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R_Head
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Here is some interesting

Postby R_Head » 09 May 2017, 18:59

Is kind of hard to explain but will be brief as much as I can.

 

Going to use the USA as the example.  When you deposit Currency in the bank, the bank takes it, leaves 10% in case you want it back and lend the other 90% on other things.  Is called Fractional Reserve Banking System.  We all know, the Currency is not backed by anything, just faith and good will of the nation.  So in reality, if the bank goes bust, you loose all the Currency.  Not quiet, on a good economy, some called the FDIC (Federal Deposit Insurance Corporation) will bail the account holder upto $100,000 USDs.


Well, what happens if the Gov goes bust?  Exactly, your bank account is wipped out clean.  In Cyprus, the bank took the money and gave the bank’s Stock Options in exchange.

 

Here is some that I found and is called Gold Money ( www.goldmoney.com ).

 

Works like a savings account with a Bank Debit/Credit Card.  You buy Grams of Gold at current market prices on the Currency you are using.  You can choose on what place in the world the Gold is located.  When you use the card, a Currency conversion happens and the Bank converts the equivalent in Gold to the Currency used.  You can also get delivery of the Gold to your house.  You can also Transfer the Gold to another person.

 

Here is the kicker…

 

When you deposit the Currency in any US Bank, the Currency is “protected” by the USA Gov.  Therefore is subject to Debasing/Devaluation; you loose the buying power of the Currency (Inflation).  By using Gold as Government Leverage, is Currency independent.  So whatever you buy now, will be value of Gold on the free market.

 

Well, just been the Canary in the Coal Mine.  Bought $100 worth of Gold (like 2.4 Grams) and will see how that works.  One thing that caught my attention… "You can buy Gold with a Credit Card…?" If that is correct, you can use a Credit Card as a Hedge to buy some Gold and when goes up, you can pay it back and keep the proffit.  Not sure about that but I will learn more on how that goes.

 

Anyway….  We are heading globaly for a financial debacle.  Is time to preserve the little you have to some that can ford the weather.  Diversification is the key, the more you have, you spread the wealth.  You might loose some, but not all and that is the idea.

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