Do you need Insurance against the U.S. Dollar?

The world’s financial landscape is changing…
And it could soon cause a lot of money to move out of the U.S. dollar.
So how do you protect yourself? By following China’s lead.
Let me explain…
On Monday, the International Monetary Fund (“IMF”) announced that China’s currency – the yuan – will join its reserve currency basket.
This basket includes the currencies of the world’s financial superpowers – the U.S. dollar, Japanese yen, British pound, and the euro.
The yuan being added to this basket will give China a new global status. And  Steve Sjuggerud says it will cause hundreds of billions of dollars to move into the yuan… and potentially out of the U.S. dollar. Here’s what he wrote in a May DailyWealth essay:
Billions of dollars will move into [the yuan] when it achieves reserve currency status. The likely loser in this will be the U.S. dollar – as governments diversify a percentage of their currency reserves out of the dollar and into this currency.
You see, the U.S. is facing an enormous $59 trillion debt problem. The only way for the U.S. government to pay its incredible debt is to print more and more dollars… and debase an already devalued currency. (Every time the Fed prints a new dollar, the value of every dollar in circulation declines just a little bit.) This doesn’t make the dollar all that appealing to investors.
Printing-money
But soon, investors will have a new, more appealing reserve currency to invest in. China is the world’s second-largest economy. In a few years it could be the world’s largest economy. And China has a huge hoard of gold. From January to September, the country added around 1,171 metric tons of gold to its hoard. That’s more than the Swiss government has in its vaults. And in October, China bought another 14 metric tons of gold. China has spent about $70 million buying gold over the past two years.
While it’s probably impossible for China to have a completely “gold-backed” currency, this gold allows the yuan to offer a guarantee more substantial than the dollar, which is only backed by the “full faith and credit of the U.S. government.”
That’s why investors are soon likely to diversify out of the dollar and into the yuan.
So how do you protect yourself from a decline in the U.S. dollar? Follow China’s lead and buy gold…
China-Gold
In November,  China has secretly been buying massive amounts of gold as insurance against the U.S. dollar.
In short, thanks to its exports, China’s foreign-currency reserves have swollen from $2.5 billion in 1980 to $3.7 trillion today… So China has had to figure out what to do with all that cash.
Initially, China bought U.S. government bonds. It holds $1.3 trillion in U.S. bonds… the most U.S. debt in the world. But with a dollar crisis likely on the way, China faces a huge problem…
So it has been “safeguarding” the value of its currency reserves. That means one thing… buying gold. Because gold is a real store of value, the price of gold goes up if something bad happens to the U.S. stock market or dollar.
I recommend safeguarding your own wealth against the dollar by buying and holding gold bullion. And with the price of gold down more than 40% since its 2011 peak, there hasn’t been a better time to buy in the past five years.
Take a page from China’s playbook… stock up on some gold bullion. It’s a smart insurance policy as the world’s financial landscape changes.
If paper currencies like the U.S. dollar collapse, gold will still hold value. That’s why Doug Casey, one of the world’s top experts on gold and resource investing, views gold as “cash in its most basic form.” 
Contact me HERE if you need more information about my gold free program strategy

Are you middle class?

Everyone’s talking about saving America’s middle class. But just who exactly falls into this group?

That’s actually a much more difficult question to answer than it seems. While some experts define the middle class by income, others define it by lifestyle. Still others say it’s a state of mind.

Here are five different ways that economists, federal agencies and even the White House measure and characterize the middle class.

family of four on grass with hands up and dream

What is middle class, anyway? Click HERE to learn more

Are you middle class? Are you considered middle class where you live? Use this calculator to find out CNNMoney/calculator 

credit money vs commodity money

commodity moneyMost people believe that interest is natural to money. However, the way in which money is created determines whether interest is applicable or not.

Two forms of money creation have dominated over the last 5000 years — creating money out of credit and creating money out of gold or silver – with humanity going back and forth between centuries-long domination of credit money and centuries-long domination of gold and silver-backed money.

Credit money is newly created on the back of borrowers’ creditworthiness. It is debt obligations enforced by civil law and backed by provisions for bad debt. Since credit money is legal agreements that require only paper and inexpensive credit risk insurance to create, credit money doesn’t have to be borrowed from anyone and therefore doesn’t attract interest – credit money is interest-free.

On the other hand, gold-backed money cannot be created as required by the demands of trade – the supply of gold-backed money is limited to the amount of gold in the world. Therefore there’s not enough for everyone to trade their goods and services with. Those that are short of gold-backed money have to borrow it from the few that hold the world’s gold-backed money and pay them interest for doing so. Gold-backed money bears interest.

The amount of credit money created matches what borrowers can afford and hence matches the amount of goods and services traded in the economy. Credit money is also backed by provisions for bad debt. Therefore the creation of credit money does not contribute to inflation. The gold supply, on the other hand, has no relation to the amount of goods and services traded in the economy. Gold-backed money is therefore inflationary and deflationary.

Many centuries ago, when taxes became payable in gold and interest-free credit money was outlawed, we were forced to abandon interest-free credit money and use interest-bearing gold-backed money instead. Those that were short of money now had to borrow it at interest from the few that held the gold supply instead of creating it interest-free and inflation-free. Once the generations forgot that we were forced to start using a form of money that continually and unreasonably Transfers Wealth, through the mechanism of interest, from the vast majority to a wealthy minority, we accepted interest as being natural to money and believed interest-bearing money to be the only option.

Although banks haven’t used gold-backed money since the 1930’s and only use credit money, we still pay interest on credit money even though it’s mathematically illogical. The seeming complexity of our banking system — called the fractional reserve banking system – obscures the fact that banks do not effectively lend out deposit holders’ money but issue borrowers with newly-created credit money. 500 years of gold-backed money has apparently conditioned society to believe that interest-bearing money is the only option and that interest is due on the money lent out by banks.

Banks are not in the business of lending out deposit holders’ deposits, as society purports them to be, but are actually credit clearing houses that clear our credit money of credit risk. In exchange for this service banks should only receive a credit risk insurance premium and an administration fee but on top of this banks charge interest to pay over to deposit holders.

Luckily it’s again legal for people to create their own credit money systems. As long as we pay our taxes in our interest-bearing official currencies. The only significant interest-free credit money system in place in the world today is one in Switzerland which is used by 25% of all Swiss businesses. No wonder Switzerland has had one of the most stable economies in the world since a group of Swiss businesses created this interest-free credit money system in the 1930’s to help themselves out of the Great Depression. 



Go to The U.S. Dollar Will Collapse to learn more.

Still don’t believe that banks don’t lend out deposit holders’ savings but issue borrowers with debt obligations / IOU’s / credit money? Read the surprising reports issued by the Bank of England during the 1st quarter of 2014: 

How Art History Majors Power the U.S. Economy

The Chinese gov’t solution is to cut public subsidies, the free market solution is that only the rich would be indulgent enough to buy their kid an education… Too many ideas on these systems but the bottom line is, so many unemployed college graduates pile up as fast as unsold electric cars.
Before continuing into this interesting article, let me give you one of the best solutions to pay for your education… A system with no monthly charges, no purchase obligation because we know the students have income limitations… and this is not a multilevel system. Check this out, a system in place that gives you the same power of purchase and an inflation proof system. You will pay your studies with the movement of money.
Financing your collage education, free from the lending system: 
Article: How Art History Majors Power the U.S. Economy: Virginia Postrel