Increasing Debt = Decreasing Purchasing Power of The Dollar

Today the U.S. GDP is increasing at a much slower rate than the rate at which the U.S. federal debt is increasing. Our national debt is now greater than our gross GDP (especially when you consider unfunded future entitlement payments).

Gold and silver over the last ten years has out performed the stock market, the bond market and the real estate market. Citizens in every major world market have increased their purchases over the last few years of gold and silver. They know what is happening to the value of currencies that are being inflated to the moon. The dollar is among those currencies having lost 28% of its purchasing power in just the last three years.

The U.S. Government credit rating was downgraded in 2011 for the first time in history. Why? The U.S. has too high of a debt to income ratio.

Have you noticed that China, Japan, Europe, and Middle Eastern countries are getting kind of skittish when it comes to buying long term U.S. treasury debt? Too much risk? China has even started to back away. Of course they see our bonds as better than European bonds (but not much better), but they are beginning to fear that the dollars they????????ll get paid back in when they sell their bonds will be worth much less than when they bought them. We are the best looking weed in the weed patch.

So who is the lender of last resort to the U.S. government to finance all that debt we have to take on as government continues to run up multi-trillion dollar deficits? The Federal Reserve steps in to fill that role by printing more ??????Federal Reserve Notes?????? or loans to the U.S. government. As they print trillions of new Federal Reserve Notes (euphemistically called dollars today??????? they aren????????t actually dollars) they dilute the value of existing ??????dollars?????? that you may be holding. And this is how the U.S. government robs you of the value of your money through the hidden tax called ??????monetary inflation.?????? If you have dollars sitting in a bank account they have lost value.

Don????????t believe it????????s true? I just bought a small bag of M&M????????s at the gas station that would have cost me $.05 forty years ago. They asked me for $1.95! Yes it????????s a convenience store with a little higher mark-up, but how could M&M????????s have increased in cost by 3,900% in such a short time? Have we become less efficient in making M&M????????s? No, our money has become worth less, and less, and less. I wouldn????????t be surprised to see that same bag of candy cost $4.00 in a couple of years. The dollar is not a reliable store of value. What is a reliable store of purchasing power? Gold and silver are.



Investing in stocks and precious metals is risky and could result in losing money. I am offering ideas for your consideration and education. I am not offering financial advice. Please do your own due diligence. I am not an investment adviser. Precious metals are not for everyone. I sell precious metals through American Gold Reserve. You should do your own due diligence when making investment decisions of any kind. You should consult your own financial advisers before making any investment decision. I make no guarantees that by following any advice or suggestion I might make that you will realize any return. Beware, all commodity markets and other markets carry risk of loss.


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