Money is a Trap

Money is a Trap – The age old Financial advise “Save Money” is no longer effective to ensure any kind of financial success but in fact if you follow these age old financial advises, you will surely meet the financial disaster.

Modern Money is a Trap. It is not the money but it is the Currency. After the 1971, The USA had removed the Gold Standard so the modern money is not backed by anything except the full faith of government.

Since 1913, USA has created US $ 800 Billion of Base Money up to 2007. But in last just 1-2 years it has doubled this base money to more than double to US $ 1700 Billion.

It means that, USA has printed the same amount of money in last 2 years, which it has printed in last 84 years.

So Now the United States Dollar is the terribly flowing currency. And sooner or later, the other countries of this world will have to print more money to dilute the purchasing power of their money. Otherwise the Dollar become weak and nobody in our world wants that, Dollar become weak.

Because of the Dollar become weak than the export of every other country will suffer. In short, sooner or later the world economy will suffer extremely high inflation and the purchasing power of all the currency will be reduced.

So Saving Money is a Trap in this type of situation. So what is the solution of this problem? While Central Banks all around this world are printing more and more money in the circulation, How can we preserve our Wealth?

Well, The Simple way to preserve the wealth is buy Assets in exchange of Money because the Assets are more valuable than money. No matter, How much money the governments will print, the Assets will be always more valuable than Money.