How Masses are converted to BEGGAR with ZERO FED rates? More dangerous than COVID-19.

 17^th June 2021

How Masses are converted to BEGGAR with ZERO FED rates? More dangerous than COVID-19.

Dear Fellow Travelers,

Namaste! Our last three posts dealing with the Banking system / dealing with future challenges of big corporation heads and today’s post on FED rates all are connected. They may look separate but at macro levels, all are connected. FED has decided to keep the interested rates to zero till 2023. It means for the coming 2 years – they will print more money. Simple. Let us see how this will make us poor?

Why Money Printing became the need of the time?

I am not going to bore you with the heavy economic theory. I will deal with a simple example of the Monopoly Game. Many of you would have played this game as a kid or many would be playing even now. When I was a teenager – the game was known as VYAPAR. The idea is to teach us trading.

It is the most effective board game – if at all you want to learn the business / investing and trading.

Now, if you start the game – you always start with equal money to all the participants. Am I right? As the game progresses – after few rounds – you will see that one participant is having all the money and all the assets and others are having lesser money and lesser or no assets.

The same is – in the practical life – when money starts accumulating with the FEWER TOP guys – the rest of the participants or populations lacks the money and assets. Now, to compensate them – the government prints more and more money.

In the USA – they gave approx. USD 5000 per person due to COVID last year plus a lot of FOOD STAMPS and other benefits.

Where has all the money gone?

The USA government was printing money after 9/11. Fed rates were around 6.5% in June 2000 and it had come down to 2% by December 2001. Can you see the fall in rates?

Now, when a bank defaults/company defaults – they are unable to pay the money to the depositors or the investors. But the money is not destroyed. Money has gone somewhere for sure. Take the case of DHFL or Videocon. They took the money, invested it in their business. They suffered Losses!! But they would have paid that money to somebody. Their losses are not the end of the money. Money is gone from them to somebody else. Simple.

FED is printing money for 20 years now. They have done in the past also.

The point is – all the printed money has gone to few TOP PEOPLE. They are giving loans to the country through IMF or World Bank or through their banking system.

So, some top guys have all the money.

How these top guys can make money now?

When the Monopoly game starts – participants invest and make money. Same way in real life also – we had the industrial revolution / technological revolution and people started generating money. Some were left out from the money-making game and they became middle class or poor.

The top guys now have all the monies of the world and all the assets under their control. How to generate more money?

So, they will jack up the prices of the goods people consume. When the prices go up – they will make more money from the same amount of the goods they sold. To make it possible – they will give money to the people to buy the goods. So, every time they feel they can’t sell their goods – they will ask the government to print the money and give it to the normal guys. This way more and more money will come to them and small guys will become poorer.

How the RICH operates 100% reverse?

When the boom or teji going on increases the interest rates. It means money becomes costly. So, the small guys can not have access to the money and when he can’t have access to the money, he loses the money-making opportunities.

Just see we have teji in the Share market now and SEBI has increased the margins for buying and selling the shares. In the future segments also they have increased the margin to 50%. It means all the small traders who were doing Monday to Friday trading without paying money – gone out of the market. Those who have money can only trade.

During recession they play the reverse game. They make money cheap and increase commodity prices. E.g. 2  BHK flat in Vile Parle was available at Rs.35 lakhs in 2002. The same flat is now costing Rs.4 Crs. Now, if the flat prices were to go up from Rs.4 Crs to Rs.6 Crs in the future, how many middle-class people will be able to buy? But the top guys can buy the total projects with the tons of money at their disposal. So, naturally, they will make more and more money in the future.

US Fed model is followed by all CENTRAL BANKERS: -

Look at any country – all the country is doing the same model. It means in all the countries big money is cornered by some top guys. RBI is following the same model. RBI has gone one step further by issuing GOLD BONDS. They are sorting gold as explained in our GOLD BOND’s post.

Our NCLT has helped so many promoters to run away with the people’s money in the name of solving the debt. All the DHFL and Videocon shareholders lost their money. What about Mr. Wadhawan and Mr. Dhoot?  They are enjoying the same life or even better now as they don’t have to pay any interest.

What is the solution?

Learn the fine art of investing as soon as you can. Master it and practice it to the core. Only investing can make you stand or grow in front of Macro-level cheating with the normal people of the World.

You may take our help, if you like our approach.

Follow me on Twitter @hiteshmparikh or on Whatsapp - +91-9869425399.

 

Live With Passion…Invest With Passion.

 

 

Hitesh Parikh.