Smart people diversify their investments - some in cash, some in bonds, some in stocks, some in their house, some in a small business perhaps. But usually every single one of these investments is held in US dollars. What would happend to your savings if the US dollar drops (like the Argentinian dollar did overnight in 2001). Not likely you say? you might want to check out the seven US dollar facts below.

Most people, even smart people, know surprisingly little about the way money really works in Big Government. With the debt ceiling fiasco suddenly raising awareness of the possibility of a total global financial blowout, now seems like a good time to remind people of seven disturbing facts about money that are almost never acknowledge in the old media.

Fact #1 - There is no money in the FDIC insurance fund.
The money at your bank is insured against loss by the FDIC's insurance fund, right? Nope. That's total fiction. There is no actual money in the fund. The FDIC insurance money has already been looted by the U.S. Treasury which has simply replaced the money with a bunch of IOUs.

Fact #2 - There are no social security funds, either.
When you pay social security taxes, all that money goes into a trust fund that's held for safekeeping until the day it pays you back, right? Nope, another IOU.

Fact #3 - The U.S. Treasury is stealing money from you every day, even if you pay no taxes!
Here's a mind-boggling truth that most people just can't seem to get their heads around: The U.S. Treasury is stealing money from you every single day by the simple fact that they keep creating new money ... That's why prices keep going up all around you, folks: Food isn't suddenly worth more money; the truth is that your money is worth less! That's how the Treasury and the Federal Reserve steal from you without even breaking into your home.

Fact #4 - The "balanced solution" isn't balanced.
When you're spending more money than you're earning, that's not financial balance. When the White House says "balanced" what it really means is "compromised" -- as in, half way between the Republican position (spend us into purgatory) and the Democratic position (spend us into oblivion). Going from projected $9T deficit over 10 years to %7T deficit is still a $7T extra debt for our country!

Fact #5 - The government is going to steal everything from you before it collapses
Oh my, this is a tough one for people to get their heads around... especially those who naively trust governments to act in the interests of the People. The simple truth of the matter -- and I've publicly made this prediction before -- is that the government is going to STEAL almost everything you own as it heads toward a total financial implosion. This will include:

• The government theft of private retirement accounts. The feds will claim they're taking them over "for your protection." Yeah, right. And then one day they will simply all vanish. Kiss your IRA goodbye...

• The government theft of precious metals. Within the next 3 years, watch for a national emergency to be declared, followed by government confiscation of gold and silver. The feds will take your gold and hand you paper money in exchange. The paper money, of course, will be all but worthless shortly thereafter. Only the suckers, of course, will actually turn in their metals...

• Government takeover of your bank accounts. As banks begin to fail in the big collapse, the government will step in and take ownership of the failed institutions, just as it did with Fannie Mae and Freddie Mac (which used to be publicly-owned companies but are now largely just government finance operations). This will put your bank accounts under the direct control of the White House, which can use executive orders to do things like banning all wire transfers out of the country or limiting daily withdrawals and transfers. Sure, you'll still "own" your money in the bank, you just won't be able to freely access it!

Fact #6 - Most people have no idea about fractional reserve banking, derivatives, the money supply or the Federal Reserve
It's not just that most people don't understand banking and finance; it's that even members of Congress have no idea how all this works. With few exceptions (like Ron Paul), they're just clueless!

Fact #7 - Most people are betting their lives on the dollar
People buy insurance for their cars, their homes and even their health. But when it comes to money, 99 out of 100 people in America are betting their entire financial existence on the U.S. dollar! They get their paychecks in dollars, their savings accounts are in dollars, and all their assets are denominated in dollars. As a result, they have no diversity to protect them against dollar devaluation.

That's kinda crazy, considering just how quickly the dollar could collapse in the near future and become totally worthless. That's why smart people are diversifying their assets and converting dollars into land, gold, silver or even storable food. Here in central Texas, even ammunition has a long-term barter value that far exceeds dollars.

Looking around at the financial behaviors of others, I'm just stunned at how many people are betting everything on the dollar because they never realized they had any other option (that's the way the government likes to keep it, of course!).

This entry was posted on August 16, 2011 at 9:14 PM and has received 562 views. There are currently 0 comments. Print this entry.