Econ Addicts

You can’t save your cash, and your bank is gambling with most of *your* money.

Inflation is destroying the USD buying power and we’re beginning to see its effects in the broader economy. Where do we go from here?

Fractional reserve banking is a system in which only a fraction of bank deposits are required to be available for withdrawal. They are only required to hold 10% of your deposit, and they loan and ‘invest’ the remaining 90% of it. This historically has led to bank runs, like what we saw between 2021 and 2023, where the amount of depositors withdrawing so much money simultaneously, that banks could not give them THEIR OWN CASH.

This banking system is inherently flawed, and easily avoidable, yet it still continues. Of course, it is damn near impossible to have a complete reserve banking system, where banks keep all of their deposits on hand, but this system does not function effectively. Our dollar is becoming worthless, our people are struggling more than ever financially, and something’s got to give.

Americans are increasingly searching for a kind of insurance to protect themselves from the inevitable fallout of these banks, and searching desperately for alternative places to store their money.

What are the alternatives?

I am no financial advisor, but I’ve been fascinated with the holding of precious metals that have historically retained their value since the early days of human civilization. These precious metals are primarily gold, silver and platinum. These can be purchased online, through sites such as moneymetals.com, which I have personally used and will continue to.

As of this writing, gold is at 2049.55, nearly an all-time high spot price. That’s cool, but why do we even care about gold so much? Dominic Frisby, founder of https://www.theflyingfrisby.com/, says in a recent Kitco News interview, that gold is the “closest you’ll ever come to touching eternity.” He goes on to say that it is generally agreed that gold is created when stars collide, which creates heavy metals, which are then dispersed into space. This is also how the solar system was created. Therefore, when you are holding a piece of gold, you are touching a metal that has existed longer than our solar system.

Gold is captivating in color, brightness, and shine; it is durable and virtually indestructible; it is highly malleable so it can be made into coins and jewelry, and it is usually found in nature in pure form.

This is why gold primarily has retained its value through the ages, through thousands of years and through the rise and fall of thousands of civilizations, and likely always will. Just think about it.