As a common person, my understanding of the economic forces that control the world was lacking the ability to determine the current situation facing
Recently, I have been taking courses on Economic and the Stock Markets as well as other securities in order to pass the series 7exam and become a
licensed Securities Broker.
While researching the current value of the American Dollar, I have come accross many things that have me terrified of the future economic crisis that
we will be facing this year and moving forward.
I have no doubt that their is a COVER-UP taking place within our govt. to hide the true value of the dollar, and the true inflation rate. This will
be very hard to explain, there are several things happening here...and they are all happening at once...RIGHT NOW!
1. The Stock Market Crash of 2000-2001. The Terrorist Attack on 9/11 was directly aimed at taking out the World Trade Center...but that wasn't the
terrorists main objective. The Attack on 9/11 was an attack on the Stock Market and Economy of the USA. This is evidenced in the fact that the
terrorists "Short Sold" the market immediately following the attacks, and lead the way for other investors to pull out of the market causing the
Stock Market to be closed for 3 days... the first time it has EVER been closed in history.
2. Greenspan, in order to "stimulate" the economy...to get us back on the forward path then Lowers the interest rates down to the lowest level in
history. Here's where it gets tricky. When the Federal Reserve Bank lowers the interest rate it does so to increase "borrowing". Whenever money
is borrowed from a bank, more money in created. This is called the multiplier effect. If a bank borrows 1000 dollars from the FRB, then lends that
same 1000 to a borrower...the borrower will either use the money or will deposit it at another bank. In any event the money will end up at a new bank
where it will be borrowed again by another person...and more money is created.
3. The USA National Debt is past the point of no return...especially when you consider that we sell MUCH less than we buy, causing a Trade
It is clear that the only way to LOWER our debt is to decrease the value of the dollar. This is the reason that China and others are talking about
switching their Reserve Currency to the EURO, and why the Iranian Oil Bourse will start trading OIL and Gas in Euro's and not the Petrodollar.
4. With every NEW dollar that the FRB creates, the dollar in your pocket becomes less valuable. This is called inflation, and is a political tool
used to make the populace feel like they are more wealthy...when in fact the value of money is just an illusion.
5. During the Clinton administration, the Govt. changed the way we MEASURE inflation...by changing the "basket of goods" used to determine the CPI
(consumer price index). So the Rate of Inflation numbers are not the TRUE rate of inflation, it actually MUCH MUCH higher!!!
6. The interest rates that banks have been offering are Equal to or in many cases LESS THAN the TRUE Rate of Inflation ...which is why the long term
bonds are trading at an "interest rate inversion" Which means that the long term rates are the same as the very short term interest rates...showing
you how the traders and economists feel about the long term future of the economy.
7. The Value of Gold, which is the BEST investment to Hedge against a rise in the value of the dollar or any national currency going through an
inflationary position,...Has gone through the roof in 2005. I was under the impression that the value of Gold went up World Wide... because of
greater demand. But thats NOT the case at all. The value of Gold has jumped in DOLLARS ONLY!!! What does this mean? The dollars in your pocket are
about to lose more of their value in 2006.
See this chart below.... ALSO, this chart would give you a better idea of what the TRUE inflation of the American dollar is ... and its NOT pretty.
The Federal Reserve Bank has destroyed the American Dollar and you and your Family are about to pay for it. I expect the cost of Goods & Energy to
increase to the point where a World wide market crash will become self evident in the near future, as a result of the HYPERINFLATION that Greenspan
Is it any suprise that the Federal Reserve Bank announced that effective March 2006 they will no longer be publishing for public disemination the M3
numbers, which are an aggragate total value of all dollars that are in circulation and being held in banks?
The only HEDGE against HYPER-Inflation is buying GOLD & foreign Currency. The OLD money knows this, and GOLD is being OVER SOLD right now. What does
the "old money" know that you don't know? You should want to find out!
It happened in Germany during the Wiemer Republic in 1910's and I believe that it is about to happen again IN AMERICA.
There is a lot more on this subject that I have not yet covered in this post,... I empower you to do your own searches on the web and on ATS ... the
truth is out there, but don't expect the MEDIA to tell you!
If you didn't understand anything that I said...please feel free to ask, there are no stupid questions....only stupid politicians!