Understanding The Difference Between Money and Currency

Hi it’s Barry in D.R. It’s good to be back with you again. Well another great day in paradise! Just hanging around looking at the sea and started to ponder this thought. Besides being one of the most common inquiries received to date, it’s been so many years since I actually had to sit down and really give it some serious thought.  I started a proactive approach to planning over a decade and a half ago.

Discovering a Dollar In Freefall

Discovering a Dollar In Freefall

How did I start seeing these current plagues to our economy and currencies so far in advance?

As any blogger, I need to rely on sources of information that I find to be reliable.  I am constantly scouting various sites for good bits of information that my listeners will find valuable.  A common goal for most bloggers is to attempt to select the fillet from the bull… so to speak.  Now I’ll be the first to agree that some others have it bass ackwards and seem to try to select the bull from the filet.  Such is the world we live in.  I once was told “when you change the way you look at things… the things you look at change”. Can’t remember where I heard or read this, possibly Dr. Wayne Dyer as I’ve read almost all of his 30 plus books. I still practice that way of thinking to this day.

It surprises me that with of all the blogging sites out there, only a small hand full of the bloggers themselves have actually prepared much for what they are blogging about. Sure they have some metals put aside but really not much more than that. Boy, I feel sorry for them.  Perhaps they somehow feel bloggers are excluded from the upcoming perils.  This has contributed to my personal observation that all to often the term blogger means “an expert who will know tomorrow why the things they predicted yesterday didn’t happen today”.

I feel very blessed that I finally got out there and started communicating directly with some of the sharpest thought-leaders and real experts in the blogging world….. People that really are adequately prepared for what’s right around the corner. They not only talk the talk, but have also walked the walk.  To me, that’s creditability.  Most were very surprised how far along the path I was and for how long a time.

One of my biggest regrets to date is this…. I should have gotten out of my box and reached out to these people years ago.

This is one example of what I refer to as being reactive instead of proactive.  Nobody’s perfect and it’s a learning curve for us all.  On a personal note, I’m really looking forward as some of them are actually coming down to spend a bit of time with us in the Dominican Republic.  For many of them, it’s actually to check it out for themselves. The Dominican Republic has been on their radar as a possible best destination when it comes to thriving, and not just surviving, during the coming currency collapse.  From a feet-on-the-ground perspective I couldn’t agree more. Life here is great.

US.Dollar Melting away to nothing.

US.Dollar Melting away to nothing.

Looking back on it, I now have to admit that despite all the research in those early years, what really happened was that I was actually struck between the ears by a blinding glimpse of the obvious.  Paper currencies never survive in the long run.  They never have and they never will.  The only way to avoid being a hapless victim of their collapse is to be prepared to take action to protect yourself and your family.

The short list of defensive measures has stood the test of time and is just as effective today as they were a decade ago.  Adopt these measures in your life and you will benefit too.  But the time to act is NOW.  Time is running out as quickly as a game of musical chairs.  Do not be the one with no where to land safely.

First, start deleveraging your position on assets with no real sustainable value. Do this NOW!  People should have already caught on to these fake Ponzi fiat scheme’s years ago, yet we continue to be besieged by fraud on Wall Street, fraud and mismanagement of the banking system and gross governmental devaluation of our paper money.  Don’t be the last one holding those near to worthless dollars and euros.

Fiat Paper Basket

Fiat Paper Basket

Now I realize you can’t do it all at once. It’s not a switch on and off type of deal.  But, here’s what you can do today though.  Begin removing all of your fiat paper assets from your so called eggs-in-one-basket portfolio.  The ultimate goal is to focus on your retirement accounts, 401k’s and at least 75% or your savings and start to shift them into real assets.  That basket you’re in has been leaking for a long time and the next barage of “surprises” will make the past look like childs play.  While it may not be obvious yet, many of the eggs are already cracked or broken, but just haven’t leaked through the wicker yet.  You see, the paper they’ve been printing so much of over the last few years has been temporarily masking this big mess, but it can’t continue much longer.

The world has lost faith in the major currencies… starting with the U.S. dollar.  When it starts to freefall, there is no one there to catch it and prop it up again.

One of the seven attributes of what constitutes real money is the following: Retaining or increasing in value over time, so has to be scarce. Can you even for a minute tell me that fiat currency is scarce? Is it retaining or increasing in value over time? Of course not.
It’s currency, not money.

Wait a minute; hold on there.  I can see the puzzled looks through my laptop screen already. Money …  Currency,  isn’t it basically the same. NO! It’s not! Follow along with this little example. It might be the first time you really understand this and you need to. If not, your chances of coming out of this upcoming mess don’t look very promising.

I had a Skype call conference last month for my email group. There were about two hundred attending in total and it was my goal to clear up some of the confusion between what is money and what is not.  Several accountants were present during the call, so I knew this was going to be fun. I’ll get to my first question to ask in a moment… but I encourage you to do the same with your own family, accountant and best of all, your financial planner.  Ask them “what is the difference between money and currency? You’re going to be surprised at the answers you get, or better yet lack of answers you receive.

This is important and you’ll see where I’m going with this very soon. If I don’t clear this misunderstanding up NOW, you won’t see the importance in the balance of anything past this first point. And that for sure will have a devastating negative impact in the not too distant future.

Vettes For Gold - Value of REAL Money

Vettes For Gold – Value of REAL Money

Now what’s wrong with the answer…”They are both the same”?  Consider this. Case in point, in 1970 a corvette stingray cost you just under 6,000 U.S. Dollars. You can look it up. Today a corvette (just looking on line) would set you back about 65,000 for a middle of the road model. So lets look at that a little more closely.  I guess you could say that Vettes have become 10 times more expensive over these 40 years.  Right?  Currency required in 1970 was $6,000 and in 2012 it is $65,000 roughly.

So is a Vette really getting that much more expensive?  After all, didn’t technology and manufacturing efficiency improve over all these years?  Didn’t all this technology and productivity do it’s intended job of bringing down the cost of producing things and of improving their functionality?  Yet the price of the car went up to 10 times in paper dollars.  But is the Vette really getting that much more expensive?  No!  The problem is, you’re currency is losing its value.  It’s not that things are getting more expensive. That’s what the Main Stream Media (MSM) wants you to believe so you don’t get wise and get out of their Ponzi fiat currency game.

Lets look at that same Vette in the perspective of real money.  During 1970 you could have purchased that same car for about 160 ounces of gold.  Now stay with me.   That same car today would cost you roughly 40.5 ounces of gold.  That translates in real assets to about ten cents purchasing power left in the dollar from just 40 years ago.  Contrast that with gold, a real money.  Back in 1970 it took about 160 ounces of gold to get that car, yet in 2012 it only took 40.5 ounces of gold… in real terms, that Vette costs 75% less today .

I have another one or two points to address.  It’s that important that you understand this concept completely.  Gas/fuel is actually getting cheaper NOT more expensive. Adhering to the same example as above and by being proactive, we’ve been able to position ourselves where today we are paying roughly 14 cents for a gallon of gas.  Now you may be thinking this guy’s nuts, right? Crazy like a fox might be a better description though. I started stacking U.S. pre 1964 coins years ago. Up until the past few years you could have bought them for next to nothing more than their face value. Take a pre-1964 U.S. dime for example and what a gallon of gas costs today. Gasoline for us costs about one and a half of these dimes. That’s right at 14 cents a gallon!

Oil may be sold in all different currencies, but the real price of oil is pegged to GOLD! The cost of a barrel of sweet Texas Crude costs less GOLD (Money not currency) today than 40 years ago. So once again, it just goes to prove my point in understanding the difference between money and currency. All U.S. pre 1964 dimes and quarters are made from 90% silver. Really hope your starting to understand this.

Because of it’s importance, I’ve spent a little more time covering this first topic. I have understood this over fifteen years now. I can’t begin to describe the difference it has made in our lives. It’s not too late either, so don’t even go in that direction.  Just start shifting your assets now.

Next week I’ll be getting into another area you will need to reconsider.  Remember “change the way you look at things and the things you look at change”.

Dominican Republic Presidente Beer

Dominican Republic Presidente Beer

One of my favorite things about living in the Dominican Republic is the beer. I’m about to rekindle that relationship right now. A relationship and a baby have one thing in common. If you don’t nourish it, it doesn’t grow. I’m going to nourish that tall cool relationship right now. This is Barry saying, see you in D.R. and I’m out.

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