Recently, spokeswoman for the Bank of Canada Julie Girad said that the bank would most likely introduce plastic money in 18 months. A continuing need for forgery prevention, longevity that reduces manufacturing costs and other practical reasons have been given for the plan to replace paper bank notes. Other jurisdictions such as Australia and India use or have plans to use plastic notes as well.
Well as for my opinion, I say the bank can make its notes out of recycled garbage bags if it wants...wait...isn't that the plan? Because the garbage is where all these notes are headed eventually no matter what the composition may be. Not just the actual notes themselves but the buying power of them as well.
Continuing to issue credit notes that are not backed by hard assets (meaning gold) and notes that blow around with the winds of political fortunes is what got us to the disastrous financial situation in which so many countries and governments are now hopelessly trapped.
I know that the world isn't going to form a new international gold standard to back its currencies any time soon.
I know that if this occurred, the world's cash flow and debt problems wouldn't be alleviated. So why then am I on my soap box chirping about plastic bank notes and the lack of asset backed currency. The reason my faithful readers is that the world is still on a gold standard. It's just that most people and virtually all governments either don't realize it or simply can't afford it. This lack of gold in the pockets of governments and citizens alike makes everyone vulnerable to financial desperation. Even the biggest and richest corporation in the world...the United States government...yes the Fed....is on its business knees and drowning in a 11+ trillion dollar quicksand of debt and going from bad to worse.
We can mitigate the risk of exposure to debt because we can still buy and hold hard assets in the form of gold and silver with government issued "plastic" and it's tax free!...Yes! Nothing has changed except the price of gold and silver and the change in recent times is up.
Worldwide, even with globalization, improved travel and rising prosperity in developing countries most people either cannot afford to buy gold and silver or they live so far from the supply houses that the cost and risk of acquiring these precious metals adds considerably to the price.
But in Canada and the USA, and the UK for examples, the government still issues gold and silver in the form of coin of the realm and in Canada there are no taxes on gold. You and I can cash in our empties, walk into J&M Coin and Stamp here in Vancouver and buy one ounce silver maple leaf coins for around twenty Canadian dollars ($CAN20.00).
You've likely seen ads on TV that offer cash for scrap gold. These companies extract the fine gold (.995) from carat gold jewelry and offer the customer cash for the gold by weight. Many folks have gold jewelry in their homes that has been unworn for years. This jewelry has residual cash value. My advice, if no reputable location exists for you locally, is to take advantage of those unused gifts by converting the residual value into gold and silver coins. Sell unused household items on Craigslist or Ebay and start amassing or to adding your gold and silver holdings. This ancient, tax free, and liquid form of family assets has protected ordinary citizens and kings alike from calamitous events that occur in an uncertain world and provide ongoing financial security when the constant ravages of inflation erode the purchasing power of paper money.
Gold protects its owner from every thing. Gold can fix your roof or your broken leg. It can rebuild the engine in your car. Gold can make people do what you want them to do in all countries of the world! The great thing about precious metal is that unlike real estate for example we don't have to save up money to buy it. Twenty dollars will get you started. The key to amassing a fortune in gold and silver is to buy it regularly. If you're a service worker who receives tip money you are in a position to convert that stream of base metal coins and paper notes into a hoard of gold and silver. One that will get you the financial security you need for you and your family and the tools and toys that we all need and want so that life is less grinding. Its a system that is simple but not easy and here's how it works. Once a month go shopping at your local coin dealer and buy an ounce or two or a quarter of an ounce of gold and/or silver. If you're having a tight month, buy silver or a little less gold. After a year or two of this you'll begin to get excited about your stash. It's a stash because there's no paper trail...no account is required, no declaration, you own the metal.
After the initial period of collecting, your gold can begin to work for you. When the price is high you could sell a little and take a profit. When the price is low you can buy a little more. When you have a need you can draw on your hoard. Gold holds its value. During times of uncertainty and periods of high inflation, gold protects capital and out paces other investments. But don't take my advice. Buying gold is safe but you should understand your investments, read the links and exercise due diligence. It's a rare investor who regrets owning some gold.
Don't tell people what you're doing. Buy coin of the realm (Maple Leaf Coins) rather than bars. Hide your gold in a fire resistant box in a safe but accessible place. Don't keep it in a safety deposit box because when you need it most the bank will likely be closed.
Gold endures, gold crosses boundaries. Gold doesn't set off metal detectors, gold opens doors. Gold is beautiful.
For those who understand, no explanation is necessary, for those cannot understand, no explanation is possible.
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