Posted on 11/03/2010 1:10:06 PM PDT by Hojczyk
The Federal Reserve launched a controversial new policy on Wednesday, committing to buy $600 billion more in government bonds by the middle of next year in an attempt to breathe new life into a struggling U.S. economy.
(Excerpt) Read more at cnbc.com ...
My ‘cash sitting the sidelines’ is already invested in wealth protection. In other words, I bought gold bullion coins and some silver bullion coins and some ‘junk’ silver or circulated 90% silver coins. I am very happy with same and see it as my only option to defend my very minor wealth against inflation and other government malfeasance.
If you want to pay off debt, wait till the gold rises in value, then you could take 1/2 of the Gold IRA, pay off the same amount of debt, and sill have a nest egg left. Taxes and penalty will be less expensive in real dollars too. If you are 59 1/2 no penalty applies.
True, but that is not the point. The point is that the dollar has steadily and purposely been devalued for nearly 100 years in order to make a few of the elite very, very rich.
You shouldn't keep your dollars where they won't earn interest or dividends. If you bought bonds you also kept ahead of inflation.
in order to make a few of the elite very, very rich.
Who? And how does the devaluation make them rich?
Never heard of people who trade currencies?
First, the tell you that you can exchange paper money for gold, and then after a while they stop that and all you have is paper money. They use paper money (which they print whenever they need more) to buy REAL assets (including gold) which have REAL value. Meanwhile, the rest of us have just enough of money to get along, hopefully with a few luxuries. And when (as always happens) they have printed so much money to make it virtually worthless, THEY have hard assets and all our savings have been made worthless.
So for a while no one trusts paper money and instead move to a barter economy with the people who have the most valuables (i.e. those who caused the problem) again controlling the economy. Eventually they start it all over again with NEW paper money to manipulate.
People who trade currencies are the elite who got rich from devaluation?
Anyone can trade currencies now, are we all elite?
“People who trade currencies are the elite who got rich from devaluation?”
For the most part, yes. Oh, a lot of other people got rich that way because they figured out the scheme, but those who got the richest concocted the scheme in the first place.
Think of it this way, paper money that can be manipulated is a way for the rich to get richer without having to actually produce anything of value. Isn’t the the core idea behind every con to make money at the expense of another? Do the vast majority of the people gain anything when the dollar is devalued? No, they just end up giving more of their earnings for goods and eventually wages NEVER keep up with inflation.
Can you explain how the decline of the dollar allows these currency traders to make all this easy money you think they make?
Do the vast majority of the people gain anything when the dollar is devalued?
Anyone who bought hard assets with debt gains.
No, they just end up giving more of their earnings for goods and eventually wages NEVER keep up with inflation.
Historically, wages always beat inflation.
“Can you explain how the decline of the dollar allows these currency traders to make all this easy money you think they make?”
If countries use gold or hard assets in trade, an ounce of gold is worth the same no matter who stamped it. A barrel of oil is worth a barrel of oil. Did the cost of oil REALLY go up or did the value of the US dollar go down? Does the AVERAGE person benefit when oil is $80 a barrel vs $35 a few years ago?
But who is to say how much a rupee is worth in dollars? Currency traders buy currencies that are going up in value and sell currencies that are going down. In the past several months they have been buying nearly anything except US dollars. When the dollar goes down, they trade their foreign currencies back for MORE dollars than original and then purchase hard assets before the devaluation trickles down to the rest of us. Have the produced ANYTHING of value?
“Anyone who bought hard assets with debt gains.”
Eventually, yes. During hyperinflation those with high debt can pay it off with worthelss paper money.
“Historically, wages always beat inflation.”
UNTIL! Until the people who print the money print too much of it, too quickly and start the rapid decline into hyperinflation.
Since currency traders are trading with other currency traders, you can also say, currency traders sell currencies that are going up in value and buy currencies that are going down.
Eventually, yes.
Immediately, yes.
Oil went up today as the dollar went down. Food and other commodities are going up, too. Did your paycheck go up?
“Anyone who bought hard assets with debt gains.”
Oil went up today as the dollar went down. Food and other commodities are going up, too.
Told you so.
LOL how did you know that is the novel I was thinking about.
It’s really not funny but it is. I have been in an ER out of commission please tell me this threads headline made the news or are they all still talking about the election only?
Exactly. The only paychecks that went up are the governments. And that is both dem and pub.
And certainly not the retired or AD military paycheck.Retired paychecks did not get COLA’s. Maybe Obama’s fat cat bankers,execs and wall street but that is all. You need three jobs to buy groceries and gas your vehicle. It is shameless
as these senators and congresscritters jet of to their beach homes!
Because all of our life has sounded like a left Behind novel since Nov 2008. The parallels are astounding.
Money? What money? Debt? What article?
And watch the fools want a Clinton/Clinton ticket to save us. Clinton did the community reinvestment Act garbage that destroyed us and Barney Frank sealed the deal for us to be the titanic. The rats all need to go (the party will never be steered back to the center) and a lot of the pubs as well -but maybe a handful- to truly clean up this mess.
Do you have enough of those hard assets to increase your net worth significantly?
Let me rephrase that, do most people have enough of those hard assets to increase theirr net worth significantly?
The rich get richer and the poor get poorer and the middle class gets eliminated.
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