By BOB
DAVIS
What we
have here is a rare and candid statement in print of the International Monitary
Fund, The World Bank, The “Fed” being involved in
currency manipulation, world wide currency manipulation. This public admission should internationally
cause nation after nation to have court hearings, to demand the secret records
of these national currency banks and begin serial prosecutions of the members
in charge of their national currency and the seizure of said banks all their
holdings and wholesale dismantaling of these organizations and their
international spiderwebs.
Obviously this is not going to happen and in the
This admission here as to what is soon coming to pass in
every nation is massive inflation. Last year we warned beleivers in the
strongest terms that this will come to pass and that all cash in savings
accounts and retirement accounts would become severely devalued to the tune of
75% or more based alone on the amount of trillions of dollars in cash the Fed
has been rolling off the printing presses.
Already we can see almost daily the rise of many food
products, and the threat of Oil going up over 100 dollars a barrel is being
written about “Peak Oil” so that it sounds
like a globally planned event that will take place in 2013 [Strangely after the
US elections.] We are also on the verge
of the the bursting of a second housing bubble that is a combination of
hundreds of thousands of Adjustible Rate Morgages in houses and the Commercial
Realestate bubble bursting.
The stock market is going to drop percipitously, the Gold
bubble and Commodity
Market bubbles are also going to pop now also.
There is one other major issue and that is concerning our
national debt and the trillion or so dollars that we let Communist
What is sound and strong investment, where can I put my
corrupt mammon and not have it turn into ashes in an instant? Not all
commodities are part of this bubble. Corn is not. The
One could also invest in land and real estate that has
already suffered a significan drop in value – however in all realtity if things
occur as we suggest they will, these investments will be far from liquid and
even deemed worthless in a world wide crisis of such epic or biblical
proportions.
After the stock market collapses again that would be the
real time to invest. The choice of
stocks in energy, Oil Gas and Coal, in farming and food stocks, in daily use stocks like proctor and gamble
selling soap deoderant cleaning supplies and laundry soap and things, mining
stocks, would be the safest and most likely to weather the kind of storm we are
talking about. But the selections of the individual companies would have to be
reseached carefully before investing.
And there is no better time than now to do your homework so you are
ready and able to buy when the stock market has died back and is nearing the
bottom. Stock unlike land is quickly and easily converted into cash.
Any real investing in hoarding products, buying land or property
at pennies on a dollar, or buying stocks will be affected by the state of the
currency and interest rates. We are in a
limited window with low interest rates now.
We are kind of in a lull before the full storm hits. One other
alternative is to in someway become a producer of basic needs goods, as in a farmer, a miner, an oil or gas
producer, a manufacturer or in selling such products. Most of these would
require a good deal of money with exception to having a small farm or a small
mining operation. And by small we mean a
1or two person or a family operation.
For those concerned about these things and their households the time now
is to pray and to seek guidance. So that
when this storm comes in its full fury you will be founded upon the rock
spiritually and economically and be able to lend and disburse to the poor and
needy instead of having one’s cupboards and pantry empty and becoming a beggar
and a borrower to squeak out an existance.
This is in no way to say that having faith and trust in the
Lord for one’s daily needs is to be in anyway replaced or superceeded by what
one owns or has invested in. But rather we are to be led and guided by the Lord
in all things, and as in the days of Paul in acts a famine was prophesied of
and the beleivers prepared themselves for that day and in that hour they were
able to provide wagons full of food and supplies to needy brethren in other
churches and in other nations.
The International Monetary Fund's top
economist, Olivier Blanchard, says central bankers should consider aiming for a
higher inflation rate than they do currently to lessen the chances of repeating
the recent severe recession.
Mr.
Blanchard, a macroeconomist on leave from the Massachusetts Institute of
Technology, said the global economic downturn revealed flaws in macroeconomic
policy, especially the reliance primarily on interest rates to manage
economies. Although
In a new paper with two other IMF
economists, Giovanni Dell'Ariccia and Paolo Mauro, Mr. Blanchard says policy
makers need to consider radically different approaches to deal with major
banking crises, pandemics or terrorist attacks. In particular, the IMF paper
suggests shooting for a higher-level inflation in "normal time in order to
increase the room for monetary policy to react to such shocks." Central
banks may want to target 4% inflation, rather than the 2% target that most
central banks now try to achieve, the IMF paper says.
At a 4% inflation rate, Mr. Blanchard
says, short-term interest rates in placid economies likely would be around 6%
to 7%, giving central bankers far more room to cut rates before they get near
zero, after which it is nearly impossible to cut short-term rates further.
"Now
we realize that if we had a few hundred extra basis points"—a basis point
is one-hundredth of a percentage point—"to rely on, that would have
helped" fight the recent downturn, Mr. Blanchard says. "So it would
have been good to start with a higher nominal rate. The only way to get there is higher inflation."
For
decades, the IMF has pressed countries to slash inflation and counts as a major
accomplishment its success in persuading governments in Latin America,
Most big-country central bankers,
recalling the mistakes they made that led to high inflation rates in the 1970s
and 1980s, aren't likely to immediately embrace the IMF advice. They remain
convinced that keeping inflation low, and persuading markets that they will do
so, remains critically important. John Taylor, a
Mr.
Blanchard argues that there isn't much difference in maintaining inflation at
2% or 4%. Tax brackets could be adjusted so that higher inflation, by itself,
doesn't push taxpayers into higher tax rates. Inflation-adjusted bonds could
protect investors. The IMF paper notes the possibility that inflation could jump higher if governments start
adjusting wages automatically for inflation, "but the
question remains whether these costs are outweighed by the potential
benefits" in terms of avoiding zero interest rates.
The
new paper, titled "Rethinking Macroeconomic Policy," also recommends that central banks use
regulatory weaponry try to prick asset bubbles before they grow dangerously
large. Complete socialist
state control over all goods and commodities Relying exclusively
on raising interest rates to do such work risks damage to the broader economy,
an argument that Federal Reserve Chairman Ben Bernanke has made.
"If
leverage appears excessive, regulatory capital ratios can be increased,"
the paper says. "To dampen housing prices, loan-to-value ratios can be
decreased; to limit stock price increases, margin requirements can be
increased."
Mr.
Blanchard says governments should rethink the design of automatic stabilizers –
spending increases or tax cuts that are triggered by a recession. The classic
stabilizer is unemployment insurance, spending on which increases automatically
as more workers lose jobs. Governments could design new programs that have more
bang for the buck, he says, such an automatic reduction in taxpayer bills when
the gross domestic product declines by a certain percentage. Another
possibility: an investment tax credit that takes effect when economic activity
slows down. "Companies would get it automatically without Congress having
to vote on it," Mr. Blanchard says.