Our Declining Currency, Dollar

Americans are quickly running out of time to protect themselves. I can only hope that this article has found you while the economic clock is still ticking and that you have the good sense to implement the strategies outlined in later articles s before it stops.

But now let’s talk about money. The American economy‘s grim predicament could not have developed if the US. dollar was still real money.

The present-day US. dollar is what is called fiat money. Fiat money is money in name only. It’s money because a sovereign government says it’s money. It has no intrinsic metallic or redemption value. Its nominal value is what the government engraves on its face. Its real value is what it will buy in the marketplace. In the international marketplace, its real value is what it is worth in exchange for another country’s currency.

That has not always been the case. Until 1971, when the Nikon administration made the historic decision to abandon the gold standard, the dollar was backed by a percentage of the country’s gold reserve. Without gold backing, the value of the dollar is nothing more than its purchasing power. How, reliable that purchasing power is depends on how well the US. economy functions and how the supply of money is managed. The last point is key.

The dollar‘s declining value is thus more a symptom than a root cause of economic problems, although the problems we have today couldn’t exist to the extent they do if the dollar represented real money instead of fiat money.

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