3BlackCrows
Corporal
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No matter where you turn these days, everyone seems to be talking about recession this and housing bust that....
The main questions on everyones lips is:
1. Are we headed for a global recession?
2. If so, how long will it last?
The answers may not be too encouraging.
I believe we are headed for a major recession but not because of the reasons many people think.
All you have to do is look at the value of the US dollar to see what I mean.
I'm not talking about a USD/XXX crossrate here either but the actual spending power of the dollar.
Since the early part of the 20th century the US dollar has been on a steady decline to where it is now worth roughly 4 cents today (that's not a typo).
The reasons for this are twofold:
1. Government handed over the responsibility of coining and regulating money with the formation of the Federal Reserve in 1913
2. The Gold Standard was scrapped in the 1970's
1. The Federal Reserve is anything but Federal. It's an illegal corporation formed by wealthy bankers ( JPMorgan, Rockefellers et al) in order to control and enslave an entire world and make a killing doing it.
As with anything, the more produced, the less it's value becomes and it's no different with Fiat (paper) money. Only now the chickens a really coming home to roost - chickens that will make the great depression look like a quail egg in comparison.
You might of heard recently that the Fed has been cutting rates and working their printers overtime to the tune of billions of dollars overnite in order to inject liquidity, stimulate the economy and save the greedy Investment Banks that created this whole mess in the first place.
All that this is doing is not only delaying the inevitable but continually eroding the value of the dollar even quicker than it had been before (Can anyone say Zimbabwe?)
The future seems to be divided into 2 groups: The very lower class and the very upper class elites - no middle class.
2. Here's a question for you. If you have a $1,2,5 or $10 note in your wallet, take it out and look at it. My question is, What is that note backed by?
The short, truthful answer is nothing. It may as well be Monopoly money.
Many moons ago the money that was printed on paper was in fact a reciept redeemable for Gold. You could go into any bank, present this receipt in exchange for the equivalent amount of Gold.
As Gold was a finitely scarce resource, you could be sure that no matter what point of time you were in, your money was worth something.
Not anymore.
A group of braniacs sold the idea of getting rid of the Gold Standard which backed all money. Their argument was that the economy was nowhere near the dizzying heights it should be. Getting rid of the Gold Standard would allow markets to be more efficient and build a truly mighty economy.
So this standard was scrapped which has made the present situation all the more alarming.
You see, all of those numbers on your bank statement, mortgage, even your brokerage account are just that - numbers. Worth absolutely nothing.
Which brings me to the point of the title of this thread - What to do with your Forex profits.
The profits you make should ideally be routed to Gold, Silver or any valuble and finite commodity.
At the end of 2000 Gold was roughly $265 per ounce. As of writing, it has touched $900 per ounce for the first time in history with plenty more upside to come.
For example from November til the end of December of last year it was in a textbook uptrend pennant formation. The day it broke the pennant, it was worth $830 per ounce.
If you had invested at the $800 support level late last year, every ounce you bought would have gained over 10%. That's in less than a month.
Maybe though $900 is a bit too rich for you. That's where silver comes in:
Again, from November til December last year Silver was in a slight downtrend ranging from $15.50 - $14.00 an ounce. The day it broke the downtrend (12/6) it was worth $14.62. This was a signal to buy.
Price then hovered up but came back down as buyers remorse set in however it never fully broke support of $14.00. If you kept buying in the following days of the 1st signal (it's called dollar cost averaging), price would have come up to your initial buy point just 6 days later.
As of writing, Silver is now worth approx $16.50 per ounce. That's also a nearly 10% gain in one month.
It looks like this bull trend will continue as the big money swaps their risk from Fiat (paper) money and more risky assets to the timeproven value of Gold and Silver.
Do not take Futures Contracts however unless you have the means of picking up the physical commodity behind the contract - otherwise your profit will be just useless paper money.
Instead look up your nearest Mint and start buying.
If you enjoyed this article and would like to receive more along with free Technical Analysis of the Eur,Gbp,Chf,Jpy and Cad pairs, shoot me a private message containing your name and email or email me: droich@xtra.co.nz and introduce yourself
The main questions on everyones lips is:
1. Are we headed for a global recession?
2. If so, how long will it last?
The answers may not be too encouraging.
I believe we are headed for a major recession but not because of the reasons many people think.
All you have to do is look at the value of the US dollar to see what I mean.
I'm not talking about a USD/XXX crossrate here either but the actual spending power of the dollar.
Since the early part of the 20th century the US dollar has been on a steady decline to where it is now worth roughly 4 cents today (that's not a typo).
The reasons for this are twofold:
1. Government handed over the responsibility of coining and regulating money with the formation of the Federal Reserve in 1913
2. The Gold Standard was scrapped in the 1970's
1. The Federal Reserve is anything but Federal. It's an illegal corporation formed by wealthy bankers ( JPMorgan, Rockefellers et al) in order to control and enslave an entire world and make a killing doing it.
As with anything, the more produced, the less it's value becomes and it's no different with Fiat (paper) money. Only now the chickens a really coming home to roost - chickens that will make the great depression look like a quail egg in comparison.
You might of heard recently that the Fed has been cutting rates and working their printers overtime to the tune of billions of dollars overnite in order to inject liquidity, stimulate the economy and save the greedy Investment Banks that created this whole mess in the first place.
All that this is doing is not only delaying the inevitable but continually eroding the value of the dollar even quicker than it had been before (Can anyone say Zimbabwe?)
The future seems to be divided into 2 groups: The very lower class and the very upper class elites - no middle class.
2. Here's a question for you. If you have a $1,2,5 or $10 note in your wallet, take it out and look at it. My question is, What is that note backed by?
The short, truthful answer is nothing. It may as well be Monopoly money.
Many moons ago the money that was printed on paper was in fact a reciept redeemable for Gold. You could go into any bank, present this receipt in exchange for the equivalent amount of Gold.
As Gold was a finitely scarce resource, you could be sure that no matter what point of time you were in, your money was worth something.
Not anymore.
A group of braniacs sold the idea of getting rid of the Gold Standard which backed all money. Their argument was that the economy was nowhere near the dizzying heights it should be. Getting rid of the Gold Standard would allow markets to be more efficient and build a truly mighty economy.
So this standard was scrapped which has made the present situation all the more alarming.
You see, all of those numbers on your bank statement, mortgage, even your brokerage account are just that - numbers. Worth absolutely nothing.
Which brings me to the point of the title of this thread - What to do with your Forex profits.
The profits you make should ideally be routed to Gold, Silver or any valuble and finite commodity.
At the end of 2000 Gold was roughly $265 per ounce. As of writing, it has touched $900 per ounce for the first time in history with plenty more upside to come.
For example from November til the end of December of last year it was in a textbook uptrend pennant formation. The day it broke the pennant, it was worth $830 per ounce.
If you had invested at the $800 support level late last year, every ounce you bought would have gained over 10%. That's in less than a month.
Maybe though $900 is a bit too rich for you. That's where silver comes in:
Again, from November til December last year Silver was in a slight downtrend ranging from $15.50 - $14.00 an ounce. The day it broke the downtrend (12/6) it was worth $14.62. This was a signal to buy.
Price then hovered up but came back down as buyers remorse set in however it never fully broke support of $14.00. If you kept buying in the following days of the 1st signal (it's called dollar cost averaging), price would have come up to your initial buy point just 6 days later.
As of writing, Silver is now worth approx $16.50 per ounce. That's also a nearly 10% gain in one month.
It looks like this bull trend will continue as the big money swaps their risk from Fiat (paper) money and more risky assets to the timeproven value of Gold and Silver.
Do not take Futures Contracts however unless you have the means of picking up the physical commodity behind the contract - otherwise your profit will be just useless paper money.
Instead look up your nearest Mint and start buying.
If you enjoyed this article and would like to receive more along with free Technical Analysis of the Eur,Gbp,Chf,Jpy and Cad pairs, shoot me a private message containing your name and email or email me: droich@xtra.co.nz and introduce yourself
