How the US Dollar is Being Devalued More by the Feds

by IRA Rollover in Federal Reserve with Comments Off on How the US Dollar is Being Devalued More by the Feds

An extra $1.1 trillion is planned to be spent by the Federal Reserve on mortgage-backed bonds and securities over the following year. For this to happen, money will continue to be printed by the Fed, which will continue inflation that to our national economy has become natural. Today, there is a 2% yield on a ten year Treasury note. However, the rise in inflation will not be matched by this increase and the Federal Reserve Note’s value will continue to disintegrate. Also, since the ability to convert the dollar to gold was ended by President Nixon in 1971, a dollar’s value has disintegrated by 577% according to one estimate and 559% by another. This trend is expected to continue into the future under Federal Reserve policies.

Bringing Back Gold as Legal Tender by Central Banksira backed by gold

The Austrian School of Economics, once thought of as not conforming to the rules, is now becoming recognized and accepted more to sovereign wealth and central bank funds.

  • There are profound consequences in how money is being put back into circulation.
  • The increase in money supply and credit should be measured through inflation instead of consumer price index defining it.

These two Austrian School principles have provided a basis to demand the legal tender of gold or the SDRs or Special Drawing Rights with it. The amount of SDRs has increased by 50% in worldwide circulation over the past couple years. Understandably; this is inflationary and countries that have large SDRs reserves are looking to protect their wealth by allowing gold in the SDR market.

Defining SDRs
SDRs are made up of 4 reserve currencies that are used by IMF countries which include the euro, the United States dollar, the British sterling and the Japanese yen.

“The Great Recession” Remaining Impact

The 2007 global economic decline that accelerated in September of 2008 caused a disaster liquidity which attacked financial institutions all over the world. The expectation for limited global growth in the future as well as the Eurozone crisis contributes to ‘The Great Recession.’. In the US, a course of action for addressing the crisis has been a continued Keynesian economic activity, which results in inflation increase due to the growth in money supply.

Wealth Protection

The collective net worth of Americans began to shrink by over 25%, back in June 2007 through November 2008. Plummeting stock prices and home values was a reflection of this decline. The second biggest American household asset which is retirement also decreased by 22% from 2006 through the mid-2008.

So, how can you protect your wealth from market contractions and inflation? Resilient IRAs that are backed by gold, that is how. With people now thinking more about diversifying their assets apart from their current currency reserve, gold is an option for individuals just as much as it is for governments. It keeps its natural value while displaying a thousand year old proven track record. Reserve currencies, however, have been shown to decline over time in value due to policy decisions that take away from the currency’s worth. Investing your assets into IRAs backed by gold can protect your wealth.

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