Wednesday, April 1, 2015

Monthly Repost: Monetary System Change for Dummies

Note: We get new readers here every week. For that reason I will repost the article below every 1st day of the month so new readers can find it easier. The information in this article should remain pretty relevant all year and gives a full background as to what the purpose of this blog is.


Monetary System Change for Dummies (originally published 1-1-2015)

Hopefully, readers here have a sense of humor. Of course I am not calling readers here dummies. My email inbox proves we have some highly intelligent and well informed readers here. What this post is about is why the blog got started, what it is trying to do, and how we "monetary system dummies" can make a common sense plan for whatever changes are coming in the future. I classify myself in this same group of monetary system dummies --- the average person who does not spend much time reading IMF workpapers and listening to Bank of International Settlements speakers. Those of us who don't have a background in macro economics, but are willing to learn because we sense it does impact our lives. 

With that in mind, I have linked below a somewhat longer article called 'Monetary System Change for Dummies'. Since it is about 4 pages long, below I have just pasted in a few selected paragraphs to give you a feel for the article. The full article explains why I got interested in this topic, why I started this blog, and offers some common sense ideas on how to prepare for coming changes that most anyone can follow. The full article (click here for it) is written in Word format so you can print it out if you like. It contains a link to the web address for this blog making it easy to print and hand out so people can find the blog on the internet.

A big thank you to all who visited here (over 100,000 visitors from around the world). The blog continues to get new readers all the time. It's designed for the average person who wants to learn about this topic without spending hour upon hour researching and digging up the info (that's my job). Please let others know it is here if you find the information worthwhile.      2015 will be interesting!

(What I Have Learned from a year of Bogging on this Topic)

A little over 10 years ago I became interested in the “big picture” of the global monetary system and what kind of changes might be coming that could impact my family in our daily lives.  I stumbled onto a web site operated by Jim Sinclair called JS Mineset. I was intrigued because this was a free information source web site that challenged me to learn more about how the monetary system works and how changes to it can impact our daily lives. Jim Sinclair had a lot of credibility because he had decades of experience inside the system and had become somewhat famous for accurately forecasting the gold market. I am old enough to recall the late 1970’s when gold made a then historic move to all time highs. I remember the Hunt Brothers move into the silver market and the accusations that they were attempting to corner the silver market. In fact, I even worked for one of the Hunt family oil and gas companies for 15 years after the silver price collapse that led to Placid Oil filing for bankruptcy protection. (the one owned by their sister Caroline Hunt of hotel fame)
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As time went by I began to do more and more research to seek out good sources of information. I realized that having an understanding of the monetary system was important, because how it operates impacted my life and my family. To make good decisions, it is important to understand how things work and to get the best information possible.  I learned that good information is out there if you look for it, but it takes time and effort. There is good information from both mainstream media sources and alternative media sources. In fact, studying both sources is the best way to compare different perspectives and see which ones turn out to be more accurate over time.  This led to one of the key objectives for my blog. To track various opinions and forecasts of credible sources over time to see who gets things right more often. This takes patience and persistence because events usually play out over years. The modern 24 hour news cycle does not allow for that approach as most news and opinions come and go very quickly and are forgotten by most people.
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All of this led me to start up a blog dedicated to following potential major change in the monetary system. Also, how this might impact the average person like myself.  That is, a typical family just trying make a living and provide for their kids. People that normally couldn’t care less what the IMF did yesterday (like my wife and daughter for example ☺).   I felt like there was a need to try and reach out to the average person who would not normally care about this and encourage them to think about the issues involved seriously. After all,  if we have another major global financial crisis that is even worse than the one we had in 2007-2008, do you really think we can just ignore it? That it will have no impact on our daily lives? I don’t think so.
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So, What Have I Learned After a Year of Writing Blog Articles on this topic?

A lot of course. I have learned that it is wise to keep an open mind and to continue to follow events over time. In fact, I would say this is probably the most important lesson I have learned. The one constant that I remain convinced of is that we will see major monetary system change in the future. When you follow this topic, you quickly find out that there are a lot of different views on how and when this change will happen. A lot of very intelligent and very credible people (from both inside and outside the system) have different opinions.  I think it is wise to listen to various points of view and not become “locked in” to one view so that you quit following the all the facts and only listen for those facts that support the conclusion you want to believe in. . . . . . . .

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Writing this blog has allowed me to make contact with people I never expected to meet as “an average person”.  Some people who are working at high levels within the system stumbled onto my blog and were willing to spend time helping me gain a better understanding of how all this works.

This has led me to conclude that the future of how and when the monetary system will change is far from certain. It could range anywhere from another huge global financial crisis that leads to rapid system change to a slow and steady form of change that unfolds over years in a controlled manner.
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I think we can list some outcomes that are probable however. We can then use that as a guide for making the best financial decisions for our personal situations. Below are the scenarios that seem most probable  to me after a year of learning and writing on the blog.  
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How Do We Prepare for Future Monetary System Change?

This is the question that really matters for people who would read my blog. Learning about the monetary system can be interesting (at least for some), but most people want to get to the bottom line. How is this going to impact me and my family?    What Should I Do to Prepare?
Glad you asked. I think there is a reasonable way to deal with all these unknowns and potential major change coming in the future.  Let’s list some bullet points and then some concluding thoughts.
Thanks for visiting and reading!
Best Wishes – Larry White

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