Rob From The Middle Class Economics

The comments below are an edited and abridged synopsis of an article by Gary Christenson

Fiat currency units created by central banks and commercial banks have benefitted stocks, bonds and those in the top 5% of incomes far more than those earning hourly wages or who survive in the bottom 80% of incomes. Every newly created currency unit devalues all existing currency units. The extra currency in circulation creates higher prices for consumers and financial assets. Consumers experience that as their basket of goods costs more year after year. In a financialized economy, wages rise slowly while debt, currency in circulation, and paper financial assets increase rapidly.

Rob From The Middle Class Economics | BullionBuzz

If you earn wages paid in debt-based fiat dollars, your purchasing power decreases because fiat currency units are devalued by the massive government and central bank printing of those currencies. The middle class can protect its savings and purchasing power with gold and silver. The same is true for the S&P 500 Index and bonds, but if you don’t want to play the paper game and you want to own real money, not the digital and paper stuff, then gold and silver should leap to mind, because they are financial insurance and protection against continuously devaluing fiat currencies.

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