Fed up with the Fed?
Why not be your own central bank?
Since currency was decoupled from money (gold) in 1971, and even before, the value of currency has been steadily decreasing. Since 1900 the US dollar has lost 95% of its value, the British Pound over 99%.
But it wasn’t until 2008 and later the response to the release of the bioweapon that things really got going. In 2020 the Fed printed into existence 35% of all the dollars that have ever existed.
People have been aware of inflation, the kind that they sensed benefitted them. House price inflation for example.
What they were missing was the fact that it wasn’t so much that their houses were appreciating in value, rather the value of the currency in which houses were priced was falling, requiring more of the currency to purchase the same house.
This important point is rarely understood by ordinary people, who are conditioned to see rising asset prices as a good thing.
So property has been a hedge against the currency inflation as governments have spent more money than they have taken in taxes, and have made up the difference via the inflation tax.
Most people weren’t that bothered. So houses are too expensive. So house prices rise. So what?
But then inflation hit the cost of the weekly shop, £100 became £150 and all too quickly £200. The cost of heating oil, and the price of used cars shot up too. Printing currency when simultaneously banning people from producing goods for that currency to purchase, is a sure fire way to create consumer price inflation.
Banning the prospecting of oil and gas, and relying on countries which are prone to invading other countries, leads to inflation. Building an electric grid out of unreliable sources of electricity, and having to back those sources up with secondary gas fired plants with gas from aforementioned unsavoury nations, leads to inflation. And on, and on. They could hardly have done worst, if they’d tried.
Arguably, all of these government policies couldn’t exist in a world of sound money. It is only the government money printer which affords such folly.
So if you’ve had enough of listening to people like this man mountain:
How about becoming your own central bank?
Now, you’re probably thinking that it would be seriously difficult to get away with, that you will ultimately go to prison for counterfeiting.
Hang on, I’m not advocating money printing here, I’m talking about gold, silver and Bitcoin.
Make no mistake, central banks have maxed out their credit cards, and they have no other way to escape their debt black hole than by inflating it away.
You do not want to be holding your wealth in dollars, when the money printers are turned back on.
The Fed, and other central banks around the world, have been trying to protect their currencies by raising interest rates.
The issue is that the world is too indebted, and cannot take the pain. Very shortly, things are going to go pear shaped, leading indicators point to the next 3–6 months (early to mid 2024). When the recession does come, the Fed will have no choice but to turn back on the money printer, and flood the financial system with cash, enriching asset owners once more, and penalising and impoverishing working families who hold that currency.
When, not if, this happens, you want to be holding your wealth in something the government cannot print. Something scarce, divisible, fungible (each specimen is the same as the next) a unit of account and a medium of exchange. Gold, Silver and Bitcoin.
But wait! I hear you say. I can’t spend gold!
Actually you can. You just haven’t been looking very hard.
One option is a company called Kinesis.
They hold physical gold, silver, as well as a host of crypto coins and tokens. The precious metals currency is backed by the physical held in vaults. KAU is kinesis gold, KAG is Kinesis silver. You can even take custody for a fee.
These are linked to a virtual credit card – android users can Google pay with it, and this feature is coming soon to iOS.
So, you pay for your shopping in your local currency with a Mastercard credit card and your Kinesis account is debited in the sources you specify at the time of transaction.
You might chose to spend silver first, then Bitcoin, then gold.
There is a charge to use the card, but when we hit peak money printing, if you’re holding sound money, rather than fiat currency, the preservation of your wealth will more than cover these costs.
If you’ve always liked the idea of gold, but found it old fashioned and clunky, give Kinesis another look, whether you’re sitting on £100,000 or just your monthly pay check, it could ultimately save your bacon.
