created from debt, in other words, money is fabricated.
Bailouts? Does it even work?
We have heard this word multiple times, i am frankly sick of this word. Its akin to a little child smashing a neighbor's window and asking his mom for money to repair it.
The bailout of 2008 (700 billion dollars) or any US bailout comes from the Federal Reserve, which is essentially phantom money. Hence the debt cannot be solved permanently with the bailouts or any stimulus package that is backed by nothing. Not only does it add to the US debts (14 trillion, to you non-mathematical folks, that is 14,000,000,000 dollars and counting).
To make things worse, the US interest rates are alarmingly low, production levels in US compared to other superpowers such as China, India and Middle-east is non-existent. The US economy is consuming everything but producing close to nothing. Asia and the rest of the world that still has sound money is getting sick of bailing out the Americans.
The European Problem
Oh yes, this is not just a red-white-blue problem anymore. It has spilled over to Europe. The bottom pictures are taken directly from my own writeup document. (Click on it for a better resolution)
Oh btw the Singapore debt is at around 20 Billion dollars and our public debt to GDP ratio is around 110%. How can it be?
https://www.cia.gov/library/publications/the-world-factbook/rankorder/2186rank.html
Verified by the CIA themselves.
(Disclaimer: This are just personal opinions and personal research conducted by myself, i am no financial adviser, hell i'm not even an economics major, but i am concerned about money, about how to manage my own finances, and i feel you should too)
[This article is very raw, it is not done using complex terms and jargon because firstly i know very little of that, it obscures the truth sometimes and i want this article to be reader friendly to all professions and all walks of life. Links to my sources will be uploaded when i have time.)
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