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!

What OTHER Surprises are Coming On in the Economy?

The expression on the photo says it all...what is happening? The reality of an economy that is coming to a screeching halt!

This quote says it all too from USA Today:

"The Dow Jones industrial average sank 504 points, or 4.4%, to 10,918 in the biggest point drop since Sept. 17, 2001, the day stock trading resumed after the Sept. 11 attacks. Monday's sell-off wiped out $700 billion in shareholder wealth" (By John Waggoner, USA TODAY).

What? $700 billion in shareholder wealth, GONE! The unfolding begs the questions...What OTHER Surprises are coming on in the economy? I believe that we are in a tail spin. There is something REALLY wrong when solid financial institutions such Merrill Lynch, Lehman Brothers, Bear Sterns, and AIG are on the brinks of total collapse.

If you review my previous blog posts, I talked about the falling dollar where euros are being accepted in NYC, the closing of 600 stores of Starbucks, the continued struggle of Ford and GMC. What else is to come...I say increased crime, unpredictable weather that will ruin parts of the country. I even think a big earthquake will hit California sometime this year before December 31, 2008.

America, America, where have you gone? What happened to the people? They have ALL gone astray, this is the fullness of the Gentiles spoken of anciently. The time is ticking, and there will be a paradigm shift that will place turmoil in the lives of the world community.

Protect Your HARD EARNED Money - Buy SILVER!

My last blog post was discussing the Death of the Dollar. Now, I want to give you my own personal view on how to protect yourself from the coming collapse of the US economy.

Those who do NOT do their research will be the causalities of the coming slaughter that will divide and conquer the Rich, Middle-class, Poor, and the stubborn of heart!

Just last week we (those who paid attention to the news) witnessed one of the greatest signs of the fracture and cracks of our financial system here in the US. Bear Stearns being purchased by JP Morgan for $2 a share....WHAT! That's right $2 a share. Almost a year ago Bear Stearns was reported selling per share around $170. How could this be? How does this happen? Well, although I am not an expert economist, I have come to some conclusions why these things have occurred.

Here are some reasons for buying Silver instead of Gold!

1. 1971, President Nixon took the US off the Gold standard.
2. 1980, Gold and Silver hit an all-time high.
3. Mismanagement of the Federal Reserve - Fed rate cuts and the unconstrained printing of the US Dollar.
4. The heavily leveraged financial markets using derivatives (see this article of what could possibly happen: http://news.goldseek.com/GoldSeek/1206030368.php).
5. There are less than 1 billion ounces of Silver above ground to Gold's 5 billion ounces.
6. Silver is an industrial commodity more so now than considered as real money such as Gold.
7. Silver is more affordable than Gold where the highs currently are $1000 and Silver $21.
8. Within 5 to 10 years Silver will be well over $200 an ounce where some experts think it may reach $3000 to $4000 an ounce....Why? Silver is more rare than Gold.

Here are some resources to review aside from the link on my title from Rich Dad, Poor Dad, author Robert Kiyosaki (video).

1. How to Buy Silver: http://www.silveranalysis.com/

2. Silver Shortage: 19 Dearlers Sold out: http://www.silverstockreport.com/2008/crunch.html

3. Ted Butler's Archives Weekly Commentary: http://www.investmentrarities.com/tb-archives.html

Just as there was a frenzy in the Real Estate market between 2004 to 2005; there will come a time that the silver market will EXPLODE and it will become a bubble such as the Real Estate market where people will jump in because of greed and the possibilities of making huge profits.

When silver begins its upward trajection to $100 an ounce...people will begin to raise an eyebrow and begin to consider this mental seriously. If there is a panic in the industrial sector, silver will begin to reach huge spikes that will have those skeptics blind sighted.

Just like medical insurance or life insurance is a protection to catastrophic events; likewise, silver should be one of the things an investor should consider. For the skeptic, I you urge to purchase at least 100 ounces of Silver Eagles equivalent to about $2000.00. Hold on to this amount so you can see this grow much faster than if you had this money in the bank at less than 2% (percent) APR on a Certificate of Deposits (CDs).

The Death of the Dollar, The Decline of the US, & the Hardships to Come...

I was born in the Philippines. I was raised in America. Long ago in my youth my father would tell me that the United States of AMERICA was the land of milk and honey. It was where my dad said, "If you cannot make it in America, you cannot make it anywhere." I believed my father as a young child and continue to believe his great counsel.

I remember when Made in AMERICA meant something! It was the pride and privilege of living in this great country where "...life, liberty, and the pursuit of happiness" was what every good and honest heart desired.

The news reports with headlines reporting that Euros are accepted in the City that NEVER Sleeps brought about a sad moment in my heart:-( There is the first and most obvious signs to many Americans that the Death of the Dollar and the Decline of the US has begun to surface such as the tremors that are felt after an earthquake has hit.

In the days, weeks, and months, and especially in the near coming years, ALL freedom loving, good and honest people MUST prepare to withstand the storms that will come from all aspects of life. There, will be a shake up that will be so great in every sector of our economy that people will begin to act in a manner of the lower levels of Maslows Hiearchies of Needs.

The US dollar will no longer be the preferred currency of choice. Many governments that are against us will begin to rise up like an unruly student in a classroom. They will begin to defy the wishes of the White House. We will be like superman exposed to kryptonite. The status of super power will begin to dimish and turn to only a military might. It is as Ronald Reagan said, there can only be peace through strength - strength in the economy, strength in our military, and strength especially in our families.

The hardships are coming to our great nation. I believe we need to repent of our excessive spending, unfounded entitlements, lack of attention to our infrastructure, and the over abundance of outsourcing our manufacturing sector. The American people need to pull together and begin to seek out good and righteous men that care more about the country and its well-being than to care more about the greed and unethical standards practiced siliently in the rooms of corporate American and Wall Street.

It is when the middle class is dimished and moved to the lower class that hardships begin to surface. The perfect storm will be hitting the land of America the beautiful, which will become America the undesirable until it is clensed of its inquity from the halls of our political government, the floors of Wall Street, and the boardrooms of coporate America.

The Death of the Dollar is imminent unless, America shakes off the shackles of materialism, greed, and unbridled spending. It is in the words of French author, Alex De Tocqueville in Democracy in America when he came to America and was impressed by it, he wrote, "America is Great because America is GOOD, if America ceases to be good, it will cease to be GREAT!"

It is my hope that the good and honest men, women, and children of this nation will rise and serve the God of this land, and the words found in this once great currency - In God We Trust, will become true once again. May we not dishonor these words found on the American Dollar, or the Decline of the US & the Hardships will be swift and terrible.

The Economy and the Fed Decison Today

I have been reading about the economy how it works, how the Federal Reserve attempts to affect it in the best way for the good of the people (or for the good of its interests?). It was for the people, I think the economy would be better for the lower middle-class and poor. But, I have become a skeptic in recent years as I begin to do my research.

As I write this the Fed Chairman, Ben Bernanke with those who have power on monetary policy will make a decision. As I view this all, it is a BIG game. I almost think of this whole economy as the story of the king who walked around naked and whereas the people acted as though the king had some fantastic new clothing - everyone (the king's subjects) thought it was grand, splendid, and spectacular. However, there was one young child who flat out said, "The king is naked!" Ho hum, as people contemplated what the child's expressed, they realized that the blinders were slowly being lifted, and they recognized that the king was really naked and the clothing the people thought was grand, was not really there; they could see with their eyes that the king was truly naked as the child mentioned.

There will be a time that the masses will no longer be fooled! There will be a time, in the not too distance future, that people will realize that the great fall of the US dollar is imminent! Will America, as we know it, be the same, never again after such a tragic encounter. America, the people, the good people are resilientl; and I am confident in the people NOT the government because they, along with the circumstances that have prevailed has place good, honest men/women in a position to make it appear that the king has clothing that is grand, spectacular, and exquisite.

I believe that Feds will do what they need to do today (Weds., Oct. 31st). It may be an irony when they (the Feds) make their decision on Halloween - hmm?

Anyhow, the economy in America is sick, very sick; although many of us in the US act the same when we get a cold. We do not rest, or take the necessary measures to recover. We have, not only a cold, but a walking pneumonia, that will either bring us down hard and fast, or slowly bring us to a deep crisis that we MUST AWAKE and do the right thing! WE must prepare those of us who know this, and let the others drown as if Noah was entering the Ark, and the flood is coming - all the warning will do not good because the mentality is - all is well!

This is all written in one sitting, so if it make sense, then I am glad. If it doesn't then I will come back an edit it after I review it later. But, I want to post this now because as many experts behind the scene has been talking, these voices are only an echo behind the noise when it comes to the Austrian school of thought in Economics. The interpretation and sophistication of our US Government has allowed the jargon to be so convoluted, that as an educator, how can the masses whose reading ability is between a 4 to 7 grade level, understand what is going on in the economy.

May God bless us who are prepared, and may God have mercy on those who are not, and may God be just to those who are manipulating and outright dishonestly stripping the wealth of the American People.

On a final note, in our US dollar, it states, "In God We Trust" - I can actually and wholeheartedly agree with this statement when we refer to the good, honest, and down-to-earth people of America, who believe in the God of Israel, Jehovah of the Old Testament, Jesus Christ of the New Testament; but when we refer this to those who mock our creator and the multitude of blessings that he has pour out upon the United States of America, by devaluing the currency and the mismanagement and corruption of the wealth of the hard working people in the US, "In God We Trust" are only mere words that does not matter to them whether it is printed on the currency or not.

God will not strive too long with a currency that has his holy name backing it. God does NOT deal with men in such a way to mock his holy and sacred name.

The economy will be corrected and the correction will be of grave suffering to the people who have not prepared. The doors will close to the 5 of the 10 virgins who did not have their oil ready.