Archive for January 23rd, 2008

The Fed pulls a fast one!

January 23, 2008

Free Money!

Yeah Baby!

The Fed cuts rates in an emergency session by a whopping .75%

When I analyze a given subject, I try not to be optimistic.  I try not to be pessimistic.  I strive to be REALISTIC, because that is the only hope you have of being right.  I knew it was getting bad out there, but even I did not think that the Fed would sacrifice the dollar so quickly and dramatically in a futile attempt to bail-out their friends on Wall Street.

In my “Buy Gold” post I thought the Fed would wait till their scheduled meeting next week and cut by .50% (which still would have been bad).   Instead they threw caution to the wind and used two of their favorite tools to manipulate the markets.
Here are some of today’s web headlines:

US Moves to Avert Economic Meltdown
Stocks Dive, Then Rebound After Fed Cut

I know many of you are asking why lower rates aren’t a good thing.  A fair question.  On the surface it seems reasonable that if you are paying lower rates on credit cards, home equity loans, mortgages, etc. then you are better off.

Normally that would be the case.

The problem is, the Fed has for many years now CONTINUOUSLY INFLATED THE MONEY SUPPLY!  The more you make of something…the cheaper it gets.  The rest of the world is catching on.  You no longer here that quaint phrase from a different century “Sound as a dollar.”

So now, instead of paying 21.99% on your stupid Master Card you will get the bargain basement rate of a mere 18.25% WHOOPEE!  You’re RICH!

Of course all the commodities we import, like OIL, just went up, because our dollar is now worth less and everyone knows it.  Still feeling rich?

Here is a short article worth a read:

http://money.cnn.com/2008/01/22/magazines/fortune/sloan_irrational.fortune/index.htm?cnn=yes

I mentioned that the Fed used two of it’s favorite tools today.  The first was of course, the cutting of interest rates.  That was announced.  Everyone can SEE that.  What was the second?

Well, you can “kinda” see it, if you know where to look…..but normally it is hidden from view.  It is however an “open secret” on Wall Street.

Let’s take a look at today’s DOW chart:

marketwatch-ssimg.gif
Whoa Nelly!  Lotsa “up-n-downs” today!  Looks like every time the markets went down, some massive buying came in and pushed it right back up again.  Yeah…the market *did* close down 128 points….but that is not bad considering some of the lows it touched on throughout the day.

Who were those calm, cool stock buyers, coming in as the market was plunging and buying up massive amounts of stock pushing the price right back up again?  How did they keep their nerve when almost all the economic news is bad, and the market seemed hell-bent to go down?  Was it the Fed’s emergency cut that steeled their nerves and allowed them to buy with abandon?  Mmmmhhh????

Or was it the Fed itself?

Yes Boys and Girls….if you believe we have “free & open” capitalistic markets in this country, then there are a few thousand condos in Florida I would love to sell you!  (Don’t worry….Real Estate ALWAYS goes up!….heh heh heh)

By now, I hope you know I never just give you my opinion (fabulous as it may be) I also give you some FACTS.

So here it is……(drum roll please) THE PLUNGE PROTECTION TEAM!

Yes….America’s hidden commando’s of finance…based within the bowels of the New York Federal Reserve Bank…feverishly manipulating the markets to push the outcome to what they need and want….operating with the awesome and unlimited power of the Federal Reserve Fiat Money Machine…..BUY! BUY! BUY!  Yes……see?  Everything is all better.

 http://www.washingtonpost.com/wp-srv/business/longterm/blackm/plunge.htm

 http://en.wikipedia.org/wiki/Working_Group_on_Financial_Markets

http://www.telegraph.co.uk/money/main.jhtml?view=DETAILS&grid=A1YourView&xml=/money/2008/01/07/ccview107.xml

If you have never heard of the “Plunge Protection Team” don’t feel bad.  It is not something they really want to promote.

And….in case you hadn’t figured this out……FoundingFather1776 doesn’t deal with empty, false “Conspiracies” we deal with the TRUTH.

Take the Red Pill.  Open your Mind.  Don’t believe me.  Do your own research.  But for goodness sake…WAKE UP to how the world is manipulated by the money masters.  To paraphrase Benjamin Franklin…the TRUTH will help make you “Healthy, Wealthy & Wise!”

Cheers,

FoundingFather1776


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