Lost Purchasing Power | The Gold Standard 2349

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Join hostess Jennifer Horn and Ken Russo discussing our dollar’s lost purchasing power. In a world where the value of paper currency is continually eroding, Jennifer and Ken talk about the forces actively diminishing the purchasing power of the US dollar before our eyes. They explore the fragile nature of our debt-based monetary system, which seems built for an inevitable collapse. Could this pave the way for a new era, possibly driven by Central Bank Digital Currency? Each episode of The Gold Standard will help you gain insights into the future of currency and the economic forces reshaping our financial landscape.

“I can guarantee that our paper money will lose purchasing power over the next few years, and it will be worth less.”
—Ken Russo, SVP of the Midas Gold Group

Rewind to a different era when the US monetary system was firmly anchored to the gold standard. This was a period of sound economic policy where each dollar in circulation was backed by a specific amount of gold held in reserve. However, in 1971, President Richard Nixon made a historic decision to sever this connection, a move often referred to as the Nixon Shock. Economic factors, including mounting trade deficits and the need for increased flexibility in monetary policy, largely drove this decision. As a result, the US abandoned the gold standard, transitioning to a fiat currency system where physical assets no longer back the US dollar but exist as a form of legal tender supported by the full faith and credit of the US Government. Over the decades, this shift and various fiscal policies have led to a staggering increase in national debt. When President Ronald Reagan took office in the 1980s, the national debt was $900 billion. Today, it has ballooned to over $34 trillion. Experts project it to reach between $45 to $50 trillion within the next four to five years, raising critical questions about the sustainability of our current monetary system. Since 1933, the US dollar has lost 92 percent of its domestic purchasing power. Even at its moderate 1994 inflation rate of 2.7 percent, the dollar lost another half of its purchasing power in 2022. You’ve got to ask yourself, “How much will my dollars be worth ten years from now?”

Whatever the future of currency and economic systems, it’s crucial to consider the threats to your freedom and privacy of Central Bank Digital Currency (CBDC). While CBDCs may be a modern and convenient evolution of money, they also raise significant concerns about personal privacy and individual financial freedoms. The widespread adoption of CBDCs could mean increased government control and surveillance over your financial transactions, potentially tracking and monitoring every purchase and transaction. It’s a strategy that, while promising efficiency and convenience, also has the potential to erode the privacy and autonomy we currently enjoy with traditional cash and digital currencies. Join us in this episode as we explore the delicate balance between innovation and safeguarding our liberties in an increasingly digital world.

Throughout the annals of human civilization, one element has consistently stood the test of time as a dependable store of value: gold. From the ancient empires of Egypt and Rome to the modern financial systems of today, gold has remained a steadfast guardian of wealth. Its intrinsic rarity, enduring beauty, and corrosion resistance have made it an enduring symbol of stability. Time and again, as nations have risen and fallen, currencies have fluctuated, and economies have weathered storms, gold and silver have proven reliable anchors in the tumultuous sea of finance. Its ability to retain its value through centuries and across diverse cultural landscapes is a testament to the enduring trust placed in this precious metal by individuals and nations alike.

In today’s dynamic and rapidly changing financial world, diversification is essential. Diversifying with precious metals is a crucial strategy for investors looking to navigate the complexities of the global economy. The primary benefit of diversification is its ability to mitigate the inherent volatility in financial markets. It’s a risk management tool that allows investors to maintain stable, positive returns even when individual investments may experience fluctuations. By spreading your investments across various asset classes, you shield your portfolio from potential pitfalls while increasing the likelihood of achieving long-term financial success.
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