People tend to think that inflation is a fact of life that is unavoidable in a financial system that uses paper currency as its main form of liquidity. However this is far from the truth, as you'll see below.
There are several reasons why US currency has continued to devalue over the last 60 years or so, but for the most part, the culprit is the DEBT that our governments routinely borrow from private bankers. Each time your government borrows money they have to inflate their currency so that you have to spend more for the same goods and services that you purchased before.
Today the US, along with most other countries, has positive inflation built into the very structure of its economy. For example, in the UK, one of the main tasks carried out by the Bank of England is to ensure that inflation always exists within the economy, targeting a rate of around 2%. As a result of the government's bias towards borrowing and inflation, prices in the US and UK have gone up by over 50% in the last decade or so. This means that the goods you could have bought with $50 in 2000 would now cost you more than $100.
The fact is, in the US and UK, inflation serves a specific purpose and has effectively been government policy since World War II. The need for an inflationary economy is arguably more important now than it ever was. This is largely due to the escalating nature of debts that have been accrued by the government as well as the government's tendency to devalue their currency in order to promote exports to other countries.
Common sense shows that the purchasing power of your savings will decline as the amount of money in circulation increases. Production globally has not increased so it's a simple matter of supply and demand - cash versus hard assets.
The main thing to remember is that while your money is in a highly liquid form (ie: cash, savings, etc) then its value will evaporate as surely as a glass of water on a hot summer's day, especially in today's economic climate. The most logical way to prevent this is to put at least some of your savings into a form that cannot evaporate no matter what state the economy is in.
Where is Your Money Really Safe?
It's an age old question that people have been asking for centuries - where is my money really safe? And more and more people are now choosing the oldest and most logical answer: GOLD.
There are also going to be uses for gold in the things that we need, so you are always going to be able to get your return if you need to.
You can start protecting your savings right now by investing in a gold IRA that will help secure the value of your hard earned money. Starting to save correctly today is going to give you a much brighter future and you are going to be able to plan your life a lot better.
History illustrates gold is a timeless asset, not only proving to be a successful preserver of wealth, but growing gold prices and record demand has ensured it has outperformed all other forms of investment.
Remember, every danger to one group of people is invariably an opportunity to another. It all depends on where you position yourself. Those investors positioned in cash dollar-based investments are going to suffer the loss of purchasing power when the dollar's value disappears. Whereas those who have moved their investments to higher ground will benefit from the change.
If you're ready to venture into the world of gold investment then your first port of call should be Regal Assets - the Official Online Gold IRA company where you will discover all of the resources you need to set up your own precious metals IRA, as well as a personal service that is second to none. To start on your path to personal prosperity right now just click below to request your FREE Complimentary Gold Investing Kit containing all of the vital knowledge and resources you will need to start investing in gold with confidence.