Why

 Why Rethinking the Dollar? 

 

Rethinking the Dollar (RTD) is to first know the origins and then reevaluate what you have been taught to believe about the dollar. When it comes to money, especially the United States Dollar, a lot has been left out of textbooks and the mainstream news. The dollar has undergone various alterations from the one George Washington carried in his pouch to the paper in your wallet.  The alterations of the dollar have not only been in physical composition, shape and size, but also its value. More importantly it’s declining in the ability to purchase goods and services over time that you should be concerned about. One simple fact. The dollar doesn’t buy you much these days. 
 
In the 21st century, the dollar to the common man is a mystery. It has been a mystery because there is no formal education equipping the users to appreciate the dollar as a financial tool. With all the subjects taught in our school system today, money is not one of them. The average student will spend approximately 19,000 hours in a classroom environment (kindergarten to a college degree) and receive a minimum of a few months or a semester worth of useful information on the subject.
 
The dollar as a financial tool is changing year by year and as it changes even more of the dollars dark-side is exposed. Out of 180 world currencies in circulation the United States Dollar is the longest standing currency on the planet. Every single paper currency has suffered some type of catastrophe that has wrecked economies and destroyed personal savings. Everything in life has an expiration date on it and that includes money.  The dollar, Federal Reserve Note, as  the current world reserve currency is approaching the end of its life-cycle.  
 
The dollar the founding fathers once knew is no longer in existence. It is my opinion based upon extensive research that now is the time to began not only thinking about the usage of the present dollar but using history as a guide to better understand the future of the Dollar.
 
As times moves forward and the truth about the uncertainty of the usage of the dollar on a global scale will expose the world  to a few undeniable facts. The world is waking up to the malfeasance of the authorities in charge of the current world reserve currency. This awakening to the unreliability of the dollar for international trade is causing nations to reject the dollar at an ever increasing rate.  The primary reason the dollar is loosing its global appeal is because nations know the dollar is not a good storage of wealth.
 
 To began understanding why rethinking  the dollar is a subject worth your time is to know the why, what and how of the current status of the dollar in the United States of America. There are a lot of positives around the dollar as a global reserve currency, but more negatives as to its future. Understanding these negatives is what might make the dollar a hazard to humanity in the years ahead.
 
Here are things you need to consider about the status of your personal dollars in your possession.
 

What are the Five Dollar Hazards?

 
Here are five dollar hazards that should make you question your current perception of the longevity of the dollar. All these elements listed are key fundamentals in understanding the global viewpoint of the dollar.

 

5. National Debt of 18 Trillion PlusThe United States is one of the most indebted nations on the planet. There’s no way enough money could ever be collected in taxes to repay creditors. Every year the burden of an increasing debt upon the population grows further beyond reach of being able to be repaid. Every crisis on the graph below in grey (recession) has led to the further expanding of government borrowing. (Additional Information Here)

 FRED3_CPIndex2014

 

4. Deficit Spending – Every year Congress approves borrowing billions and/or trillions of dollars to finance the interest payments from prior years debt. In order to fund the current expenditures such as social security, medicare/medicaid, etc. the government, as a business, becomes more insolvent. No longer are the days of the United States being a lender to nations from a surplus of reserve capital.

The graph below demonstrates that we have been a heavy borrower of money since the start of the 21st century. How long can we continue to borrow? Until our creditors say enough is enough…

 
Budget Deficit LT

 

3. No More King Dollar  – The supremacy of the dollar as the single reserve currency of the planet is being challenged. Since the United States is a debtor nation, its creditors have decided to move away from using the dollar exclusively in trade. The United States dollar has held supremacy over all fiat currencies as a trusted trading tool since the (post-World War II) Bretton Woods Agreement was established in 1944. Since the Crisis of 2008, the dollar has become less and less of a trusted store of value globally. Developing nations known as the BRICS (Brazil, Russia, India, China and South Africa) have jointly decided to begin rethinking the dollar in trade. Hence the latest movements to begin de-dollarizing their national reserves. (Additional Information Here)

yuan-dollar

Photo by ChinaFotoPress/Getty Images

 
2. Printing Press – Since the passing of Bretton Woods Act in 1944 the printing press has been a financial tool used by the United States to fund itself by printing more fiat currency (money) than the world needs. The more the printing press runs the more your personal wealth is destroyed. More paper in circulation causes inflation of the money supply. There are now more dollars outside United States than inside. Every gray line on the graph represents a crisis and the result was the printing of more money without ever addressing the real cause of the problem. (Additional Information Here)
   M1-Money-Supply
1. Money Debasement – The greater the quantity of money, the less valuable our current money is worth. The less valuable your money, the more the cost of goods and services you can purchase because the nominal prices go up. The reason a newspaper could cost a nickel decades ago and now cost several dollars is due to the diminishing of the purchasing power of a single dollar. A dollar in the 21st century purchasing only 3-5% of what it could have purchased a century ago. So to say it another way. A dollar has lost 95-97% of its full strength over time.
(Additional Information Here)
 
Purchasing-Power-Of-The-Dollar
 
 
To summarize the 5 hazards into one simple statement: 
The national debt of the United States is so large that the only action the United States Government can pursue is to continue borrowing more money. The more money is borrowed by authorizing the Federal Reserve to run the printing press the poorer those dependent upon the fiat dollar will become. It is the expansion of credit and printing of money that has been the reason prices are at all times highs and the quality of life for the monetarily uninformed is diminishing . 
 
Therefore, the dollar is in big trouble in the days ahead.
 

Why should you be concerned?

 

Here is the basis as to why you need to rethink everything you have known as money. History has proven correct throughout various time periods and in multiple nations. There is one undeniable fact that has yet to be proven false by any economist or historian. All paper money, every single time, since the invention of fiat currency always returns back to its original value.  ZERO… (Additional Information Here)

 

“Paper money eventually returns to its intrinsic value – zero.” (Voltaire, 1694-1778)

 
If you have read up to this point we are sure you have questions and hopefully uncertainty as to what has been shared. The good thing about uncertainty now places the responsibility upon you to do your own homework to prove us wrong.
 
Of course, we could not bring you this far without offering a solution to the problem you weren’t fully aware of. Rethinking the Dollar was created to shine light upon the subject of money by promoting and encouraging the importance of obtaining a monetary education. The advantage of acquiring a monetary education will prove in the days ahead to be a worthwhile investment in your financial future. It is our belief that taking the initiative to study this subject today will save you from the uncertain economic times ahead. If the Crisis of 2008 took you by surprise, imagine what another crisis could do to you and your family if it was multiplied in intensity?
 

                                 How to begin to Rethink the Dollar?

 

Here are the basic steps needed to begin your re-education process.

 

Step One: GET EDUCATED

Taking the traditional approach and outlook towards money has changed. No longer is it safe to solely allow someone else to take the lead in controlling your monetary future. The days of allowing a financially certified person or computer algorithm to advise you on your money is a very dangerous model.  A great example of the traditional financial and investment advice is the unfortunate events with the bankruptcy of the city of Detroit. There were thousands of people who trusted their monetary future into the hands of people that delivered a broken promise. Politicians promised a guaranteed pension with all the benefits that would sustain their current level of living standards. As of today, a lot of people have awoken to a different reality.
 
The best approach is to begin being proactive with your continuous education. Read and study monetary and fiscal news that will keep you informed from a different perspective than the mainstream story line.
 
A lack of knowledge and effort towards being more involved in your own money may do more harm than good later on.

 

Get started by taking advantage of the free eBook, RTD Newsletter and other educational material.

Step Two: GET CONNECTED

 
No person can achieve any worthwhile results by themselves. That includes gaining a broad viewpoint of the global viewpoint of the current economy as it relates to the usage of the Dollar. Most people have very limited knowledge in basic finance, nevertheless, an understanding of the geopolitical events that are unfolding around the current status of the Dollar as a global reserve currency.
 
The best way to insure that you are held accountable is to partner up or join a community of like minded people that have the same interest and concerns as you. The RTD Forum is designed to offer a link between questions and answers from people who may have the same concerns about their money and the monetary educational journey. If you have questions or need answers the best place to go is to a site dedicated to educating the subscribers of Rethinking the Dollar.
 
Along the road towards getting an education there will be a need for a community. When two or more are gathered to discuss and learn from each other change and improvement will be the result.

 

Join and utilize the RTD Community Forum as a continuous learning tool to discuss and learn from other like minded individuals.

 

Step Three: TAKE ACTION

The most important step is to use what you learn to make a difference. Once you know better you can do better. By reading educational material, listening to commentary, and proactively sharing your knowledge you become more monetarily literate on the subject of money and finance. Not only will you be making a difference in your life, but those who depend on you.

 
The best way to spark curiosity and to engage family and friends about one of the most important subjects of their life is to share what you have learned where you tend to hang out most. RTD has made it easy to follow, like and comment on articles and post that give insight into everything monetarily relevant in today’s economy.
 
Please take a second and join the social media sites. On Twitter, Facebook and Google+ is where information is shared throughout the day as it happens. All the news will be thought provoking and informative guaranteed. 
 

Share this message and educate those around you. Click the links at the top of the page or bottom to follow Rethinking the Dollar.

 

The Monetary Enthusiast