The world now awaits $600 billion worth of newly “printed money” to hit the economic system as the Federal Reserve will buy around $115 billion dollars of US Treasuries per month.  This is war; a currency war, a war that will inflate the monetary system and make it pointless for any individual or enterprise to save money.  Now is the time to buy gold coins and bars.

The Fed last month stated for the first time ever, that inflation is “below their mandate” and that they intend to achieve higher rates of inflation moving forward.  They are no longer concerned with deflation and intend to send prices higher.  We are about to witness price increase across the board on most food products.

The Bretton Woods agreement signed after WWII made the US Dollar the world’s reserve currency.  This means that all international transactions are based in dollars.  Therefore money printing by the US forces other countries to keep their currencies lower to maintain a stable exchange rate.  In other words, all countries are on a Dollar Standard instead of a gold standard.

So when the US prints money it sends inflation over seas to our trading partners.  It is only when China for example, devalues their currency in response to our devaluing can they maintain stability.  A currency war is a way for the rest of the world to protect themselves from a barrage of US Dollars.

As the Fed continues on the path of monetary inflation, take comfort in gold as it does not have to fight the currency war.  This is because it is not a fiat currency.  It rises when fiat currencies are devalued.  Fiat money can be printed at will (all currencies became fiat under President Nixon when he removed us from the gold standard in 1971) until that economy collapses.  Gold is not attached to any one economy and has never been worth zero.  It is the ultimate hedge against fiat currencies.

If the world is truly watching the death of fiat currencies then gold is the world’s savior.  Those that own it will be safer than those that don’t.  Those with gold will be the ones with true wealth as we watch the dollar erode away to nothing.