Source: BirchGold.com
Currencies are the lifeblood of a nation’s trade and its economy. When a currency fails, the entire economy collapses.
Even so, most people rarely think about the health or buying power of the money in their pockets. They watch their bank balance, their brokerage or IRA balance and are aware of their home’s value. They see those numbers change, but they never reflect on the value of the currency itself.
Most people don’t know how often currencies falter, and how regularly inflation or stagflation plunge entire nations into crisis through the loss of buying power. Most people just assume that the money they have will be as useful tomorrow as it is today. They also assume that money will never change in a dramatic or meaningful way.
They are grossly mistaken.
As Ray Dalio puts it in his latest book, “Of the roughly 750 currencies that have existed since 1700, only about 20 percent remain, and all of them have been devalued.”
For the majority of Americans, money is a total mystery. They don’t understand where it comes from and especially where it goes. It’s not financial irresponsibility, not exactly. It’s more a fundamental misunderstanding of what money is and what it represents.
Our educational systems don’t explore how money is created. It’s not discussed in schools. The real story is avoided in colleges and universities. The mainstream news rarely mentions it. People think our government and Department of the Treasury handles all of that, but the reality is that our government does not create our money – at least, they’re not in charge of the process.
The central bankers are, and they operate from a “quasi-independent” position….