Let’s dive in! (Click here to watch the speech)
Best Product Ever Invented
The best product ever invented is the U.S. Dollar.
The government prints trillions of them, and you and me will work 80 hours a week to get more of them.
Currently, the USD makes up 58% of the world currency reserves; the second-place Euro is far behind at 20%.
Some of you may argue that the dollar has been decreasing in value over time, and it has!
But, the other fiat currencies’ values have been going down faster!
The most important job of the Federal Reserve is to protect and promote the U.S. Dollar.
In other words, they need to create and maintain insatiable demand for the U.S. Dollar.
Here are 4 steps the Fed have taken to accomplish this:
- Tax U.S. citizens and require all taxes to be paid in USD
- Require that all crude oil transactions are in USD
- Require the SWIFT system to use only USD
- Flood the earth with irresistibly low interest loans repaid in USD
In early 2019, the Fed bought $14 trillion in bonds at a negative interest rate.
Why would they do that? That’s a guaranteed loss of return on investment!
The Fed did this because by buying those bonds, they ensured that for the next 30 years, they would receive US Dollars – even if it wasn’t a great investment.
They go to drastic measures to create maintain insatiable demand for the USD.
Three major events have helped evolve the USD as we know it today:
- Gold Confiscation – U.S. gov’t confiscates all gold from U.S. citizens and backs the USD with gold
- Bretton Woods Agreement – created an international currency exchange regimine based on the USD
- Petro-dollar – U.S. gov’t announces that the newly printed dollars are no longer backed by gold
So, the USD as we know it today is only about 50 years old – not necessarily backed by anything except for a belief.
There’s a recap of “Dollars, Coin, and Bitcoin” by John Pennington!
John goes on to explain how Bitcoin is influencing changes in the currency market, but that’s all we’re going to cover today.
Thanks for stopping by,
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DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the author