What The Fed's Decision To Keep Interest Rates Near Zero For 2 Years Means For Gold & Silver Prices

Sept. 17, 2011 - PRLog -- The choice from the Fed recently to help maintain an important interest charge at close to zero % for 2 years is historic because the Fed has by no means done this before. This motion will have profound damaging impact around the U.S. dollar and its purchasing power. In addition, it signals that even the Fed thinks the economic climate isn't heading to get better for a minimum of 2 years. This motion will impact each and every American and telegraphs a policy of inflation from the federal government. In November of 2009, analysts predicted this very route in a post called "The Fix is In." Back again then, he stated, "It appears the "fix" is in as far as the road plan for the U.S. dollar and economic climate. The federal government and also the Fed seem to have selected a route of inflation for The united states and also the globe. This isn't an official introduced strategy however it may as well be." Visit http://silver-dollar-values.com for more profitable silver and gold tips.

Zero % interest on the important Fed charge confirms our predictions right together with the increasing inflation in nearly every thing other than housing. In an substantial publish about inflation this week, Theburningplatform.com stated, "The storyline being offered for you by Bernanke, his Wall Street masters, and their captured puppets in Washington DC is the fact that deflation will be the fantastic bogeyman they should slay. They make these statements from their ivory jewel encrusted towers because the real individuals in the real globe handle actuality. The actuality since Ben Bernanke introduced his QE2 coverage in August 2010 is:

Unleaded gasoline prices are up 45%.

Heating oil prices are up 46%.

Corn prices are up 71%.

Soybean prices are up 26%.

Rice prices are up 13%.

Pork prices are up 31%.

Beef prices are up 25%.

Espresso prices are up 38%.

Sugar prices are up 48%.

Cotton prices are up 13%.

Gold prices are up 42%.

Silver prices are up 115%.

Copper prices are up 23%.

The official inflation charge is 3.6%, but anyone with the IQ over 70 understands that is a statistical lie. Based on economist John Williams of ShadowStats.com the accurate yearly inflation charge is about 11% (if calculated the way in which Bureau of Labor Figures did it in 1980). In his newest report, Williams warns the dollar is in severe difficulty because the Fed isn't intrigued in combating inflation when it needs to carry on propping up the banking method. The ShadowStats.com report stated, "Massive, basic dollar dumping and dumping of dollar-denominated property could start anytime, with small or no further warning. Having a U.S. federal government unwilling to stability or perhaps deal with its uncontainable fiscal situation; using the federal government and Federal Reserve prepared to stop a systemic collapse, so long as it's feasible to print and spend what ever cash is required; and using the U.S. dollar at danger of dropping its international reserve forex standing; a lot greater inflation lies forward, in a circumstance that quickly could evolve into hyperinflation." Read more http://silver-dollar-values.net

Close to zero % interest prices retains downward strain around the dollar, however it will retard the investment required to produce work in the personal sector. Peter Schiff, CEO of Euro Pacific Money, states the banking institutions are sucking up most of the accessible money and utilizing it for no-risk trades. In a current publish also titled "The Repair is In," Schiff stated, "It was bad sufficient the Fed held prices far as well reduced, but a minimum of a fig leaf of uncertainty stored probably the most brazen speculators in partial paralysis. But by particularly telegraphing coverage, the Fed has now offered cover to the most parasitic components of the monetary sector to undertake transactions that offer no financial advantage to the nation. Particularly, it'll merely inspire banking institutions to borrow cash at zero % in the Fed, after which use substantial leverage to purchase reduced yielding treasuries at 2 to 4 %. The outcome is really a banker's dream: assured reduced danger revenue. In other words it'll inspire banking institutions to lend to the federal government, which currently borrows an excessive amount of, rather than lend to personal borrowers, whose exercise could really advantage the economic climate."

Politicians say they wish to produce work, however they stand silent and let the banking institutions and also the Fed do just the opposite. No one will utter a phrase about repairing the failed method The united states has right now. There's no method to have a financial "recovery" when the banking institutions are permitted to become propped up with phony accounting and cash printing. Sour financial debt needs to become washed out of the method, but that's not occurring. Rather, more financial debt is piled on, and also the couple of advantage in the cost of the many. It isn't deflation that will wreck lifestyle for many People in America; it's inflation that's right here and expanding. As George Orwell famously stated, "Truth is treason in the empire of lies."

Many thanks for studying this. Everything means some thing very real and can influence each and every element of one's monetary lifestyle. Make sure you reach out and understand the skill set of wealth preservation and flight to security. Now is a superb time to purchase precious metals, like gold and silver, for your safe haven assets and as a protection against dollar disintegration and inflation. Visit http://www.silver-dollar-values.com for more profitable silver and gold tips.

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