SovereignLife Freedom Blog

Ten years ago, very few people knew that the money we use is created out of nothing, based on nothing, and ultimately worth nothing – if politicians get their way.

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?

Doug Casey reveals how…

Here’s an interesting collection of the 10 best ways to hide your money. They’re referring to the paper variety of course, but perhaps you could stash some silver or gold in some of the suggested places also

Top 10 Crazy Places People Hide Money

Is the gold mania here?

Jeff Clark takes a closer look …

For those of us who would dearly love to have access to sound free market money – not political toilet paper money – there are some interesting initiatives on the horizon. One is the strong likelihood of the issuance of an alternative money in Switzerland – the Swiss Gold Franc.

The Daily Bell interviews Thomas Jacob about this project.

Well, that depends on how you feel about the paper money in your hand losing value.

As noted by Jeff Clark, the USD has lost 25% of its value since the year 2000. Now, imagine if it loses that much value in the next two years? Not impossible to imagine. And such a scenario would set up a incentive to buy gold at “any” price:

When Buying Gold Becomes a Life-or-Death Question

While paper currencies are continuing to flounder, gold is flourishing.

I can recall, just a few months ago, how a friend told me it was “too late” to buy gold, because it had already become “expensive”.

Not true. Gold will continue to rise as long as paper currencies continue to be devalued. Many analysts are openly saying that gold could easily go to $5,000 an ounce during this bull market. And some are even suggesting much higher figures.

Meanwhile, more and more analysts are talking bullish on gold – as Jeff Clark points out in this interesting roundup of current gold commentary:

The Buzz Around Gold is Growing Louder

“Fiat” money is money by decree – worthless paper made money by legal enforcement and financial sleight of hand. And what most of us don’t realise is that all such paper monies have failed, in the end. That’s the reason why gold and silver are going up – because in reality paper money is going down.

Here’s a fascinating “rogues gallery” of previous failed paper monies, just to get the context right and to remind us that no paper money is immune from ultimate failure – including the ones considered “too big to fail” – like the USD.

A Thousand Pictures is Worth One Word

Ambrose Evans-Pritchard, back from a sabbatical, has this to say:

As the twin pillars of international monetary system threaten to come tumbling down in unison, gold has reclaimed its ancient status as the anchor of stability. The spot price surged to an all-time high of $1,594 an ounce in London, lifting silver to $39 in its train.

Return of the Gold Standard as the World Order Unravels

Now you can buy your gold from a vending ATM machine in the UK:

Don’t Try Snacking on These Bars: The Vending Machine That Sells Gold Not Chocolate