Well, I still haven't read the whole article yet, but I got the clue from the first paragraph....
Yes, it is so true that it is hard to believe....Believe me or not, I have ZERO faith in ALL the currencies we are talking about over here...When currencies were backed up with Gold, we were holding gold in our pockets actually, but now, whatever currency you are holding is just a piece of paper, nothing more and nothing less....
Earlier before, your piece of paper was worth a certain amount of Gold, so nobody could ever deny taking it from you in exchange for a product or a service because it was backed up by a real physical commodity....Now, suppose that a certain country runs into deep economic troubles, and let's say that your networth is in this currency, in a matter of few weeks, you can find yourself bankrupt and holding worthless paper...
I am not attacking currencies in their own, I am just saying that the strength of the currency is determined by the strength of the economy, but you can't buy milk or food or gasoline for your car in exchange for some strength in the economy, but you can buy some of them in exchange with Gold or silver....
The issue is that Central Banks are double checked sometimes, or in other words, they have 2 choices to support their economy in which both choices are losers, but they have to move a piece, they can't hold or stand still, action must be taken....So, if the action to be taken is to print more money, it's easier now than ever before, and this will hurt the purchasing power of the currency and after successive periods like this, devaluation finally comes out with its' ugly head and people get hurt in their savings...
Unless you own real assets, you are at risk my friend...
Thanks,
Nader
Yes, it is so true that it is hard to believe....Believe me or not, I have ZERO faith in ALL the currencies we are talking about over here...When currencies were backed up with Gold, we were holding gold in our pockets actually, but now, whatever currency you are holding is just a piece of paper, nothing more and nothing less....
Earlier before, your piece of paper was worth a certain amount of Gold, so nobody could ever deny taking it from you in exchange for a product or a service because it was backed up by a real physical commodity....Now, suppose that a certain country runs into deep economic troubles, and let's say that your networth is in this currency, in a matter of few weeks, you can find yourself bankrupt and holding worthless paper...
I am not attacking currencies in their own, I am just saying that the strength of the currency is determined by the strength of the economy, but you can't buy milk or food or gasoline for your car in exchange for some strength in the economy, but you can buy some of them in exchange with Gold or silver....
The issue is that Central Banks are double checked sometimes, or in other words, they have 2 choices to support their economy in which both choices are losers, but they have to move a piece, they can't hold or stand still, action must be taken....So, if the action to be taken is to print more money, it's easier now than ever before, and this will hurt the purchasing power of the currency and after successive periods like this, devaluation finally comes out with its' ugly head and people get hurt in their savings...
Unless you own real assets, you are at risk my friend...
Thanks,
Nader