Financial Crisis: Not Much To Say Now
"The history of the great events of this world are scarcely more than the history of crime.""The Federal Reserve is totally out of it. They're destroying the currency and driving up inflation, which will result in higher interest rates and a worse economy. We now know the Fed doesn't understand markets or economics, but is just trying to bail out its friends on Wall Street at the expense of 300 million Americans; nay, of the whole world." - Jim Rogers
Voltaire (1694 – 1778)
Fed Cuts Interest Rate 3/4 of a Point
Surprise Fed rate cut shakes dollar
Bank of America, Wachovia Profits Plunge
Ambac Posts $3.26 Billion Quarterly Loss
Gold futures rise 1% as dollar falls after Fed cut
The reason this commentary is titled "Not Much To Say Now" is the same reason a martial arts instructor would say: "One cannot teach self-defense to someone in the middle of a fight." All of the commentaries up to this point were about identifying your oppressor so that you would be able to avoid head-on confrontations. As of this week, so far, you're in the middle of a fight for your economic life.
The Federal Reserve has intervened in your fight, but it remains to be seen who's side did they benefit. In my opinion, they have simply given your oppressor breathing room. Your oppressor is DEBT, and the immediate victim is the one who had saved to be independent. They will immediately receive 75% basis point LESS income on their savings. In times of decreasing value of their savings, and increasing costs of food, clothing and transportation, this is a double-whammy to all that exercised prudent judgment in handling their money.
It's as if thieves successfully sneak into your bank account every night and pilfer a small amount. But this is more insidious, because your bank statement shows the "correct" amount. You cannot "prove" that a crime has been committed. However, it becomes painfully obvious that when you saved that first dollar  for today, it bought 3 gallons of gas. Today it buys 1/3 of a gallon. Ouch.
Younger people will say, "What's the big deal?" I say to them, "What are YOUR savings going to be worth when you're 60?" A blank look is all I get back most times. They never really thought about it. And to be honest, I didn't either back in the 70's. But do we have to keep making the same mistakes?
Sometimes The Dragon Wins
© 2008 by Edward Ulysses Cate
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