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The American Forex Delusion
Hitler said often that the bigger the lie, the easier it would be [for the masses] to believe. This is no where more true than Forex.
Russia and America have similar demographics of people involved in Forex markets; both have extremely uneducated populations (even 'financial professionals' often have no clue about the ramifications of Forex), both have extremely polarized "Elite" (the bankers who run Forex) and the 'rest' who are left to have their savings eaten away by inflation. In fact, central banks have mandated the investing population - it's necessary to acheive above average returns just to break even.
We'll use Russia here as an example to contrast the US Forex market because they earned it - our new allies in the middle east. This is Russias first role as world policeman in Syria (as the "New Russia") and anytime a superpower such as Russia or America invades and bombs another country, there will be angry people (i.e. blowback). But, such situations often bring together unusual allies; the circumstances create allies (in this case, a common enemy Muslims/Islamic state) as did World War 2 and many other similar situations.
Let's quickly look at some of the biggest lies promulgated by the Elite. Who are "They" ? Well, you can read about "them" here, here, and here. Why they do it, should be no question. It has allowed them to develop a global tech economy nearly for free (on the backs of the worker), and at the same time amass a fortune never before seen in known modern human history. All of this is possible due to lack of knowledge and education, or in other words, their ability to sell these lies to the population (by the way, Propoganda was invented by an American Edward Bernays; many of the methods used by Hitler, Stalin, and others are now being used by corporate America).
Over a period of more than 75 years, the Elite have invested billions of dollars and have a proven track record for brainwashing the population, in all countries, but most notably in America and in Russia (although with different cultural motives).
Lie #1: Inflation is caused by supply and demand, and other natural economic forces
This is the biggest lie that allows the real owners of the global financial system to fleece the population of their assets. Slavery is illegal, but working 80 hours a week for just enough money to pay for your housing, food, and health for your family, is not existence. It's the new slavery. You see, during the industrial revolution the Elite learned that physical chains were no longer necessary. By promoting such anti-values as gluttony, ignorance, apathy, and by promoting the Ego (i.e. Facebook "Look at me!) - it would allow the Elite to easily convince workers to run on the mill like lab rats for almost no pellets. This is most notable in America which mainstream culture (mostly financed by bankers vis a vis CIA domestic ops, including but not limited to cultural socio-engineering; starting with Tim Leary, Kurt Cobain, Beavis and Butthead, "Jackass", and now a plethora of other cultural icons, promoting a culture of stupidity.)
In plain English, while the youth is stupidifying their life away, the Elite are slowly eroding your equity through inflation - the hidden tax.
Inflation is caused by oversupply of currency! The idea that supply and demand drives inflation and deflation is not valid argument in Fiat money system, because the quantity of money in the system M0,M1,M2,M3,MZM, plus currency swaps, derivatives, and countless other financial instruments created in the base currency by the central bank, is an ever increasing base number. In the event this trend reversed, that supply of currency decreased, it would still be a changing number, as determined by central banks. Therefore, traditional economics of supply and demand and the price mechanism, is irrelevant. Monetary policy is the only determination of the value of currency, in a Fiat system.
How does this impact average people in America, and in Russia? Every year, you have less money to buy things (whether groceries, property, health care services, etc.)
Lie #2: US Dollars are money
US Dollars and most global major currencies are debt based currencies. Debt is not money, such as Gold is money. New US Dollars are created only through LENDING, if all US Dollar debt was paid off, it would mean there would be no more US Dollars! Even if you believe that US Dollars are money, in any event, because of a constantly expanding money supply, every year you have less and less money, by keeping assets in US Dollars.
Lie #3: Currencies are backed by something
Fiat currencies are backed only by belief, by faith.
Lie #4: Forex is for international investors, and travelers
All of this propoganda is very effective! The Elite have convinced even self-proclaimed 'financial professionals' and the general mass population that Forex is irrelevant unless you are traveling or do international business. Here's why Forex is relevant today:
Each central bank, whether it be The Fed or the CBR can only create as much domestic currency as it pleases (it cannot create foreign currency). So, if the Fed creates an additional 100 Trillion via QE 4; it can choose to use that currency domestically, or internationally. If it chooses domestically, it will create hyperinflation. So if this is to be avoided, it must use these freshly created USD to buy foreign currency.
How Forex can benefit domestic population of Russia
Russian population is currently being robbed via collapsing Ruble. Since the 'new ruble' was introduced in 1998 at a rate to USD of 6 Rubles to 1 USD (USD/RUB currently around 70) - this is a loss of about 90% for Ruble denominated assets. What value the Ruble lost in 20 years, it took the US Dollar 80 years.
But when Russia defaulted in 1998 and Moscow was infested with economic hitmen from western banks, they had not only a template from America and soon the EU, they had computers and soon internet, making a new economic way for the new "Elite" of the new Russia to further rob the people, via hyperinflation of the currency. As in America, oligarchs are created quickly and benefit greatly from hyperinflation, as they can do a number of things to benefit from this situation (most simply, investing their assets in non-domestic currency, but countless other examples as well). Possibly, the rapid depreciation of the currency, could have contributed to the wealth of the oligarch class. In any analysis, since Russia has implemented this system of weakening its domestic currency, the oligarch class has grown in step with America's new superclass.
It is understandable why those in financial services do not understand Forex generally. Because high priests of capitalism preach about 'making money' (which is actually illegal, strictly translated, unless you are the US Mint or the Fed). So by participating in Forex, you aren't really growing your portfolio, you are just breaking even, or NOT losing. This lateral thinking should be understood well by Russian population considering their advanced math skills. But it is not widely proliferated in mainstream culture (and very ironically, because major Forex companies are based in Russia). Oh - what the business opportunity!
In a very basic example, imagine you have 1 Million Rubles in 1998. You have transferred them to a US bank account bearing a measly 8% interest in USD (we will not count interest in this example) - roughly, $165,000. 2015 comes around and there's a ruble crisis - fortunately your savings are safe and now gaining about 1% at Everbank, and you need money. You transfer your $165,000 USD back to the motherland, for a whopping 11 Million Rubles! It's roughly 1100% return on your investment in the US Dollar - but of course, you didn't really 'make' any money, you just didn't lose. We shouldn't mention that most of this return is tax free due to FASB rules regarding long term forex investments.
If we consider the interest component, the $165,000 would be $399,000 using this basic calculator, in 2015 this would convert to 27 Million rubles! So, we pose the question; where else in Russia could a single individual get a potential tax free return of 2700%+ by doing basically nothing (a few documents, one bank transfer)?
So, by common people participating in Forex, instead of losing 90% of the value of their currency and complaining to empty TV screens about corrupt politicians, they could have instead made 2700%+ tax free.
This very basic example is simply to illustrate the benefits of average people (whether financial professionals or not) to participate in the Forex market - and that it really is a necessity, if you live in a country like Russia or America when you have a central bank with a policy to destroy the currency. Really though, it's only a tax on working people. If you are very poor - it doesn't matter (you work to live, not live to work). If you are very rich, probably you have assets in America, London, or France. This example doesn't count opportunities such as Forex robots, or the ease of investing in a US stock market bubble which could turn the $165,000 USD into much more (although that part wouldn't be tax free).
Of course, the Elite in Russia (via CBR) will try to convince the local sheeple about the evils and risks of Forex, as they fleece the domestic population via the slow death of the hidden tax of hyperinflation. baa
Forex is especially necessary where the domestic currency is volatile. Russia is a great example because it's not Zimbabwe, not the EU, and Russia is a globally significant dynamic economy.
So what is the American Forex delusion?
A lie can be the withholding of information. In the case of Forex, it's simply 1% of missing important knowledge that prevents a real understanding of what's going on. In the case of America vs. Russia - The Fed, currently is a private central bank, owned by private banks. The CBR, still officially a public institution owned by 'the people.' But, it was the Americans who invented modern finance. It was the Americans who created modern Forex. It was the Americans that pressed Russia to open their markets (most importantly - financial markets!) - which again, is ironic considering how Wall St. banks financed Lenin, without which financing the Bolshevik revolution would not have been successful.
So who benefits from this system? The Elite, who strip the common people of their assets (but with style). But also, educated people who know how this system works and can expolit it, such as older examples here, here, and here.
The Elite - provide a method for profiting from this situation! There are no shackles, no chains - only those which are in our mind! We can set down that bag of bricks handed to us, and free ourselves. It is the paradox of the modern control paradigm; the tool of control can be used as a means to become a controller! It's just a question, a decision, which side of the trade you want to be on.
The good news - it is possible to profit from this situation, and even prosper. This can be acheived only by education followed by action. It is legal, and possible, for any individual in the world to profit in Forex, and to protect their financial assets.
Welcome to the club!
Open an account with Pepperstone and trade the Russian Ruble!

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Run don't walk away from foreign exchange. Buy hard assets that will always have a utilitarian or intrinsic value with no recurring fees or taxes. Shovels come to mind.
Show us an article pointing to legit ways to trade FOREX w/o an advertisement.
I don't blame the author, he's trying to profit, but ZHers need a story with links to find FOREX information.
Having said that, today IS a rigged game, so you would have to be very careful.
I have stashed a few hundred Yuans in a safe place. I'd like some more, but I can also pick up Au right now and hold the fizz, not a piece of paper....
Right now I could see holding rubles ar yuans, but for a long time frame.
Plus, the dollar can be manipulated more than we think.
"All of this is possible due to lack of knowledge and education, or in other words, their ability to sell these lies to the population (by the way, Propoganda was invented by an American Edward Bernays; many of the methods used by Hitler, Stalin, and others are now being used by corporate America)."
We are told that this is Satan's world. The elitists work for Satan and do his bidding. It is not lack of knowledge that keeps the average person down. It is goodness and thinking of others before they think of themselves.
Satan's elitists are not crippled with such frailties as goodness and thinking of others. They are free to murder, lie, cheat, steal and defraud ... in this world. And, in doing Satan's bidding they are rewarded by Satan with temporal gifts.
The average man needs none of these.
A cynical man would say that this is also a big lie. They would say that all people envy the elitists and aspire to be like them. But, it is not a lie. It is the truth and the truth will set you free.
See Prof Anthony Sutton: Wallstreet and the rise of hitler ..........(and after hitler... many more).
Besides Delusion Illussion is involved as well. Makes trading look ' kind of easy' with some of the psychological brain functioning principles involved and monetary ones as well.
Trading is a loss cause the play is based on fraud- corruption- foreknowledge of a small selected few ...better equiped.. better faster software... much more cash.... better means- collective IQ of a many.
A trader does not understand his position in a market . So you need to be deluded to start or continue. You need to be a gambler , take risks based on..thin air. Althought many seem to be involved it is you <> a many selected few.
And so any website has to give the new client the 'feeling' delusion and illusion he is even equiped as the market makers/movers.
With Monopoly you knew your sister, brother or the ones you play it with and could beat them. Here they know you... but you do not know them and their abilities/possibilities. Monopoly f.e is personal fam fun or the end of it when it gets emotional. Trading is unpersonal against invisible unknown entities.
So it is not even a play a game. It is presented as a game. You think you play or gamble..with change of winning they know you are not.
Well said!!! Now will anyone listen? Don't count on it. The ones who understand what you've written already know you're right-on.
But then the only way to win is NOT to play. Sorry.
Wow, was thinking of foreign currency earlier today. Was at the bank and idly askedhow they did their exchange. For amounts of $300 or more there's a flat $8 fee, less has than $300 more cost as a nuisance fee.
I'm not experienced in this, so someone jump in and correct my thinking.
If I'm expecting our current strong dollar to be guttedby the combined actions of the FED and IMF, I would want to hold currency that I expect to move the opposite direction. It would grow stronger as the dollar collapsed.
So let's say that I take a $1,000 and exchange for Russian Rubles, currently, as I understand it, I'd get about 70,000 rubles and pay the bank $8. If the dollar does drop, say 20%, and the ruble rises 20% I'd be able to repurchase dollars at an equivalent purchasing power of the original $1,000 (less $8). However, if the ruble rose more than the 20% dollar value drop I would profit by the transaction from the excess. Right?
On the downside, if the dollar drops 20% and the ruble drops 20% I'd lose my ass, wouldn't I?
Is there someone that can do a better explanation of how it works other than what was said in this article?
you got it right, the gains only seem obvious after the fact. muppets like us are NEVER in the game where we win and the house loses. we used to invest and see the gains that came from growing something of value, but that was called investment. what we have now is a casino. as soon as they are in control of you assets, you lose.
if you can't hold it, you don't own it.
https://www.youtube.com/watch?v=-DT7bX-B1Mg
I'm sorry but you cannot 'not play', the elite will not let you opt out of the system.
You cannot win if you do not play... TRUE
and
You cannot opt out of the game... TRUE
I'm playing to win with GOLD and LAND in a country that has almost no foreign debt (too poor to borrow!) ... The dollar is very strong there now ,, but that'll change and my land will always have value as it produces FOOD.
If that same russian dude had bought $1m in gold in 1998 he would have reaped the real gain in gold AND the apparent gain from the falling ruble. Golds value doesn't change ,, just it's price in local currency.
another casino, another pitch with some truth, pushing small players into a game that's rigged. this cannot end well - any solution that does not address the fact that the casino house has rigged the game to the extent that soon there will be no sheep left to shear - well that ain't no solution at all.
This is a good article, but it is also a sales pitch. Getting in and trying to learn the ropes at this time is a fools game. These markets (all of them) will remain rigged until they collapse. I feel bad for the poor saps that have to dance just because the music is playing.
The music will stop soon enough and the mammonites will have NO friends,,,
Spoctor Din