Oh, Say, Can You Still See?
Part 4: Fed Up with these Jackals

By Dr. Russell McDougal

Dear Reader,

You are being stolen blind.  We’re still delving into the intricacies of the Federal Reserve and their stranglehold on the American populace (as well as the rest of the globe).  Know it or not, this ultra-elitist banking entity takes money out of your pocket on an hourly and daily basis. 

How do they accomplish this extraordinary feat?

I’ve received considerable input regarding the initial essays in this ongoing series (we’re going a while).  More, in fact, than anything else I’ve written about.  The comments to date fall into three separate categories:

• Good work, tell us more.
• You’re preaching to the choir, but what can be done about it?
• How can this be explained so the masses will get involved?

Here are a few comments from IDE readers:

I agree the Fed has been given far too much power and ought to be dismantled, but should we not include the U.S. Congress in our arguments?  It, after all, created the central bank and has power (though not the guts) to close it down.  I don’t see how we can get rid of the Federal Reserve System without pressuring Congress.
-John

John, this is an excellent point.  I am exceedingly biased when it comes to any discussion of modern American Congresses.  It is a house of ill repute.  With few exceptions, these folks are bought and paid for and represent the money elite far more than they represent Jane and Joe.  They are as disconnected from the Constitution as is Lindsay Lohan from an Austrian monastery.

Yep, Congress could send the Fed as well as the fraudulent debt they’ve extricated from the American people over the last century packing.  Don’t hold your breath.

Once again the problem is presented!  As a smart manager once told me "Don't bring me problems - I've already got enough.  Bring me solutions.”
-Don

Don, I’m having enough of a challenge understanding the problem without you bugging me for the ultimate answer.  Just kidding (half kidding).  I will give you a general solution as that is the limit of my expertise in this matter.

First, the Fed needs to be shown the highway.  How long should we put up with a century-long predator that has failed at their mission spectacularly?  They can go set up in some third-world country that is clueless as to their ways.  Show me the button to forfeit the debt they’re owed and I’ll make a mad dash for it.

We don’t need central planners to run our money or our economy.  These blokes won’t do any better in the long run than those in communist Russia did.  They are totally unnecessary and they are an unimaginable tax on Jane and Joe.  In fact, here is Sir Alan demonstrating the famous Federal Reserve choke hold on the American people to the newest Bucks R Us feudal lord:

Running an economy through free-market mechanisms is the clear-cut solution.  It has been generations since Americans have experienced what honest money and markets are all about.

Congress is obligated to provide sound money to the American people.  They abdicated that task in 1913. We don’t need Congress managing the economy any more than we need the Fed to do it.  They’d screw it up even worse, as unimaginable as that is.

We need a unit of money that has something tangible backing it - gold, silver, commodities, exotic seashells, or whatever.  It needs to stay the same yesterday, today, and tomorrow.  See the 19th century and its inherent price stability and economic growth, for example.  If Congress isn’t up to the task, we can assign the project to a kindergarten class.

The Constitution demands gold and silver as the standard.  Good enough for me.  The problem with paper (fiat) systems is that they are always abused.  The Free Lunch Gang is just too greedy to pass up the opportunities presented.

Gold and silver have been in historical use because of their natural limit to supply.  They are rare underground and can’t be brought forth easily or cheaply.  Compare this to how easily and cheaply a computer entry can be made.

When a private corporation like the Fed can create money at a whim, and profit accordingly, there is a penalty for savings.  Those least likely to understand the system get robbed the most.  We need sound money!

One last question …

The biggest problem is catching the attention of the general public.  Endless recitals of monetary and central bank history don't work.  Joe and Jane Sixpack are all but oblivious to what went wrong with the money system.  I've been searching for nearly forty years for a way to make the topic resonate among the masses and haven't found it yet!  It's one thing for us to preach to each other about it, but quite another to get the majority to care.
-John

John, I see a big part of this problem is the complexity of the issue.  It needs to be broken down into simple parts that can be easily understood.  I’m not being condescending.  This stuff is hard for me to understand, though I spent 10 years in college and have been studying the issue regularly for 14 years.

This current series on the Fed is an attempt to explain the issues in plain English, something you will seldom see.  We need to make this extraordinary problem understandable for those now willing to take the time and effort listen and comprehend.  An issue cannot reach critical mass until that happens.

There’s hell to pay for the damage this Fed and their compliant Congresses of some 95 years have wrought on our Republic.  Their end is in sight, as they have stretched themselves to the breaking point.  We need to be positioned to demand that the next system implemented is not more of the same.

Invest Resourcefully,

Rusty

P.S. Click here for an interesting news release for those of you who followed my Ft. Knox gold series.

P.P.S.  To let me know what you thought of today's article, send an e-mail to: feedback@investorsdailyedge.com.

[Ed. Note: Dr. Russell McDougal has dedicated years of study and investing in the natural resources exploration sector. During that time he has closed out DOZENS of gains of 500%... 1,000%... 2,000% and more! Currently he is sitting on multiple thousand percent winners, including one stock that is up a whopping +5,000%. And for a select group of investors, Rusty has agreed to share his secrets of success... and his top stock recommendations. Click here to learn more... ]

Market Watch

Where Will Rates be Next Week?

By Charles Delvalle

Interest rates are a funny thing.

If you haven’t noticed, the Fed loves to act like they won’t lower rates.  Whether the market believes that or not is a different story altogether.  But how can you determine what the market expects future interest rates to be?

Just look at the yield of the 10-year bond in the Treasury market.

As the bond market anticipates lower Fed rates, they start buying up higher-yielding bonds.  This extra demand drives up the price of bonds, and in turn lowers their yields.

So if the Fed target rate is set at 4.5 percent and 10-year bonds are yielding four percent, it would be obvious that the market expects the Fed to lower rates by half a percent.  If the Fed doesn’t lower rates as expected, then the broad market is more likely to sell off.

Finding how 10-year bonds are doing is easy.  Simple go to Bloomberg.com and click on the “Market Data” tab up on top.

While predicting how interest rates could affect the market in the near term isn’t an exact science, knowing the market’s expectations give you a better idea of where the market might head after the announcement.

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