Our currency is called “Fiat Money” which means that as a paper currency it in of itself is worth “no thing”. When money was backed by gold or silver, you could trade your cash dollars in for actual gold or silver. America went off the gold standard in 1933 and the silver standard in 1972. Now the dollar is “faith” based and not silver or gold based.
How apropos that the dollar says, “In God We Trust.
Mr. Alan Greenspan (whom I would love to meet someday soon) has voiced a growing concern about an income gap between the rich and the poor that could threaten the stability of our capitalist democratic society. Countries with thriving economies have a substantial middle class. One of the economic factors that points to economic instability is the collapse or decrease of the size of the middle class. The gap between the rich and poor in America is increasing and looks to continue to increase with housing sector instability.
With over a billion dollars of home foreclosures projected over the next 3-5 years, interesting times are ahead. Times that will certainly underscore my belief and conviction that the little people of our nation need to be prepared financially to face the challenges that lie on the horizon of their future.