Is Your Money Really Safe in the Bank?

Is Your Money Really Safe in the Bank?

What do you think that, what is the real answer of the above question? You will say that, of course my money in nationalized bank is totally safe because it is backed by full faith of government and it is insured also. So in case of Bankruptcy of the Bank, I will get back my deposited amount from the government.

But well, I am not talking about the Physical Safety of your money. Your money is physically safe in the Bank but what about it’s purchasing power? The Central Banks and governments all around the world are printing trillions of dollars and pushing it into the economy so what do you think that, when the governments all around the world are diluting your money, Your Money Really Safe in the Bank?

Let’s talk about the US Government. US Government has literally printed US $ 2 Trillion in the economy and diluted the purchasing power of the existing dollars in the circulation worldwide. Up to now, US Dollar was world’s reserve currency. But since last few months, Iran government has backed their oil funds from Euro rather than Dollars.

This is because Federal government is printing money like anything. which reduces the purchasing power of the existing dollars and driving the Gold, Silver & Commodity prices up. In 2007, The gold was Rs.7000 per 10 grams but today in 2009, it is Rs.15,000 per 10 grams. So What this suggest? Well, this suggest that, US Government has printed more than twice amount of Dollars than there were already in the circulation.

Whenever, US Government will print Dollars, The Gold price will hike more because the purchasing power of the existing dollars gets diluted.

The Modern Money (Currency) which is not backed by Gold is an elastic money. It’s also known as Monopoly Money. Because in the game Monopoly, the Bank can print unlimited amount of money. And US Federal government is also doing the same thing and that’s why US Dollar is now a monopoly money.

Now, the question here is that, if your money in the bank is not safe than how to protect your money from getting diluting its purchasing power?

Well, in my opinion, you should by Assets out of your money. You should invest your money in your own Business. Or you should buy gold out of it. In other words, only Asset can protect your money from diluting its purchasing power. So just spend your money behind acquiring assets or growing existing assets such as Businesses. This is the only way to protect your Money…!!!