The Bottom of the Economy (4/21/08)
I am a businessman who loves the stock market and trading. There are highly paid consultant economists out there that predict what is happening. The press picks up on it and adds a flair to sensentationalize the worst or sometimes the best. Remember the press is publishing what sells newspapers and magazines. That is the extraordinary sensationalized high profile happenings. When people are hurting due to the economy the press picks up on it after there are all time new highs of bankruptcies or foreclosures. Don't you think the people that are part of that statistic already know that which they have been personally through for the past year.
So I am a business man who sees a soft economy in my business but it is not in a total recession. The economy is adjusting to higher raw material prices and passing on the costs which is causing inflatiion. The Fed is doing everything it can to keep the economy from going into a depression caused by the housiing bubble bursting and the sup=prime mess and the credit problems.
More on the Fed - A LOT OF MONEY HAS BEEN CREATED BY DR. BEN S. BERNANKE, CHAIRMAN OF THE BOARD
OF GOVERNORS, FEDERAL RESERVE SYSTEM. YOU WILL SEE HOW BERNANKE, WHO IS THE SKIPPER OF AMERICA’S ECONOMY, HAS RESPONDED TO PANIC CONDITIONS BY PUMPING IN $200 BILLION OF M2 MONEY SO
FAR THIS YEAR. THE M2 UPTREND IS ACCELERATING. IF WE ARE RIGHT, DR. BEN PROBABLY INTRODUCED ANOTHER $200 BILLION OF MONEY IN THE SHAPE OF M3 MONEY. THIS IS NOT USUALLY AVAILABLE TO THE PUBLIC OR SEEN BY THE PUBLIC. IT IS IN THE FORM OF LARGER CD’S, WHICH CAN BE USED AS BANK
RESERVES. (OR A BACKING TO THE JP MORGAN BAILOUT OF BEAR STERNS) IT IS PART OF THE UNDERLYING
STRENGTH OF THE ECONOMY. THIS BRINGS US TO THE FIRST PART OF DR. BEN’S TERM IN OFFICE. HE HAS CREATED A TOTAL OF ONE TRILLION DOLLARS OF M2. QUITE LIKELY THAT IS BACKED UP BY ANOTHER TRILLION DOLLARS OF INVISIBLE M3 MONEY. THIS IS WHY I BELIEVE THE BOTTOM IN THE ECONOMY IS IN.
DON'T LET THE PRESS MOKE YOU WORRY ABOUT A WORLD-WIDE MELTDOWN.
Now what I want you to do to help everyone in your close contact is let them know that the world and the USA is going to come out of this recession soon and be prepared for it. Pass on to your inner circle of friends who invest in the maeket this web site and recommend they read this blog.
Now is the time to be adding to your metals because of all the money that has been created has to go after goods which causes inflation.
BERNANKE IS ON THE JOB – AND WILLPROTECT YOU!
INCIDENTALLY, BERNANKE HAS BEEN A BIT
MORE CAUTIOUS WHEN IT COMES TO
CUTTING INTEREST RATES. DR. BEN HAS
WRITTEN EXTENSIVELY ON THE
INTERACTION BETWEEN INTEREST RATES
AND THE ECONOMY. MY CLEAR IMPRESSION
IS THAT HE FEELS MONEY SUPPLY IS FAR
MORE CRITICAL THAN INTEREST RATES
WHEN IT COMES TO PROMOTING GROWTH.
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