Wednesday, October 23, 2013

Warning - Warning

I was tempted to add a third warning to the title, but thought that might be over doing it. But a strong warning is necessary. It is a warning that I have given before. Today I am ramping up the defcon level to 5. This warning, of course, is about your money and the danger that it is being subjected to by the Fed and the present administration.

I have recently read where the Fed feels fully justified in increasing the production of new dollars up to one trillion dollars a month for "quantitative easing". In other words they are turning the dollar into Monopoly money to support the administrations surreal penchant for spending money  that they don't have.

To make matters worse, the Fed is dedicated to maintain QE spending until unemployment goes under seven percent. Why they believe that printing new money and buying back bonds will increase employment is beyond my ken. As far as I can see the only increase in employment will be among those that make replacement parts for printing presses and ink. And I do not believe they will stop if the unemployment rate drops below seven percent if it is before the next election. All is politics.

What this policy will do is expand the Bernanke Bubble even more. The explosion caused when the Bernanke Bubble blows up will most likely be the worst financial catastrophe in my lifetime. I have been writing about this for quite a while now. I see lately that some in the financial media are coming on board with this idea.

The Bernanke QE policy particularly hurts those that are retired and those that are out of work. Because interest rates are held artificially low, those without a solid income stream are forced to dip into their savings rather than relying on interest payments. At the same time, it benefits the wealthiest of the population because it inflates the value of the stock market.

I am hardly an investment expert, but it seems to me that investing, right now, is fraught with peril. Be exceedingly careful with your money. I do have some ideas about investing today, but I will keep them to myself for fear of being wrong. At any rate, I would not accept the advice of any one person. Read, discuss, but, most of all, think and plan where you put your money. These are dangerous times and the government that should be protecting you seem more intent on protecting their own agenda. Good luck and don't say I haven't given you a warning. 

No comments:

Post a Comment