Monday, May 23, 2016

The Federal Reserve
Is Between A Rock & A Hard Place
"The Fed is between a rock and a hard place and is trying to be that little flower that sees the light. It has two choices: (1) deal with the pension crisis at home by raising rates to prevent defaults, or (2) keep rates low to save other governments in emerging markets who continue to borrow and are doomed anyhow. Then there is the question of whether the budget deficit in the USA will explode with rising rates. The Fed has really lost control of the economy, but the mainstream still needs to figure this out. Governments will not go quietly into the night. They will rage at every possible moment. They are moving toward electronic money .. Governments will act in the most stupid manner for they will not reform. Even if they grab everything, it would not be enough to save them. So be prepared. They will get very punitive. Expect crazy laws to benefit them like constitutional amendments. They will find whatever excuse to confiscate assets; mere suspicion will become proof and it will be your burden to prove innocence .. What survives is always tangible assets be it land, industry, shares, or something of value like gold, silver, antiques, etc. Whatever currency we use is only a medium of exchange between tangible assets. Currency is not 'money,' it never holds its value, and by no means is it a store of wealth. It is just a medium of exchange like a language. So whatever we end up with, which I believe will be some basket of currencies, will become the new medium of exchange through which everything else is measured."
- Martin Armstrong
link here to the reference

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