The Currency Illusion
QUESTION: I want to share a true story with you.
My father as a young boy in Greece saw what gold did for his family.
My grandfather in Greece in the late 30′s and 40′s saw the rapid devaluation
happening to the drachma. English sovereigns were plentiful
there at the time as a sort of duo currency.
As you can probably figure out he was converting any of his cash to gold
sovereigns.
My question to you is why do you protect the American dollar
and not the people of the world from the rapid devaluation
of their savings.
ANSWER: This is the entire problem with currency – people do not truly understand it and attribute to a single object value that does not truly exist. You can “think: it was gold that rose, but was it simply that the Drachma declined? The difference is critical. If ONLY gold rose then what you say would be correct. But if EVERYTHING rose, you are wrong.
…click on the above link to read the rest of the article…
