The Case for Sound Money

It’s no secret; Dollars are hands down the world’s most powerful government money.

For those of you who hold the dollar, more power to you!

The dollar is mighty…and it is dying.

Every day, billions of new dollars enter the world market at an alarming rate. 

Every time a new dollar is ‘printed’ into the world market, the dollar in your pocket loses value. 

A classic example of the inflation principle is the Coca-Cola you now buy for $2.00 only cost $0.05 in 1959.

And it gets even WORSE…

As of March 15, 2020, US Banks can now lend out 100% of ‘your’ deposited dollars. 

You read that correctly…up to 100% of the dollars you entrusted to the bank are now on loan to another bank customer.

But don’t panic! If you want your dollars, the bank will give you Sally’s dollars.

And if Sally also wants her dollars, the bank will give you Jim’s dollars.

Oh wait, what if Jim also wants his dollars? Never fear, the bank will give you the dollars Larry deposited.

Sounds a lot like musical chairs, doesn’t it?

Musical chairs is the childhood game where there are always more people than chairs. When the music stops the children rush to occupy a chair.

In musical chairs, if you don’t get a seat when the music stops, you can’t play the game any longer.

In the banking world, when the music stops, you don’t get your dollars. Too bad, so sad.

Don’t even get me started on Negative Interest Rates!

Interest rates are dropping around the world as an effort by central banks to prop up the global economy.

Dropping interest rates sounds nice in theory, however, this is not good for savers.

Many United States citizens have become accustomed to earning 1-2% in their bank’s savings account.

1-2% interest on savings is not much…but it sure beats Europe and Japan.

For years, both Europe and Japan have charged interest for saving money.

Say what?!

Yes, the financial system in Europe & Japan penalizes savers in efforts to spur on spending.

Before you think the United States is immune, consider the current United States debt…

The United States is currently in over 26 TRILLION dollars of debt.

Let me spell this out for you – The United States is in debt to the tune of $26,000,000,000,000 dollars!

Now how in the world is the United States ever going to pay off this 26 Trillion dollars in debt?

Well let’s look at one option here. If $26 Trillion devalues to the sound of $26 Billion, then this sounds like a much easier burden to carry.

If the government makes the dollar worth less to assist in paying off debts, this is a big win for the government.

Keep in mind, what is good for the government is not always good for you and me.

So what would this mean for the average Joe like you and me?

Well, consider how it would feel if the $10,000 you had saved in the bank was only worth $10 in purchasing power. TEN DOLLARS.

Sounds insane, but consider this real-world scenario – In 2008, Zimbabwe’s currency inflated almost 80 Billion percent in ONE MONTH!

Goodness gracious…is there even a safe way to hold dollars given the risks in the present day financial system?

Here’s an idea – you could stuff cash under your mattress!

Mattress stuffing would protect your dollars from irresponsible lending and from negative interest.

But wait, what if you want to buy a TV on Amazon or you want to pay your mortgage with your stash?

Back to the bank with your wheelbarrow of cash.

At home cash storage may protect your wealth from the banks, but it will not protect you from inflation.

There has to be a better way to store our wealth…