Fed Rates Go to ZERO Soon! What NEXT?

As I have posted on my blog on September 30, 2008, the Fed will use one of their key financial tools to help jump start the economy. If $700 bln with TARP, $200 bln for Freddie Mac and Fannie Mae, about $150 bln for AIG, and another several billions to help the Commercial Paper Market, what will bringing down the Fed Rates to ZERO do?

It is almost like using a pea shooter against a bank robber. The problem is not putting more money in the financial system, it is letting the FREE Market System work!

Yeah, we can look at Uncle Sam as the EMT (Emergency Medical Technician) trying to use the defibrillator to treat a patient who has gone into cardiac arrest, but what good will it do if the patient doesn't have the proper diet, or apply proper exercise to keep their bodies functioning at optimal potential.

The problem is that Government cannot stop eating PORK or stop feeding the hungry man with fish. What they should do as well as the people of the USA is begin to be humble, frugal, and financially conscience about what and how they spend.

The ideas that should be taught is to teach a man to fish (create jobs) rather than give a man a fish (welfare mentality - both on Wall Street and Main Street). We have got accustomed to a society where adults are kids and kids are kids, not being responsible, not being able to respond to hard choices and sacrifice!

What we need to do is build our manufacturing base so we begin to have "Made in America" once again. Also, we need to pay people wages that are competitive. The problem is when we pay people unreasonable pay for lack of skill, we begin to have a working economy that is welfare based salaries. That is, when you work for less and get paid more.

It is hard to be in an economy where the unskilled get paid more than the educated and skilled workers get paid less. For example, A Real Estate Agent, goes to school for less than six months, and become licensed to make salaries or commissions greater than our skilled working sector. There should be a system where to make that kind of money require as part of its licensing process someone who has at least two year and/or four-year college degree. Some type of tier system. But, when you have less skilled, less educated people work for so much money, the integrity of the system will be compromised...Why? Same as the study have shown for someone who is less educated or unskilled winning the lottery. There is no appreciation of the hard work required to make that much money. Thus, dishonesty, corruption, and greed becomes the root of its foundation.

However you spin it, or however you word it, the failure in the system is lack of self-reliance, dishonesty, coupled with greed and staying up with the Jones.

Nonetheless, lets feed the hungry tiger with ZERO Fed Rates! What NEXT?

Increased crime, corruption, and homicide...the fruits to pride, greed, and eat, drink, and be merry for tomorrow we die mentality! What is the math equation? Zero plus Zero is ??? ZERO! Thanks to Ben Bernanke, Federal Reserve Chairman, our scholar and our gatekeeper to the financial faucet.

When will we learn? Alex de Tocqville wrote about Democracy in America. When the French write came to visit the United States, he spoke that "America is GREAT because America is Good!" It wasn't because we only generous with our money to help other nations, but because we were good because we really believe in the inscription, "In God We Trust"

Anytime a nation abandons or rejects God who gave life and birth to the United States of America, we will be wiped off the face of the land, and another will take over, a more righteous and FREE loving people with less greed, corruption, and more godliness and acknowledge His HANDS in ALL Things!

Meanwhile we will just have to settle for the Fed Rates to go to Zero soon!

The US Currency is being Dropped by Helicopter

Here we are today and the DOW drops below 10,000. This is the first time it has happened since 2004. WOW!  With the bailout of $700 bln that was approved by the Senate and the House, you would think it would solve the problem. NO! Why, because the problem is systemic.  I believe what they have done and are doing is passing out the life rafts to the crew and the rich.  Do you remember the movie "Titanic"?  What happened when the Titanic hit the iceberg?  Nobody, none of the passengers (the US citizens) really knew what hit them.

Usually the response by the crew (US government) and the rich (Wall Street greed and the very wealthy) is...minimize the damage and go along as if things will turn out alright.  According to the poll I have heard the Senate and the House voted for a bill that 9 out 10 Americans disapproved of.  Now, tell me if the system of government is NOT Broke?  When those in Capitol Hill cannot listen to the voice of the people, there is something drastically wrong!

You can expect the Federal Reserve to begin dropping boat loads of money from the helicopters. Why? Because the solution from the US government is not take the pain with the proper medicine, it is take an aspirin to ease the headache.  When are WE as a nation going to wake UP?

The hypocrisy is all around us! We are like alcoholics denying the problem and hoping that there will be some close relative to admit us to the Betty Ford Center.  If we are lucky, we may take this way out, but as it looks like now, we will deny the problem and continue to follow Helicopter Ben Bernake's solution - print money out of thin air!

For those of you who are reading this blog...buy, BUY NOW, while it is low enough Gold and Silver.  However, for those of you who do not have that much money such as the many passengers that died on the Titanic, buy Silver, here is the reason why?  Read this link. The reason why is because Silver is MORE RARE than Gold, yet it is much lower in cost.  Let me repeat this again - SILVER is MORE RARE than GOLD! Do the research here is an article by one expert Ted Butler - here is the link. Here is another link.   

So, if the US Currency is being dropped as though from a helicopter by the Federal Reserve Chairman, Ben Bernake, where would someone hide their money to allow their wealth to be preserved?  It is a simple answer - HARD ASSETS that are TANGIBLE!!! Assets such as real estate, jewelry, gold, silver, and anything that would preserve the falling dollar from helicopters that are dropping this money being made out of thin air.

Eventually, when the masses come to the knowledge of the truth.  They will come to the conclusion that the US dollar is no longer the reserve currency of the world, but has ended up like previous world powers, spent on mismanagement, greed, and disregard for the people who know not what to do.

It is my hope as others read this blog...they will wake up and arise, and do something to preserve their little wealth that they do have now.  Meanwhile, where there is doom and gloom there is opportunity for the entrepreneur who can see a silver lining in the clouds of darkness.

While the money is being dropped from helicopters, be sure to purchase a parachute so you can have a safe and soft landing, because your  (America) money, the $700 bln dollars bailout is going to be given and kept by the people who will have a golden parachute.  Yup! That's right!  They may say it is for the working Americans and small businesses, but the truth is, I believe, that they will receive a token amount while the Wall Street's brain child will hoard and keep the money to get on the life rafts and use the life vests such as what happened in the "Titanic", where the rich  and the crew saved themselves while the rest drowned.

A Tribute to Governor Mitt Romney

He is one of the most noblest among Presidential candidates that I have seen run for office. I believe Mitt Romney would have and could have been a very formidable Commander and Chief. However, this was not the time and season.

It requires a greater hardship on America and its people before they and many others who are tainted with bias can be able to be worthy of such a fine man. He received limited amount of media exposure compared to his rivals because of the liberal media; yet when he exited the race, he exited with class and with valor - a noble competitor and a humble man.

I believe the country and people who supported him will remember Mitt Romney; I believe Governor Romney has set the stage for a possible run in the future. We must remember, the Office of President can only be won by those who have been battered, beatened, and tempered by the process. Even one of our great Presidents, our 16th President was one who won the most powerful office after many strings of defeat. It is defeat and how one rises from that experience that builds the character of a man. It is in humilty that the Almighty is able to endow a good and righteous man with the character, experiences, and attributes necessary to change the future to something brighter for all the people of a freedom loving nation.

I wish John McCain well in his bid. I must say, I have some reservations as to him being the Republican Nominee, even Mike Huckabee. For that matter, all the candidates that are remaining are of concern. There isn't a place for me to go this time. I am caught in a conservative blackhole where the void is so expansive that Liberals have become the status quo.

I think I will register in the General Elections as an Independent because to find a Presidential candidate that truly inspire good and righteous governance is nowhere to be found. The lack of upholding the rule of law is not to be found, the lack of fiscal restraint is not to be found, the environment where manufacturing can flourish in America by American working people is not to be found - most importantly, just plain competent men that uphold righteous and good government is VERY HARD to be found.

This is the first time in my voting life, I am finding hard to vote for a candidate that I believe can do the job of the Office of President. Finally, I have to express my deepest disappointment in President George W. Bush. He had the opportunity to be a GREAT President yet the legacy he will leave is a War on Terror that is necessary, but yet the southern borders that should be secured really has never been secured by him; thus, his War on Terror was not a complete and comprehensive approach because while he allowed the good fight in Iraq and Afganistan, he left our BACK DOOR Open at home for possible breaches.

I think where President Bush had really failed is his ability to influence the economy to thrive; now, I hear of foreign governments buying US assests through Investment funds to control our economics and our politics.

We are weakened as a nation because of our values which have steered far from the conservative principles; they have become moderately center and to the left. It will be a hard experience, I believe, for the US of A in the next four years....and if...we do not WAKE up to the alarm signals, it will be much like the levies in New Orleans where the weakness is obvious; it will only be a matter of time. It is not if, but when. Our infrastructure will not only weaken us from within but leave us vulnerable from without.