Mitchell - Invested to be molested

Invested to be Molested

Copyright 2015 Kelly Mitchell. All rightsreserved.

Other Titles

Gold Wars: the Battle for the GlobalEconomy

A Spiritual Autopsy of Science andReligion

Fiction

Wildcard

Song of Solomon

Scar Jones

Tara Born of Tears (May, 2015)

Psychopaths make up 10% of the financialservices industry - 10 X the national average ~ Canadian forensicpsychologist Robert Hare from Washingtons Blog.

Your life savings is in serious danger. Thethreats are numerous. As detailed in this book, if you are notcareful, if you do not take charge or your own financial situation,you will steadily lose money in real terms and possibly be wipedout.

The chairman of Forbes Media, in aninterview, said 3 frightening things about investmentrealities:

1. Federal Reserve methods are causing damageto older people - and its intentional.

2. Financial Advisers are taking nearly 70%of client returns.

3. The boomer generation will not make itthrough retirement - many will go broke.

Forbes laid out a permanent flaw builtright into the financial structure, and it punishes investors. YourFinancial Adviser (or FA throughout the book) probably has most ofyour money in mutual funds. The Flaw requires such fund directorsto hold more than 75% flat equities - instruments that willunderperform. Most investors are losing tens, even hundreds ofthousands of dollars even as you read this. People are retiringmuch older - and some not at all. Its created a slow-motiondisaster in the private investor market. That flaw is an importantpart of this book. But its just the tip of the iceberg. Thefinancial services industry is designed to rob you with yourblessing by keeping you ignorant. And unfortunately, its very,very good at what it does.

In a survey, a quarter of finance prosclaimed unethical action is essential to succeed in the industry.And 1 out of 3 claimed the regulatory and pay structure pushedpeople to behave unethically and even illegally. Analysts findthese numbers to be low because of self-reporting - advisors do notwant to draw attention to their own actions through a survey, sothey naturally lie to cover up. Most of these analysts find thenumbers low based on personal conversations with friends in theindustry. Fraud is rampant and systemic. It is the way things aredone.

I was working on the oil rig in 2008 when Ifound out some pretty nasty stuff about our political system thatmade me start investigating. Id been a buy-and-hold investor inmutual funds off and on for 15 years, but this got me diggingdeeper. The system was (and still is) seriously out of whack andtilting to the side. I began telling people that something big wasgoing to happen with the economy. I got lucky with the timing, tobe sure, but the crash happened a few months later. When I warnedthem, my friends thought I was going a little nuts. Afterwards,nobody mentioned that I was right! It was pretty disheartening andI felt more than a little isolated. But it began a multi-yearjourney toward understanding the global economy and the manyfactors that make it so uncertain these days. The primary factorthat rose to the top was manipulation.

When I wrote Gold Wars: the Battle for theGlobal Economy I was quite entrenched. I had nothing to lose,nothing to protect, and nothing to push. I had no agenda but totell people what was really going on - and it was bad.

You (or someone you know) have your lifesavings at risk - serious risk - from the Financial ServicesIndustry. Its in a variety of ways - conflicts of interest,rehypothecation, collateralization, limited book, restrictedofferings, churning, ditching the bad book on clients, limits onprotective setups, analysts time restrictions, the secret tax,dangers of a currency collapse, the derivatives black hole, thedebt crisis, disinformation and on and on. Financial Services isextraordinarily complex - probably needlessly so - and the pitfallsand traps are almost unlimited. The days of buy and hold are longgone - a 2008 style crash is almost inevitable again. Only thistime, the government may be unable to bail the system out. Andbelieve me, when it happens, Wall Street will profit from yourlosses. They are ready and you are prey. Thats why Goldman Sachsanalysts refer to clients as muppets.

This most venerable firm on Wall Street shortsold its clients bad bonds, which then crashed by 50%. GS thenbought the bonds back at profit. It was illegal, unethical, and areally bad idea for maintaining clients - but they didnt sufferany ill consequences. No investigation, no prosecution, no SECsnoops looking around. No matter how much they stuck it to theirown clients illegally, they walked away counting their (stolen)money. And GS staffers have routinely become heads of the USTreasury, SEC lead staff, Central Bank heads of England, and evenunelected President of Italy! Its a powerful company and itscreating the new financial system.

You are being deceived by a systematicredaction. All the economics studies in conventional schoolingforbids a whole range of issues. Any teacher talking about themwill soon find himself censured or out on the pavement. Corruptedand manipulated capital markets, bankrupt financial orgs, monetarystimulus as a destroyer of wealth, bail-ins (using private bankaccounts to rescue troubled banks), huge decline in percent ofpeople in labor force, bizarre stock values, corrupted accountinglegalized, fraudulent government statistics, $26 trillion bailoutfrom 2008-9, the failure of QE, the loss of low-risk investments(CDs pay less than 1%?!?), secret machinations to twist themarkets (Exchange Stabilization Fund), the control by big banksover the Fed, the control of the Pentagon by weapons manufacturers,unrepayable debt - public, corporate, and private, the perversionof mass media by centralized ownership - feeding you dangerousnonsense, and the theft of government accounts like Social Securityto keep the game going. Just the thin end of the wedge of whatsbeing withheld from your kids in their college classes - and fromyour trusty financial adviser.

There is an excess of knowledge in this book- more than you need. But it has been carefully chosen to behelpful. It is all useful at some level. Some people will usecertain aspects, others will different aspects. Later, you may findthat such knowledge is extremely beneficial and it will benecessary - at least to explain whats happening in a seeminglychaotic world. Its a chess term called overprotection, or inmilitary terms dry powder. During the blunderbuss days, if yourpowder got wet, you were useless. You needed dry powder to go intobattle, and each soldier carried his own gunpowder. Dry powder hereis cash reserves ready to move. If you have none, when opportunityknocks, you cant do anything with it.

However this book advises against keepinglarge amounts of cash in general. The best approach is to keep10-15% in a very stable, dividend paying investment. Its astandard practice. Mostly, in standard practice, 90% of yourinvestments will be there. I dont consider this an investment,its a place to store reserves while awaiting opportunity. There isa very sound reason for staying away from currency, especially themain one.

The US dollar is in the process ofrepudiation. The world will no longer tolerate the debt excessesand other forceful means of maintaining the dollars world reservestatus. Currently, Russia, China and their allied nations areforging currency swaps (which create trade in those currencies),trade negotiations, and creating alternate means of payments -outside the US dollar. The BRICS central bank is an officialproject and will soon become a real central bank. When the majorityof global trade is no longer conducted in the US dollar - thosenations holding US debt will unload it. Then the system will go offthe rails. The Fed and major banks currently have a system ofinterest rate swaps to artificially increase demand for Treasuries.That system will not maintain itself coherently in the face of amass global sell-off. It is already so unbalanced that such awrecking ball will turn it into financial chaos. You do not want tobe on the wrong side of this trade.