The Risky Banking Sector | The Gold Standard 2319

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The hostess of THE GOLD STANDARD, Jennifer Horn, and co-host Ken Russo, Senior Vice President of Midas Gold Group, explore the things our government isn’t telling us about our paper currency, the banking system, and steps you can take to protect some of your wealth by taking some of your paper assets out of the system and into precious metals.

Many individuals are understandably concerned about the potential erosion of their financial legacy or the ability to fund their retirement dreams as retirement looms. During these times of uncertainty, the importance of portfolio diversity and the inclusion of precious metals becomes paramount. Jennifer and Ken aim to empower you with the knowledge and understanding needed to make informed decisions about your financial future.

Consider what government officials aren’t telling you. In this thought-provoking episode, Jennifer and Ken shed light on the half-truths and lies propagated by the government. By uncovering hidden realities and providing an authoritative perspective, Ken discusses the crucial role that precious metals play in protecting your wealth. Join us for a fascinating discussion that will equip you with the knowledge to secure your financial legacy and fortify your retirement.

In the late Summer of 1971, President Nixon’s executive action suspended the convertibility of the U.S. dollar into gold and effectively dismantled the Bretton Woods System. He said it was “temporary.” Little did we know then that this decision would have far-reaching consequences, altering the trajectory of the US dollar and impacting our economy and savings accounts 50 years later.

The decision to abandon the gold standard forever changed the trajectory of the US dollar. The dollar, untethered to gold or anything else, became a fiat currency, deriving its value primarily from the trust and confidence of market participants. While this newfound flexibility allowed for economic maneuverability, it also exposed the US dollar to fluctuations in international currency markets, leading to volatility and uncertainty.

Nixon’s action continues to have profound implications for the US economy. The flexibility in monetary policy enabled the Federal Reserve to address short-term economic challenges, such as recessions, through measures like interest rate adjustments and quantitative easing. However, it also contributed to the accumulation of significant public debt and the continuous erosion of our purchasing power over time.

Savers and investors have had to navigate an environment where preserving and growing wealth require careful consideration of alternative investment options, such as the one that historically has served as a store of value.

Established after World War II, the Bretton Woods System fixed the values of global currencies to the US dollar, which, in turn, was pegged to gold at a rate of $35 per ounce. The US dollar became the world’s reserve currency, and countries held US dollars as a store of value. The gold standard provided stability and facilitated international trade by ensuring a reliable exchange standard.

The banking crisis echoes the 2008 financial crisis, stemming from banks’ failure to hedge risks associated with loans and mortgages adequately. As interest rates rise and the value of fixed-income securities plummets, it only makes sense that depositors grow increasingly concerned about the safety of their money. Lake of liquidity is a systemic problem that extends beyond regional banks.

Investors are waking up to the real risk of trusting paper assets. Gold serves as a hedge against financial and geopolitical uncertainties. Precious metals provide stability during times of crisis. Diversifying portfolios and converting some paper assets into tangible investments, such as gold, can mitigate the risk of losing hard-earned money when it’s most needed.

As bank failures continue, it becomes increasingly important to take precautionary measures. The current environment allows investors to reevaluate their strategies and consider the value of tangible assets like gold and silver. These tangible assets give individuals security and protection against the vulnerabilities of our banking system and flawed monetary policies. With rising interest rates and economic uncertainties, gold offers a reliable means to preserve wealth and navigate financial uncertainties.

Join us next time as we take a closer look at the threat posed by the coming of Central Bank Digital Currency, or CBDC.
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