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The GFD

Recently I’ve been speaking about the coming collapse of the financial system in the Western world and how the system is in its final stages.

So, how did this happen?

To understand the present we need to know the history so let’s start there.

I’ve studied the history of money since about age 9 and have collected money – coins and notes – from around the World. I’ve gathered some really fine pieces too!!

The first cur fiat currency dates from about 1000 years ago in China. Fiat means basically, paper as money rather than metals such as Gold, Silver, Copper and Nickel, all of which preceded paper as money for thousands of years, in one form or another.

Over this last Millennium the world has seen about 10,000 fiat currencies….and every single one has eventually failed, turning to zero value after an average life of 40 years.

What killed them? First inflation which turned, at some point, into hyperinflation.

We see many examples in recent history in Germany during the 1920,s and 30,s as one. Where a loaf of bread went from a cost of 5 marks, to 50,000 marks in a few months.

It’s happening right now too in both Zimbabwe and Venezuela….both of whom are extremely wealthy resource rich countries.

When did our current system come to life? In 1971 with the birth of the Petrodollar courtesy of the US and Saudi Arabia when ‘the US $ become the world’s reserve currency. In other words, when most international financial transactions were made in

US$’s. For example if China bought oil from Iran, they paid in US$’s. Each and every transaction meant the US Government “clipped the ticket” on the way through from seller to buyer.

These transactions were guaranteed only on a promise as President Nixon removed the Dollar from the Gold Standard. The Dollar had no intrinsic value whatsoever. It still doesn’t. The Dollar is entirely dependent on the printing presses to stay alive and since 2008, the presses have run hotter than ever.

We are approaching 50 years of the current system.

Never in history has such a system played out so long. So it’s very difficult to know for sure what the outcome will be.
But history suggests, and I believe, that inflation, then hyperinflation is where it will get to.

Study the chart below which shows stock market trends for 200 years up to 1971.

Now, head down the rabbit hole, do your own research and get informed before you disbelieve what I am saying.

Finally, some are saying that Crypto currencies look like they are in a bubble.

But ….are they?

Look at the chart and note the uptrend on the S&P 500. It’s an almost vertical line straight up with companies burning through cash like an incinerator.

Do you have a plan for when that bubble finally bursts?

Please always remember I am not a financial adviser and this is not financial advice. I am trying to encourage people to get informed and help themselves, and not to rely on others. Decentralization is the key word.

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