Will We Need the $1000 Note Soon?

US100000dollarsbillobverse

Pictured above is the former $100,000 bill, which was backed in gold and printed in 1934 (Therefore were not valid for common citizens, as the ownership of gold as money was banned by Franklin Roosevelt a year earlier). Other notes that were printed included $500, $1,000, $5,000,  and $10,000. They were primarily used by banks and government institutions but were stopped by President Nixon by executive order. Apparently one of the reasons for this decision was to “make life harder for the Mafia”, who were infamous for peddling in cash.

The biggest point that comes to mind now, is whether or not as our currency takes a blow from inflation in the coming years, will larger denominations be required? In China, the 100 RMB note is the highest denomination and is worth $14.6462. In Europe the largest single bill is 500 Euros, which is equivalent to $742.4. In a side note, every reputable currency except the USD has its notes of different sizes as to aid those who are visually impaired.

Personally, my favorite form of the USD is in coin form or two dollar bills.

Federal Reserve Sets Interest Rate To 0%, Encourages Inflation!!!

In a move to curb deflation and a weakening economy/ strengthening dollar, the fed virtually eliminated the interest rate and set it within the 0-.25% range. After this the Fed will be hard pressed to find other tools to manipulate the economy, as the interest rate tool is now expended. This is similar to Japan in the 1980s, where they also eliminated the interest rates.

The Fed is also printing out money at an alarming rate, and in the future it will be a challenge to get rid of it. So for all of those wanting to hoard their USD, the Fed is basically going to try as hard as it can to devalue the currency. Other countries are also trying to flood their economies with liquidity, and this I predict will cause dramatic inflation soon.

I think it’s amazing how irrational the Federal Reserve can be at times, and this is one of those times. Our country’s leadership is throwing billions of dollars to failed industries who had in essence wrought their own destruction through irresponsible behavior in lending and car-making / business strategies and now all Americans are paying, and our money is being treated like an experiment.

Fact time, money should NOT be treated as an experiment, and in doing so the Fed is effectively transferring wealth from the rich to the poor, the taxpayers to the corporations, the people who responsibly save their money to those that owe money. It is time to put an end to such practices, it is time to write to your representatives telling them how you don’t like you money and future being in the hands of a banking cartel who is outside the scope of government and whose name is the Federal Reserve. I seriously don’t think JP Morgan and sons, Rockefeller and sons, and those that would give them power should be running the economy. The United States does not run a free market economy anymore, it is a “lets decide who needs or gets what” economy.

Will The USD Ever be Worth Nothing?

I don’t quite agree with the outrageous statements in the beginning, but I think the second speaker has some good points. If you aren’t familiar with the people in the video the first person is Robert T. Kiyosaki and the second is an unnamed financial expert.

An interesting thought presented:

You don’t want to hold on to gold and silver forever you want to hold on to gold until a medium priced single family home costs less than 40 ounces of gold or 500 ounces of silver.

Where to Keep Your Assets

As we have seen in the past few months we know that the dollar is currently at an artificially high value, and meanwhile company stock values have plummeted to record lows. As the saying goes, buy low sell high. Now is obviously the time to buy.

If you are still too wary to put your money into stocks, may I suggest buying gold or silver as they are to me only waiting to spring back up in price once the bailouts take full affect on the credibility of the US treasury and dollar.

Most importantly, you want to be debt free of course. After that, you may consider investing in some promising stocks (I definitely would not suggest short selling at this point).

So in short:

  1. No Debt
  2. No US Dollars
  3. Invest in precious metals, emerging markets, or good stocks

If you decide to buy precious metals, be careful who you buy from. Stay clear of goldline.com because they will charge you if you’re not careful 30 to 40 percent above spot price for a coin they call “collectable”. In all reality, these coins that they tout can be easily bought at price that holds a trivial spread.

Precious Metal Option

It’s better to buy at kitco or perhaps at your local coin dealer/ pawn shop for gold coins.

If you are going for silver, better buy in bulk as it is heavy and costly to ship. Again, your best choice would be to buy at a local dealer.

Emerging Market Option

Although I only have a rudimentary grasp emerging markets in general, I have done some research and experienced real growth in China. I still believe it is a good route to invest in the Chinese economy or currency. Others may suggest India or Easter Europe, but I have not looked into it at present. There are a few mutual funds out there that tap into emerging markets.

A few I can name of the top of my head are:

  • Matthews China Fund (Symbol MCHFX)
  • Matthews Asia Pacific (MPACX)
  • Matthews India (MINDX)

Good Stocks Option

I’m not going to list any stocks here, because these days you won’t find a very stable one and I don’t want to be held liable (legally or emotionally) for any losses. Do your homework and find your own.

Good luck securing your assets for the future.