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World-wide monetary systems have been built upon the model of the United States dollar. While currently the dollar is still the world’s reserve currency its status as such, could be held into question over the Basel III talks with America. It is widely expected that the US will lead the way in further developments towards gold’s rise to Tier I status.

Within developed countries of the world, the unified consensus is that gold has yet to show any real signs of true-value towards the 41 year old paper currency fiat money system. The system now is starting to break down. Over the past 5 years serious strain and stress has occurred within the current dollar fiat system. Intensifying signs show problematic developments, now and into the future. These developments could be a sign where the current fiat based system is too flawed. This makes a good argument where gold held in reserves would be necessary to increase liquidity, thus granting easier access to loans of nations in need.

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The whole world is falling apart; it’s not just in America or Europe, but all over the world. Thanks to central bankers and their monetary policies the whole world is being drugged. That drug is a powerful hallucinogen putting everyone into a dreamlike state. The crazy thing is that everyone is dreaming the same dream. All the people around the world dream about fiat money.

Fiat money makes people believe that there is more wealth available today than their actually is. This in effect makes for spending that is not prudent. The reality is that the true amount of wealth perceived by the masses is not truly available. This being said great mistakes are going to be made. There will also be a serious amount of pain coming from all this as a result. The whole world is sinking into a great abyss of worthless paper money…

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Currency has been around in various paper forms throughout societies for generations. People use it every day. But how many people really know what the difference is between paper currency and money?

Currency has been defined as a circulating medium of exchange, used as an intermediary in trade to avoid the use of a barter system. The benefits and usefulness of currencies include; being a unit of account, or standard measurement of value. Other key factors include; durability, divisibility, ease of transportation and being …

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By studying history, it is possible to learn how past civilizations have risen and fallen. Repeated mistakes have been made throughout time. These mistakes show us how monetary systems within societies have broken down and collapsed since money was first used.

The Past –

History can show us many things; let’s take the rise and fall of the Roman Empire. The Romans rose to power in 64 AD. by starting out on a solid financial footing. There was a sound money system in place. They started off using 100 percent solid gold and silver coins as a medium of exchange for goods and services. As time passed however, more and more social programs needed funding. More major government projects were taken on, along with more and more wars being fought…

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America has had a history of fiat currencies dating back as far as the American Revolution. Even before America’s colonists won their independence from the British. It was in 1775 that the Continental Congress attempted creating its first fiat currency, the Continental.

During the early days of the Revolutionary War the American colonists were having serious trouble financing the revolution. Efforts to acquire additional money from England were slow at best. Furthermore the Continental Congress was forbidden to directly tax the colonists for war funding efforts. A solution for this immediate problem was finally created. The answer was to issue paper currency or bills of credit. This new money was called “Continental Currency” nicknamed Continentals, which became America’s first attempt at the use of fiat currency in the new America. At the time there were many congressmen who realized that over issuing paper currency was just a hidden form of taxation…

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Inflation is defined as an increase in the overall level of prices for goods and services in an economy over a period of time. Thus as the prices of goods and services increase each unit of currency actually buys less, therefore decreasing the purchasing power of the money.

Hyperinflation therefore is defined as a very high rate of inflation or inflation that has gone “out of control”. During a hyperinflationary event price levels within a specific economy rise very quickly as a function of its domestic currency in contrast to a foreign currency losing its real value at an ever increasing rate....

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