The Bernanke Head Fake
Gold is down $75 in the past 2 days, Oil is down $4, and the Dow Jones is down over 200 points.
Once again, the evidence of the land of the free NOT having a free market is obvious to anyone not teaching or taking a University economics class.
The fact is the entire stock market is speculating on what the Federal Reserve (FED) is going to do next. Forget about food stamp usage being at a record, long term unemployment at a record, and other meaningful economic indicators that tell us how our economy is doing, our stock market is all about the FED!
Yesterday the FED signaled that they will not be printing anymore, which in our opinion is a total head fake. FutureMoneyTrends.com analysis is that the FED needs to see asset prices lower before their next big wave of printing, so the easiest way for them to force asset prices down is to give hints to Wall Street that the fiat confetti party is over.
The losses in precious metals and stocks, in our opinion, should be short term and a huge buying opportunity for future trend investors. With the U.S. borrowing costs at 1 trillion per year, there simply isn’t enough suckers (aka: buyers) for U.S. treasuries, so the FED will have to step in sometime this year. We think it may be as soon as next month, which is why the FED is suggesting that they aren’t interested in another round of a large-scale purchase of bonds.
Doing the opposite of conventional wisdom has made many people rich and we can testify to that in our own lives where betting against the forecasts of the so called “experts” has never let us down. Don’t let the propaganda machine scare you out of a smart money investment, the idea of a real recovery is pure insanity.
Recently we interviewed Charles Biderman of TrimTabs Investment Research. By looking at payroll taxes and other IRS information, Mr. Biderman’s research can tell us exactly what is going on in the real economy.
During our interview, Mr. Biderman makes several very important points.
Since 2007, all the normal sources of buyers for the stock market have become net sellers of U.S. equities including individuals, pension funds, and hedge funds which has left only the U.S. government left to purchase U.S. stocks.
“The real problems are the government structures in the United States, Europe, and Japan. The governments of the central banks have printed probably close to $10 trillion in new money since 2009.”
Central Banks (the currency printers) are the largest buyers of gold, and have been since 2009.
Once the junior mining companies go, it will be epic!
Please use this link to watch our interview: Charles Biderman on the U.S. Recovery “Time to Stop Believing in the Tooth Fairy.”