Untold SECRET of Lower rates of FED and Negative RATES of JAPAN – Understand this ASAP or CURSE your LUCK LATER on.

Monday, September 19, 16

Untold SECRET of Lower rates of FED and Negative RATES of JAPAN – Understand this ASAP or CURSE your LUCK LATER on.

Greetings from Hitesh! Our last post on NEWTON’s law was read and appreciated by many. Many readers have asked us to educate them on the FED rates and Negative rates. They are still not able to digest that there can be a NEGATIVE rates and that too for TRILLIONS of DOLLARS!! Let me deal with their questions.

This is for EDUCATION PURPOSE and if you are REALLY SERIOUS – it’s worth your time reading this.

Let us look at the DEBT to GDP ratio of some of the Countries:-

USA has 104.5% / Japan has 229% / Italy has 132% / Greece has 175% / Britain has 90% / Germany has 78%.

In simple terms it means – for every 100 USD earned there is a DEBT of 104.5 USD in USA!! In JAPAN it is 229!! Japanese Government is spending more than 2 times their income. The same way you have to follow for other countries RATIOS.

Just to give you the REAL perspective – USA gdp is 17.97 TRILLION and it’s debt is 104.5% means debt is at 18.77 Trillion!! USA’s DEBT is  equal to the GDP of JAPAN + GERMANY + UK + France + India+ ITALY + BRAZIL put together. In short 7 out of first 10 countries by GDP and USA DEBT are EQUAL. European Union and China stands at 2nd and 3rd place in the first 10.

Japan’s DEBT is close to 10 trillion. USA and JAPAN has the DEBT of close to 28 trillion or 28,00,000 Crs USD. (Indian minds find it easy to grasp figures in  Crs).

If you pay just 1% per annum on this DEBT – you end up paying USD 28000 CRS or 2.8 TRILLION USD as interest. Which is more than the GDP of INDIA /FRANCE/ITALY/BRAZIL/UK on individual basis.

USD 2.8 TRILLION interests on combined GDP of USA and JAPAN (17.97 + 4.1 = 22 trillion) is more than 10%.

When you are running your total show on DEBT the additional 10% interest cost makes a multiplying effect on increasing the DEBT.

With their SHEER borrowing POWER they are taking the SAVERS and SMALL ECONOMIES on RIDE by offering them NEGATIVE or PALTRY RETURNS.

The PENSION FUNDS HAVE SAVERS LIKE YOU AND ME – now the funds have invested for long term and the govt is not ready to offer the reasonable interest rate on their savings!! What will you do? How will you leave your retirement? Whom will you depend?

The DANGEROUS GAME:-

If you know FLYING KITE than this is the easiest thing to understand.  The SEASONED Kite FLYER always keeps his KITE very HIGH and BIGGER in SIZE. When you do PETCH with him he will not PULL the STRING FIRST. He will just keep his STRING LOOSE. He will just go on giving more and more STRING while the PETCH last.

At one point of time the NOVICE kite flyer will try to pull the STRING – only to find that his kite is CUT. This happens because with more and more STRING the SEASONED KITE FLYER’s KITE become HEAVY and goes more and more UP. This makes it very difficult for NOVICE GUY to maneuver his small kite effectively. Ultimately he loses.

FED is doing the same thing. They are printing USD bills like never before. We have already given our forecast for QE4. With more and more money and more and more DEBT – USA and JAPAN economy is looking weaker when you compared with INDIA or GERMANY. It gives us the feeling that INDIA or other SMALLER economies are FUNDAMENTALLY SOUNDER compared to USA on all the PARAMETERS.

So, money is moving from USA and JAPAN to countries like India / CHINA / BRAZIL and many smaller fundamentally sound economics. With these the FOREIGN CURRENCY RESERVES of these smaller economies keep on SWELLING and DEBT of USA and JAPAN keeps on increasing.

Foreign Currency Reserves are kept in the form of US Govt Securities and US pays the interest on the same.

What EXPERTS are not REALISING?

I see many experts are having no business but to blame the FED for their policies. Do they think they are smarter than FED economists? Do they think they know more than the GUYS behind the FED or REAL power behind the USA/JAPAN? Do they really know why FED is doing what it is doing?

My simple understanding tells me that they are wasting time in blaming the FED. The best thing they should do is to find out and suggest the effective ways to deal with the conspiracies of FED or persons behind the FED. The group behind FED is more powerful than US President. The group decides all the moves!! ( some SKEPTICS will not believe this TRUTH).

The way FED works – it gives me feelings that it is working to destabilize the world economy. This deliberate market sabotage is necessary for the transference of power from the more developed nations to less developed ones. Ultimately, the idea is to eliminate smaller regional and national central banks. Once things get bad enough, these smaller banks will be blamed for provoking a given crisis.  And, secondarily, the end goal is to blow up the entire system in order to bring in the one world government and central bank. (that’s why we like GOLD as an insurance).

The elites have used the same tactics time and time again throughout history. First, they create the problem, then there is a reaction (say like WAR), and then finally they come swooping in to “valiantly save” the day. It's happened numerous times before. We have seen how US dealt with IRAQ / AFGANISHTAN / European UNION / RUSSIA. You will find N number of EXAMPLES of USA’s CHEATING.

Learning from the GOVT., the BANKS have also started looting their customers.

1. What occurred in Cyprus in 2013, was the most overt form of daylight robbery.  Over the weekend the banks closed and upon reopening, anyone with substantial funds had approximately 50% less than they previously owned.

2. Banks like Wells Fargo, are just outright defrauding and stealing from people!

Over the past week, the swindlers at Wells Fargo’s were caught engaging in questionable activity. According to reports, since 2011, bank employees have opened 1.5 million bank accounts and "applied" for 565,000 credit cards as well as opened false email accounts - none of which were authorized by their customers.

These bank workers were transferring funds from their customers existing accounts into the newly created accounts unbeknownst to them, resulting in overdraft fees for insufficient funds in some cases. According to the New York Times, the bank’s employees were incentivized to partake in this illegal activity by compensation policies that rewarded them for opening new accounts. And since bankers never go to prison in the USA, they must have figured, why not give it a shot?

(This happened with WARREN BUFFETT’s BANK!! Whom will you TRUST? BANK employees in India are also forced to bring new accounts and new businesses and I will not be surprised if this kind of scam happens in India someday. In India, legal experts have advised us not to disclose our PAN number to unauthorized people).

What it MEANS for Individual Investors?

The way FED is taking small economies and central banks of small economies on RIDE, small investors are taken for a RIDE by GOVT. and BIG guys.

Look at the RAIDS, which are being carried out now a day on SMALLER business guys with big politicians and real big guys are not TARGETTED at all. The REAL big guys have a TEAM of LEGAL EXPERTS and they can afford their fees also. Look at the MALAYA. He is having FUN in UK. The small guys gets frightened by a single notice and he can’t fight, as he has no LEGAL KNOWLEDGE and resources to fight.


WHAT NEXT?

I am not here to BLAME them or CURSE them. I follow a DARWIN’s LAW of survival of the fittest. If you are happy being a small fish, BIG FISHES around you will eat you up. It’s 100% Natural. They do not believe in religion of AHIMSA. They PREFER it is better to KILL rather than getting KILLED.

You are going to face really CHALLANGING TIMES AHEAD if you do not change your ways to SAVE and Invest. Just benefit from the same or the big guys will benefit at your cost.

This is REAL picture, which I have shared above. Nobody will be able to change the same. Just find out how you can benefit from the same.

Be with HITESH PARIKH and LEARN the SYSTEM and you will bless him for generations.

Have a HAPPY WEEK AHEAD.
           
Follow me on Twitter @hiteshmparikh /  WhatsApp - +91-9869425399 / www.hiteshmparikh.com

Live With Passion…Invest With Passion.

Hitesh Parikh.


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