Monthly Archives: September 2013

Billions Of Your Dollars

Savings…. stolen from you, by your government. How is that, exactly? If Americans really understood the vast confidence trick that their government has unleashed on them via the financial system, there would be blood in the streets over the government theft of billions of our savings dollars.


First, you need to understand how interest rates are manipulated. In the U.S., the authority for interest rate decisions is divided between the Board of Governors of the Federal Reserve and the Federal Open Market Committee (FOMC), and rates are reported by the Federal Reserve. From 1971 until 2013, the central bank benchmark interest rate (CBBIR) in the U.S. averaged 6.14%, reaching an all-time high of 20.00% in May 1981 and a record low of 0.25% in December 2008 – where it has pretty much stayed ever since.

The CBBIR is also the overnight rate at which central banks make loans to the commercial banks under their jurisdiction. By adjusting the CBBIR, the central bank is able to impact the interest rates of commercial banks, the nation’s inflation rate and also the dollar exchange rate. Reducing the interest rate usually correlates with an increase in business activity, a rise in the inflation rate and a weakening of the dollar. Increasing the interest rate usually correlates with a decline in business activity, a decline in the inflation rate and a strengthening of the dollar.


As you know, Baby Boomers refers to those born between 1946 and 1964, aged from 49 to 67 in 2013 and numbering around 72 million survivors today. This is the age group for whom retirement savings are of paramount importance. Yet the bank interest rate on dollar savings accounts – which for many years averaged 6.14% – has languished around 0.25% for the last five years.

Imagine you are a Baby Boomer in December 2008 with $250,000 in savings in the bank, facing retirement in December 2013. Look at the following two intriguing examples.

Example A: After 5 years of bank interest at 0.25% (artificially held down to this rate by your government), your $250,000 savings now amounts to $253,141 in December 2013 (plus $3,141).

Example B: After 5 years of bank interest at 6.14% (approximately what the rate should have been), your $250,000 savings now amounts to $336,772 in December 2013 (plus $86,772).


Makes you pretty mad, right? But wait, it gets worse. The dollar has lost approximately 98% of its value in the 100 years since the Federal Reserve was created in 1913, or around 1% loss-of-value each year. The official inflation rate is notoriously underestimated, but real consumer inflation has actually been averaging over 5% each year. But for simplicity’s sake, let’s combine these two factors into a rounded-off inflation rate of 5% each year.

Example A: 5 years of 0.25% interest from your savings bank, combined with 5 years of 5% inflation, reduces the ‘spending power’ of your original $250,000 savings in 2008 to an equivalent of $195,875 in 2013.

Example B: 5 years of 6.14% interest from your savings bank (what you should have been earning), combined with 5 years of 5% inflation, increases the ‘spending power’ of your original $250,000 savings in 2008 to an equivalent of only $260,587 in 2013. Pitiful, even if you had got the 6.14% bank interest you really deserved.

Meanwhile, government printing presses are rolling out $85 billion a month in new currency, further weakening the U.S. Dollar.


The foregoing examples make it pretty clear that paper money – dollars – are neither safe nor prudent for savings. Gold and silver are the hard currencies of choice, and now is the time to transfer increasingly worthless dollar assets into real wealth – gold and silver – and to store them safely outside the banking system.

If you are still not convinced, ponder this. If you had converted your $250,000 savings into gold in December 2008 at $870 perGold Silver ounce (287.36 ounces), it would be worth $1,400 per ounce  in December 2013 (a conservative estimate, we believe), or $402,299. But regardless of the 2013 dollar value of your gold, you would still own 287.36 ounces of valuable gold!

Start protecting your wealth today by opening an account at It is simple and secure and you can do it online in just 4 minutes. And you only need $25 to start funding your wealth account and to get you started on protecting your financial future!