“It's All About The Benjamin” by James R. Gorrie was Just Published in The Absolute Wealth Newsletter

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The Absolute Wealth newsletter released, “It's All About The Benjamin” by James R. Gorrie, to talk about the fiscal cliff.

Absolute Wealth

AbsoluteWealth.com

When interest return to their historic mean, which is about 4-5%, the interest payments will go up 400%.

The Absolute Wealth newsletter reports that, the Federal Reserve Chairman addressing Congress on Wednesday, warned Americans that the country is headed for a “massive fiscal cliff” if the Bush tax cuts and payroll tax cuts were allowed to expire. The Absolute Wealth newsletter goes on to ask, are those the only things that will be shoving the country into the financial abyss?

Could it be partially caused by the huge deficit that America is carrying, paying only 1% on the debt today, the newsletter wonders, but when interest return to their historic mean, which is about 4-5%, the interest payments will go up 400%. Pledging to keep rates low for three years has not stimulated the economy, the newsletter remarks, not even the housing market. People wonder what is the hurry to buy a house when they know rates will be low for a few years, besides the newsletter says, housing prices are still falling.

The Absolute Wealth newsletter explains, those banks that got billions of dollars of bailout money, aren’t in any hurry to lend it out to ordinary Americans who just might want to buy a home. Why would a bank lend money on a depreciating asset, the newsletter asks, when they can earn a guaranteed 2+% on T-bills with no risk?

Bernanke’s zero rate policy has also hurt retired Americans who rely on income from CD’s and treasury bills for their living, the newsletter says by imposing such low rates, Benjamin is impoverishing senior citizens. Rep. Paul pointed out to The Benjamin that since the Federal Reserve was established in 1913, the US dollar has lost 99% of its value, the newsletter reveals.

The Benjamin runs the Federal Reserve, the Absolute Wealth newsletter explains, and the Federal Reserve owns the right to create dollars out of nothing. As the value of the dollar declines, the people have to work harder to earn more to live as well as they did the year before, the newsletter adds. Read the rest of the Gorrie Details at AbsoluteWealth.com.

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