Saturday, January 29, 2011

 

Safe investments today?

How the Fed operates by kerminator .....

Here is some serious information where you may see how the "Federal Reserve Bank" operates... How long will it take for the real truth to become known to the working public and tax paying citizens of the United States? Plus here is a solution that most people will hopefully believe!

Date: 1/25/2011 17:53:22 GMT

Does the truth hurt?

Here is some info that may help you understand what is going....

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"Currency Shock"


The Federal Reserve which is a non US Government so-called "independent" entity; is supposed to "keep our currency stable," along with our banking system and the rest of economy. Another big lie since they have failed to do so in the past hundred years!

Since the Federal Reserve's founding in 1913, this cartel of bankers has repeatedly overstepped their bounds. In doing so, they have continually sacrificed your dollars' value.

Ex. What cost $1 in 1913 - when the Fed was created - now costs over $20. That's a 95% devaluation of your money. And it's only going to get worse at the present rate of action.

Mainstream media has been clueless or else they are in on the plan and purpose!

Over the past almost hundred years, the Fed's well-meaning actions have led to a series of quiet "currency shocks" that have rippled through our economy, starting all the way back in the 1920s. but the worst is coming this year....First let's take a quick look at the Fed's impressively bad track record of "keeping our currency stable" over the last century.

Back in the 1920's, the British pound was king.

The pound was the world's reserve currency similar to how the dollar is today, only you could redeem pounds for gold.

That's when French authorities started making trouble for the Bank of England back in the 1920s. At that time, the French threatened to redeem their "credits" (a.k.a. pounds) with the Bank of England; which would seriously deplete England's gold stock.
This of course, gave the British pound fits and forced it to fall. While this was all happening in Europe; the Fed still got involved.

What did the Fed do? They sacrificed our dollar to prop up the pound. The Fed quickly slashed our interest rates and agreed to make U.S. gold available to the French. Which by the way the U.S. did not have that much gold to back it own currency

Well, you can imagine how the dollar tanked as the Fed cut rates and gave away our gold reserves at the same time.

(Keep in mind, back then our money was actually backed by gold.)

That's just one example of how our Fed worked to sink the dollar for the sake of other currencies. But now they seem to sacrifice our dollar's value for our stock market. Let's fast forward about 60 years...

What contributed to the "crashing dollar" ultimately caused the 1987 market crash. It was all thanks to the Fed.

At the time, the dollar had been falling since March of 1985. Our currency had been stuck in a steep decline for two years straight. Traders were losing faith in the dollar and many investors were starting to move their money due to the risk.

By the time the crashing dollar started affecting stocks, a new way of trading had been introduced on Wall Street. It was called "computerized trading." This meant computers monitored stocks, while setting and adjusting stop-loss levels {when stocks would be sold}.

The computers triggered the first line of stops, and then it just kept going. It became a vicious cycle, with stop-loss after stop-loss hit. Suddenly there was a panic which drove the stock market down!
When all was said and done, stocks had fallen over 500 points or just over 22% on that one day alone!

*** It became known as the "biggest one-day drop in history of U.S. stock market."

At that time, everyone naturally blamed this new computerized trading. Which, the computers played their part. But for the 60 years prior, the Fed had also been undermining our dollar. The sinking currency cut the legs out from under our stocks. The computers took over from there. It was ugly! Thanks once again, the U.S. Federal Reserve!

Back on September 23, 1998 the Fed engineered its first bailout based on "systematic risk."

Before that time, no one thought of the Fed as the lender of last resort.

Here is the story. The now infamous $4 billion hedge fund Long Term Capital Management (LTCM) caused the market panic.

This fund was so leveraged {backed by various supposedly sound investments}. They controlled over $100 billion through swaps, emerging markets and mortgage-backed securities (MBS). But when Long Term Capital's bets went wrong, their assets shrank from $4 billion to under $500 million in a very short time. This was enough to shake up every single asset ( all of these supposedly sound investments) that LTCM had invested in.

So what happened? The Fed orchestrated a massive bailout. Even though it was funded by other banks, bailing out this "too big to fail" hedge fund still caused the dollar to fall for several months straight.

The Fed's position as the "lender of last resort" has just grown in the past years.

From 2007, to present, the Fed has cut interest rates to practically 0% and has poured billions of dollars into the market to buy up toxic assets all over the place. They're now even buying up our own treasury bonds!

BTW: Bonds are paid first, before stocks; and Government bonds are supposedly the best!

However, the next shock will be the one that truly unravels the dollar...

Now we live in a day of "currency wars."

What is this 'currency war" ? It means that many countries are struggling to get by and recover. So the leaders around the world are trying anything and everything that will give them an added advantage over other countries. The easiest way to do that is to devalue/cheapen your currency. Cheap but stupid in the long run!

This makes your exports look less expensive than your competitors. So more foreign nations buy up your cheaper goods, and more money flows into your country. WOW!

America doesn't want to be left out. The government can do one of two things to make us look competitive. They can either devalue or currency or cut wages. Neither would are good for the people!

Which do you think the elected officials of our country will impose?

If your paycheck starts shrinking, Americans will not only complain - we'll revolt.

But very few Americans understand purchasing power. Most people don't realize that every time the dollar falls 50%, your real cost of living goes up at least 100%. When it falls 75%, your cost of living goes up 300%.

So politicians (the so called "independent" Fed included) will capitalize on this ignorance, and will choose to devalue your dollars.

Now here's the problem. In order to remain competitive with the rest of the world, it's estimated the dollar will have to fall ANOTHER 50% for us to remain competitive with the rest of the world. What a way to go! Great news HUH!

What's comes next... It would be the biggest devaluation of our currency that we've ever seen!

The Fed has already ensured our disastrous currency will continue to fall. As victims of any disaster, you need to plan to your escape route now before its too late.This includes investing in things that go up as the cost of goods rise, namely commodities. Or even better yet, commodity-currencies which can rise even more during those periods.

You see, inflation is simply the rise in the cost of goods. However, if you invest in the goods that are going up in price, or you invest in the country's currencies that export these very necessary commodities, then you will profit (instead of suffer) from the Fed's next move.

*** Here is a solution:

Therefore, invest in gold, silver, the Australian dollar, Canadian dollar and the New Zealand dollar; even the Brazilian real and the South African rand which will prosper during these times because they are huge commodity exporters.

Remember: The Fed isn't really in the business to protect your dollar's value. Only you can do that. Take action now to protect yourself and your family.


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For info on currency trading, try... http://wcw.worldcurrencywatch.com/



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