What is thought of as a safe asset can really do?

What is thought of as a safe asset can really do? 

If you want to know why you are buying the dollar or the euro less, every day, you have to understand what is legal tender, how they work, and how to protect yourself from trouble, they have. 

In the past, the use of the money to back up something, usually gold or silver. You can put it somewhere and exchanged gold or silver, if you have a dollar. At some point, the leader of each country to understand that they want to invest more than actually have in their vaults. So they changed their legal tender. 

Fiat monetary value (usually the government), because some people say it does. Because they trust the government, the value printed on it, everyone agrees. However, it occurs when the government can not credibled's? 

When a country's leader Separation anything like gold or silver value of their currency, they are all free, and it pleases. They can print the relief, government spending programs, wars, and anything else they can create an unlimited supply. 

Over time, you end up with inflation. If there are more printing dollars, the exact same quantity of goods there, the rate began to increase. It is simple supply and demand for commodities demand) (equal (surplus dollars). Saved any money, you lose its value, when this happens. 

It is in the last century, the dollar has lost 95% of its value as part of the reason. 

At some point, all of the legal tender "visit zero", losing all worth it. This happened hyperinflation, or by default. 

So how can you ensure that your purchasing power lost everything to save cash? 

The answer is there is less cash to save themselves and have more difficult assets such as gold and silver. 

If you follow the market, it can be said ratio has actually increased. You may flip around and country for gold (it would be more accurate), the dollar's value has actually declined. 

Convert your cash assets, you have the ability to provide them later, after hyperinflation or default has actually passed. Who saved their dollars in the bank's individual will find that they are now useless. Your assets will generally tough new currency held its value. 

To provide you with the asset value of the legal tender of an instance, there is an old story about a man who is his wheelbarrow of cash to buy groceries. His means, to the store, he fooled - not money, however, the wheelbarrow. 

Amazing aspect is that it is recognized to buy gold as a way to prevent the collapse of the currency is a very compact way to save your wealth. In case things get really bad, you can easily carry your gold and wealth in the entire border, and get a fresh start, a new country. 

They changed legal tender. 

Fiat money has value only because someone (usually the government) pointed to it. Everyone agrees it's worth, because they believe the government printing. When this happens, a conservative any money, you lose its value.