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nutshell
Why: In a nutshell            Why 1 | 2 | 3

Historically, fiat currencies (money backed only by faith in the government issuing it) have always become victims of hyper-inflation, eventually making the currencies worthless. The blame falls squarely on governments. Inflation is destroying the dollar.

Monetary Policy
Right now, fiat currencies rule the world. Not a single major currency is redeemable for a commodity such as gold. Governments have no intention of returning to a gold standard. Since governments tend to spend more than they collect, and because politicians know it's unpopular to raise taxes, they often make up for shortfalls by printing more money. This process creates the hidden tax of inflation, which devalues the currency. But there is another threat looming for America's currency: foreign countries control billions of American dollars.

Trade Deficit
The United States trade deficit is at an all-time high, $725.8 billion dollars in 2005. While the dollars that are being shipped overseas to import goods are often invested back into the U.S. economy, the continued devaluation of the dollar threatens to prompt foreign governments to divest themselves of U.S. assets. Such a decision could send the dollar plunging, destroying the American economy.

It is time to protect yourself. It is time for digital gold... (next page)