That the truth is stranger than fiction is never more evident to me than when I sit down for a little entertainment and watch a science fiction movie.
Do you remember “The Matrix”?
This exchange really struck home for me:
“The Matrix is the world that has been pulled over your eyes, to blind you from the truth.
That you are a slave… like everyone else, you were born into bondage, born into a prison that you cannot smell or taste or touch. A prison… for your mind.”
We are all of us in a monetary prison for our minds, perpetrated by the greatest scam in the history of currency — fiat money.
If you don’t believe you’ve been deceived, then I want you to do something for me. Say these words to yourself, slowly:
Spend your money.
Now study these words, because they are being used to create a world that is being pulled over your eyes, to blind you from the truth… that you are a monetary slave.
It’s nothing to be ashamed of. Nearly everyone is deceived by these words. The smartest, brightest and best people you know are being fooled by — and with — these words.
As I’ve mentioned before, the late Merrill Jenkins, author of the books Money, the Greatest Hoax on Earth, and Free Money, and those who learned from him, may be the only ones who have been freed from this prison.
The reason we don’t notice that we are being enslaved is the way the deception has been achieved. It’s slow depreciation by design.
If the government took away the value of your money all at once, why, people would notice… and revolt.
But that hasn’t happened because the dollar is being devalued slowly over time, so that those in power can use what I call “benevolent totalitarianism” to gain control over you.
You see, impoverished people are easier to control.
So little by little, the government devalues your money — and introduces the terminology of monetary slavery — until you’re in a prison you don’t even notice.
The elites gain and keep power and wealth this way…
Merrill Jenkins exposed the Fed’s “wealth stealing” secrets to the American public. Merrill Jenkins was the original “Monetary Realist.” He made it his life’s mission to expose the government and the Fed’s conspiracy to counterfeit all U.S. coins and paper money… after he unknowingly gave them the means to pull off their hoax. He set out to warn all American’s how this “currency conspiracy” would ultimately destroy the U.S. dollar and steal the wealth of all Americans little by little… right out from under our noses.
Next week I’m going to tell you more about Merrill Jenkins and the Fed’s underhanded and ongoing theft of American’s wealth, so look for my letter to you then.
Here’s one of the things Jenkins talked a lot about… the reserve “note.”
It’s not actually a note. A true note can be exchanged for real monetary wealth — silver or gold.
Sure, the current Federal Reserve Note looks like such a certificate. The silver certificate, for example. But if you went to the Fed demanding silver or gold in exchange for your dollar, you would be turned away like a fox at a hen convention.
And the Fed sure does make buying dollars look good, buy paying more dollars in interest to the folks that buy them. For several decades, central banks were dumping their gold to get interest-bearing debt from the United States.
The Chinese were, until recently, the biggest buyers of American debt paper. But Beijing has become disenchanted with the dollar as they see the value of their massive reserve holdings shrinking in the vaults… yet Americans don’t see this declining value. Because of the words I mentioned earlier, it all seems fine.
But think back to the 50s… your money was worth enough that you could have one earner in the house. One person could support a family of four. Today, if you want the same standard of living, you need possibly three jobs, or more.
So, what to do? How do you reverse this drain on the value of your dollars?
After all, there are no more respectable interest rates in money markets, for example. The Fed has lowered interest rates so much that whereas you could once hold a certificate of deposit, or invest in a money market fund, and get 7 percent or more, even up to 15 percent.
Now, they’ve made it so that you have to go to the stock market if you want a return. This of course boosts the wealth of the elites. Especially since the smart money buys low and sells high.
But if you think you can do the same, think again. Why do you think the media breathlessly reports on stock market highs, and celebrates stock price highs, but considers the lows to be bad? It’s so that you, the average investor, will get excited and be the one to buy the high-value stocks… and then dump them as they lose value… where the smart money picks them up for a song and does the same thing to you again a little while later.
You have to get off this money-losing treadmill. One way to do that is to de-couple the value of your money from the devaluing dollar.
Now, normally I am against Exchange Traded Funds (ETFs) for buying gold and silver because you don’t know if they actually hold any. But in this case, we’re talking about using fiat money to win at their own game.
But one reason the stock market is so high is that it’s one of the only places to go that’s safe for world investors when their economies are headed downward (because our stock market is propped up by the devaluing dollar).
Foreign money floods in, making our stock market soar, as it’s been doing for a few years now.
But if you follow the currency markets like I do, you’ll notice that the recently strong dollar is starting to give way to the devaluing forces again. It pretty much peaked a few months ago, and now world currencies are stabilizing against the dollar, and even rising. That means dollars will be turned in for foreign currencies, and that’s where your opportunity is. The dollar may go back on the decline, but this process will boost foreign currencies.
To link your money to this uptrend, you can invest in foreign currency ETFs that will rise as the dollar falls. This is called a “currency-hedged” financial product.
Currency ETFs are designed so that they mimic the movements of the target currencies in the exchange market. Now, traditional ETFs fall under the auspices of the Investment Company Act of 1940. However most currency ETFs are “grantor trusts” governed under the Securities Act of 1933. What that means is that they’re created and redeemed in each respective foreign currency and they don’t use any leverage or derivatives. So they merely hold actual currency as deposits. Some, however, do use futures contracts to try and multiply their returns on the underlying currency. So you want to be sure which you are buying.
Remember that you do not want a U.S.-centric ETF. You want our currency taken out. I would recommend a currency-basket ETF which will track a few foreign currencies, as opposed to trying to pick one currency yourself through a single currency ETF. Stick with the major markets, as opposed to emerging market currencies.
There are quite a few major companies that sell currency-linked ETFs. Dreyfus, Guggenheim, Schwab, Deutsche Bank and WisdomTree are a few. However, be aware of the expense ratio eating into your profits. Ratios of .50 percent and above are fairly high. Some can be above .80 percent. Always keep in mind that there are financial products offered by well-respected firms designed solely to generate fees from the uninformed.
Another way to hedge against the inherent falling value of the dollar is to invest in companies that make strong earnings by doing a lot of business overseas — yet employ Americans and American know-how to do it. I’m going to be talking to you a lot more about that opportunity in the near future. I’m working on two special reports that will help you earn real returns and grow your wealth this way, so keep reading and I’ll show you exactly what you need to know.