What the Fed/Whitehouse is NOT telling you!

A couple of years ago, the big Wall Street firms like Morgan Stanley andGoldman Sachs started adding tons of commodity traders to their trading desks. All at the same time. Right in the middle of the recession. Now that may sound odd. Why add traders when markets were tanking and unemployment was rising?

These big Wall Street houses had a good reason. They were expecting a huge bull run in commodities....and that’s exactly what they got.

How did these big Wall-Street types know a commodity bull market was coming?

Easy. These traders understood how Bernanke’s mass money printing and incredibly low interest rates would force the dollar to fall, and commodities to rally...

Greenspan Paved the Way for
Bernanke to Follow

You see, these guys had seen this all before.

Following the 9/11 attacks, Greenspan knocked interest rates down to a historically low level of 1%. Then he held rates that low for long enough for traders to remember.

These artificially low rates sparked a huge round of inflation. In fact, the Fed had to hike rates from 1% up to over 5% just to try to contain it.

Years later, Congress grilled Greenspan for causing a “bubble” with these low rates.

Well, Bernanke’s actions make what Greenspan did look like child’s play.

Bernanke has forced rates even lower - and he’s held them that low for three times as long. So of course, we can expect the same outcome - massive inflation.

In fact, this time, inflation will be even worse (despite what the Fed says) because their actions were more extreme this time.

Wall Street Just Got a “Green Light” to
Kill the Dollar

Morgan Stanley sure knows this.

They are now piling back into commodities even heavier than before. Why? Bernanke’s speech after the Fed’s meeting gave them the green light they were looking for.

Last week, in his first press conference ever, Bernanke completely disregarded inflation by calling it “transitory.” Well, no surprise there. The Fed said the same thing in the 1970s, yet inflation still got out of hand.

The reality is a bit different. Of course, you’ve seen this inflation if you have filled up your gas tank lately... or bought groceries. It’s not what I’d call “transitory” inflation.

Big Ben also made it clear the Fed would hold rates at current levels for at least a couple more meetings (if not far longer).

This was like a free ticket for traders to sell the already beaten-down dollar off even more. In fact, Big Ben all but told traders the dollar would continue to fall.

If you want to see a consistent trend, just check out the U.S. Dollar Index chart below. (But remember: our Fed & Treasury believe in a “strong dollar policy.”)

Proof that the Fed & Treasury Lie to the American Public

Click here to view larger image

How a Weak Dollar Affects You... Even if you
NEVER Leave the Country

This should dispel a common myth.

It drives me nuts when I hear friends and neighbors say: “It doesn’t matter to me if our dollar is weak. It doesn’t affect me unless I go outside of the country.”

WRONG!

Commodities are priced in dollars. As the dollar falls, commodities must rise. That causes guaranteed inflation!

So when people tell you that they aren’t affected by the dollar’s decline since they live and do all of their business in America... remember this.

With the dollar sliding off a cliff and inflation heading higher despite the Fed’s denial, one of the best ways to protect yourself is to buy currencies that benefit from both higher inflation and the dropping dollar.

You can do this by purchasing commodity currencies that rise, right along with inflation. A good example is the currency I’ve been touting all year long - the Canadian dollar.

Now there’s a very simple way to do this.

Buy Currencies Without Watching
“Pips” or “Pairs”

You see, some investors won’t venture into the Forex market because they find Forex terms like “pips” and “pairs” a bit confusing. So they give up on currency trading altogether. 

However, what many investors don’t realize is that there is a very simple, off-the-radar way to buy currencies right through your present stock brokerage account.

I’m talking about currency options.

Yes, you can trade currencies with options - just like you can with stocks - in a regular options-approved stock account. (No Forex account needed!)

You can take long-term call positions on certain commodity currencies like the Canadian dollar without going anywhere near the Forex market.

Just like regualr options, these options have the potential to move 50% or even 100% in a matter of weeks or even days.

And the best part: you can buy these calls for just a couple hundred bucks. So you can tiptoe into the currency market without opening up another account or deal with currency pairs, pips, forex margin requirements, etc.

Bottom line: Big Ben Bernanke has basically confirmed the dollar will fall from here. Why not take advantage of it by buying the currencies that stand to profit?

Have a Nice Day!