For generations we Americans have looked down with scorn upon the other currencies of the earth. And with considerable justification we could correctly say that something was as sound as a dollar. Those happy days are now ending and we will be the last people on earth to figure it out. This does not mean that the other currencies of the earth have suddenly become virtuous. Far from it. The dollar has simply joined the race to the bottom. All the world's currencies are garbage and the world is just starting to figure it out.
Money today has a fatal flaw. All of today's money is fiat money. In other words it is not backed by gold or silver. It is only backed by the ever more hollow promises of the state to be responsible in issuing more of it.
Only a drooling idiot could believe this promise today. Then again, there seems to be no shortage of drooling idiots in this world. What I really want to know is who are the cretins who are willing to buy 30 year treasury bonds for a return of about 4%? Who are they? What cave have they been living in for the last thirty years?
I am old enough to remember when it was different. In my navy days when we pulled into a foreign port we would be issued what we called " funny money." Little did we realize that the day would come when the mighty dollar would become "funny money."
Historically speaking there have only been three really sound currencies. The dollar, the pound and the Swiss Franc. All the rest were correctly regarded as being garbage. Don't talk to me about the German Mark, that currency went to zero twice in the 20th Century.
The first paper currency was created in China during the 13th century. Marco Polo reported on it in amazement. The only reason why it was accepted was that the death penalty was imposed on those who refused to accept it. Since that time every paper currency without exception has gone to zero. There are no exceptions. None!
The superior performance of the dollar, the pound, and the Swiss franc has been very much a relative performance rather than an absolute performance.
The pound used to be worth a pound of silver. That's how it got its name. An ounce of silver today sells for about $15. What does that tell you? By law twenty dollars used to be worth an ounce of gold.
I am a coin collector. I can still remember when I could buy a twenty dollar gold piece with almost an ounce of gold in it for $70 and silver dollars for five dollars. What a fool I was not to buy more. Today a twenty dollar gold piece goes for about $1,300.
The holly trinity of the dollar,the pound and the Swiss franc can no longer be trusted. Governments can no longer be trusted. Only gold,silver and natural resources can be trusted. Wealth in the ground will make you rich. Those who place their trust in the paper promises of their governments are engaged in a riverboat gamble. What is comical is that they think they are playing it safe.
I wrote my book because I wanted people to know that there is an affordable alternative to buying blue-chip stocks at $40-$60 a share. A price that renders many blue-chip stocks unaffordable. Most of us cannot afford to buy these stocks in sufficient amounts to ever make us financially secure.
In my book I put in my email address so that readers could contact me. The first reader to contact me was Bill from Buffalo. Bill told me that he was forty years old and had a wife and two kids. He lived in a modest home and had $8,000 in life savings. He told me that he knew what his future was and it terrified him. He was going to be working at a fast food place when he was 69 years old. That was his future. He didn't have enough time or money to buy enough blue-chip stocks that could be expected to go up 10% in an average year to enable him to retire at 65.
My way provided him with an answer. He could easily afford to buy my low priced, unknown stocks in amounts big enough to make a difference.
In addition my smallcap and microcap unknown stocks had better growth prospects than the old, tired blue-chip dinosaurs that everyone else is forever touting. I don't do guarantees. If you want guarantees go to the bank and see if you can get rich on the miserable returns that they offer. If you want opportunites then I am your man. I offer my readers a chance to make serious money on a chump-change investment.
Fred Carach is the author of "Forty Years A Speculator.
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