Our dollar-money is about to become worthless, so use it now to buy gold. How many times have I read this pitch recently? The dollar has lost only 98% of its value since 1913. Just 2% to go, right? Well, the real story is different and critically important to surviving the hard-times that are surely coming – fast.
Prices seem to go up daily. It’s harder and harder to keep spending in line with income. We keep maxing out our credit cards. Scary times. Why is this happening? Why can’t somebody do something about it? What is the real story behind the inflation we are experiencing? The real story isn’t what they are telling us.
Bank-based digital money is happening. Right now. Like it or not. It claims to offer convenience, instant transactions, safety, and simplicity. The Federal Reserve’s FedNow payments service goes live in July 2023. Is this digital money? How does it work? What happens next? Should we be concerned? Maybe, maybe not. Like so much else these days, it depends …
You may remember a while back when money was valuable and you could put it in a bank for safekeeping. Well, no longer. Money value is getting trashed right now, along with the formerly safe banks. The value decline started in 1913, with the dollar today worth around 4 cents in equivalent purchasing power. And now banks are suddenly collapsing. Where is this mess headed next?
Cryptocurrencies are not money but just a transaction mechanism. They have no proven safe store of value. They are collapsing, for reasons. Luckily, central banks just so happen to be ready to rollout out their CBDCs, which are not money either. CBDCs are only a payment mechanism linked to wonderful fiat currencies, like the US dollar, but they will save the monetary system. Or maybe not.
