1. Retnuh616

    Well this is kind of scary. This kind of seems like where we’re heading. Our currency is basically worthless since the gold standard fell through and being that the federal reserve is a private bank it seems like one day we will be talking about our own fiat currency. I have thought about investing in gold but I don’t exactly know where to even begin or who to trust.

    • Margarita


      Thank you for your comment. The US dollar though not worthless yet gradually loses its dominance as the main reserve currency.

      History shows that currency of a country with the greatest economy and significant political power eventually becomes the global reserve currency.

      For example, if you look back, before World War II, Britain had the strongest economy and practiced a considerable political dominance over its numerous dominions and colonies – and obviously the pound sterling was the global reserve currency at that time. However, the war had damaged Britain’s economy and political authority, and therefore after World War II, the pound sterling could no longer be the global reserve currency. On the other hand, the US economy, because of its limited involvement in the war and trade with the Allies, grew significantly – this allowed the US dollar to replace the weakened pound sterling. US since then has a status of the world’s greatest power, and although nowadays euro, pound sterling and the Japanese yen are also reserve currencies, the US dollar serves as the main reserve currency.

      However, in the last few years the US economic and political dominance has been challenged by China. China now is the largest merchandise trader in the world; it also became a powerful geopolitical force in itself along with Russia, Germany, Iran, and Saudi Arabia. Chinese yuan on November 30 of 2015 has been added to the basket of reserve currencies and now stands along with US dollar, euro, pound sterling and the Japanese yen. In addition, on April 19 of this year China has introduced its gold-backed yuan with the warning that “there can be no conversion of gold-backed yuan to or from US dollars”. All these changes certainly have effect on US dollar.

      Regarding saving in gold, like most people, you probably would not be able to afford to acquire gold in ounces or even 1/4 or 1/10-ounce coins or bars, so you should look at gold in small denominations or gram weights. Today, there are several companies offering LBMA gold in small denominations; some examples are Credit Suisse, UBS and Karatbars.

      Personally, I chose Karatbars because the company offers a free gold savings account (without any monthly charges) where you can acquire gold in quantities as small as 1 gram. Your gold is either stored in vaults or shipped to you upon your request. In addition, you get small commissions on your own purchases and your referrals (commissions are much better if you become an affiliate). The Karatbars debit MasterCard allows you to convert gold into cash and vice versa. Although Karatbars gold per gram seems to be relatively expensive, it is cheaper in the long term. Read my review on Karatbars here.

      I am working on putting the necessary information related to Karatbars on this website.

      If you have any questions, let me know.

      P.S. By the way, today is June 22, exactly 75 years ago Nazi Germany attacked the Soviet Union… the early morning of June 22 in 1941.

  2. Nick

    I didn’t know that there is actually a difference between paper money and currency! I’m glad that I now know that distinction.

    It is a little scary to think that so far, all fiat currencies have gone through devaluations and collapsed. It’s probably to the government’s advantage to devalue it’s currency so that they can pay back their loans with “cheaper money.” And the normal citizen end up footing the bill for it.

    How long has the United States Dollar been a fiat currency? It seems like that average life expectancy might be just around the corner… 🙁

    • Margarita

      Greetings Nick! So sorry for the late response.

      Precisely! Fiat currency gives central bankers a chance to create money virtually out of nothing (electronically or actually printing it) to fight recession and pay off government debts (for the wellbeing of humanity of course 🙂 ), at the same time creating inflation, that is, a drop down in the value of currency, your savings, and thus hours of your life! Here, you can read more about how central bankers are playing this money game and how it results in you donating hours of your life. I laid it out in easy-to-understand details.

      United States completely detached its dollar from gold in 1971 making the fiat US dollar to be 46 years old now.

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