(GLOBALINTELHUB.COM) — Dover, DE 8/15/2017 — For savvy investors the fact that the US Dollar loses value every year is no surprise. CEO of JP Morgan (JPM) Jamie Dimon characterized this eloquently with an analogy of ‘musical chairs’ – basically that at some point some asset class has to blow up. There’s actually a reason for this, because in a debt based fiat monetary system, fresh credit needs to be created on a growing basis even to payback the interest on previous credit, or the system will implode (systemically speaking). The Fed knows this, bankers know this, CEOs – about 50% know this, Zero Hedge readers know this, most economists know this…
But this still remains a ‘secret’ of the FX business that regulators don’t want the average retail investing public to know. Now we’ve proven there is a conspiracy to keep these self-evident facts secret:
- Inflation is much worse than the Fed is saying
- There is a solution to inflation which is called hedging
WHY they don’t want folks to know this – well there can only be one reason. As we’ve exposed in previous articles, banks are making a fortune by people not understanding how FX works. If someone tries to explain it, in a way based on facts and substantiated – that simply can’t be allowed. If the Fed says inflation is 2%, then it’s official – inflation is 2%. Who is anyone to question the Fed?
Here’s the phrase that the regulators don’t want you to read because it’s ‘misleading’ – that’s right – it’s misleading. It was to be immediately removed:
“Currency Headwinds” is not an excuse for losing billions of dollars. Inflation is much worse than the Fed says, and QE impacts other markets. FX is starting to become the most significant market component. So we believe that it’s important anyone, not only investors, master FX.
It comes as no surprise, although we feel obligated to inform people generally about the Fed’s plans. The Fed isn’t involved in a conspiracy to make people poor (although it might seem that way) – it’s simply the Fed’s answer to monetary policy in an electronic world. Practically new USD is needed every year not only in the US but globally. Management of this global financial system isn’t as easy as going to an alternative system ‘backed by Gold’ for example. But in any event, regulators don’t want investors to suspect that inflation is greater than what the Fed is saying – this allows them to continue their QE program in stealth.
The reality is for most people inflation is killing their quality of life, while product inflation is rampant wage inflation is stagnant – they earn the same every year (mostly). This issue is further confused by people not understanding that the “Fed” is not the “Feds” as depicted in films – the Federal Reserve is no more Federal than Federal Express (Celente). So if the “Fed” says inflation is 2%, then it’s like the US Government saying the weekly weather forecast via NOAA. No, it’s not. NOAA has no conflict of interest to tell us the weather – whereas the Fed has a huge conflict as their member banks have a profit incentive when it comes to inflation. You see, if the banks can rip people off on small money transfers to foreign countries, meanwhile borrowing at rock bottom rates and inflating markets like real estate, stocks, and the rest – it will create a new oligarch class that even surpasses Russia. In the last 10 years especially, the Ultra High Net Worth became the Super Ultra Galactic High Net Worth – the gap between the 1% and the 99% widened even further and QE is responsible for this.
So there is a vested interest to keep the wheels of this machine well oiled – and certainly don’t tell people about this dirty little secret.
To learn more about this checkout Splitting Pennies Understanding Forex.