Some of you may remember a game show where contestants could win an opportunity of snatching as much cash as possible inside a see through box. The lucky winner would stand in this vertical box while forced air circulated thousands of dollars into the air. What if I told you the same influx of money is circulating all around you but unfortunately the only winners are big banks, Wall Street, and the chosen few? Today we try to find fresh air all while most drown in dollars.
2007/8 will go down in history as the era cracks in the economic glass appeared to all. As credit froze and folks began to panic governments around the world decided to inject billions soon trillions of fresh revenue into the monetary system. This statement means little to most folks out working hard trying to make a living. The problem is most of this new money didn’t make it into the hands of middle America in fact most money went no further than Wall Street fat cats and banks. The plan was to trickle credit (money) through banking institutions and into the hands of small business and employees. The money stopped well before Main Street, USA.
Some have asked a reasonable question asking why didn’t America’s central bank simply give each person a set amount of money? Why didn’t those handing money out to banks require 90% or so of the money be directly deposited into taxpayer bank accounts? Wouldn’t forty or fifty grand in your account help stimulate your local economy? The answer is only for a short time unless the money is invested into real assets like gold or silver. As soon as it’s gone and no new money follows the blast of stimulus grinds to a halt like a new Hemi without gas. Is it possible the Treasury never intended for stimulus money to go any further than Wall Street and banks?
But there is a long-lasting effect of massive stimulus and you see it each time you grocery shop or read the latest unemployment numbers. The same money you are working so hard for is turning into a wave of toxin causing commodities to increase and your assets to decline. Small businesses constrict (downsize) trying to meet expenses with less income resulting in more unemployment. Families stretch budgets trying to meet expenses with fewer dollars and less buying power. The drowning process for middle America is slow and painful at least for those not aware of rising water flush with dollars. If your solution to rising costs is earning more money good luck because your earning potential cannot keep up with Mr. Bernanke’s printing staff.
I received an email last week from a friendly reader telling me my solution for everything is buying gold or silver. I had to chuckle because my solution to this economic challenge is to trade dollars into assets least likely manipulated. Dollars certainly are not on my list at this time. Gold is now a currency. You need no more proof than the demand gold is realizing from governments and central banks worldwide. For us to argue if gold is a good investment that will go up is redundant at best. Please take a hard look at gold and silver while the option exists for your family.
One of the given explanations, made clear in Bernanke’s speech, is that US inflation is now rising. So-called “core inflation” hit a 19-month high of 1.8pc in July. That’s admittedly tricky for the Fed, seeing as one of the official justifications for previous doses of QE, is that the US Fed (and the Bank of England) have released virtual money in order to “fight deflation”.
In addition, QE is part of a deliberate but still largely unspoken ploy to gradually weaken the dollar (and pound), so debasing the enormous debts of the US (and UK) governments. “Fighting deflation” has, for the most part, been an intellectual conceit – a deception now made more difficult by the latest inflation numbers. Having said that, if the US authorities had really wanted more QE, they wouldn’t have let a few awkward inflation statistics stop them. THE TELEGRAPH. Read more here.
“Young Americans are looking for economic opportunity and they know the solution rests with job creators in small business and companies – not government,” said Paul T. Conway, president of Generation Opportunity. “As they continue to work to make ends meet and weigh the costs of delayed dreams, young adults are sending a message to the President and Congress – stop your spending and get out of the way of those who actually know how to create jobs in America.”
* Only 31% approve of President Obama’s handling of youth unemployment.
* 76% would like to see U.S. federal government spending decreased.
* 69% prefer reducing U.S. federal spending over raising taxes on individuals in order to balance the Federal budget.
* 59% believe the U.S. economy grows best when individuals are allowed to create
businesses without government interference.
* 53% indicate if U.S. taxes on business profits were reduced, companies would be more
likely to hire. PR WEB. Read more here.