In the last few years alone, while you were not paying attention, your money loses its value mostly from inflation.
Question: What’s the difference between wealth and money?
Not sure?
In Plain English, Wealth is something tangible (real estate, hard assets, gold, agriculture, etc.) that’s measured in terms of money.
And Money is usually perceived as a piece of paper (that’s backed by someone’s promise).
BTW, your “Federal Reserve Notes” are NOT guaranteed by Uncle Sam.
They are backed by a promise of the Federal Reserve which is a corporation often thought to be a government agency.
Reality check…our dollars used to be backed by gold.
Remember “Silver Certificates?”
That all ended when Nixon took us off the gold standard in August 1971.
So, let’s look at the value of your money today compared to back then.
Loses its Value…
In a nutshell, your $1 today has lost over 95% of its purchasing power.
That means what used to cost a nickel now costs you $1.
For those of you old enough to remember, take a candy bar as an example.
Or how about a meal at McDonalds?
Today their famous $1 menu is now called “Under $2.50 menu.”
Seriously, that’s a two- and one-half times increase…or 250%.
And Congress, along with the Boyz in the “Club,” repeatedly tell you that inflation is running at less than 2%.
My point is simple. It takes a lot more money to live today than it did in 1971. And when money loses its value, it is eventually replaced by something else.
That’s why “cryptocurrencies” like Bitcoin, Ethereum, Coinbase, etc. have become so popular.
But they’re just digital money creations based on “blockchain technologies.”
And can disappear at the click of a mouse.
Are you confused yet?
The future impact of these technologies is mind-boggling. And you need to understand how it affects our world (and especially the investment world) going forward.
Money is not going to disappear. But it will be transformed.
How and when has not been established.
But we believe in the next five years we will see new “Packages” of currencies to replace the almighty dollar.
And they will most likely include a basket of currencies like the dollar, yuan, gold, Bitcoin, etc.
This begs the question: How are you prepared to deal with the inevitable changes?
Be sure to see our May issue of “Simplifying Wall Street in… Plain English” newsletter, (HERE).
Because in it we’ll show you how the banksters are desperate to get control of the “crypto market” and how you can prosper AND thrive from it.
