The American Forex Delusion

image_pdfimage_print

by Global Intel Hub (JoeGelet), 2015

http://www.zerohedge.com/news/2015-12-08/american-forex-delusion

Hitler said often that the bigger the lie, the easier it would be [for the masses] to believe.  This is no where more true than Forex.

Russia and America have similar demographics of people involved in Forex markets; both have extremely uneducated populations (even ‘financial professionals’ often have no clue about the ramifications of Forex), both have extremely polarized “Elite” (the bankers who run Forex) and the ‘rest’ who are left to have their savings eaten away by inflation.  In fact, central banks have mandated the investing population – it’s necessary to acheive above average returns just to break even.

We’ll use Russia here as an example to contrast the US Forex market because they earned it – our new allies in the middle east.  This is Russias first role as world policeman in Syria (as the “New Russia”) and anytime a superpower such as Russia or America invades and bombs another country, there will be angry people (i.e.blowback).  But, such situations often bring together unusual allies; the circumstances create allies (in this case, a common enemy Muslims/Islamic state) as did World War 2 and many other similar situations.

Let’s quickly look at some of the biggest lies promulgated by the Elite.  Who are “They” ?  Well, you can read about “them” here, here, and here.  Why they do it, should be no question.  It has allowed them to develop a global tech economy nearly for free (on the backs of the worker), and at the same time amass a fortune never before seen in known modern human history.  All of this is possible due to lack of knowledge and education, or in other words, their ability to sell these lies to the population (by the way, Propoganda was invented by an American Edward Bernays; many of the methods used by Hitler, Stalin, and others are now being used by corporate America).

Over a period of more than 75 years, the Elite have invested billions of dollars and have a proven track record for brainwashing the population, in all countries, but most notably in America and in Russia (although with different cultural motives).

Lie #1: Inflation is caused by supply and demand, and other natural economic forces

This is the biggest lie that allows the real owners of the global financial system to fleece the population of their assets.  Slavery is illegal, but working 80 hours a week for just enough money to pay for your housing, food, and health for your family, is not existence.  It’s the new slavery.  You see, during the industrial revolution the Elite learned that physical chains were no longer necessary.  By promoting such anti-values as gluttony, ignorance, apathy, and by promoting the Ego (i.e. Facebook “Look at me!) – it would allow the Elite to easily convince workers to run on the mill like lab rats for almost no pellets.  This is most notable in America which mainstream culture (mostly financed by bankers vis a vis CIA domestic ops, including but not limited to cultural socio-engineering; starting with Tim Leary, Kurt Cobain, Beavis and Butthead, “Jackass”, and now a plethora of other cultural icons, promoting a culture of stupidity.)

In plain English, while the youth is stupidifying their life away, the Elite are slowly eroding your equity through inflation – the hidden tax.

Inflation is caused by oversupply of currency!  The idea that supply and demand drives inflation and deflation is not valid argument in Fiat money system, because the quantity of money in the system M0,M1,M2,M3,MZM, plus currency swaps, derivatives, and countless other financial instruments created in the base currency by the central bank, is an ever increasing base number.  In the event this trend reversed, that supply of currency decreased, it would still be a changing number, as determined by central banks.  Therefore, traditional economics of supply and demand and the price mechanism, is irrelevant.  Monetary policy is the only determination of the value of currency, in a Fiat system.

How does this impact average people in America, and in Russia?  Every year, you have less money to buy things (whether groceries, property, health care services, etc.)

Lie #2: US Dollars are money

US Dollars and most global major currencies are debt based currencies.  Debt is not money, such as Gold is money.  New US Dollars are created only through LENDING, if all US Dollar debt was paid off, it would mean there would be no more US Dollars!   Even if you believe that US Dollars are money, in any event, because of a constantly expanding money supply, every year you have less and less money, by keeping assets in US Dollars.

Lie #3: Currencies are backed by something

Fiat currencies are backed only by belief, by faith.

Lie #4: Forex is for international investors, and travelers

All of this propoganda is very effective!  The Elite have convinced even self-proclaimed ‘financial professionals’ and the general mass population that Forex is irrelevant unless you are traveling or do international business.  Here’s why Forex is relevant today:

Each central bank, whether it be The Fed or the CBR can only create as much domestic currency as it pleases (it cannot create foreign currency).  So, if the Fed creates an additional 100 Trillion via QE 4; it can choose to use that currency domestically, or internationally.  If it chooses domestically, it will create hyperinflation.  So if this is to be avoided, it must use these freshly created USD to buy foreign currency.

How Forex can benefit domestic population of Russia

Russian population is currently being robbed via collapsing Ruble.  Since the ‘new ruble’ was introduced in 1998 at a rate to USD of 6 Rubles to 1 USD (USD/RUB currently around 70) – this is a loss of about 90% for Ruble denominated assets.  What value the Ruble lost in 20 years, it took the US Dollar 80 years.

But when Russia defaulted in 1998 and Moscow was infested with economic hitmen from western banks, they had not only a template from America and soon the EU, they had computers and soon internet, making a new economic way for the new “Elite” of the new Russia to further rob the people, via hyperinflation of the currency.  As in America, oligarchs are created quickly and benefit greatly from hyperinflation, as they can do a number of things to benefit from this situation (most simply, investing their assets in non-domestic currency, but countless other examples as well).  Possibly, the rapid depreciation of the currency, could have contributed to the wealth of the oligarch class.  In any analysis, since Russia has implemented this system of weakening its domestic currency, the oligarch class has grown in step with America’s new superclass.

It is understandable why those in financial services do not understand Forex generally.  Because high priests of capitalism preach about ‘making money’ (which is actually illegal, strictly translated, unless you are the US Mint or the Fed).  So by participating in Forex, you aren’t really growing your portfolio, you are just breaking even, or NOT losing.  This lateral thinking should be understood well by Russian population considering their advanced math skills.  But it is not widely proliferated in mainstream culture (and very ironically, because major Forex companies are based in Russia).  Oh – what the business opportunity!

In a very basic example, imagine you have 1 Million Rubles in 1998.  You have transferred them to a US bank account bearing a measly 8% interest in USD (we will not count interest in this example) – roughly, $165,000.  2015 comes around and there’s a ruble crisis – fortunately your savings are safe and now gaining about 1% at Everbank, and you need money.  You transfer your $165,000 USD back to the motherland, for a whopping 11 Million Rubles!  It’s roughly 1100% return on your investment in the US Dollar – but of course, you didn’t really ‘make’ any money, you just didn’t lose.  We shouldn’t mention that most of this return is tax free due to FASB rules regarding long term forex investments.

If we consider the interest component, the $165,000 would be $399,000 using this basic calculator, in 2015 this would convert to 27 Million rubles!  So, we pose the question; where else in Russia could a single individual get a potential tax free return of 2700%+ by doing basically nothing (a few documents, one bank transfer)?

So, by common people participating in Forex, instead of losing 90% of the value of their currency and complaining to empty TV screens about corrupt politicians, they could have instead made 2700%+ tax free.

This very basic example is simply to illustrate the benefits of average people (whether financial professionals or not) to participate in the Forex market – and that it really is a necessity, if you live in a country like Russia or America when you have a central bank with a policy to destroy the currency.  Really though, it’s only a tax on working people.  If you are very poor – it doesn’t matter (you work to live, not live to work).  If you are very rich, probably you have assets in America, London, or France.  This example doesn’t count opportunities such as Forex robots, or the ease of investing in a US stock market bubble which could turn the $165,000 USD into much more (although that part wouldn’t be tax free).

Of course, the Elite in Russia (via CBR) will try to convince the local sheeple about the evils and risks of Forex, as they fleece the domestic population via the slow death of the hidden tax of hyperinflation.  baa

Forex is especially necessary where the domestic currency is volatile.  Russia is a great example because it’s not Zimbabwe, not the EU, and Russia is a globally significant dynamic economy.

So what is the American Forex delusion?

A lie can be the withholding of information.  In the case of Forex, it’s simply 1% of missing important knowledge that prevents a real understanding of what’s going on.  In the case of America vs. Russia – The Fed, currently is a private central bank, owned by private banks.  The CBR, still officially a public institution owned by ‘the people.’  But, it was the Americans who invented modern finance.  It was the Americans who created modern Forex.  It was the Americans that pressed Russia to open their markets (most importantly – financial markets!) – which again, is ironic considering how Wall St. banks financed Lenin, without which financing the Bolshevik revolution would not have been successful.

So who benefits from this system?  The Elite, who strip the common people of their assets (but with style).  But also, educated people who know how this system works and can expolit it, such as older examples here, here, and here.

The Elite – provide a method for profiting from this situation!  There are no shackles, no chains – only those which are in our mind!  We can set down that bag of bricks handed to us, and free ourselves.  It is the paradox of the modern control paradigm; the tool of control can be used as a means to become a controller!  It’s just a question, a decision, which side of the trade you want to be on.

The good news – it is possible to profit from this situation, and even prosper. This can be acheived only by education followed by action.  It is legal, and possible, for any individual in the world to profit in Forex, and to protect their financial assets.

Welcome to the club!

Open an account with Pepperstone and trade the Russian Ruble!

The post The American Forex Delusion appeared first on Forex IQ.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.