Be aware and be prepared for the Crash of the Cash!steemCreated with Sketch.

in inflation •  7 years ago  (edited)

For those not completely aware of the situation on the world economy today, especially the U.S. economy, I believe we need to utilize the currency from our current monetary system (the dollar) and begin to exchange for gold, silver, and/or tangible assets.

[You may skip this part. This is just a thought on the "money" and "currency" definition]
We need to understand that the primary function of currency is to allow us to exchange Ownership of the actual Money, or gold and silver, and be able to easily purchase goods and services.

Wait, isn't money and currency the same thing? No.

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GOLD and SILVER is trusted and better represented as real money because of its characteristics and properties. The dollar, and many other fiat, does not have the properties that help to sustain a good monetary system. In which, I believe its due to human weaknesses in leadership and when holding power.

[You may start back from here if you skipped the above section]

I encourage you guys to go research the difference between money and currency.

The Fiat currency system is scary, and in my opinion it is not money either. By many that are against the Fiat currency system [in which is manipulated and regulated by one organization] but think that it is considered money, I would start picking a side and choose to have a biased belief in true money, like gold, silver, and in [reliable] cryptocoins!

Is this argument a bit relative and based on biased belief on these precious metals? Sure, but because it has proven over and over that it works in a true free market, and you see that when things get ugly [the fiat stupid currency fails again] we many times fall back into putting our trust mainly in gold and silver.

Of course, because one government decreed a particular fancy piece of paper to be its currency, and not gold or silver, I can't just go to Walmart and purchase a gallon of milk with gold because unfortunately they won't accept it.
Sucks huh?
Well, I hope the government begin to make wiser choices in the future after the fiat crash. That manipulation of trying to balance the dollar by utilizing that "tool box" of tricks to dump into the system will not work for too long.

You can do your own research on our forefathers of the constitution , and search in our constitution that they themselves did not trusted. [Maybe Article 1 Section 10? Maybe another topic whether they prohibited the government or not from creating the fiat currency ] I believe they warned us to NOT implement this current monetary system, in which we are using today in the U.S. due to past bad experiences.

And we can see again, that this current monetary system is not working, or at least is working, but temporarily...

So, the primary purpose of the dollar, when it was first created, was to represent gold, as many of you probably know already. And basically, the dollar is just a receipt or certificate that proofs the existence of that dollar amount of gold in a vault somewhere. In short, if you hold a dollar, you were able to go to a bank and grab
that "dollar" in gold right?

But after 1913 Federal Reserve act, the dollar begin to lose its value quantitative wise against the gold. Until the dollar was forced into becoming a FIAT currency. Do not get me wrong, I am not in total against the government. I think we need some government running on the background, however, too much power given to them may cause this...

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So, now with the combination of Feds printing lots of paper dollars and banks creating even more currency, the inflation on this currency just gets higher and higher, therefore, also inflating the prices on everything else.

One of the reasons the Federal government keep printing cash, is to avoid the "bubble to pop". Meaning, they are trying to print their way out of the inflation, in another words and in reality, they are just buying or "printing" time before this bubble, don't just pop, but actually explode!

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Deflation is necessary guys. It is not comfortable, but it's a natural cycle of economy. But, when we try to manipulate the system and try to avoid the natural to happen, it simply makes it worse. Because it is INEVITABLE! This is a natural cycle of the system!

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When this current inflation deflates, it will be ugly! The transfer of wealth will be significantly tragic and exaggerated. If that makes sense...

Those that hold true valuable assets that withstand time and most government decisions, will be the beneficiaries of this collapse. Those that 100% rely only on the fiat currency, will suffer great losses. Because it will lose its value!

Gold and Silver, I believe, are a great way to start preparing for the worse when the economy default.

Gold and Silver falls into the definition of MONEY. True MONEY. It withstands time, stores value, it can be a medium of exchange, a unit of account, portable, durable, divisible, and interchangeable. Currency Does not store value.

Some people might say, "but gold is heavy, and if we have greats amount of gold, it is difficult to give to another person". Not really, all we need to do is create an official document that represents the amount of gold being transferred, and be able to change the ownership of that gold from one person to another. Just like buying a car or a house.

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"But wait, well, wasn't what dollar was created for?" UUUHH...Yes! it actually was, but... you know the rest.

Now, why I want to start putting my "money" into cryptocurrency? Because, unlike the dollar that is controlled by a few people, like centralized banks and organizations a good "cryptocoin" (as bitcoin for ex.) has a limit of supply. This will make sure no inflation is created, or at least I hope it does not. My idea is, if it is possible to accurately back it up by gold or silver, it will hold its representation power well.

I like cryptocurrency because it has all the characteristics of all functional currencies, however, it cannot be manipulated by a centralized facility.

So, what should we do now? Well... Let's carry on with our lives, keep working, earn money, oops! "Currency"! And begin exchange for trust worthy cryptocurrencies (bitcoin, ethereum, and etc.) as long as you did your research on these cryptocoins, and begin to purchase gold and silver for the long run. Of course, we should also be investing our money into assets that generates income and provide services and goods to others with the wealth that we build throughout the years.

So guys, again, let's not put our eggs in one basket!!!

CryptoCurrency = Gold = Goods and Services :)
Random Printed Cash = Gold = Goods and Services :(

What you guys think? Am I just being too paranoid? Exaggerating? Or should we definitely start spreading the word out and hopefully bring the people that we care to the right side of the financial system?

Please, let me know how clear I am with my writing while expressing my thoughts and ideas, as my first language is portuguese (Brazil) and I only know english for about 6 years now. So, any good feedback will be helpful!

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Nice post my friend. Dropped you a follow, you can follow me at @looking4llamas. Looking forward to your future posts!
https://steemit.com/@looking4llamas

It seems like the formatting didn't get right, extra line breaks, makes it harder to read the text.

Oh! I just noticed, let me edit little quick. Thanks for the feedback! :)

Well said.

Excellent post my friend, visit my profile and read mine.