Quarantine Updates: What Can You Do To Save Yourself?
For thousands of years, money has taken many forms.
Money has been beads, feathers, stones, animals, and pottery. One of the earliest and most important forms of money was cattle.
Cattle have been the foundation for modern money for thousands of years. Cattle are real money, even today. In fact, the word cattle means property of any kind, including money, land, and income. In history, when a person who had cattle needed to borrow money, he would take his cattle to the moneylender, borrow the money he needed, and leave his cattle as collateral.
The collateral system is still in use today. A synonym for collateral is security.
The 2008 crash was caused when collateralized debt obligations (CDOs) and mortgage-backed securities (MBSs) failed.
Take notice of the words collateralized and securities.
They represent the same purpose cattle did a thousand years ago. A thousand years ago, cattle were real collateral and real security.
The world economy nearly collapsed when fake collateral, in the forms of CDOs and MBSs, were proven to be fake.
How could so many highly educated, highly talented, and highly paid people believe fake collateral is real collateral? This is scary, very scary.
What’s even more frightening is that these same people—people who believed fake collateral is real collateral—are still running the show.
The main problem with the current U.S. economy is that the Fed is printing trillions making the dollar worthless.
Reminder: Printing fake money is the foundation of the banking system.
The Failure of Money
It is important to understand the difference between money flooding a system (i.e. QE, quantitative easing, the printing of money) and the failure of money.
So, is America in a depression?
Yes, in my opinion.
But rather than admit America is in a depression, the experts have been calling it The Great Recession. It’s important to understand the difference between a Great Recession and a Great Depression. That’s where definitions come in.
Jim Rickards, author of the Currency Wars, Road to Ruin, and Aftermath has this to say about the American depression: “This is a depression. This is not a normal recovery.” “America is in a depression, a continuation of a global depression that began in 2007.”
Jim uses John Maynard Keynes’s definition of depression to support his statement: According to Keynes, a depression is “years of below-trend growth.” In other words, there could be growth, but very low growth. For example, let’s say you were earning $50,000 a year in 1980. If you still earned $50,000 a year in 2020, a wage stagnation that millions experienced, with no income growth, you would be in below-trend growth.
As Jim Rickards and many others point out, this “longest economic recovery in history” has not turned into the Greatest Depression in history simply because the Fed, the Treasury, and Wall Street have kept the economy floating via printing money.
Printing money has never produced sustainable prosperity. Printing money has always caused poverty for those who work for money. The year 1971 was the start of the ﬁrst global “money printing.” Today, the entire global banking system runs on printed money.
That is why I suggest buying gold, silver, Bitcoin.
I own real gold and silver. I do not say “I invest in” or “I trade” real gold and silver. I do not own gold and silver to make money. They are insurance, a hedge against the stupidity of the elite.
I have insurance on my car, just in case someone hits me, or in case I hit someone else. Gold and silver serve a similar purpose.
Real gold and silver have no risk. The price of gold and silver will go up and down—because the value of our fake money is going up and down.
When a person invests, let’s say in a stock or real estate, they expect an ROI, a return on investment because they are taking a risk. When a person saves money in a bank, they expect a rate of return in the form of interest, because saving money in banks is extremely risky, especially when elites are printing money.
Gold and silver are just gold and silver. Gold and silver will be here long after you, I, the elites, and the cockroaches are gone.
When I purchase real gold or silver, I purchase them forever. I never plan on selling. Just as Warren Buﬀett holds stocks forever, I will purchase gold and silver forever.
Right now, gold is near its all-time high around $1,800. As for now, as long as the Fed continues to print trillions of dollars, I suspect that the price of gold will continue to climb.
My prediction: Gold reaches $3,000 in 2021
Buying gold and silver mines is hard. I know. I’ve bought and built two of them. And buying gold and silver mines takes a lot of time, money, and brainpower.
Acquiring real gold and real silver requires very little money, very little risk, and very little ﬁnancial education. It is much easier and less expensive to just buy real gold and silver coins from a reputable coin and silver dealer.
In 1964, I began acquiring silver coins such as dimes, quarters, and half-dollars. Why 1965? In 1965, the U.S. Mint began debasing our silver coins. Debasing means the Mint was diluting the silver content of our coins, mixing the coins with base metals, like copper and tin.
The Romans did the same thing to their coins when they needed more money to ﬁght their extended wars. Sound familiar?
In 1965, after noticing the copper tinge to American coins, I would take my paper money, go to a bank and buy rolls of either dimes or quarters. I’d unwrap them, inspecting each coin. If the coin did not have a copper tinge, I kept it. All the coins with copper tinge on the edge (the debased coins) I returned to the bank. Then I bought more rolls of coins and continued my search for real silver coins. It was not rocket science. I did not need any ﬁnancial education because there was no counterparty risk.
For about $20, you can buy a real silver dollar. Right now, that’s about 70% cheaper than its all-time high.
My prediction: Silver reaches $40 in 2025
In 2009, Bitcoin appeared just as the banking system was on the verge of collapsing. Many cryptocurrency miners and developers are driven by an intense desire, a passion to bring down the banking system, and that’s why I call Bitcoin, and other cryptocurrencies “People’s Money.”
One giant advantage of cryptocurrencies and blockchain technologies is trust and security outside the banking system. As cryptocurrencies evolve, the power of the banking system will lose its grip on the ﬁnancial freedom of the world.
Just as gold and silver have a limited supply, so does Bitcoin. There are only 21 million available.
Bitcoin just went through what is called a “halving” which means the pace of new bitcoin creation is cut in half. As halvings continue over time, the pace of bitcoin supply growth will continue to decelerate until all 21 million are mined.
“During Bitcoin’s 11-year lifespan, there have been two previous halvings,” says Alex Adelman, CEO, and co-founder of Lolli, the first bitcoin rewards application. “The first was in 2012 and bitcoin’s price increased from $12 to more than $650. After the second halving in July 2016, the price also accelerated and reached $20,000 in late 2017.”
My prediction: Bitcoin reaches $75,000 in 2023
Editor, Rich Dad Poor Dad Daily