|The only real money in history|
Today a new round of stupid and funny policies is in front of our eyes. After spending loans for decades, the leading governments of the world are now under an enormous debt burden. And instead of lowering the spending and balancing the budgets the governments decided to “stimulate” the economy by… new loans and also by… money print.This is the easiest way. The history has proven it. The inflation is a friend of politicians, helping them to devalue their debts and increasing their income by so called “inflation tax”. This has happened hundreds of times in history and has always ended in one and the same way – a devaluation of the money, and de facto - robbing the savings and the labor of the people. And point this – never in history and no politician has called it “a money print”. Every time the word was different, because of the need to hide the real motives of this de facto criminal policy. Today they call it “stimulus”, “quantitative easing”, “LTRO”, “low-interest policy”, “twist” and so on. But the heart this is so and the same – printing money to devalue the debt and seize people’s assets.
The only reliable protection from this is putting your money in an asset that has its own value that is not dependent on politicians. If you live in Zimbabwe you can run from the local extremely devaluating currency and use another currency (for instance US dollar or Euro). For a long time these currencies has been a symbol of stability and has been used as a way to keep the value of saved money in problematic countries.
No politician can print gold. The quantity of gold is almost fixed and is increasing every year with a less percent than is increasing the global production of goods and services. I.e. measured in gold, the prices of everything are to go down. I.e. the gold price to go up.
You should not make the mistake of accepting as “gold” the so called “paper gold” – the certificates traded on stock exchanges. This is not real gold. This is just a financial mystification, very similar to the paper money itself. This fictional gold can be “produced” in unlimited quantities so its price can become even $1 per ounce. The real gold is the physical one, and it must be used as a value protection. You should put your money in coins and bars, and keep them in a bank-safe or in other well secured place. Investing in paper-gold is investing in an illusion that will vaporize together with all the rest of the paper money, bravely inflated by politicians.