All week I've covered a documented history of money, from biblical times through the early 1800s. The biggest economic problem in history has not been of wars, but what has led to those wars. That is greed. Over history, time and time again, a few people have taken greed to a whole new level. They pair one side against another and reap the profits from both sides. Usury, or lending at excessive interest, is a sure sign of greed. One thing is for certain is that history does repeat itself. Next week, I will show more examples of that.
Let's take a look at what is happening today to see if there are any correlations to past events. More importantly, can we see patterns and maybe avoid some traps that are certain to spring up? This week, the price of gold has made new highs this week before retreating slightly from last week's price of $911 per ounce. This week gold closed at $908.70. Silver continued its upward trend to close at $16.84 per ounce. The US dollar index continued its slide to close at 75.47 against the other world currencies. It is nearing an all time low of 74.50, set just a couple months ago. As the dollar continues to fall, many are turning to gold and silver to protect their assets, driving prices up. Precious metals has always been a safe haven for investors during times of economic uncertainty.
On other financial news, Business Week magazine has an article that the housing market can fall another 25% over the next two years. The S&P 500 has had its worst earnings report in six years. On Friday, the US non-farm payroll report that there were 17,000 fewer jobs this month. This is the first decline in jobs since 2003. On Wednesday, the Federal Reserve cut interest rates another 50 basis points, knocking the federal funds rate to 3.0% and the discount rate to 3.5%. The Fed is doing everything it can to keep the economy moving by making cheap money available to banks and businesses. Even the analysts are having a hard time denying that a recession is in full swing.
Nathan Rothschild manipulated the market when Napoleon lost at Waterloo. He sold British bonds at the top of the market and bought them back for a fraction of their worth later that afternoon. By the way, do we have a war going on now? Do we have huge companies and a few bigwigs that are getting rich over the miseries of others in Iraq and Afghanistan? Incidentally, what is Iraq and Afghanistan known for? Iraq has lots of oil fields and Afghanistan is the closest path to the sea for oil pipelines from rich oil fields in the southern part of the former Soviet Union. Is the war really on terror or is it just a way to get immense profits?
Furthermore, there will be others today that buy houses, loans, commodities, etc. when prices hit rock bottom. However, we have not come close to hitting rock bottom yet. The economic storm is only getting started. We still have Social Security, Medicare, and Medicaid facing insolvency in the coming years. How will millions of baby boomers pay for their "necessary" prescription drugs after they retire?
Rest assured, there will be people that will profit immensely from these contrived events. Will you just be another victim of their greed?
A greedy man stirs up dissension,
but he who trusts in the LORD will prosper. Proverbs 28:25 (NIV)
If you have comments or questions, please feel free to contact me at the address below.
Email: DeltaInspire@panama-vo.com
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment