There is so much fiat money about to be printed, to keep the banks and “ships of state” viable, that it will all come back to bite us in the mid-term future – by way of monetary inflation. Or to put it more accurately – by way of ever-descreasing value of your money.

How can you protect yourself against such devaluation – which will dilute both your current purchasing power and any savings you have in place?

My own view is that it’s time to think seriously about the world’s only real money – GOLD. Gold has stood the test of time and if, over the last decade or so, you had been saving in gold instead of paper money, you’d be far ahead of the curve right now.

Trouble is, gold is expensive to buy, and many people cannot see themselves accumulating it. But there is a way. One company has come up with a gold-saving strategy that is accessible to most everyone, providing a way for Mr or Ms “every person” to start saving gold for a rainy day.

To learn more about this cost-averaged savings plan Click Here

Bitcoin: The City Traders’ Anarchic New Toy

Bitcoin Conference London 2012

Is The US Losing Faith in its Own Dollar?

India to Buy Iran Oil in Gold Not Dollars

And also on this news clip from RT:

And yet this is a critical question, because understanding this provides insight as to why we’re having escalating debt problems, and why “business as usual” will simply not work any more.

If you’ve ever wondered about the mysteries of banking and currency creation, then you simply must watch this short video by Rich Dad Advisor, Mike Maloney, as he explains how currency is created and why the whole system is one big ponzi scheme that is destined to fail.

We Pay Tax For The Privilege to Have Currency

Is it merely a commodity, or is it in fact money. If it is money, then talk of a bubble seem ludicrous, as we don’t talk of the EUR, JPY or USD being in a “bubble”. Assets bubbles are common of course – like housing. But if gold is being treated more and more like money, then a bubble is the last thing you need to worry about.

For a really good insight into this line of thinking I recommend you read this article by Nick Barisheff, president and CEO of Bullion Management Group Inc.

Gold is Not in a Bubble: It’s on its Way to $10,000 an Ounce

The problem with fiat money – money by government decree – is that under a democracy, where politicians get elected by promising goodies to the electorate, there is a constant temptation to create such money to fulfill the promises. Or to put it another way, there are only three ways for the government to pay for things – with taxes, from loans, or with newly created money.

Money creation, of course, leads to inflation – or more correctly, the devaluation of the currency.

Social welfare programmes, unending wars, and rampant wastefulness seem not to bother our leaders – because they know that all can be financed by “funny money” – bits of paper with faces on that the government guarantees is good for the payment of debts and taxes!

In the current economic environment the ability to raise taxes or borrow money is severely constrained – leaving only one option – to create money out of thin air.

One of the wonders of the modern age – the internet – is responsible for a quantum increase in people’s awareness and perceptions – including their increasing understanding of what money is, and isn’t.

For an excellent overview of what money is and why it’s getting us into trouble, I urge you to read David Galland’s essay:

Is the US Monetary System on The Verge of Collapse?