Historically looking at how the world currencies have changed over the years is one of the best ways to understand the currency devaluation and current economic crisis at hand. Money does not disappear, the value of the money only switches to another form, whether it be another currency or investment type.

Think about the hunter and gather days. In a particular village you might have someone who could was excellent at crafting arrows, someone else who could cast a fishing net better than anyone else, and someone else who could put up shelter without blinking an eye.

Commodities have always been based around the their intrinsic value. Someone with fish to eat could trade for the meat caught by the one who crafted arrows. Both of them could trade their food for a shelter to be built.

These trades had limitations though. Maybe someone needed shelter built, although only had fine bone jewelry which they made, and the shelter builder had no use for, nor did he want to have to find a way to trade or barter that. It became a real hassle as you could imagine so then there was a creation of a centralized form of currency.

Precious metals were a perfect option. One could place a value on it, say a gold coin, but in addition, they held what we referred to early as intrinsic value. Not only could they be used for acquiring goods, they had and have other usages in industry and tool making.

As time went along, governments began to just print money out of thin air, and this money was no longer backed by the value of gold. It was backed by the combination of gold and debt.

A standard was then created in 1944 which backed every world currency by the dollar, which was then backed by gold. Then in 1971, the relationship between the dollar and gold was severed, thus severing all the worlds currencies, and the entire world was utilization fiat currencies.

The printing of money became the norm now that governments lost all responsibility to the ties of gold, and the more money that was printed, the more devaluation of the currency.

Devaluation of currencies by government printing presses were then followed by the banks creating money in the form of numbers on a computer screen and bank statements. Banks had the ability to lend out more money than they took in for deposit, once again, money not actually being backed by solvent currency.

Credit cards added insult to injury. People were extended credit beyond their ability to pay it back, and charged exorbitant finance fee’s keeping them in debt while their monies are undergoing currency devaluation.

This may sound like a no win situation, although one must realize that money does not just go away or disappear, the true value just switches hands to another form of currency, not undergoing currency devaluation.

When one fiat currency loses its value, value is built up in other asset commodities. The three main areas of investment have been the stock exchange in dollars, real estate and precious metals such as gold and silver bullion. That is why many people are investing in precious metals because their values are growing.

Claim your free ‘Don’t get caught with your pants down’, Aware, Prepare, and Prosper Report and Checklist then visit awareandprepare.com at and find out how to survive currency devaluation today.

The Current Economic Crisis

We are all suffering from the effects of the worst economic crisis the world has ever seen. Many ask me “When did the recession start?” That’s a tough question to answer as the mechanisms leading up to the current recession spans the entire history of our country.

Many of the reasons behind our recession go back several hundred years and span the history of the United States, its banking industry and its monetary system. Even though I cannot cover everything, continue reading and I’ll explain a few of the more recent elements that led to our current crisis and what you can do to start protecting yourself.

“Modern” Mechanisms

So, when did the recession start? Well, for the purposes of this short article let’s just go back to the not so distant past during the Clinton administration. In 1999, President Clinton under the advisement of his cabinet, passed legislation that effectively deregulated the banking industry. These regulations had been put in place after the Great Depression and by lifting them, the banks were right back where they were in the early 1930s and able to get away with the same shenanigans they had back then.

Many of you, especially those who play the stock market, may remember the dot com boom of the early 21st century. This was in no small part due to the significant deregulations in banking. Previous legislation prevented investment banks from performing other banking activities such as insurance. However, now it had become a free for all leading to an extraordinary boom time that was based in nothing tangible.

After the tech bubble burst banks simply moved their cash generating machines to the sub-prime mortgage lending market in an ingenious way of continuing to squeeze the money from the middle class before they were to be found out. Once this bubble burst also, the foreclosure crisis followed effectively leaving the working people footing the bill in this “legitimate” pyramid scheme.

Moving Forward

I’m not going to sugar coat it for you, the future holds more of the same for now. Despite what the mainstream media would have you believe we are certainly not in anything that can be called an economic recovery. In fact, we are moving ever closer to an economic depression that threatens the global economy for years to come.

The most important thing you can do to help secure your financial future is to start learning everything you can about our global economy, our national monetary system and the true mechanisms behind market fluctuation.

Words as Weapons

The banking and financial industry has a long history of creating a smoke screen with complicated wording and industry-specific language. Use that weapon against them by learning to speak this language of money, you’ll find that the truth behind those complex word games are actually quite simple, and also very troubling. Arm yourself with knowledge and start protecting your financial future today.

Have you been asking “when did the recession start” but not finding any answers? I can help you learn how to start protecting yourself and your financial future from the current economic issues. Don’t wait until it’s too late! Unique version for reprint here: When Did The Recession Start And What Can I Do About It? Find The Answers Here.

categories: current economic crisis,foreclosure crisis,sub-prime mortgage,economic recession,financial crisis,economic issues,GDP,economy,recession