Monday, March 5, 2012

Inflation and the Dollar Crisis

ByTom Genot

Expert Author Tom Genot

Simply, the higher the inflation gets the further along we are in a dollar crisis and the less our currency is worth, thus the less we can buy. The global inflation rate can also be a major factor that determines the amount of goods and services that can be purchased with your money both domestically and internationally. For example one method that can be used to check for inflation is to follow food prices both domestically and globally. Usually when a pattern is noticed in rising food costs it will directly correlate to the realization of an inflationary crisis.

A nation can actually create inflation by simply doing one thing. They can make the amount of money that is in circulation exceed the value of goods and services that are available for purchasing with that money. An example of this is simply to make the supply of money exceed the demand for money. Put another way, to increase the nation's money supply excessively by over printing its currency.

Why would there be inflation in the United States? Because at this time, the money supply in America is exceeding its own demand for money. The excess currency supply in the United States has been created by two factors. The first factor is by de-industrialization and second factor is by currency creation.

As the devaluation of the US dollar continues, global currencies will be devalued because the dollar is also connected to global currencies. As a currency declines, the amount of currency necessary to trade for an ounce of gold or silver will increase. As the US dollar crisis continues towards its path of destruction you will be seeing the price of gold and silver rising dramatically as well.

Although the price of gold and silver has been increasing along with the dollar crisis most people are still not investing in it. Even those that are savvy in global finance aren't actually investing in these precious metals. Returning to a strong US dollar by backing the dollar once again to physical gold, and or silver during the crisis on the US dollar would be like inter-connecting the pillars of a wall to its foundation for safety.

In actuality the crisis on the US dollar began back in the days when silver coins were called "pieces of eight" from the times of the Continental Congress. It was during this time when these silver coins, also considered "hard money" were changed to paper money. Sadly paper money also known as fiat currency has gained momentum ever since.

Protecting your wealth from inflation, the dollar crisis and the dollars own destruction is of major concern. One way of protecting your future assets is to invest in physical gold and silver. Because throughout history gold and silver have always been a storage of true value, regardless of good or bad economic conditions.

Tom Genot -

For information, news, articles and videos to invest in gold and silver and where the best places are to buy it. You will also find information for preparing and protecting you, your family and your assets from the pending economic crises and destruction of the US. Dollar. Author Tom Genot provides information and resources helpful to everyone. Insure your prepared beforehand, check us out at www.coinbullion.net.

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Tom Genot

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MLA Style Citation:
Genot, Tom".".12 Feb. 2012EzineArticles.com.15 Feb. 2012 .APA Style Citation:
Genot, T. (2012, February 12). . Retrieved February 15, 2012, from http://ezinearticles.com/?Inflation-­and-­the-­Dollar-­Crisis&id=6876585Chicago Style Citation:
Genot, Tom "." EzineArticles.com. http://ezinearticles.com/?Inflation-­and-­the-­Dollar-­Crisis&id=6876585EzineArticles.com© 2012 EzineArticles.com
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