Don’t Believe the Fake Numbers | The Gold Standard 2345

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Jennifer Horn and Ken Russo discuss the unsettling landscape of distorted financial data and the prevalence of misleading information in the media. With a motto of “you have questions, we have answers,” Sensible Ken leads a conversation on safeguarding your savings and investments in times of uncertainty. The episode offers invaluable insights into why diversifying into tangible assets, like precious metals, becomes the “sensible” thing. Join us to explore the measures you can take to fortify your financial security in today’s complex and unpredictable economic climate.

Ken sheds light on the 1944 Bretton Woods Agreement, a significant post-war accord that pegged major currencies to the US dollar, indirectly tying them to gold. The climax of this historical saga unfolds with the dreaded Nixon Shock of 1971. This momentous decision severed the last link between the US dollar and gold and sent shockwaves through global financial systems as gold hovered around $35 per ounce. Understanding these key milestones is crucial, as Sensible Ken empowers you to navigate the maze of economic intricacies and make informed decisions.

In the preceding decades, gold served as the backbone of international transactions, with paper currency like the US dollar acting as a mere placeholder, exchangeable for gold upon demand. However, following a trend persisting today, the US consistently spent more than it earned, flooding the market with paper currency “checks.” These “checks” lacked direct gold backing. The depletion of gold reserves became evident as people sought to redeem these checks for gold. The US couldn’t uphold its promises to save gold for all the circulating paper currency. Countries began to rush to exchange dollars for gold before the reserves were exhausted. That is why President Nixon took us off the gold standard on August 15, 1971.

That Sunday evening, he conveyed the historic decision to sever the link between the US dollar and gold. This monumental shift forever altered the dynamics of global currency and marked the end of the gold standard era. Sensible Ken explains why understanding this history is paramount for making informed choices in today’s complex economic landscape. The recent failures of Silicon Valley Bank and Signature Bank have many Americans concerned about the Economy and the safety of their money. Although the government has stepped in to contain the damage caused by the bank failures and ensure account holders can access their funds, inflation and interest rates remain high, so the threat of a deepening recession persists.

Against an increasingly polarized political environment, Moody’s recent decision to shift its assessment of the US credit outlook from “stable” to “negative” ripples through the financial landscape. This development follows earlier downgrades by Fitch and S&P Global Ratings, reflecting a growing lack of confidence in the government’s ability to navigate political challenges and fulfill its debt obligations. The intricacies of House Republican infighting, coupled with a tumultuous speaker selection process and a mounting national debt set the stage for Moody’s cautious outlook. As the US grapples with the risk of defaulting on its debt and the looming possibility of a government shutdown, Moody’s assessment hints at skepticism regarding the nation’s trajectory in resolving these pressing political issues.

Drawing parallels with historical instances, the repercussions of credit downgrades on the Economy come to the forefront. While stopping short of a complete downgrade, Moody’s decision raises concerns about the potential for future slips. Past events, such as “Black Monday” following S&P Global Ratings’ downgrade in 2011, provide insights into the market’s immediate responses and the subsequent impact on indices like the Nasdaq Composite, S&P 500, and Dow Jones Industrial Average. Experts caution about potential domino effects as the perception of the federal government is increasingly riskier, including increased interest rates on mortgages and credit cards. Sensible Ken sheds light on these intricate dynamics and offers ways to navigate the uncertain geo-economic terrain.

Ken introduces us to a remarkable investment opportunity: the Credit Suisse 10oz Gold Bar. Renowned for its purity and craftsmanship, this gold bullion product emanates trust and stability. Crafted by one of the world’s leading financial institutions, Credit Suisse, the bar boasts a weighty 10 ounces of pure gold, making it a substantial addition to any investor’s portfolio. Its meticulously designed, elegant packaging ensures authenticity and reflects the Swiss commitment to precision. Russo guides viewers through the features that make this gold bar an attractive asset, emphasizing its role in safeguarding wealth amidst economic turmoil. As the discussion unfolds, viewers gain valuable insights into the strategic inclusion of such tangible assets in a diversified financial strategy.

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