It wasn’t too long ago that the global economy had the gold standard—only a certain amount of money was printed and that printing was based on the holdings of gold bullion a country had
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Chicago, IL; Houston, TX; Los Angeles-Long Beach, CA; New York, NY; Washington, DC (PRWEB) December 03, 2012
In a recent Profit Confidential article, lead contributor and financial expert Michael Lombardi agrees with the Prime Minister of Turkey’s recent statements that urge the International Monetary Fund (IMF) to consider gold as its base currency. As Lombardi notes, the Prime Minister of Turkey suggested that the IMF has heavily relied on the U.S. dollar and that this factor alone has caused more chaos for the other countries in trouble. (Source: Sabah, November 14, 2012.) According to the Profit Confidential expert, the only way to prevent inflation and the constant debasement of fiat money is to have the global economy go back to the gold standard.
“It wasn’t too long ago that the global economy had the gold standard—only a certain amount of money was printed and that printing was based on the holdings of gold bullion a country had,” states Lombardi.
In the article “In the End, Why Going Back to the Gold Standard May Be the Only Alternative,” he notes that now, after a few decades of running away from the gold standard and flooding the global economy with paper fiat currency that can be created out of thin air, countries in the global economy are turning their attention toward gold as a source of safety—something that has stored value for much longer.
He adds that since the inception of paper money, the amount of economic risk in the global economy has increased. Lombardi states that the biggest concerns are inflation and the constant debasement of money.
“A dollar U.S. in 1970 is now worth $5.96 in the U.S. economy. For American citizens, their currency value has declined almost five-fold since [the global economy] stepped away from the gold standard,” says Lombardi. “It’s the same situation elsewhere in the global economy. Fiat paper simply has less purchasing power as the year passes.” (Source: Bureau of Labor Statistics, November 14, 2012.)
According to the Profit Confidential expert, the simple solution to stop the erosion of the purchasing power of paper money is to go back to the gold standard—which is what the Prime Minister of Turkey has also recently suggested. Lombardi reasons that if the eurozone area combined all its gold and pegged it to the euro, it could potentially put a stop to the crisis destroying the global economy.
With the uncertainty and debasement of currencies in the global economy, Lombardi concludes that as the global economy deteriorates further, there just might be a gold rush dominated by central banks.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.