The Federal Reserve Note has lost between 21% and 28% of its purchasing power over the last three years. It has proven to be an unreliable store of wealth. It has held it’s own and even gained against other failing currencies such as the Euro, but it’s losing ground against most commodities.
Over the last decade the price of sugar, corn, copper, cotton, coffee, gold, silver, and many other commodities have soared in dollar denominated prices. There are simply too many dollars chasing commodities today. Are you old enough to remember when a pack of gum cost $.05 and a gallon of gasoline was $.25? That was before trillions of new dollars were created.
It is not surprising that when the world is flooded by trillions of dollars that those dollars begin to lose purchasing power. Trillions of new dollars are relentlessly printed in an effort to shore up banksters and a corrupt, bankrupt government that is mired in debt and racking up trillions in new debt each year. This trend has been going on for decades. When we print trillions of new dollars we dilute the value of the pre-existing dollar inventory. Anyone saving dollars, investing in bonds, or buying whole life insurance will suffer loss.
The authors of the newest edition of “Future Shock” suggest that we will soon experience three years of back to back 100% or greater price inflation. Of course, we all know that price inflation is a result of monetary inflation and credit expansion. The monetary inflation continues at a blistering pace as the Federal Reserve and their government collaborators work to prop up failed banks around the world and as they work to finance ever growing, multi-trillion dollar federal deficits here at home.
If the authors of Future Shock are right about the coming inflation we’ll see some amazing commodity prices. Three years of back to back 100%+ inflation should yield ~$12,800 per ounce gold and ~$240 per ounce silver. Of course, a gallon of gas will cost ~$32.00 and a pack of gum will be $10.00 as well. When the dollar becomes worthless wouldn’t you like to be holding onto some silver and gold?
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 is not for everyone. 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.