How Much Currency is Printed in US in the last 100 Years?

How Much Currency is Printed in US in the last 100 Years?

The Total currency in Circulation plus bank reserve is known as “US Monetary Base”. The above diagram is of US Monetary base since 1920. See that up to now, US Government has printed US & 2 Trillion since 1920.

And since 2007 means since last 2 years only, the US Government has printed more money than it has ever printed in its history. Yea, since 2007, US Government has increased it’s monetary base from US $ 800 Billion to US $ 2 Trillion ($ 2000 Billion). It means that since 1920-2007, it has printed US $ 800 Billion and since 2007-2010, it has printed US $ 1200 Billion ($ 1.2 Trillion)….!!!!

Right now the US Dollar is the terribly flowing currency. And sooner or later the US Economy will suffer from the hyperinflation. The sad thing is that, the US Government is giving bailout to other countries of the world from this printed money.

Previously (Before 1971), the US Dollar was backed by Gold. But in 1971, President Nixon has removed the Gold Standard and the US Dollar became a free float currency means the Federal government can print as much amount of money according to the need of the economy.

What Do you think that, Does printing money like this will solve the Financial Problems of the world?

Is Printing Money the solution of the financial problems the world is facing right now?…!!!

Buy Art During Inflation

Buy Art During Inflation

Art is one of the most precious asset class on the earth. One art involves literally hundreds of hours of mind labour work of the artist and this mind labour work makes it valuable. Art is the asset class which has beaten the inflation very well.

The US Government is printing more and more money day by day. And that’s why sooner or later it will suffer the hyperinflation means rising in prices. And Art is the Best Investment that can beat the inflation very well.

What I advise you is that, if you have spare money than rather than keeping it in Cash, just buy an art from it. Well, buying an art doesn’t mean that you buy millions of dollars of paintings. It can be a $ 100 of Sketch also on the A4 size of paper. The art can be worth of anything. It ca start from few hundred dollars to literally millions of dollars.

Just visit the eBay and see the collection of art for Sale on it and buy a nice peace of an art from it or visit your local art gallery and buy some good art for you.

Art can beat the inflation very well. Keeping money on hand is a Fool’s plan because the inflation will erode its value over the time and make it worthless in the long run. While art is something which will appreciate in its price year after year forever.

So Invest in Art…!!!

Investing with Inflation

Investing with Inflation

Inflation is a great concern for Investors. Let me tell you in layman’s language that, what is inflation and how it works? Well, inflation means reduction in the purchasing power of your money over the time. This happens because of the money printing activities oh the government every year. The newly printed money dilutes the purchasing power of the existing money in the economy. This is known as inflation.

In United States, The inflation is around 2-3% per annum. However, some amount of inflation is good for the health of the economy. But recently the US Government has printed literally $ 1.2 Trillion out of thin air only and today the US Monetary Base (Money in Circulation + Bank Reserves) is $ 2 Trillion. The US Government has printed this much amount of money since 2007. And it is now giving bailouts to big corporations and central banks around the world from this money.

Thus, sooner or later, the US Economy will face hyperinflation. So from this Information, it is clear that Saving money is worthless. If you have $ 100,000 in your bank savings account or Cash on hand than it’s not a wise decision because the purchasing power of this money will be eroded because of the federal money printing activity.

And this is the reason you should invest your money so that it grows over the time and maintain it’s purchasing power. No one wants to see their money’s purchasing power eroding. You can invest your money in any asset class. Asset is something which is likely to appreciate in the future.

You can invest your money in Stocks, Bonds, Gold, Mutual Funds, Businesses, Real Estate, Art, Antiques, Collectibles, Web Properties (Blogs, Forums & Domain Names) and many other assets. You should invest your money so that it can maintain its purchasing power as well as to grow it.

Investing for Deflation

Investing for Deflation

As all of you know that, US Economy may slip into the Deflation. However, the Fed has printed almost $ 1.2 Trillion and pushed it into the economy so the chances are very likely that, we will experience the Hyperinflation rather than the Deflation because the newly printed will dilute the purchasing power of the existing money in the circulation which will cause hyperinflation.

Now, what it means by Deflation? Well, it’s exactly the reverse of Inflation (Hyperinflation). Means here the purchasing power of money increases over the time. This means that goods, services & Assets in the economy become cheaper and cheaper day by day. Initially it looks cool but this is not good for economy & businesses in the long run because the businesses will post the low earnings on the wall street and their share prices will go down and thus the erosion of wealth.

Now, What to do as an Investor during the time of Deflation?

Well, it’s very simple. Here are two ways for Investing for Deflation -

01) According to Financial Experts, “It is always advisable to become a lender (Debt/Bond Holder) rather than a Borrower during the time of Deflation.”

It means that during the time of deflation, you should invest in the debt funds, bonds and any other kind of debt instruments. Because during the time of deflation, your money becomes more valuable day by day (Exactly reverse of the Inflation). So it is not advisable to borrow money but to lend money.

02) Cash is the Best Investment during Deflation – Well, This is because during the time of deflation, your money becomes an Asset. Otherwise, money is not an Asset because the inflation erodes its purchasing power over the time. But during the time of deflation, the value of your money increases day by day because the goods and services in the economy become cheaper and cheaper. Thus, Money (Cash) is the best asset during the time of deflation. So Invest in Cash during the time of Deflation.

So follow the above 2 basic principles of Investing for Deflation and you will always win during the time of deflation.

Investing in Silver

Investing in Silver

Silver is a precious metal and has been regarded as a form of money just like gold and store of value. However, since the end of the silver standard, silver has lost its role as legal tender in the United States.

In 1971, the President Nixon has removed the gold standard and the silver standard and after that the US Dollar is just the tender. Modern Money is backed by the full faith of the governments around the world but does not have any intrinsic value in it.

China is the largest consumer of Silver since several centuries. However, recently China has started motivating their citizens to invest in silver. This may be because of the money printing activity of the US Government. Recently, the federal reserve has increased it’s monetary base from $ 800 Billion to $ 2 Trillion. In other words, the US Government has printed almost $ 1.2 Trillion out of thin air only.

And there is a potential danger that this will dilute the purchasing power of the existing money in the circulation. China is the largest holder of UD Treasury Securities. This means that China will be affected the most in terms of purchasing power because of the money printing activities of the US Government.

And that’s why the Chinese Government has started motivating their citizens to start investing in Silver.

US $ 5 Silver Certificate

American Silver Eagle Bullion Coin

How to Invest in Silver? -

There are various forms in which you can store the silver. Here are the various methods of  investing in Silver.

- Bars
- Coins
- Rounds
- Exchange Traded Funds
- Certificates
- Accounts
- Derivatives
- Mining Companies
- Spread Betting

You can invest in silver from the any of the above ways. According to many global investors, right now the silver price is undervalued and it will go high further and thus it’s the best time to buy silver at low price. Because you will never find silver at such low price.