In 1971, then-President Nixon took the US off the gold standard. Until then, it was wise to save. Interest on interest was how to build wealth. What Nixon did with this was to break the 1944 deal. The US would back its currency with Gold. We all know that politicians cannot be trusted. There’s a reason we hardly trust politicians.
It made sense that the Gold standard was unsustainable. The US government was at war. The war was expensive. It was not possible to print unlimited money. That was possible then. That happened.
An agreement has been made to protect the status of the US dollar as a world reserve currency. The most traded commodity in the world, oil, is said to be paid in dollars. Here’s an interesting thing going on. Every country that started to accept other currencies had to deal with internal revolutions and the respective head of state died. Only in Iran and China, this has not yet been achieved.
In Iran it is because they are excluded from the international paymentsystem. Which drove them directly into the arms of China. Which gives food for thought about the geopolitical insight of politicians and administrators.
We now see the dire consequences in our daily lives. Inflation is unprecedentedly high. Our governments are technically bankrupt. It no longer pays to save. We see bubbles all around us.
The question we can ask is what to do now. The current situation will end sooner or later. Then there will be an unprecedented displacement. People will lose the wealth they have built up throughout their lives. So-called fundamental pillars in our society such as social security will no longer function.
So we come to a more crucial question. How should we prepare for this? What can we do ourselves? The first step is to be ready to strike. A nice and inflation-proof method is to buy Gold. Which can also give you an income.