Fed Speak Interpretation 101: How To Invest Inside A Communist System

[The following post is by TDV Chief-Editor, Jeff Berwick]

They don’t really teach you how to invest in skool… adding that to countless other important things to know that they don’t want to teach you, like how the money system works, how to use logic, how to think for yourself and self defence.

But, today, I was thinking about what “Investment 101″ in college would be like today.

Aside from the basics of what a stock or bond is and what a dividend or yield is, the most important class in today’s world, if you want to understand what makes markets move, would be “Fed Speak Interpretation 101″.  In fact, it wouldn’t even be 101, it’d be a masters or doctorate class as the epitome of understanding the Western markets today.

In this crazy, centrally planned, crapitalism world most of us live in the most important, and sometimes only important, thing to understand is how to interpret what an old, insane lady says about the market.

She’s got lots of batshit prognosis on how “this” sector seems overvalued or “that” sector seems in decline.  She gets this from her zero years of investment experience, of course.

But by far the most important thing is to see if she removes a word or adds a word to her pre-scripted speech. The entire financial and monetary world centers around this!

Yesterday, the investment world all ran to their televisions or streaming sites to see what this great, wise person would say.

The buzz was that if this delusional old bat kept the word “patient” in her talk while reading from her teleprompter, then the stock market would go up!  But, if she didn’t keep the word patient in her babbling, then sell everything!

But she was savvy, perhaps taking from the great maestro, Alan Greenspan, and took out the word patient but then changed other words to make it sound like she wasn’t going to raise rates anytime soon.  It was pandemonium!  The stock market rose, the dollar flash crashed and people worldwide were reading through every word of the great speech like the dead sea scrolls trying to figure out just what she was going to do.

This, of course, is what free markets and capitalism is all about (sarcasm alert).  Listening to a Marxist give vague hints about whether she has decided to continue to counterfeit money and manipulate interest rates at ridiculous levels or whether she was going to wipe out the entire Western economy.

I stated years ago that the Federal Reserve would never significantly raise interest rates ever again and I still stand correct on that one.  The reason?  The US federal government just plowed through $18 trillion in debt (and don’t even bother mentioning debt and liabilities is now surging upon $100 trillion).  And so, if interest rates were allowed to go to their natural market level, with all the debt and misallocation of capital, 10% would be the bare, bare minimum.  At 10%, that would mean $1.8 trillion in interest payment alone on the federal government debt which is nearly the entire theft (tax) based revenue of the US government.

Growing up in Canada in the 70s and 80s I always wondered what it was like growing up in a communist country like the USSA (as opposed to a socialist country like Kanada).  I wondered what kind of crazy things must happen when you centralize an entire economy.  Well, now I know!

Slowly, though, people are waking up.  People in the US appear to be the last to wake up as they have truly perfected 12 years of government indoctrination camps (public school), have most economic classes in college based on Marxism (Keynesianism) and have propaganda (mainstream media) that Goebbels would die for.

But, in Germany, a place that still has memories of hyperinflation, they still remember.

Yesterday, in Frankfurt, the European Central Bank tried to open it’s new $1 billion tower.  The opening ceremonies came with tanks, riots and molotov cocktails.

We are nearing the end of statism/collectivism/centralization/communism in the West.

Perhaps, one day soon, the entire world’s economy won’t have to hang on the world of a communist style central bankster and we can have peace and prosperity like we’ve never known it.

But there will be a very ugly transition period before then as humanity begins to break free from its chains.  

Our advice, as always, is to disconnect yourself as much as possible from the Western based financial and monetary system and get into hard assets such as precious metals and real estate in countries which will survive The End Of The Monetary System As We Know It (TEOTMSAWKI) in better shape.  And begin to delve into bitcoin as it is the next wave of the new monetary system.

We also suggest to get as far away from the Western world (US and Western Europe in particular) as possible as this transition will be most messy in those places (Subscribe to The Dollar Vigilante to get access to TDV Groups which has freedom minded expats around the world who can help you with your escape plan).

Fascism and communism always ends in tears and it will be no different in the US and Europe over the coming months and years.  Those who are aware of its coming failure stand to be in the best position possible for a much, much brighter future.

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The Dollar Vigilante is a free-market financial newsletter focused on covering all aspects of the ongoing financial collapse. The newsletter has news, information and analysis on investments for safety and for profit during the collapse including investments in gold, silver, energy and agriculture commodities and publicly traded stocks. As well, the newsletter covers other aspects including expatriation, both financially and physically and news and info on health, safety and other ways to survive the coming collapse of the US Dollar safely and comfortably. You can sign up to receive our FREE monthly newsletter, our Basic Newsletter ($15/month) or our Full Newsletter ($25/month) with specific stock recommendations and updates at our Subscriptions page on our website at DollarVigilante.com.