Everything in life is measured by your health, wealth and success. Also, people concerns that I hear everyday are: With all this craziness going on around the world, how am I able to create wealth, protect my wealth and still have some left over to create generational wealth? This is why I have been moving the over-all feel of my report and site to reflect those concerns, I hope you are enjoying it.
Because I am a research junkie, I stayed up late last night reading and surfer for the answer to a question and I woke up this morning with what I believe is the answer.
My question is “where did this Cyprus fiasco start and what is the root cause of it”? it’s my opinion that after reading the articles posted below, it all starts with the velocity of money or the lack there of.
With all the craziness going on around the world, how am I able to create wealth, protect my wealth and still have some left over to create generational wealth? This is why I have been moving the over-all feel of my report and site to reflect those concerns, I hope you are enjoying it.
Some inflation is good for the growth of our economy, but as long as is doesn’t come too fast and too strong right? Well, if you consider for a moment all the “electronic” money that has been shifted around the globe in the Trillions, none of it has “hit the street” into the hands of you and me so as to go buy stuff and create the desired inflation. So let’s use Cyprus as a test pilot and use the mainstream media to scare the hell out of people!
Follow along… I wrote some time back how if the FED took the $16 Trillion they created and gave it to every person in the US instead of his friends at the banks, that would equal about $50k for every person, then we would go buy cars, homes and hard-lines and that would be good for the economy right?
Well the complete opposite has happened. The consumer confidence around the globe is at or near all time lows and when they get money each week or month, they want to save it in the banks in fear of the unknown and want to have a backup reserve of cash… makes sense right? They are trying to preserve their wealth the only way they know how, and it’s historically been “saving it in a bank”.
Here where it gets interesting… If the money sits in the bank, there is no velocity and with no velocity and a tremendous amount of money on “lock-down” there is no growth and the big bankers know this and I believe they know they created this environment and are not happy about it.
The banks solution is… let’s scare the hell out of people by confiscating a percentage of their savings so when the smoke clears, every Tom, Dick and Harry will run to the bank, get what’s left of their money out and because the banks know that if you have money in your hands you are going to spend it… Bam! The problem of stagnant money is fixed and the velocity starts to flow! Because everyone else around the globe is watching these events unfold and saying… “heck, should I maybe take my money out of the banks too?” And so it begins again… The savers are being penalized for doing the right thing!
Conclusion: If this were you or I and we know better now, if you went and got your money out of the bank, where would you feel safe to stash it? You know you can’t stuff your mattress because money doesn’t sleep, it needs to work and have babies right? I for one would do what every person has done in the history of mankind… I would want to create wealth, protect the purchasing power of my wealth and hope to have some left over to create generational wealth for my kids and grands and the only way to do that today is to buy silver and gold, especially at these levels!
May Health, Wealth & Success be Yours!
Cyprus, Money Velocity & A Potential Inflationary Holocaust – With investors around the world now watching in fear after as government theft has become a reality, today Kevin Wides out of Switzerland reports on the ongoing nightmare of the ‘Cyprus Solution’ and what investors must do to protect themselves. Bank depositors now losing a large percentage of their cash on deposit, that this will cause an immediate move by other European depositors into the physical gold and silver markets in order to get their wealth outside of the banking system.
Jim Sinclair – Cyprus & Why MSM Is Being Used To Frighten People – The velocity of money has been the biggest drag in terms of creating any significant recovery. So the velocity of money has now been targeted, and it is to be increased through the use of fear in the mainstream media regarding confiscation of money in financial institutions.
So the money which has come in from TARP and QE really hasn’t found its way into the economy because it is not coming out of the banks because it doesn’t exist, having filled the black hole of a loss. Generally this money would find its way into the economy through bank lending, but that hasn’t happened.
When people lose confidence in the system and they see theft of bank deposits, how do you restore it (confidence)? You can’t. Here’s what happens when you lose confidence. I’ll describe it to you. It happened in America not too long ago. Paul Volcker, no one believed him when he first came to the Fed. Then, in late October he raised (interest) rates by 200 basis points on a Saturday night because he was serious about fighting inflation and they were going to target the money supply.
Between October of 1979 and January of 1980, the gold price ran from about $475 to $875…. That’s how much they didn’t believe him (Volcker). And look what it took: Interest rates went to 20% on the short end. Government bonds went to 16% and they broke the back of inflation. But that’s what it took to restore confidence.
Gold fever continues to grip the nation. The CNBC All-America Economic Survey finds that Americans once again chose gold as the top investment choice, beating out real estate, stocks, savings accounts and bonds.