The US Government – that’s who.

Up until September, 2009 – it took nearly 14 years to double the cash held in US Banks.  After this date, it took the Fed less than 4 months to double the size of US bank reserves.

This should scare you – because the store of your monetary value is in the US dollar.  And it should also, motivate you to invest to counter this action.

This is a dramatic move on the part of the Federal Government – and prior to this, even in extreme circumstances, the Fed has never taken this road of pumping so much liquidity into the economy. 

But how does the government pay for a mountain of debt, you ask?  Continue reading Who Is Swiping Your Dollars?

Simple Answer – Anything That China is Buying!

Why?  Because, world power is shifting from the West to the East.  The value of the American dollar is taking a nose dive.  The American economy is not yet recovering with the showing of both unemployment and corporate bankruptcy on the rise.  And, the lift in the American stock market is on quick sand due to the huge dollar-printing dump of paper by the US government into the economy and American banking system. 

This does not give me a lot of confidence.

But China does.  The Chinese are savers – up to 35% of their income.  The middle class is multiplying rapidly in China – and with the rise in their household incomes they are consumers of many products.  And, most importantly, the dramatic economic expansion – with the enormous tide of the Chinese population – is driving an urgent need for everything from wheat to copper – and they are looking for these commodities all over the globe. 

Deng Xiaoping spoke his famous capitalistic phrase – “to get rich is glorious” in 1978 – and they are doing it – never before in history has a country made such outstanding economic progress in one generation. Continue reading What Am I Buying These Days?