Buy Gold: It always end up in pain

Gold Investment - 7 November 2011

Mountains of debt consisting of and built on fiat currencies, always collapse at some point or another, ending in immense pain, especially to creditors, those who choose to lend out money. They are after all receiving interest as compensation for the risk they take to lend out money. Needless to say, it is a huge risk with little compensation or reward at this stage, considering the fast failing fiat currencies and mountains of debt.

Invest in precious metals today! Contact us for details.

Invest in precious metals today! Contact us for details.

Something that many people fail to grasp is that you don’t have to lend money out directly to be a creditor. In fact, you only have to deposit money with a bank in order to become a creditor, fully exposing yourself to bank default, payment default, debt crises, fiat currency crises and other crises, politically and otherwise. In fact, for every R1 you deposit with a bank, they create an additional R9 when they lend your money out to others; it is called fractional reserve banking, because “…banks maintain reserves (of cash and coin or deposits at the central bank) that are only a fraction of the customer's deposits” (Wikipedia). Needless to say, you have very little, if any say, to whom they lend your money, not even to mention the fact that it is all fiat money, which is constantly losing value. In addition, many people are of the opinion that money in the bank, especially in accounts such as money market accounts, fixed deposit accounts, et cetera are as safe as it gets. Well, they simply don’t get how a debt-based monetary system works, and that failure to understand how the system works, will end up in immense pain to them and their loved ones. They fail to understand that money in any fiat currency based bank account is exposed to various risks (bank default, payment default, debt crises, fiat currency crises, etc.). They erroneously believe that when a bank defaults, the government of the day will always come to their rescue, because the money in money market accounts, fixed deposit accounts, etc. money is guaranteed. Yes, it might very well be guaranteed, but first of all, remember that any guarantee is just as strong as the issuer of that guarantee (this applies to governments as well), and secondly, even if a guarantee is honored as far as fiat currencies are of a concern, of what worth will that guarantee be if the underlying fiat currency has failed because of factors beyond your control?

Invest in precious metals today! Contact us for details.

Invest in precious metals today! Contact us for details.

What do you think pension funds do with your money? Do you think retail savings bonds offer the ultimate protection against fiat currency and other failures? Do you think that they won’t force pension funds to acquire retail savings bonds and other forms of government debt when the going is really getting tough? Do you think that the purchase value of money in pension funds won’t be affected by a fiat currency collapse(s) or other collapses?

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