Topic: The FED's game - for newbies (Read 141 times)
Fiat money unbacked by anything and under the full regulation of Federal Reserve, it can be easily corrupted especially when greed comes into play. This is why people diversify their savings and wealth in many investment instruments : gold, land, precious metals, stocks, bonds, crypto etc Cash is not a good value growing asset, its most attractive value is in its liquidity.
[quote author=jjjfff link=topic=...The FED system is broken and not for the usual things you hear about it, but because of their evil monetary inflation system that works 100% against The People.
In simple terms: the FED prints money that never reaches you. If this money reached The People, price inflation would happen. It's the FED's job to keep price inflation low.
And here's the catch: if the FED prints money for their banking buddies, and this money never reaches you, then you are unable to inflate market prices.
What do the banking buddies do?
Buy equities.
....
[/quote]
It's true that the way to print money and not have inflation is to move that excess money into equities. It's money that's circulating between consumers and stores that drives inflation.
But you've erred in a couple points, largely in ascribing morality to the FED.
Example.
The FED system is broken and not for the usual things you hear about it, but because of their evil monetary inflation system that works 100% against The People.
Something can be evil and not broken, and work 100% against the people and be not broken. It simply works for others' benefits. And something can be broken and not evil. Then again, something could be broken and evil.
In simple terms: the FED prints money that never reaches you. If this money reached The People, price inflation would happen. It's the FED's job to keep price inflation low.
And here's the catch: if the FED prints money for their banking buddies, and this money never reaches you, then you are unable to inflate market prices.
What do the banking buddies do?
Buy equities.
....
[/quote]
It's true that the way to print money and not have inflation is to move that excess money into equities. It's money that's circulating between consumers and stores that drives inflation.
But you've erred in a couple points, largely in ascribing morality to the FED.
Example.
The FED system is broken and not for the usual things you hear about it, but because of their evil monetary inflation system that works 100% against The People.
Something can be evil and not broken, and work 100% against the people and be not broken. It simply works for others' benefits. And something can be broken and not evil. Then again, something could be broken and evil.
If you're into crypto then you probably hold the same values most cryptocurrency enthusiasts do: personal freedom, less bureaucracy and...taking control over your money back from the broken FED system.
This last idea cannot be stated enough. The FED system is broken and not for the usual things you hear about it, but because of their evil monetary inflation system that works 100% against The People.
In simple terms: the FED prints money that never reaches you. If this money reached The People, price inflation would happen. It's the FED's job to keep price inflation low.
And here's the catch: if the FED prints money for their banking buddies, and this money never reaches you, then you are unable to inflate market prices.
What do the banking buddies do?
Buy equities.
The FED has been printing basically free money for bankers who inflate the stock markets artificially for their own gain.
The prices you see on the stock market are rigged. The FED can print one trillion dollars overnight if they want to pump a certain stock. This, of course, would be highly monitored within well regulated markets such as the US and EU. BUT. The bankers have one evil genius card up their sleeve: emerging markets.
Here's how the global stock markets work today:
1) The FED/BOJ/ECB print one trillion dollars.
2) This trillion is sent to Brazil, India, China or whoever. Emerging markets. Here the trillion dollars is celebrated as incoming investments. But it's a Trojan Horse.
3) The hot money, lent at ridiculously low interest rates to FED banking buddies, enters the emerging market and makes prices jump.
4) The victims believe the pump and go in buying as well. Euforia takes over.
5) The FED banking buddies start to slowly dump the initial investment. They do it slowly, after all time is on their side (ridiculously low interests).
6) The one trillion becomes 5 trillion dollars which is sent back to the original bankers.
7) The original trillion is paid back to the FED. Bankers keep 4 to 5 trillion profits.
Months later the emerging market notices that the foreigners have already left.
9) The emergin market collapses 10, 20% or more.
This is how you play the world markets when you can freely print money.
If you look at the Dow Jones Industrial Average since 1981 you'll see a permanent positive slope. The DJIA may have collapsed in 2008 but if you take a ruler and draw a line from 40 years ago, you'll see the US markets only grew in the long run.
Now take a chart from Brazil or Turkey from 40 years ago and you'll see it's a zig zag. Historical pumps and dumps.
That's the difference when you print money and when you're subordinate to printed money.
Well I hope this short brainstorm about how the completely immoral FED system works has given you a better idea at the fake virtual finance that runs the world today. You work 9-5 to earn some fake money that the FED can print at will. When bankers need some money for their yacht parties they don't need to work even a minute longer for it, they can pull money out of thin air. While you work harder and harder for the same purchasing power.
This last idea cannot be stated enough. The FED system is broken and not for the usual things you hear about it, but because of their evil monetary inflation system that works 100% against The People.
In simple terms: the FED prints money that never reaches you. If this money reached The People, price inflation would happen. It's the FED's job to keep price inflation low.
And here's the catch: if the FED prints money for their banking buddies, and this money never reaches you, then you are unable to inflate market prices.
What do the banking buddies do?
Buy equities.
The FED has been printing basically free money for bankers who inflate the stock markets artificially for their own gain.
The prices you see on the stock market are rigged. The FED can print one trillion dollars overnight if they want to pump a certain stock. This, of course, would be highly monitored within well regulated markets such as the US and EU. BUT. The bankers have one evil genius card up their sleeve: emerging markets.
Here's how the global stock markets work today:
1) The FED/BOJ/ECB print one trillion dollars.
2) This trillion is sent to Brazil, India, China or whoever. Emerging markets. Here the trillion dollars is celebrated as incoming investments. But it's a Trojan Horse.
3) The hot money, lent at ridiculously low interest rates to FED banking buddies, enters the emerging market and makes prices jump.
4) The victims believe the pump and go in buying as well. Euforia takes over.
5) The FED banking buddies start to slowly dump the initial investment. They do it slowly, after all time is on their side (ridiculously low interests).
6) The one trillion becomes 5 trillion dollars which is sent back to the original bankers.
7) The original trillion is paid back to the FED. Bankers keep 4 to 5 trillion profits.
Months later the emerging market notices that the foreigners have already left. 9) The emergin market collapses 10, 20% or more.
This is how you play the world markets when you can freely print money.
If you look at the Dow Jones Industrial Average since 1981 you'll see a permanent positive slope. The DJIA may have collapsed in 2008 but if you take a ruler and draw a line from 40 years ago, you'll see the US markets only grew in the long run.
Now take a chart from Brazil or Turkey from 40 years ago and you'll see it's a zig zag. Historical pumps and dumps.
That's the difference when you print money and when you're subordinate to printed money.
Well I hope this short brainstorm about how the completely immoral FED system works has given you a better idea at the fake virtual finance that runs the world today. You work 9-5 to earn some fake money that the FED can print at will. When bankers need some money for their yacht parties they don't need to work even a minute longer for it, they can pull money out of thin air. While you work harder and harder for the same purchasing power.
Jump to: