BY ORDERING YOUR FREE GUIDE
Complete the form now...
If you look up "fiat money" in the American Heritage Dictionary of the English Language (online), you’ll see the following definition:
"Legal tender, especially paper currency, authorized by a government but not based on or convertible into gold or silver."
This definition reveals the true nature of fiat currency. For one thing, it tells us the only way paper currency enjoys legitimacy is by mandate of the government. There is no other way.
The other related message is that fiat currency can be considered illegitimate precisely because it is “not based on or convertible into gold or silver” which are seen as real money and genuine stores of value.
It is this characteristic of fiat currency – a lack of tethering to any store of value – that sits at the heart of what may be the biggest overall obstacle to your financial security: inflation-based wealth confiscation.
Here’s the problem: Because our monetary system doesn’t demand that currency be tied to a store of value, the government isn’t restrained in how it spends. It and its Federal Reserve enablers can manipulate the money supply and create all the money they want.
This has led to deficit spending and a resulting loss in the dollar’s purchasing power (inflation). The net effect has been a debasement of the money in your possession – basically, a transfer of wealth from you over to the government (confiscation of your wealth).
The chart below shows the shocking drop in the dollar’s value over the past century.
Even Alan Greenspan, perhaps the most recognizable name of all the Federal Reserve chairmen, understands the true nature of elastic money and how manipulative monetary policies can harm everyday citizens. He also says precious metals can be used by those citizens to stop the damage:
"Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights."
Precious metals can’t be debased as dollars can. Gold and silver even have historically increased in value when inflation rises. This means owning physical gold and silver is an important way for smart investors to circumvent inflation-based wealth confiscation.
Curious about how this works? Would you like to harness gold and silver’s power to protect your own savings? Consider talking with an Augusta Precious Metals gold and silver specialist soon to learn more and take action before inflation gets worse. Call us at 800-700-1008.