IRAQuote.com’s Brett Winterble discusses what’s happening with the almighty dollar.
The entire banking system may be about to collapse.
IRA denominated in dollars might soon be worth less than one nickel on the dollar. That means if you have $500,000 in your 401k, overnight it could be worth $25,000.
According to Brett Winterble of IRAquote.com, your whole life savings could vaporize. But with every action there is an opposite and equal reaction, so tangible assets, such as gold, could increase twentyfold relative to the dollar. In such a case, a $500,000 IRA or 401k could overnight become worth $10 million.
So, which would you rather have, $25,000 or $10 million dollars? The answer should be neither. Why? Because, as Brett Winterble is about to explain, if the U.S. Dollar is about to disintegrate, then your newly minted $10 million dollars could soon be further watered down to another nickel on the dollar, and its back to the value of one twentieth, and soon thereafter to one twentieth of that again. In such a case, it is possible for gold to increase twentyfold.
So, is gold really worth that much? IRAQuote.com’s Brett Winterble is here to discuss the matter further.
Q&A:
1. In such a potential scenario, with gold skyrocketing, why do you say gold is not really worth that much money?
A. That’s because gold is merely a standard of measure. It’s not changing its value so much unto itself. It’s merely holding its own as it has for thousands of years, compared to fiat currencies, such as the dollar, that fluctuates.
2. So, gold would not be worth 20 times as much money?
A. That depends on how you define money. If by money you meant US dollars, $500,000 in gold would become worth $10 million dollars. But that is in the newly reduced value of dollars. It’s not because gold is technically worth more.
3. So, if we were to see an overnight drop in the value of the dollar, and you had converted dollars into gold prior to the crash of the dollar, would you, for instance, be able to buy a million-dollar home for only $50,000 in gold?
A. Yes, it would only cost $50,000 in gold.
4. Again, we’re not saying there will be a banking disaster. Everything might normalize, but if it were to occur, what would happen to all our current IRA accounts? You know, ones that might have $100,000 in them?
A. In such a potential twenty-fold drop in the value of the dollar, a $100,000 IRA would crash to real value of $5000. But it could conceivably drop again the next week from $5000 to $250. And the week after from $250 to $12.50. But if you had converted that $100,000 into gold prior to the first of these three hypothetical drops, it would now be worth $500 million dollars.
5. So what’s the catch then? How would the original $100,000 in gold become worth $500 million dollars?
A. Because the dollar would be diluted down 5000-fold while gold had become relatively unchanged in buying power. So, to buy an average home that sold for $250,000 prior to the crash would still be able to be purchased with gold that is the equivalent of $250,000 in old dollars, but to if you had not converted to gold, that same home would cost you $1.25 billion dollars.
6. If you do the math with such a 5000-fold decrease in the dollar, how much would my pre-crash $100,000 IRA be worth post-crash?
A. Your pre-crash $100,000 buying power would have been reduced to post-crash value of $20. In other words, your life savings would be reduced to the equivalent of $20.
7. So how is that possible?
A. It’s actually quite simple. Dollars are what is considered fiat money. That means they are backed by nothing. In the past, dollars were backed by gold or silver. Today they are merely backed by confidence, similar to Bitcoin. Dollars are simply worth what people think they are worth. If we were to see a banking crisis of major magnitude, it is possible that there eventually would be zero confidence in the dollar. In such a case a trillion dollars would not be enough to buy a cup of coffee. It’s happened before in the Weimar Republic of Germany. It’s happened in Argentina. And it could happen in the United States. It’s called hyperinflation.
7. Where may we get more information on this, as well as what you do with IRAQuote.com.
- You can visit the official website at IRAQuote.com for more information. We offer a variety of investment services!
About Brett Winterble…
After spending nearly a decade with Rush Limbaugh as a Producer, Brett Winterble began his own show in 2008.
Brett currently hosts The Brett Winterble Show, heard Monday through Friday from 3-6 pm. He discusses everything from politics to pop culture to finance.
A lover of Current Events, Sports, Entertainment, and stories that really matter to the local audience, Brett has high energy and boundless curiosity.
He is a graduate of Emerson College and American Military University with degrees in Political Communication and Homeland Security/Intelligence Studies. Brett is married and has 2 teenagers plus a couple of cats, three birds, and some fish. His hobbies include travel, comedy writing, consuming motorsports and barbecue.
CONTACT: Jerry McGlothlin of Special Guests 919-437-0001 jerry@specialguests.com
