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Wednesday, May 14, 2014

Some things Preserve Value Better Than Others -- Gold vs Paper, for Example.

Gold holds its buying power, its value, better than paper currency.

For example, just to give a little history lesson: in 1913, when the Federal Reserve Banking System was authorized by Congress, pushed through in the dead of night, Christmas Eve, when everyone wanted to go home, the Federal Reserve Bank Note was created to become the national legal tender, the new currency of the realm, ultimately replacing the use of gold coin by act of Congress during the Great Depression. 

In 1913, some costs of goods were:
Item Average price (dollars)
January 1913 January 2013  % Increase
Bread $ 0.056 $ 1.422 2439%
Flour $0.033 $0.524 1488%
Fresh milk, per gallon(1) $0.089/quart (or $0.356/gallon) $3.526 890%
Cheese $0.222 $5.832 2527%
Butter $0.409 $3.501 756%
Coffee $0.299 $5.902 1874%
Potatoes $0.016 $0.627 3819%
Rice $0.086 $0.715 731%
Sirloin steak $0.238 $5.705 2297%
Round steak $0.205 $5.074 2375%
Chuck roast $0.149 $3.696 2381%
Pork chops $0.187 $3.465 1753%
Bacon $0.254 $4.407 1635%
Ham $0.251 $2.693 973%
Eggs, per dozen $0.373 $1.933 418%
Sugar $0.058 $0.683 1078%
Footnotes: (1) Milk average prices were recorded per quart in 1913 and per gallon in 2013; the 1913 average prices have been converted to gallon equivalents. Milk was further characterized as “whole, fortified” in 2013.
Note: All average prices are per pound, unless otherwise noted. Source: U.S. Bureau of Labor Statistics.   
It is important also to note that this is not a discussion regarding whether Americans are worse or better off now. Considering that the average household, single-earner, income in 1913 was between $700-$800/year and in 2012 the average household income is reported to be $32,880, an increase in income of between 4100% to 4697%. This is evidence of growth of the economy and some increases in lifestyle.

Again, the growth of economy is not the focus of this discussion. Here we are discovering what retains its purchasing power best, paper currency or gold. Let's take a look.

The Federal Reserve was founded In 1913.  One of its main purposes was to protect the value of the dollar.  Since 1913 The Federal Reserve dollar note has lost about 96% of its value.  What does that mean to you?  If you had received one million of those Federal Reserve $1 Notes from opening day in 1913 and saved them, today those notes would have a purchasing power of only $40,000.00. This means that those million notes today will buy what only $40,000 would have purchased in 1913. It would have been far more profitable to have spent the notes when they were new.

If, in 1913, you had traded those million $1 notes for $10 gold Eagles and stored them in a vault, today its pure gold purchasing power would be $62,790,000. Antique value of the coins could exceed $5 Billion dollars. How does that compare with $40,000 in paper currency?

If I could show you a way to acquire gold and make 6 figures doing it, would you be interested? 
If you are call Cameron  (801) 788-4228





Friday, April 18, 2014

Hyper-Inflation can't Happen Here - No Preparation Needed. Huh?

No Gold Needed. Hyper-Inflation Can't Happen Here.

 We have all experienced the pervading thought process, "That happens to 'them', it couldn't happen to me."
I believed that until my 1st marriage ended in divorce, my son began to hate me, I broke my back and severed my spinal cord in a snow sledding accident. 
Yes, life does hand us nasty little turns that throw our lives for a loop, one after another, and, yes, we each NEED to prepare, paying the price for preparation before the crisis arrives.

"But, I live in America (Angola, Argentina, Brazil, Poland, Romania, My Nation); Hyper-Inflation couldn't happen here."

 I was shocked when I did a bit of study regarding how often hyper-inflation wipes out a paper currency. On https://www.munknee.com I learned that over the past 100 years no less than 32 national currencies have been wiped out and replaced. That is about 1 nation every 3 years, I thought! WOW!
Then I discovered that during the past 25 years NO LESS THAN 21 NATIONAL CURRENCIES HAVE BEEN DESTROYED BY HYPER INFLATION, wiping out whole economies, requiring billions of families and businesses to start over because their paper preparations were burned up in  the conflagration of dynamic devaluation called hyper-inflation. That is almost one nation every year for the past 1/4 century. The worst economic destruction takes place in the nations where socialism and communism is most deeply ingrained. Capitalism and the free market in their natural course heal national economies quite rapidly. Then the tyrants step in to take their "fair share". (Bullies always have to extort their "fair share")
Just for the fun of it let's take a quick look at the economic losses that mounted up this last 25 years:
1. Angola (1991-1999)
In the 1995 currency reform, 1 kwanza reajustado was exchanged for 1,000 kwanzas… In the 1999 currency reform, 1 new kwanza was exchanged for 1,000,000 kwanzas reajustados. The overall impact of hyperinflation: 1 new kwanza = 1,000,000,000 pre-1991 kwanzas.
2. Argentina (1975-1991)
In the 1983 currency reform, 1 Peso Argentino was exchanged for 10,000 pesos. In the 1985 currency reform, 1 austral was exchanged for 1,000 pesos argentine.
Hyperinflation continued reaching a peak annualized rate of 4,923.3 percent in December 1989. At that time, government expenditure reached 35.6 percent of GDP and the fiscal deficit was 7.6 percent of GDP.
In 1990 the Argentine government created a new monetary system and established a Currency Board in April 1991. Inflation fell from 1,344 percent in 1990 to 84 percent in 1991. In the 1992 currency reform, 1 new peso was exchanged for 10,000 australes.
The inflation rate for 1992 was 17.5 percent, 7.4 percent in 1993, 3.9 percent in 1994 and 1.6 percent in 1995. By 1995, government expenditure represented 27 percent of Argentina’s GDP. The overall impact of hyperinflation: 1 new peso = 100,000,000,000 pre-1983 pesos.
3. Belarus (1994-2002)
In the 2000 currency reform, the rublei was replaced by the new ruble at an exchange rate of 1 new ruble = 2,000 old rublei.
4. Bolivia (1984-1986)
In the 1987 currency reform, the peso boliviano was replaced by the boliviano which was pegged to the U.S. dollar.
5. Brazil (1986-1994)
By the mid 1980s inflation was out of control reaching a peak of 2000 percent. In 1986 three zeros were dropped and the cruzeiro became the cruzado. In 1989, another three zeroes were dropped and the cruzado became the cruzado novo.
In order to avoid confusion and not associate the new currency with previous monetary policy, the cruzado novo was renamed the cruzeiro with no change in value in 1990. By 1993, three more zeros were dropped from the cruzeiro which became known as the cruzeiro real.
In 1994 the cruzero real was replaced by the real, worth 2.75 old cruzeiros reais… and the following measures were enacted:
1. A constitutional amendment… which empowered the Central Bank not to finance the budget deficit
2. The Central Bank made it illegal for regional banks to buy government-issued bonds
3. Wages were frozen…
As a result of these measures, prices dropped dramatically from July 1994 onwards and by 1997 inflation had been reduced to standard international levels. The overall impact of hyperinflation: 1 (1994) real = 2,700,000,000,000,000,000 pre-1930 reis.
6. Bosnia-Herzegovina (1993)
Bosnia-Hezegovina went through its worst inflation in 1993. In 1992, the highest denomination was 1,000 dinara. By 1993, the highest denomination was 100,000,000 dinara. In the Republika Srpska, the highest denomination was 10,000 dinara in 1992 and 10,000,000,000 dinara in 1993.
7. Bulgaria (1991-1997)
In 1996, Bulgaria defaulted on its international debt and narrowly escaped a revolution. From 1991 to 1997, Bulgaria experienced hyperinflation (rates of inflation exceeding 50%) that crippled its banking system and during the winter 1996-97 hyperinflation and food shortages led to hunger protests. A currency board established in July 1997 slashed three zeroes off the currency.
8. Ecuador (2000)
Ecuador officially pegged its currency to the US dollar in September 2000 after a 75% drop in value in early January of that year.
9. Georgia (1995)
In the 1995 currency reform, 1 new lari was exchanged for 1,000,000 laris.
10. Madagascar (2004)
The Madagascan franc lost nearly half its value in 2004. On 1 January 2005 the Madagascan ariary replaced the franc at a rate of 1 ariary for five Madagascan francs.
11. Mexico (1994)
On 1 January 1993, the Bank of Mexico introduced a new currency, the nuevo peso which was equal to 1,000 old pesos. Since the Mexico Peso Crisis of 1994 the value of the Mexico peso has plummeted by almost 60%.
12. Nicaragua (1987-1990)
 Nicarauga went through a currency reform in 1988 which saw 1 new Cordoba replace 1,000 old cordobas. In the mid-1990 currency reform, 1 old Cordoba equaled 5,000,000 new cordobas. Total impact of hyperinflation: 1 old Cordoba = 5Billion pre-1987 cordobas.
13. Peru (1984-1990)
In the 1985 currency reform, 1 intis was exchanged for 1000 soles de oro… In the 1991 currency reform, 1 nuevo sol was exchanged for 1,000,000 intis. The overall impact of hyperinflation: 1 nuevo sol = 1Billion pre 1985 soles de oro.
14. Poland (1990-1993)
Poland suffered two bouts of hyperinflation. The first occurred from 1922 to 1924 when inflation rates reached 275%. [The second,] after three years of hyperinflation, resulted in currency reform in 1994 in which 10,000 old zlotych were exchanged for 1 new zloty.
15. Romania (2000-2005)
Romania is still working through steady inflation that began around the time when the Iron Curtain came down… Consumer inflation in 2000 was over 45%… In July 2005 the leu was replaced by the new leu at 10,000 old lei = 1 new leu. Inflation in 2005 was about 9%.
16. Russia (1992-1994)
Russia experienced 213% inflation during the Bolshevik Revolution and again during the first year of post-Soviet reform in 1992 when annual inflation peaked at 2520%. In 1993 the annual rate was 840%, and in 1994, 224%. The ruble devalued from about 100 r/$ in 1991 to about 30,000 r/$ in 1999.
17. Turkey (1990′s)
Throughout the 1990s Turkey dealt with severe inflation rates that finally crippled the economy into a recession in 2001…Recently Turkey has achieved single digit inflation for the first time in decades, and in the 2005 currency reform, introduced the New Turkish Lira; 1 was exchanged for 1,000,000 old lira.
18. Ukraine (1993-1995)
Inflation rates peaked at 1400% per month between 1993 and 1995 resulting in the karbovantsiv being taken out of circulation in 1996 and replaced by the hryvnya at an exchange rate of 100,000 karbovantsivi = 1 hryvnya.
19. Yugoslavia (1989-1994)
[Yugoslavia had the] second worst hyperinflationary period in recent history with a monthly inflation rate of 5 quintillion percent. Between Oct 1, 1993 and January 24, 1994 prices doubled every sixteen hours on average. At the end of it, one novi dinar = 1,300,000,000,000,000,000,000,000,000 pre-1990 dinars.
20. Zaire (1989-1996)
In the 1993 currency reform, 1 nouveau zaire was exchanged for 3,000,000 old zaires. In 1997 Zaire was renamed the Congo Democratic Republic and changed its currency to francs. 1 franc was exchanged for 100,000 nouveaux zaires. The overall impact of hyperinflation: One 1997 franc = 300 billion pre-1989 dinars.
21. Zimbabwe (1999 – 2009)
The Rhodesian dollar (R$) replaced the pound as the currency in 1970 at a rate of 2 Rhodesian dollars = 1 pound (R$ 0.71 = USD $1.00). At the time of independence in 1980, one Zimbabwean dollar (of 100 cents) was worth US$1.50…. [Inflation reached an absurd 231,000,000% in the summer of 2008. Output measured in dollars had halved in barely a decade. A hundred-trillion-dollar note was made ready for circulation, but no sane tradesman would accept local banknotes. A ban on foreign-currency trading was lifted in January 2009. By then the American dollar had become Zimbabwe’s main currency, a position it still holds today.]

What will you do to prepare?

You know what you need but you may feel you cannot afford to take the steps necessary. Perhaps your national laws prevent you from "hoarding" commodities and precious metals. Perhaps you need all you earn just to feed yourself and your family. To that I have one thing to say: Improve your relationship with the Great Provider, Nature's God. 

I'm not telling what religion to believe in. I am just suggesting to you that there is a Great Creator of this majestic system we enjoy and struggle with as we live on this earth. I do not believe in evolution by constant, progressive, repetitive accident. I do not believe the earth will end up evolving living automobiles and jumbo-jets over another billion years. Evolution sounds ridiculous when you suggest such things as being even possible.

Just exactly how did the eyeball or the inner ear evolve? They DIDN'T. They were CREATED.
There is a Creator and you are who it was all created FOR.

Yes, that is right. I tell you straight because I know it without a doubt.

So, get in touch with the Great Creator and start your preparations there. I know that sounds almost counter-intuitive. Certainly you should start with digging up the vegetable garden, shouldn't you? That might be free. Well, yes and no.

Real Prosperity begins with knowing who you are. Start with getting to know your Father -- your Heavenly Father. Start understanding there is a Grand Plan for living on this earth. There is Someone who does offer and deliver assistance in times of critical need. Too many people have experienced miracles; I am one of them. You may well be another in which case you know of the peace that comes of knowing.

Give it some thought, OK?
That's it for this post.
Cameron

 

Gold is on the Rise

Gold is on the rise. Is Karatbars ahead of the game?

There is nothing like watching the value of your savings diminish even as you work to increase the amount in the vault. What can a person do about that. You work. You earn. You are taxed. You spend. Possibly you tithe. What is left? Whatever it is, THAT is what you might save. Unless you are wiser than the average working person.

Prosperity Practice: Pay God and yourself first. All others come later in the line-up.

If there is anything to be learned from reading it is wisdom. 
One of the wisest ideas I have ever come across in all of my reading is the directive found in "The Richest Man in Babylon" by George Samuel Clason. The directive is this:
"" 'A part of all you earn is yours to keep. It should be not less than a tenth no matter how little you earn. It can be as much more as you can afford. Pay yourself first. Do not buy from the clothes-maker and the sandal-maker more than you can pay out of the rest and still have enough for food and charity and penance to the gods. 
" 'Wealth, like a tree, grows from a tiny seed. The first copper you save is the seed from which your tree of wealth shall grow. The sooner you plant that seed the sooner shall the tree grow. And the more faithfully you nourish and water that  tree with consistent savings, the sooner may you bask in contentment beneath its shade.' "
This is a wisdom that cannot easily be countered. The only argument against it is, to my mind, the argument of inflation. Those who have experienced it in the last couple decades in Yugoslavia and Argentina and Zimbabwe, for example, found that the first thing they needed to do before anything was to take their pay to the grocery store to buy their sustenance needs before the prices rose any further that day. What, with inflation on the rise as it was, a loaf of bread would rise from $1,200 (speaking in USD terms) to $1,800 or more during the course of the day, and that would happen daily. No joke. Certainly you have seen these pictures:
Big bill. Big amount. Very little buying power.

Handful of bills for sale. Price for the wad? $5 US or a T-shirt.
As you can see, paper currency will become worth exactly what it is - paper with ink on it.



When such inflation becomes rampant the paper is disposed of as rapidly as possible, exchanged for something of real, useable value such as stale bread or a used T-shirt, anything.
What will the wise person do with paper currency before such a time happens? S/he will do exactly what a wise person does WHEN such inflation occurs.
My question is: what will you do now? I have a suggestion: convert ALL your savings into commodities you use on a daily basis. That includes fuel, extra needed clothes that wear out or otherwise need to be replaced regularly such as stockings, underwear, work clothes. Also, long keeping food stuffs and condiments and properly stored cooking oil. Remember the cooking oil and condiments. Plain grains, beans and rice becomes a tiresome meal without seasonings.
Also remember to store canned or dried meats and cheeses. I would not recommend Spam, personally, although I do remember enjoying fried Spam for breakfast when I was a boy. There are canned hams, corned beef and other meats available that keep for years in a cool storage place. Also there are rounds of cheese preserved in wax that will keep for long periods, even a couple of years. These do need to be rotated.

I must go but will give some other suggestions tomorrow plus I'll give you the names of 21 nations that experienced economy collapsing inflation within just the last 25 years! That was a shock when I learned this little tidbit.
I'll keep you posted.
Cameron

Tuesday, April 15, 2014

The Karatbars Gold Card is a good replacement of value for paper currencies.








The Karatbars Gold Card is a good replacement of value for paper currencies. If you want to prosper you can
  1. Convert some of your paper money for gold money
  2. Receive payment for helping other people convert some of their paper money for gold money.
There is nothing that can be done about the falling value of the US dollar and the other paper, tax/debt based currencies around the world. They will all ultimately collapse and other currencies will need to be instated within the economies in order for industry and business to continue. Until currencies are replaced with a stable form of money again, such as gold and silver, they will continue to devalue until they are not trusted as legal tender by the economic market at large.

At that time, actually, the people will continue to not have any control at all over the market value of their currency. They will just see that prices rise and RISE. $1 dollar bills might be completely worthless because virtually nothing will be valued under $10, even what used to be penny candy, if it is available. This has happened in many countries where hyper-inflation takes place. Products become unavailable because the businesses that supplied the products go out of business due to lack of capital because the money they had set aside to run their businesses becomes of insufficient value to restock supplies.

Suddenly store shelves become empty exceedingly rapidly. People get paid and rush to the store to buy whatever they can before either the price goes up or the store shelves empty. Argentina, Yugoslavia, Zimbabwe, Cypress, Egypt, just to name a few nations this has happened to within just the last TWO decades! When will the same thing happen to your nation?

Protect yourselves by converting some of your currency savings into tangible goods and real money such as needed household goods, long lasting food stuffs, i.e. grains, legumes, sugars, salts, seasonings, cooking oils (vegetable oil, olive oil, corn oil), dried or canned meats, sausages, cheeses, etc. Also make sure you have some gold and silver on hand for easy buying of things paper money won't pay for. When a US Mint 1964 (or earlier) silver quarter in in 1964 buys a gallon of gasoline and again in 2014 still buys a gallon of gasoline, what do you think that same silver quarter will buy in a time of hyper-inflation when a gallon of gasoline costs $15?

The value of silver will have risen such that a 1964 US silver quarter will be worth about $15. History repeats itself; it is predictable.

So what will you do with your devaluing paper currency now? I hope you will be converting a portion of it into a savings vehicle that will be of the same value when you use it as when you save it. Such vehicles are gold, silver, commodities with long storage life and other articles with intrinsic usage. Now is the time to prepare. Now is the time to make the trade.

I'll keep you posted.
Cameron

Friday, March 14, 2014

How Many Ways Are There to Get Rich?

You have to be kidding me? How many ways are there to get rich? Only twelve? No!

According to Napoleon Hill, one of the great authors of the 20th century there are only Twelve Great Riches. Among those financial wealth is counted as last in importance. And knowledgeable men like Zig Ziglar say "Money is as important as AIR!" How could money be the least valuable of the 12 Great Riches?

What say we Review them?

1.   A POSITIVE MENTAL ATTITUDE
      Your mind is that part of your spiritual self that is housed in the brain and it is the greatest gift, Napoleon Hill says, given to us by the Great Creator. Our mind, our thoughts, which are literally of our own personal creation are the only things over which we individually have 100% control. Our thoughts are literally the very seeds from which gestate our every achievement or our every failure. "Whatever the mind of man can conceive and believe, it CAN achieve." Notice Mr. Hill does not say "WILL achieve". Only when the thoughts are cultivated in the rich soil of a positive mental attitude can they germinate and grow into rich abundance.
2.   GOOD PHYSICAL HEALTH
      This needs no explanation but you notice how high on the list Mr. Hill places this form of riches. Every person of ill health and great wealth says something like, "I'd trade all my wealth just to be healthy" and unfortunately too many people in the medical profession take them at their word.
3.   UPLIFTING HUMAN RELATIONSHIPS
      Mr. Hill repeatedly states that he all too often met and interviewed very rich, very unhappy people who had no loved ones to associate with. In their pursuit of  wealth they cultivated their business successfully at the expense of good relationships with family be they their spouse(s) (often several, even many spouses), children, siblings, etc. Friendships were not cultivated, seeds of love were not sown, only business relationships were cultivated therefore upon wealthy retirement there was nothing except cold, lifeless stuff to keep them company. Cuddling IN a car is warm and pleasant. Cuddling a car is a cold comparison, and often dirty and oily.
4.   FREEDOM FROM THE 7 GREAT FEARS
      Napoleon Hill delineates these as fear of poverty, ill health, criticism, the loss of love, the loss of liberty, the fear of old age and finally fear of death. I suppose it really does not service anything to mention that many people declare they would rather die than speak or perform in public. I suppose if it came right down to it most people would prefer to give that speech to taking that bullet (he says with a wink and a little smirk ;-)
5.   HOPE OF FUTURE ACHIEVEMENTS
      Everyone needs something to look forward to upon awakening. It has become well known that retirees who have nothing to look forward to putting productive effort to each day die within just a few years. Hope, however, in not enough. That hope must be accompanies with #6.
6.   CAPACITY FOR APPLIED FAITH

More on this tomorrow.
I'll keep you posted.
Cameron

Monday, March 10, 2014

Getting Rich by Saving Real Money -- GOLD

Have you wondered how to get rich by saving real money?

How exactly can you do that? You must buy -- Gold.

 Not just any gold. You must save real money, that is 24karat or 999.9 fine, pure gold. THAT is real money. The paper stuff is just that -- paper stuff.

You probably know that the value of every fiat currency in the world is rapidly devaluing. We call it "inflation" You also know that, although the price of gold goes up and down, gold retains its value -- its buying power -- over the decades. What you could buy with a $35 ounce of gold in 1950 you can still buy today with an ounce of gold. That is because the price of gold is no longer only $35, currently, as of March 08 2014) the spot price of gold is $1,340.

If you want to truly save money and get rich you must make certain your money retains its buying power as gold always has over the decades and centuries. The question remains: how is the best way to buy gold? Do you buy paper that is based on gold?
Gold Certificate US Treasury circa 1880's (thereabouts)
 Of course, the US treasury is no longer selling this type of gold certificate. There are many other financial organizations that claim to back their certificates with gold. It is too bad that so many companies have defrauded people by selling more certificates than they had gold to cover. How do you protect yourself? Do you just buy ounces by the round or the bar and store it in your vault? Are there other ways?

Well, yes and yes.

Rounds, bars and ingots of gold will preserve your wealth, there is no question, notwithstanding the spot price fluctuates just like every other commodity. However, over the decades and generations gold has proven to be one of the more sound and secure ways to preserve wealth. Gold is money whereas paper is currency that is supposedly based upon some other secure money or form of wealth. The fiat paper "money" the world uses IS NOT SAFE OR SECURE. Too many fiat currencies have proven to devalue by way of inflation always, ALWAYS causing severe loss of wealth from those who base their personal wealth upon that paper. 100% of the fiat currencies have failed within between 60 and 100 years, that is 3-5 generations.

In other words, fathers who were raised with a secure currency system are conned by their government to trade with paper that is based  upon the secure currency. Their children also do business using that paper and the government learns it can print more certificates than it has real value, be it silver or gold or both. So it does print more fiat paper than it has value to back it up, thus devaluing the purchasing power of the paper. Inflation increases which is proof of the devaluing of the paper. This is confusing to the population so they disregard the process much to their personal loss.

This continues until the government decides to remove the need for the real value to back the paper "money", duping the population that the value of the money is based upon the wealth of the country, meaning the government's ability to tax the people, sucking their wealth directly from their wallets giving them nothing in return. Instead of being an "IOU" of real wealth, the government certificates are actually notes that say, virtually, "I owe you, if you were going to come into a bank to demand it, let's say $100 of real wealth, real money BUT YOU OWE ME for the products and services the government creates and must pay for, therefore YOU MUST PAY (AND YOUR PROGENY MUST ALSO PAY) IN TAXES until our debts are all paid, so DON'T ASK FOR REAL MONEY, YOU WON'T GET IT."

Why should you store that kind of "money"?

The next generations might still try to trust the government issue, or "specie", but savvy businesspersons will learn that fiat money is losing them money so they will begin to stop using it, demanding real value in exchange for the real value product or service they provide. Thus, pretty soon, in that generation or the next, the people will demand more and more of the currency in use because they will realize it really has no true value.

EVERY fiat currency in history has gone this route. EVERY fiat currency WILL go this route because people's natural tendencies remain constant over the centuries. Human nature will not suddenly change after 6,000 or 6,000,000 years. History will repeat itself again. The question is: will you lose your wealth when the dollar or the euro or your currency value drops to zero because it is based upon the taxes of the people? Where will your wealth be when the great drop happens?

Will your wealth be in paper or will it be in gold (or silver)so that when the hyper-inflation hits, as historically it ALWAYS has?
Here is another question: will you be able to take your wealth, your money, to the grocery store or the gas-mart for a fill-up or will you need to find the broker to convert your $2,500+/oz coins or bars into spendable currency? When you need $500 worth of bread & eggs & milk will you need the shopkeeper to give you $2,000+ change for your 1-ounce coin? Isn't there another way?

Yes there is. there are the 1-gram, 2.5 gram, and 5 gram Karatbar cards that have that weight of 999.9 pure gold bullion imbedded in the card. The certificate attached verifies the purity and weight. The idea is that the card is REAL MONEY, not a paper certificate, not a debit or credit card . It is a true Gold Card whose value is in the 24Karat gold imbedded in the card.
When you buy a Karatbars Gold card, any one of many to choose from, you are literally trading devaluing fiat, debt/tax based paper for real money of APPRECIATING nature.

Learn more at www.RealProsperityNow.Info

Saturday, February 15, 2014

Putting Money into Gold -- Now is a good time.

I am told that less than 1% of the world population puts money, substantial money, into gold. Most of the world is still living under the government edict that gold cannot be used for legal tender, only government issue notes can be used to settle debts and business transactions.

Gold was made illegal for general currency in the United States by government edict in the early 1930's when the New Deal was brought into effect under President Franklin D. Roosevelt and the government decided that it needed more control over the money supply. They determined that people who were "hoarding gold" were keeping the economy from growing (this was in the low point of the Great Depression) and therefore on April 5, 1933 the president issued Executive Order 6102, ""forbidding the Hoarding of gold coin, gold bullion, and gold certificates within the continental United States". The order criminalized the possession of monetary gold by any individual, partnership, association or corporation in the USA.

People were forced by this Kingly Edict, that preceded the Gold Reserve Act by a full ten months, to turn all their gold, including gold certificates, in to the banks in exchange for Federal Reserve Notes or face stiff fines and jail time. This was supposed to free up the  money supply, to "liquify" the gold, so to speak, and put the cash into circulation, thus strengthening the economy.  It didn't really work, though. The Great Depression dragged on for another 8 years and didn't really come to an end until America was forced into massive production due to World War II. Only then did money begin to flow because of the huge government contracts for ships, armaments, airplanes, infantry and personnel equipment, etc.

The conversion of gold currency into paper debt currency did not kick the economy into action. Peoplel hoarded their FED notes just as they hoarded their gold (a Federal Reserve "note" was at the time a form of  promissory note that, at that time, often declared that they could be traded back for either gold or silver upon demand).  Even with the fact that the gold, which market value was $20/oz, was traded in at a value of $35 per oz, thereby giving the "gold hoarders" a 75% increase for their bank account, the money was not always put in the banks. The memories of bank runs and closures of 1929-1933 were very fresh and painful in the minds of most adult Americans. They did not trust the banks, not even the Federal reserve system which people even now mistaken to be a government, or Federal, controlled bank.

The people simply did not trust what they could not control, i.e. the economy, the banks, the "system". This holds true today. People today do not save money because of many reasons, one of which is the distrust toward a system they cannot control. People realize the value of their money  is depreciating so fast due to inflation, and there is no value gained by keeping their money in the banks, they might as well spend the money in order to get some benefit from what is purchased. Unfortunately this leaves the people always at the beginning line. So, why gold?

Gold has for almost as long as written history been the trusted medium of exchange. Those who had gold had power. They could, and still can, purchase everything from false loyalty to real estate upon which the troops were housed. People, land, houses, and gold. Even with land and houses, people were still mostly impoverished without gold even when their land gave them enough to eat. The gold is the tool that brings wealth and power to get things and to get things done.

"Who has the gold makes the rules" is the golden rule of the world, and it holds true in most cases. It may not be the spiritual rule of love (which rule I fully agree with and seek to adhere to) but it is definitely a rule that applies in many or most situations in which we find ourselves.

I'll go into greater depth in my next posting. In the meanwhile, God Bless and good luck.
Cameron Sevy