Inflate or Die! By Dr. Russell McDougal The Federal Reserve has been on the US scenes since 1913. Not even Biblical plagues lasted 95 years. The ultimate effects aren’t much different. The Fed may or may not make it to a centennial commiseration. They are on the ropes. It is beyond comical to watch all the various pundits applaud the Fed’s action as they piece together bailouts and desperately cheap money. Those who cheer them are nothing more than apologists for a crooked and predatory monetary system. Maybe it would be wise to look deeply and understand that this “ultimate private franchise” is the root cause of the problems they are getting credit for patching up?? The elitist international bankers who own the Fed are inflators by charter. They are licensed by Congress to supply what we use as money. Here’s their historic report card: One of the Fed’s mandates is “stable prices”. A shrinking and shrinking dollar won’t get that job done. That looks like an F from this angle, even if you grade on the curve. Pretty clever of them for sure. How exactly did they accomplish such an extraordinary feat? Yep, they issued unfathomable debt. This pleases the politicians. Well connected cronies are thrilled. Individual recipients of the funny money are certainly pleased. Too bad our future generations have to pay these debts. Or do they? Both of these above charts are from “Your US Dollar Ain’t Worth a plug Nickel”. I’m not quite old enough to know what a ‘plug nickel’ is but the illustration gives a strong hint. The more debt (money) these central planners issue the more they cream off the top. Debt is to the non-Federal non-Reserve as chicken is to KFC. One franchise is just an order of magnitude, more elite than the other. INTERNAL ENDORSEMENT Imagine if There Were Only 6 Numbers to Choose from When Buying a Lottery Ticket! Wouldn’t that be great?! Of course, the less the number of choices, the more likely your chance of success, right? How many choices are there when buying and selling shares? Errmm… a LOT! Hundreds…One of the reasons I enjoy such consistent success from trading, is because I only have 6 options to choose from! Except this is even better in a way, because the lottery is pure luck… I only have 6 choices AND have a VERY good idea about which choice to make because of the insider signal | Would you like to see an example of what happens when inflation fails? This is an example of a decade of falling real estate and stock prices from Japanese history. It is a clear cut demonstration of the ravages of deflation. Central bankers have nightmares about such scenarios. This is what happens when fiat money freezes up. Japanese banks didn’t stop making money available. They were practically giving it away with itty bitty interest rates (under one percent). They tried and tried to “stimulate” their economy. Nothing worked. The populace refused to borrow and spend. The US economy is based on fiat dollars. Our ‘good times’ are typically nothing more than a credit expansion. Citizens duped into trying to borrow their way to prosperity. Goofy Fed Heads encouraging the peons to buy Suburbans. True prosperity is based on production, savings and capital investments. Big difference. Debt equates to slavery. You can have deflation in one sector of the economy at the same time as inflation in a different sector. US real estate has been deflating for nigh on two years now. Commodities have been the recent recipients of inflationary policies. There is now a raging battle in the US between the forces of deflation and those of inflation. Bailouts, handouts, tax rebates and Japanese style interest rates are pure attempts at inflation. Call it monetary debasement if you will. The game is to inflate or die. When you buy honest forms of money, like gold and silver, you protect yourself from a potential financial disaster. Invest Resourcefully, Rusty P.S. To let me know what you thought of today's article, send an e-mail to: feedback@investorsdailyedge.com. What's Your Exit Strategy? By Charles Delvalle What do the Iraq War and 90 percent of investor’s have in common? There’s simply no exit strategy in mind. So if an exit strategy is so important, why don’t most investors plan for one? The first reason is because they simply don’t know that it’s part of investing successfully. Learning about stop-losses and risk management simply isn’t as sexy as learning about how to make triple-digit gains. So the subject is often avoided. Second, it’s a matter of emotions. You see no one in the world – not me, not you, or anybody else – enjoys selling stocks at a loss. It’s a pain that nobody wants to inflict on themselves. So as long as they don’t sell at a loss, they never end up ‘inflicting’ the pain. Then there’s the prospect of selling at a loss and then looking at the stock a few weeks later, only to find that you could’ve sold it for a gain. Now, the investor might feel embarrassed or foolish. Nobody wants that. So emotionally, it makes sense why a lot of investors don’t follow through with an exit strategy. But logically, an exit strategy is IMPERATIVE to making money in the stock market. If people didn’t take their losses, then they’d never free up capital to pursue better opportunities. Heck, if people didn’t take their losses they’d eventually have no capital at all. This is a situation you don’t want to put yourself into. So before you get into a trade, MAKE SURE to have an exit strategy planned. And you should do this for every single trade. If that means selling your position once you lose ten or fifteen percent, then follow through with it! If your exit strategy is simply to sell if the fundamentals of your buy change, then make sure to follow through with it! Either way, just remember to ALWAYS have an exit strategy before you invest. And more importantly, FOLLOW THROUGH WITH IT! Good trading, Charles INTERNAL ENDORSEMENT How a "Plain Vanilla" Investor Accumulated More Than $1,000,000 in Cash Marjorie Bradt is an ordinary investor. She has no inside connections. No special training in stocks or finances. Avoids high risk schemes like the plague. Yet with the help of an ultra-safe advantage, she amassed a comfortable "money cushion" in excess of one million dollars. The best part: you can, too. Get the facts by clicking here. | If you enjoy IDE's daily investing advice, you'll definitely be interested in checking out our sister publication, Early to Rise. Each morning, you'll get powerful wealth-building advice covering real estate, entrepreneurship, personal finance, marketing, and much more. 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