The Dollar is Falling…The Dollar is Falling!

Friday, January 22nd, 2010 at 4:19 pm

What if you new that the collapse of the American dollar was inevitable? Would it alter the kind of life that you live today? Would your view of your economic future be affected, and what would you change in your life, if you would change anything at all?

Some very thought provoking questions. I don’t mean to scare anyone nor will you see me standing on the top of my roof crying out, “The dollar is falling… The dollar is falling!” I would however, like to give you some food for thought.

The Shrinking Dollar

In 1971, President Richard Nixon convinced the world to replace gold and silver money with paper money. Every time that happens there is tremendous economic volatility in the markets. Going all the way back to the Romans and the Greeks, whenever governments decide to replace gold and silver with their own paper money, things start to change.

This is why guys like Robert Kiyosaki, Peter Shiff, and others can predict the future. It’s not because they have some crystal ball that can see into the economic future. They just read the writing on the wall. It’s there for all to see. It’s just that some refuse to look.

Our government and Europe, is printing paper money like it’s going out of style. Well guess what? It is. You cannot just keep printing this paper that has no gold or silver backing to it, and think it will increase or hold any value to it at all. It will continue to fall in value until there is no more value to it. Then what will we do? What will you do?

That is why gold, silver, oil, real estate continues and will continue to go up in value because the cash that we print is trash. Exchanging your green paper money for commodities such as these is a very smart investment right now. If you continue to work and save all your money, putting it into a bank or 401k, you will lose in the long run.

Lets just take a look at silver. Gold is something that people buy and hold onto it. They horde it. Throw it it there safe deposit boxes and never look at it again. Silver is used very much in manufacturing. Cell phones, computers, electric lights, all use silver. The silver reserves are shrinking because of the manufacturing usage of silver. Right now, for every ounce of gold that I buy, I can buy 60 ounces of silver. I call that a bargain.

Where will the price of silver be in five, ten years from now? No one knows. Some think it could go into the thousands per ounce. But one thing we do know, gold and silver prices are continuing to rise, and the dollar is falling…the dollar is falling!