How To Protect Your Self From US Dollar Collapse

Let me be clear, I'm not an "end-of-the-worlder", I'm not a "prepper", I don't think the world is going to end. In fact, quite the opposite, I'm very optimistic about our future as a people and the good we can do in this world.

But, I know - like you probably do - that there some things fundamentally wrong with the current monetary system we have in this country & all around the world.

Our paper currencies, like the dollar, are having their value systematically destroyed by our governments and the money printing presses that have been turned on full speed.

Billions of new dollars (not to mention every other major fiat currency currently in use) are being printed rapidly. Thus our supply of currency is expanding rapidly.

The problem is that our economic production (all the goods and services we create and consume - our demand) is not expanding at the same rate as the currency supply. Thus, by simple laws of supply and demand, we have more current chasing the same amount of goods and services.

What this means is that the purchasing power of our dollars is decreasing rapidly and any wealth we hold in dollars is decreasing with it.

Because of our world wide economy today, and the fact that every currency in the wold is being printed into oblivion, we are on the precipice of what stands to be the biggest monetary system reset in the history of the world.

The good news is that this type of monetary system reset happens regularly in our world and throughout history. The world always goes on. And each time, there is great opportunity for those who see the writing on the wall and make proper asset protection preparations. The difference this time is that the whole world will be involved in the reset and the opportunity to create and protect your wealth may just be the greatest in history.

The question, of course, is how do you position yourself to not only be protected from the inevitable monetary reset, but how you can prosper in it.

Fortunately, the answer is quite simple:

Step 1: Learn The Difference Between Money & Currency

Readers Digest Version

5,000 years ago, Egyptians used gold and silver as a medium of exchange. It wasn't yet money as we define it, because they just used random blocks of it in varying purities, but it was used as to buy and sell... it empowered commerce. This make Gold & Silver the longest standing medium of economic exchange on the planet.
The difference between money and currency:

Currency is a medium of exchange, a unit of account, portable, divisible (you can make change), durable, & fungible (meaning each unit is the same as the next, a dollar in my pocket is the same as a dollar in yours).

Money has all of those same characteristics, with one important addition: It's a store of value and maintains it's purchasing power over long period of time.

Because currency can be printed, it's impossible for currency to be a true store of wealth. Each additional unit of currency printed robs value from the rest of the currency.

Gold, however, is of extremely limited quantity and cannot be printed, thus it has the ability to hold it's value over a long period of time. It also has all of the other characteristics of money... making gold the perfect money.

Nearly all currencies are what is called "Fiat Currency", meaning they exist by government dictate or fiat. If it weren't for the government mandate, the currency would be inherently valueless (it's just paper). Over all of recored history, there have been thousands upon thousands of Fiat Currencies, they have a 100% failure rate. All of them have gone to Zero value eventually. Sadly, our Dollar will not be excused of this fate. It will eventually go to zero, just like all other fiat currencies before it.

Why Will The Dollar Also Go To Zero?

The dollar used to be a "claim check" on gold that was in the vault. It used to say "this bill is redeemable in a (amount) of gold". That all changed when the dollar was cut from gold and became a Fiat currency.

Doing this allowed our government to spend beyond it's means because it could now print money ad nausiem with no relation to real value (of gold) in the vault. We've all seen this in the form of Quantitative Easing, Bailouts, and Stimulus programs - all just fancy talk for printing money.

But, the dollar is in the enviable possition of being the global reserve currency, meaning that the rest of the world trades their goods and services in dollars. So our government prints dollars and exports them to other countries by importing their goods. We don't see the inflation nearly as badly here, because we are exporting all of the inflation caused by the printing to other countries. Eventually, the rest of the world will see that the dollar is value-less and start sending them all back to us and we'll see massive inflation.

This is already happening, it's only a matter of time now. It seems scary, but you can only play the cards you're dealt. So gold and silver are an incredible store of value and allow you to hedge your wealth and savings against the devaluing of currency (on in our case, the rampant destruction of the dollar).

Step 2: Learn The 7 Stages of Empire

In this video Mike goes in depth explaining the 7 Stages of Empire. These are the same stages we have seen every major civilization go through all throughout history. The process is the same every single time. We are in stage 6 in the US right now. Stage 7 is a collapse of our currency. If you have the time, watch the video. If not, I've included my 'reader's digest' version below.

Readers Digest Version

There is going to be a new monetary system in this decade! There will be a huge deflationary crash and people will lose faith in currency. The good news is that people will go back to gold and silver as they always have over 5,000 years of history.

Wealth is never destroyed, it is only created and transferred. That means that for every crisis, including the impending collapse of the US Dollar, is that there is opportunity. If you can educate yourself about monetary history, you can can position yourself for great opportunity.

Monetary history repeats and repeats all the way through civilization which means that we can learn to see the patterns and prepare ourselves for what’s happening with our currency right now.

The Beginning Of Monetary History
680-630bc, is when gold became money. When they were made into coins. It exploded in use in Athens because of their free market. They had money, a working tax system, and free commerce which allowed them to rise to the pinnacle of civilization. 2,500 years later we are still in awe of what they accomplished.

What went wrong?
The same pattern that always happens in civilizations.

-Began debasing currency (to pay for war)
-Began deficit spending (continuing to pay for public works)
-Debased coins were taken at face value at first, then people started keeping the gold coins, and only trading with the copper coins.

The Seven Stages Of Empire
A Societal Pendulum That swings from quality money to quantity currency and back to quality money again.

Stage one - A country starts out with good money which is either gold or silver or it’s backed by gold or silver.

Stage two - As it develops economically and socially it begins to take on more economic burdens adding layer upon layer of public works.

Stage three - As it’s economic affluence grows so does its political influence, and it increases expenditures to fund a massive military.

Stage four - Eventually it puts it’s military to use and explodes it’s expenditures.

Stage five - to fund the war it steals wealth of it’s people by debasing their coinage with bad metals or by replacing their money with currency that can be created in unlimited quantities.

Stage six - The loss in purchasing power of the expanded currency supply is sensed by the population and the financial markets, triggering a loss of faith in the currency.

Stage seven - A mass movement out of currency into precious metals and other tangible assets takes place. The currency collapses and gold and silver rise in price as they account the the huge quantity of currency that was created. This process transfers massive wealth to those who had the foresight to position themselves beforehand in real money, Gold & Silver.

How Does This Affect You
In order to understand gold. you need to understand monetary history. So let’s see how the 7 Stages Of Empire are playing out right now.

People think the US dollar is is good as gold and it hasn’t been since 1971.

1873 to 1910ish -
20 Bill (receipt for money) = $20 gold piece. Go to your bank give them your receipt for money and they would give you your money or a $20 gold piece.

World War 1 - Stopped Redemption Rights
You could no longer take your receipt for money and get real money. Governments started printing more recipes for gold than they had in gold.

Between The Wars - Gold Exchange Standard
Currencies are backed partially by gold. The federal reserve was allowed to print $50 of bills backed by only $20 in Gold or a 40% reserve ratio.

World War Two
For the first 4 years or so, we weren’t in the war. Every country in the EU started buying goods and services from the US and paying us in gold. Americans believe that war is good for the economy, but that’s only true when you’re not in it and your selling them the tools of the trade. By the end of the world war 2, the USA had 2/3 of the world’s monetary gold.

1944 - Bretton Woods System
Every currency, with the exception of a few, would be backed by the dollar. The dollar would be backed by gold at a rate of $35 per ounce. This gave stability to all currencies. There was no such thing as Forex because all currencies were all tied to each other at a fixed rate. There was no reserve for how many dollars we could print. So we printed lots of them to pay for Korean war, for Vietnam, for Johnson’s Great Society. We printed more dollars than we had in gold to back up the $35/ounce system that was established. In the 1960’s French President realizes we don’t have gold to back up the dollars.

France askes for their gold. Trades in dollars for gold. Other countries all start doing the same thing. From 1959-1971, we lost about 50% of our gold, but we still had 12 times as many dollars floating around the world as we did gold in the vaults. It was a giant world wide run on the bank (which is the US). This was the second time the US had committed fraud and printed more receipts for gold than they had gold. If Nixon hadn’t taken us off of the gold standard in 1971, as soon as we ran out of gold and one more dollar was brought back that we could produce the gold for from the vaults, the entire world’s monetary system would have collapsed over night (because everything was tied to the dollar).

1971 - Dollar Standard
All of the world’s currencies became Fiat currencies. Fiat currencies have a 100% failure rate. We started this experiment where all of the world’s currencies would be fiat currencies at the same time.

Today
40+ years of currencies being printed and falling relative in value to gold. All currencies are all going to continue to lose value. Continue to lose purchasing power.

We are going to have a new monetary system within this decade.

We are in the 6th stage and beginning 7th stage. Gold started the accounting of currency printing in 2001, when gold was $250/ounce.

Gold is money Par Excellence. The last 2 generations of scholars don’t understand gold because it hasn’t been used anywhere on the globe as money in several decades.

Step 3: Learn Why The Dollar Will Collapse

In this video Mike takes about what's going on globally with the dollar right now. He shows how countries all over the world are losing faith in the dollar as currency and taking actions to protect themselves from it's eventual demise. The window of opportunity before the dollar is done as the reserve currency of the world is short. Learn how you can benefit from this now. If you have time, watch the video. If not, I've included my 'reader's digest' version below.

Readers Digest Version

The global dollar standard was put in place by a series of accidental events that were very fortunate for the US because it gave us tremendous advantage over the rest of the world.

Our politicians over the last few decades have abused this privilege like it was their birth right causing countries all over the world to turn their backs on the dollar standard. Because all currencies in the world are tied to the dollar, this is going to cause a financial calamity the likes of which the world has never seen.

America is great, and what will solve these financial problems will be to go back to what made us great to begin with: Free Markets, Free People, & Sound Money.

The US Dollar is about 60% of value of all the currency on the planet and more than half of the dollars reside outside the US.

Everyone has dollars for two reasons. 1 - central banks use the dollar as the reserve currency of the world. 2 - Oil is priced in dollars.

The BRIC nations are now avoiding the dollar in trade. They are doing bi-lateral trade agreements.

Some countries, like Iran, have tried to not use the dollar, we banned them doing wire transfers using dollars.

Some countries and the state of Utah are starting to recognize gold as money again.

Some countries are accumulating gold, like China & Russia

Some countries are repatriating their gold, like Germany & Venezuela.

These events are all happening faster and faster and faster. Go to 8:22 into the video, watch these events on a timeline and see how rapidly the dollar is losing faith world wide. It’s scary.

The dollar standard will be gone soon. The window of opportunity is closing soon. If you wait to long, the opportunity will be gone.

When the monetary system collapses, and it will, there will be an enormous transfer of wealth… depending on which side of the bet you are on. Wether you think you are making a bet or not… you are. If you are holding paper or paper demominated assets… you are betting in one direction. If you are holding gold, you are betting the other direction.

At 20:00 mark, Mike start going through charts that show how gold and the dollar relate in terms of value and how gold always “catches up” in value to account for the number of Dollars that are printed. He shows how in 2013, in order for gold’s value to account for all of the printed dollars it would have to be worth $13,400/ounce. The projected price of gold by the end of 2015 with current currency printing rates, it would be $26,000/ounce gold. The value will be nearly 14x the value it is today.

Every 30-40 years, the world has a new monetary system. We are due very soon for a new one. Here’s are a few options for what the new monetary system could look like:
Multiple reserve currencies.
Special Drawing Rights
Gold standard
Chaos (unfortunately, this is the likely outcome)

The best option is, of course, gold. Because when you actually use real gold as a monetary system, the government can’t scam you.

The dollar standard is collapsing around us. We aren’t seeing the affects in the US as much yet because of the rampant printing and exporting on dollars, so if you want to be on the right side of the wealth transfer when the global monetary system collapses, you need to start trading in your paper currency for real money, Gold.

Step 4: Understand How You & I Are Being Scammed By The Bankers Right Now

If you watch none of the other videos on this page, watch this one. In this video Mike explains the current system of currency creation and how it's designed not only to fail, but to steal the wealth of the people secretly while doing so and making those at the top ridiculously wealthy. It's the biggest scam in the history of the world, and you and I are the victims. If you have time, watch the video. If not, I've included my 'reader's digest' version below. But seriously, watch this video.

Readers Digest Version

Every government creates currency in the same way. US is a great example.

Here’s how it works - (this is very much in my own words based on what Mike teaches in this video):

The politicians get voted in because the promise to give the people free stuff.

Then the government needs to pay for the free stuff, so the US treasury writes a check (an IOU) in the form of a US Treasury Bond.

This bond is basically a promise for future generation to pay for the prosperity we enjoy today. It’s that whole “backed by the good faith and credit of the US”. So in plain english, the treasury bond says “please buy me so we can pay for the free stuff we promised our people, don’t worry, we promise to pay you back plus interest by taxing the hell out of our kids”. Kinda sucks already, huh?

Anyway, these bonds are then sold on the open market at a Bond Sale via the big banks.

Then, the bonds are purchased mostly by the Federal Reserve, a privately held institution. They purchase the bonds by writing a check (another IOU) that draws on an account that doesn’t actually exist.

When the banks get the big checks from the Federal Reserve, they cash the checks into our banking system and POOF, like magic, more currency is added to our currency supply. I know… crazy… but that’s how it works. If it stopped there, it would be bad enough, but it gets worse, way worse.

The banks then send that money back to the US Treasury and our national debt goes up, because we owe the Fed that currency back, plus interest.

The dollar used to be a claim check on gold, real money. Now the dollars that are being Poofed into existence are nothing more than claim checks on an IOU from the Fed. It’s nothing but numbers in a system that has no real value.

Anyway, the US Treasury then sends that money back to the various branches of the government.

The government then does deficit spending on public works, social programs, and war. The government employees, contractors, and soldiers then deposit their pay into the banks.

Now, when you deposit your money into the bank, you are not actually depositing it for safe keeping. You are actually loaning it to them and within certain legal limits, they can do pretty much whatever they want with it, which includes gambling in the stock market and loaning it out.

This is where the currency creation really gets crazy… because this is where fractional reserve lending kicks in. The banks are allowed to ‘reserve’ only a portion of your money on deposit and they can loan out the rest.

Reserve amounts vary, but Mike uses 10% for the examples here. So if you deposit $100 under a 10% fractional reserve, the bank only has to keep $10.

So, why does your bank statement say you still have $100 in it? Easy, because the banks issues you $90 in “bank credits”, which are essentially another form of IOUs. So they lend out or gamble your $90 and create $90 of currency on the spot in the form of these bank credits.

This is where it gets scary, the $90 the bank stole from you to loan out to someone else, is usually loaned out for the purchases of goods or services like a house or a car or business assets. lets assume it was for a car. The loanee, takes that $90 and spends it at a car dealership. The dealership then deposits that $90 in their bank account and the process starts all over again.

So literally for every $100 dollars of currency deposited in the banks, they are allowed to steam 90% of it and turn it into $1,000 of currency. Sheer craziness.

So, since our currency supply is expanded exponentially and our available goods and services upon which to spend that currency doesn’t increase to the same degree, the only option if for prices to rise in accordance with the expanded currency supply. This is real inflation. Inflation is just currency expansion. Price increases are merely a symptom.

If you thought that was bad… we work for that currency. We spend out time, our blood, our sweat, our tears, and our talent. We are what gives the currency it’s value.

We work hard so we can save some of that currency to pay the tax man, the IRS. They then turn it over to the treasury, so they can pay the principle and interest on the loans made from the Federal Reserve. If you remember, the Federal Reserve made those loans our of an account that has nothing in it, they created it.

Most of our taxes are NOT used roads, schools, and other public services. They are used to pay the interest on bonds that the federal reserve bought with an account that has nothing it in. The federal reserve is committing fraud.

Before the Federal Reserve, there was no need for a personal income tax. Before the federal reserve there was no income tax in our country. Yet in 1913, when the federal reserve was created the constitution was amended to allow for income taxes. Coincidence, not likely.

But of course… it still gets worse. Remember, there was interest due on the bonds that the federal reserve bought. Then, there in interest due on all of the loans the banks made when they stole your currency to create more currency. That means that there is interest due on EVERY dollar in existence.

Imagine it like this: If you borrowed the first dollar into existence. but you promise to pay it back plus another dollar in interest. Where do you get the second dollar to pay the interest. The answer is that you borrow that dollar into existence and promise to pay it back with interest as well. So now there are two dollars in existence, but you owe four. The result is there is never enough currency to pay the debt. The whole system is impossible, it will fail someday.

If we stop borrowing, we stop creating the currency to pay for the interest on the debt. So we have to continue borrowing and deficit spending for the system to work. Even if we payed off all of the principle, we’d still have interest due and the who system would collapse.

Step 5: Protect Your Purchasing Power By Exchanging Some Of Your Paper Currency For Real Money, Gold, Every Month

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