The unfortunate flipside of being on the correct financial path is knowing that on the other side of it, there’s a great deal of misery for people who aren’t informed.
A faulty currency creates many other problems in society. It punishes savers, rewards debtors, enriches the rich, impoverishes the poor/working/middle classes.
It’s hard to overestimate how much damage corrupt money causes – but my instinct is that it poisons every material exchange between two parties. It creates perverse incentives, undermining the family, the relationship between individuals and markets to an extreme degree.
For one example, one way for ordinary people to prosper is to buy an index fund, like the S&P 500. But the price of the S&P 500 has absolutely soared compared to wages as inflation has made other forms of savings (like bonds, CDs, etc.) a losing proposition.
The price for people just starting to save for retirement is 4X what it was in the 1970s. And this is just one glaring data point of many.
I’ve put together a short presentation about how the US dollar is failing Americans, filled with data points like the one above. It’s a bleak look at a situation that I believe will get worse.
We gold investors can’t make everyone see the now obvious path the USD is on. The rise of gold is due to the slow-motion destruction of the dollar, and many people will not get out of harm’s way.
And like every flight attendant tells you before take-off, you have to put your own oxygen mask on first.
You can’t help anyone until and unless you help yourself.
While I’m extremely optimistic about where our gold positions are heading, I’m equally troubled about what’s going to happen to people who aren’t able or willing to take advantage of my work.
To be clear: gold stocks are not the only way to protect yourself from the destruction of the dollar – but I believe they’re one of the best.
To the extent that our gold positions do well, it will be commensurate with the failure of the dollar.
And look: we can’t control the path of the dollar – but it would be irresponsible to pretend like it will be fine. Many people will put a kind of blind faith into this currency regime, and they will pay the ultimate price.
They’ll see their savings evaporate. Their standard of living will deteriorate.
If you or I or any principled person were in charge of a currency over the past 5 decades, we would have backed it with gold, constraining spending, and forcing congress to pass balanced budgets instead of inflating the currency to fund endless Federal spending.
Congress doesn’t want to have to say no to spending, so they don’t.
They just pass the buck to the US Treasury and the Federal Reserve to concoct money out of thin air. It’s truly a disaster and the only likely outcome is more of the same:
More Federal spending.
More debt.
More inflation.
More suffering from regular people, most of whom simply don’t have the time or energy to figure out what’s happening to their currency.
I hope you’ve put your oxygen mask on – and I hope you’re able to help the people around you.
That’s part of the reason I created this free presentation: to show people exactly what’s going on with our currency – and how you can protect yourself from what’s coming next.
Don’t miss it: watch my free presentation now. Or better yet: send it to someone who needs to learn what’s going on.
Best,
Garrett Goggin, CFA, CMT
Lead Analyst and Founder, Golden Portfolio
