Happy Birthday to fiat currency.

In 1971, 50 years ago, the US dollar came off the gold standard and became a pure fiat currency.

What’s fiat currency?

Fiat means something that is done by force of authority.

A fiat currency is a means of payment that is intrinsically worthless as it is no longer backed by anything of value, such as precious metals. It is a forced method of payment by control of government under the legal tender laws. It’s purchasing power is determined by the government and central banks rather than free market economics.

Not backed by anything of value, only debt!

Because all currencies have been pegged to the dollar, and the dollar isn’t pegged to anything, it has been printed in the billions. Billions of new currency notes have been printed by all countries, which has caused the debasement of all currencies by over 95%. This means every year, for the last 50 years, your ‘money’ has purchased less that it did the year before because it is continuously loosing value, which is why you see the prices of everything rising.


How do you protect your wealth and savings?

Prior to this fractional reserve, fiat banking system, currency was stable as it was backed by gold. This simple chart shows the increase in the price of gold compared to the £ since 1971, and how much more of the Pound you need to buy an ounce of gold each year.

Where do you store your hard earned savings? In a bank in £’s or do you convert your currency back in to Gold to protect your wealth?

Converting any amount of your savings in to gold is a lot easier, quicker and safer than most people think. Find out how easy on our, Own gold page here.

Happy 50th Birthday, but I think it’s plain to see, this is a failed system which has caused huge financial poverty for those that are unaware of why they are getting, and feeling poorer each year.

If you are one of the growing number of people who are waking up to this theft of our wealth and savings through inflation, share your knowledge, you might just change a few lives for the better.