This chart reveals very clearly that the dollar's value has been depreciating against the historical "money of kings," which is Gold. As gold climbs against the US dollar in the chart above, this indicates that the dollar has been declining in value. In other words, this chart is a map of the "exchange rate" between real money (gold) and the chief paper debt instrument of the world, the US dollar. It takes more dollars over time to "exchange" them for real money, gold (and also silver).

The higher gold price verses the US dollar (and every other global paper-only currency) indicates clearly the stability and superiority of GOLD (and silver) as storehouses of value (i.e. savings) in comparison to ANY dollar or currency-denominated "investments" or savings vehicles. This is even despite the fact that the gold price has been vigorously attacked and suppressed by central bank manipulations within the global markets.

Consequently, the chart above warms the heart of people who save in precious metals (verses paper money) while it also serves as a warning to others to change their portfolios (including savings) over to precious metals.

However, the chart below should rightfully alarm EVERYONE, but especially those who store their savings in worthless paper (e.g. currencies, stocks, bonds, certificates of deposits, etc) RATHER than commodity moneys such as gold and silver:

The above chart shows the massive increase in U.S. dollar supply (Note: You can see this chart enlarged and explained in further detail within my post Monetary Hyper-Inflation Is Already In Progress). Notice the relatively steady supply starting in 1913, which then started to increase noticeably in the 1980s. Now, however, the monetary supply has not just increased... it has SKYROCKETED since September 2008. This is reflected in the above chart as the nearly straight vertical line peaking to the right.

The fundamental premise you need to understand is this: The more money in circulation, the less each unit is worth. Thus, monetary SUPPLY inflation (the increase in the amount of circulating currency) causes the devaluation of the monetary UNIT in the marketplace once the markets readjust for the increase in money quantity. This process then causes PRICE inflation (i.e. rising prices in the stores) because the value of each UNIT of money is lower. As this devaluation of the paper-money's worth continues, this will soon lead to HYPER-inflation within the USA such as was experienced in Weimar Germany back in 1923.

Worse yet, since ALL paper-moneys in the world are unbacked by gold or silver, they are all essentially as vulnerable to this same process. Given the fact that most global central banks are storing other countries worthless "paper" as "backing" to their own worthless paper, you can readily see why it is extremely dangerous to store your savings in ANY form of paper currency... most especially US dollars.

To learn how to protect yourself from this collapse of the value in the US dollar and global paper currencies, you can start by reading my article God's Money, and Private Coinage or review my other related articles on by selecting "economics" within the categories menu near the top of this column.

-Rich