A new paradigm is heating up for currencies worldwide. Hope your seatbelts are fastened securely because this will be one hell of a ride.
The United States has gotten into debt way over our heads. The future will be “the worst of times” and later “the best of times.”
Talk about our life being crazier then fiction brings us smack into the 21st Century, circa, year 2021. For many of us, COVID and its effects felt like hitting a wall at full acceleration. Humanity is trying to pick up the pieces and seeing how they can fit back together again.
Our story starts after the Great Depression of 1929 when this Executive Order shown below was Issued by President Franklin D. Roosevelt..
Following the Great Depression (1929), President Franklin D. Roosevelt (FDR) outlawed gold ownership by US citizens.
Initially, President FDR needed money, badly!!!! Our country suffered the worst financial crisis ever, with The Great Depression and its aftermath. Outlawing gold, gave the government the ability to control all of the gold in the United States. This gave the Federal Reserve the opportunity to just start printing dollars because only “they knew” how much gold was banked federally to back those dollars. Surrendering of gold for cash would encourage the consumer to spend this cash in the economy which would supposedly bring happy days back again. It just didn’t work. The Great Depression continued unabated by the actions of the F. Roosevelt Administration.
An ounce of gold taken by the government was paid back with $20.67 in dollars. As soon as the Federal Government received every citizen’s gold, our federal government revalued gold to $35 an ounce. The government forced the citizens to sell all gold back to The Central Banks (Federal Reserve) or face $10,000 fine +/or 10 years in jail. Then they devaluated the cash they gave you for the gold by 69%. Meaning what they threw on the American public was a hidden inflation that drove each $1.00 paid down to $0.31. And we thought they had our backs. Nope! Only way we can have our own backs moving forward is with the right information. The government will do anything in its power to remain solvent even if it de-bases (takes down) our currency dollar. That is exactly what is going on today.
Governments could care less about their citizens although it paints a narrative that it’s all about you. This is only because politicians main focus is to get re-elected. In reality, President Franklin Roosevelt screwed the American public by inflating currency by 69%. This devaluing the dollar was actually a hidden inflation. The dollar I reiterate was now worth only 31 cents. Although citizens trusted the government was doing the best thing for the country and the war effort. So the public didn’t realize they had just gotten royally screwed.
Case in point: don’t ever depend on government to protect your interests. They will only ever protect themselves and constituents that donated to their self-serving causes. You need to protect yourself.
For the nerds, here’s the calculations for the royal 1933 screwing of the public:
$35.00 minus $20.67 equals $14.33
$14.33 divided by $20.67 equals 0.69 times 100 gives 69% reduction in dollar
$1.00 minus $0.69 equals $.31 left to spend after hidden tax (inflation)
Established in 1944, in Bretton Woods, New Hampshire, the Bretton Woods Agreement was an international contract with the United States and 43 other countries to utilize the dollar as its reserve currency. These countries could now buy and sell US dollars to exchange one currency for another. So all major currencies were pegged to the dollar. Gold backed the dollar to give it stability and lessened the chance for money printing to deflate the dollar.
President Richard M. Nixon took the U.S. off the gold standard on Nov. 15th, 1971. Meaning, gold no longer backed the dollar. This broke the promise of gold backing the dollar that was decided as a result of the Bretton Woods Agreement. With nothing now backing the dollar, aside from just a promise from the Federal Government to pay its debts, the bills became a fiat currency. Nixon Administration just started printing massive amounts of dollars leading to even more inflation.
Fiat is a “promise” by the Federal Government to pay its debts. With the precious metal no longer backing our dollar, the Feds could print as much money as necessary to keep paying the bills. He was using it to pay the large amounts of debt incurred during the Vietnam War. In addition to funding the reminder of the Space Race. Remember that every dollar printed makes whatever money you have worth less. That’s called hidden inflation.
At that time, gold was still illegal to hold in the U.S. After President Nixon resigned his presidency, newly appointed President Ford allowed citizens to again purchase gold legally in 1974. Up to this point, it had been illegal for 41 years to possess this precious metal.
Next up, 2008, with the sub-prime mortgage banking fiasco that almost brought us close to another Great Depression. This accelerated the debt accumulation by bailing the “preferred” bad behavior of “too big to fail” financial institutions. In a nutshell, rating agencies were giving investment vehicles the highest ratings when their foundations were weakly anchored to trash investments.
Humpty Dumpty saw his view from the top of the wall of debt grew higher and higher. Presidents (Carter, Regan, Bush, Clinton, Bush, Obama and Trump) have come and gone with no party fixing the problem. They just kicked the can, further and further down the road into even more trillions of dollars in debt. So both parties had opportunities to at least try to dampen this growing financial black hole. They did nothing, aside from magical mathematics to confuse the American public.
President Biden, no different than presidents in the past continues this activity supported by the Federal Reserve with our current debt:
Understand that every single dollar printed from money made up from Federal Reserve pixie dust generated by digital machines increases inflation. We don’t see it yet although inflation is just a hidden tax. That means that it will take a lot more dollars to pay for all future goods and services.
U.S. debt was 19.5 trillion dollars in 2016. The current U.S. debt is 28 trillion dollars and rapidly rising as of June 2021. Our current population in the U.S. is 330 million citizens. That comes to $85,174 dollars per citizen in debt. At this point, we can never pay off that amount of money no matter what the Federal Reserve has in its bag of tricks. That bag is almost empty.
To put that in perspective, imagine $100 bills representing trillions of dollars. If we stack these bills one on top of each other, one trillion dollars worth of $100s will extend from Earth into space by around 631 miles. That is, over a quarter of the distance to the the Moon. That’s only 1 trillion, think about 28 trillion dollars.
This is part one of a two part series. We will speak about what you can do to protect yourself in the future from the destruction that both the Federal Government and the Federal Reserve have done to our monetary environment. It seems to me that government has a backdoor plan to completely destroy our fiat dollar and transition to a digital currency possibly backed by a precious metal like gold or silver.
I am not a financial planner nor do I know your specific financial situation. This is for education and entertainment purposes only. Please do your due diligence and dig deep into my major points within this article.
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