I find it fascinating that so few people know this about their money.
Actually, even calling it money is a bit misleading.
It’s actually currency. According to Wikipedia “The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value;”
The key there being a store of value. Money used to hold it’s value.
That was until August 15th, 1971 when Richard Nixon unhinged the US Dollar from it’s gold backing, instantly making it (and the world currencies pegged to it) a fiat currency.
So what’s a fiat currency you ask?
Well, essentially it’s a currency backed by nothing more than the faith of the people using it.
That means, it has no true value. It’s only value is what people believe it is worth. Once that confidence wanes, the currency generally collapses (an has hundreds of times throughout history)
Currently the US Dollar is the reserve currency on the planet, and has been for over 70 years.
Previously, the British Pound Sterling held that status, and before that France held that role, proceeded by the Netherlands, Spain and Portugal.
By studying history you can see that empires lose their reserve status, and it’s generally as a result of recklessly inflating their currency, much like the US is doing today.
There have been a number of videos with Former World Bank Lawyer Karen Houdes who has come out recently as another whistle blower.
Seriously, are you dumb? Not winning any friends with that title am I? And you’re probably not going to like this article either. I’ll just warn you now. Can I be brutally honest with you for a moment? Not fluffy “you have something on your face” kind of honesty, but smack you upside the head […]
Last week I spoke at the 3rd THRIVE Financial Empowerment series event, and I had the good fortune of inviting one of my mentors to join me on stage to illustrate the power of wealth cycles. I’ve had a number of mentors over the years who’ve helped move me forward with my own financial education, […]
There’s a lot of talk lately about the global debt crisis, especially most recently with the US averting going over their Fiscal Cliff by delaying the inevitable. I came across this recent short video that does a fantastic job of summing this whole debt crisis up with a bit of humour. I especially like the […]
In my research for lessons to share in the Money Mentor Academy, I was led to this interesting video about the Petrodollar system, and how it could very well be the straw that breaks the camel’s back when it comes to the collapse of the US Dollar. This is an interesting perspective that I hadn’t […]