LONDON, ON, July 20, 2011 /24-7PressRelease/
-- Recently there has been a new YouTube video released by David Morgan, whom is one of the most knowledgeable men in the precious metal sector. His video touches on the light of a topic that has been highly discussed repeatedly over the past number of months which is hyperinflation.
Hyperinflation is caused by the over printing of a currency which drives the costs of goods higher. Things most affected by hyperinflation are commodities such as oil, precious metals and food. David's new video called "Fast Effects of MASSIVE HYPERINFLATION!" recalls the recent hyperinflationary events that took place in Zimbabwe in 2007-2008.
The United States of America's dollar is the World's reserve currency to which all other countries try to keep their currencies equal too. To do so, countries such as Zimbabwe must print money at the same ratio as the U.S. Federal Reserve in order to keep trade with other nations. When a smaller economy does this they can fall into a rapid inflationary scenario which can lead into rising costs over-night such as in the case of Zimbabwe.
The country in subject is then forced to print larger domination valued currency bills in order to keep an easy medium of exchange. At a point, in the case of all past hyperinflationary scenarios, the price of goods rises more rapidly than the country of subject can issue new bills at which point the fiat paper bills are not worth the paper they are printed on and the country's currency collapses. When this occurred in Zimbabwe the country was in turmoil and the citizens of Zimbabwe were forced to trade for everyday items with things such as precious metals.
Critics worldwide have been saying that if not approached with dramatic changes quickly, this could potentially happen to the World's reserve currency. This action would force the same upon all other nation's currencies that depend on the reserve currency for trade, causing a domino effect globally.
The reason David has covered this topic recently is for two main purposes. The first reason is that individuals can protect themselves against inflation by purchasing physical metals such as Gold and Silver because their value rises with inflation. The second reason is the fact that the World's currencies were once backed by Gold and / or Silver. In both cases these metals are a protection asset that everyone around the globe should know about and understand their value as a tool for wealth creation and protection.
Anyone wanting to learn more about precious metal investing should first look at David's 10 Rules to Investing in Silver.
To view the video that has started to create a viral trend of knowledge seekers, please follow this link; http://youtu.be/dcaa0KV2xVg
Catalyst X Media specializes in viral marketing campaigns and strategies that help the people of the world improve their lives.