You don’t want to be around when that bill comes due!
Well, as a quasi-government organization
with the authority to suck down your hard-earned money through the act
of inflation, the U.S. Federal Reserve is “that guy,” and you could be
the responsible one left with its bill.
Did you know that the Fed has been
inflating the supply of dollars at a stunning 33% annual rate over the
past five years? Or that it plans to continue inflating the supply of
dollars at least into 2014 and has kept open the possibility that it
will do so indefinitely?
When the Fed’s party is over, who do you think will be left with the bill?
Not the Wall Street bankers! We’ve learned that lesson already.
It’s Main Street investors like you who get the bill.
But you can protect yourself -- though your window of safety is closing rapidly.
Robert Prechter, market forecaster and
leading opponent of the Federal Reserve, has just released a report
that that will help you understand the risks of deflation that most
mainstream sources cannot see because they are blinded by decades of
inflationary Fed policy.
At just 8 pages, "How to Protect Your
Money When the U.S. Debt Bill Comes Due" is a quick read -- well worth
any independent investor’s time.
Follow this link to download your free deflation-protection report now >>
Report Excerpt:
The Federal Reserve's efforts to rescue
the economy have been historically aggressive, starting with the initial
round of quantitative easing in 2008 and continuing through 2013.
The central bank's assets have
skyrocketed due to the Fed's bond purchases, which you can see clearly
in this eye-opening report that Robert Prechter presented to the Market
Technicians Association and his Elliott Wave Theorist subscribers.
The main reason investors are expecting
runaway inflation is illustrated in [the chart above], which shows the
value of assets held at the Federal Reserve. The Fed has been
inflating the supply of dollars at a stunning 33% annual rate over the past five years. ... [N]o wonder investors expect inflation and have aggressively positioned for it.
Look just about anywhere else, however,
and you will see subtle evidence of deflationary pressures. Given
knowledge only of the Fed’s inflating, many people would expect the
Producer and Consumer Price Indexes to be rising at a rate of 33%
annually. But, as you can see in Figure 2, the PPI’s annual rate of
change is stuck at zero and the CPI has been rising at only a 2% rate.
In an interview at the recent San
Francisco Money Show with financial author Jim Mosquera, EWI's Chief
Market Analyst Steven Hochberg explains why the Fed has gotten so
little in return from its stimulus programs. Here's a brief excerpt from
the interview published on Aug. 18 on the Examiner.com website.
Question: The Fed
wizards have been pushing buttons and pulling levers rather furiously
since 2008. The discount rate is rock bottom, and the Fed balance sheet
has swelled to the tune of trillions. What button is left for them to
push?
Steve Hochberg: That
is a really interesting question the way you phrased it because the
fact that they have been pushing buttons and have gotten very little in
return tells us … that the Fed is not in control. The Fed does not
control the markets, and it doesn’t control the economy. Both are
bigger than the Fed.
You say they have been doing this
furiously. They have been doing this historically! Yet if you look at
inflationary measures, such as the Personal Consumption Expenditures,
which is the Fed's favorite way of measuring inflation, it's bumping
along at 1%.
We have had historic fiscal and
monetary stimulus and yet no inflation. Why? The forces of deflation
are overwhelming the forces of inflation. The Fed dropped interest
rates in 2000 to 2002 and that did not stop the Nasdaq from dropping
78%. The Fed dropped rates from 2007 to 2009 and it did not stop the
Dow from going down 59%. There is historical evidence that the Fed does
not control the markets but that the markets control the Fed.
As the next leg of the bear market
starts unfolding, they are going to do more unconventional things.
Things will accelerate to the downside when the public realizes the
central banks aren't in control.
For a limited time, you can read Robert
Prechter’s 6-page report to prepare for what EWI sees ahead. In this
report you'll learn why the risk of deflation is mounting and how you
can see it coming in the prices of gold, gas, real estate, crude oil
and other markets.
http://www.marketoracle.co.uk/Article42863.html
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