People’s QE: Central bankers forcing public to speculate

People’s QE: Central bankers forcing public to speculate

Abundance is not something we acquire. It is something we tune into.
Wayne Dyer

What is the best way to come out with a new stimulus plan? Make it expensive to save, force the masses to speculate and this is what the negative interest wars are all about.  The masses will revolt at having to pay interest to the banks on their money while the banks will have the ability to lend this money out and profit from it.

Must Read: Most Hated Bull Market in History has staying Power

 Now banks want to rape you twice. First, they tax your wages and then when you put this money into the bank they will tax you again by charging you interest for holding onto your funds, that they will lend someone else and profit of from; what a perfect scam. It will also force everyone to speculate and hence will lead the way to what we will call QE from the masses.  Imagine if all this money is forced into the market what an incredible stimulus it will provide to stocks. Now you will agree with us when we state that the Fed is not stupid, they are evil geniuses; they know exactly how far they can go and if they need to push the envelope further they just need to prime the crowd up. As they control the media indirectly, the world is their oyster, and most individuals are nothing but flies on the wall waiting to be swatted away.

The Fed has succeeded in making things so hard for the average person that out of desperation they will turn to speculation as means of survival. 76% of families are living from pay check to pay check, and this phenomenon is not restricted to the poor only, according to CBS 33% of households earning $75,000 per year are also living from pay check to pay check.

We are in the midst of a full-blown currency war; Japan lowered rates into negative territory, and Sweden has upped the ante by pushing negative rates even lower. Sweden has stated that they are prepared to do this until inflation is at the 2% mark. Interest rates are -0.5% currently, so one wonders how low rates will have to drop for them to hit their inflation target of 2%

This is going to put pressure on China and a host of other nations to take the same route.  It won’t be long before the Fed is forced to take a similar path. Start paying attention to the news;  the Fed is suddenly going to start listing a slew of factors to backtrack on their claims that the economy was sound.   Many Gold bugs have been stating that the central bankers are running out of room to manoeuvre; our response to this is a dream on.   The only day the central banks will run out of ammunition is the day the masses wake up and that day is sadly still a long way in the making.  Central banks don’t need to continuously lower rates; they can only flood the markets with money while maintaining an ultra-low rate environment.   What’s another 1-2 trillion dollars when our debt is now over $19 trillion? What has changed between 2000 and 2016; our debt in 2000 was significantly lower, and it was even lower in 1990; from the 1980‘s the debt has tacked on roughly $17.6 trillion dollars and the masses are still quiet.

Things are only going to get worse; the dollar amount might look like it’s trending upwards, but individuals are working more for a lot less; to solve a problem you have to understand the problem, the masses are blind to the concept of inflation. They are caught up in a vicious game of just trying to pay the bills and survive. They hardly look up to see what is going on. This sort of like Plato’s allegory of the cave; if you are unfamiliar with this famous concept, you can view it here

Against this backdrop, we can safely state that the Fed is omnipotent and that those gold bugs and hard money experts are smoking some strong medicine that they need to get off immediately when they falsely assume that Gold will surge to the moon simply because the Fed has the pedal to the metal.    The key to the markets are the masses, and the masses believe that the Fed and the government can solve their problems. Until they think otherwise, nothing is going to change, and the outlook will continue to worsen.

Game plan

If you are going to speculate at least understand how the financial markets operate and what drives them. The main driving force behind the markets is mass psychology; understand this and you will have a better understanding of how the markets operate than most of the shills on Wall Street who openly market themselves as experts.  Look for a good stock screener and then make a list of stocks that are growing strongly, one way to do this is to look for companies with strongly quarterly earnings growth rates and or a strong product line. Some companies to consider are HRL, PPC, OCLR, CIEN, AMZN, RTN, OA, etc.,

Other stories of interest:

Why Most Hated Bull Market in History still has staying power  (Feb 17)

American woes, worthless dollars forces the USA to Engage Russia (Feb 17)

Wall Street Smart Money buying: Mass, Dumb Money selling (Feb 17)

India will never Dethrone China: Jim Rogers agrees, exits India (Feb 16)

Gold breakout real or another false start (Feb 15)