Wednesday, February 9, 2011

Should You Worry About Deflation of The Dollar?

I have been sharing my thoughts on the dollar and deflation. And I cannot help but share how many baby boomers are going to be suffering when they have to pull out their retirement funds. While they put a $100,000 in 20 years ago.... the dollar has now deflated turning baby boomers hard earned cash to less then $35,000 or less.

Deflation is important and I wanted to share an important topic I read today.

Due to the overwhelming number of emails I received in response to yesterday’s article detailing the derivatives market, I’ve decided to write a follow up article focusing on the implications of this $200+ trillion behemoth on the rest of the financial markets

The primary question I’m receiving from readers is, does deflation pose a REAL risk today?

My response is absolutely. Remember, the entire financial system is broken in the US. Until we take our medicine and deal with the hundreds of trillions of bad debts sitting on the banks’ balance sheets, there is ALWAYS the risk of another 2008-type event.

The Federal Reserve has attempted to paper over these issues by offering Wall Street an endless stream of dollars at nearly 0% interest. But this hasn’t addressed the underlying issues in any way. The banks are still insolvent and the derivatives market is still the primary concern for anyone who works in finance, whether they know it or not.

So yes, deflation is and always will be a potential threat that can erupt at any time. However, should deflation ever take hold of the markets again, the Fed and other central banks’ responses will GUARANTEE that it is short-lived and that inflation, then hyper-inflation, takes over in a very short period of time.

Remember, Bernanke has NEVER admitted that he was wrong about anything. The guy literally believes he’s an economic genius who can save the world (thanks Time magazine for buffering his ego). He is 100% positive that his policies are the right policies. So if deflation reared its head again, he would do the exact same things he’s already done (print money, engage in more QE, etc) only on an even larger, more aggressive scale (we’re talking a $5 trillion QE or something of that nature).

This in turn would destroy the US dollar and insure that we experienced either severe inflation similar to that of the ‘70s or hyperinflation similar to that of Weimar, Germany. Bernanke’s nearly pushed us into the former already and we haven’t see deflation in the financial markets in over two years.

.... Learn more from Redox site I got this article on deflation from...
ACTION STEPS TO SECURE YOUR FINANCIAL FUTURE: 


It's a scary time right now. I want to recommend some secure ways to transfer your assets to get a better return and get your retirement back.

Initially, I recommend to my friends to do what the "Ultra Rich" do. This means... to secure your cash into a Life Insurance policy which pays you month after month. You will be surprised, but the "Ultra Rich" are using Life Insurance as their own banks. And you can too...

Signup to learn how to secure your financial future with life insurance.

WHAT I URGE YOU TO DO


It's important others know about what is happening with the U.S. and it's economic situation. My hope is to help others secure their financial future from the secrets I received from the "Ultra Rich".
==> Find out How To Avoid "Inflation" And Secure Your Financial Future...


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