Tags: central bank | protest | ECB | invest

The People v. the European Central Bank

By    |   Monday, 23 Mar 2015 09:20 AM

I'm surprised there wasn't much U.S. coverage of the protesting and rioting going on over in Germany with the opening of the new 605-foot high European Central Bank (ECB) building (worth an estimated $1.4 billion!).
 
But then again, the opening of the mega-building may have been purposefully timed on a Federal Open Market Committee day where any changes in U.S. interest rates would be announced. Coincidence? Probably not. It was probably meant to be a purposeful distraction.
 
But thankfully, we live in the age of the Internet with Google searches, Twitter and TV networks that we can access outside the U.S. to get a scoop on what's going on. So what did go on?
 
In Frankfurt, around 10,000 protesters blocked the way to the new ECB building, calling themselves "Blockupy."
 
While it seems many of the protesters were demonstrating peacefully, these "anti-capitalism protesters," as they're called, joined hands and blocked the entrance to the new ECB building. But others took it upon themselves to set police cars on fire, set tires and trash cans on fire and damage a number of businesses in the area.
 
Before it was all over that day, approximately 550 protesters were arrested and around 19 police were injured as the crowds threw stones, "irritating gas" and "unidentified liquids" at them.  
 
But by the time it was all said and done, the police had used water cannons to blow through black-clad crowds and barricades.
 
The opening of the new building went on with ECB President Mario Draghi and his 100 invited guests. In Draghi's speech, he rejected the charge that the bank had been responsible for the economic suffering experienced by some Europeans, saying its actions have "been aimed precisely at cushioning the shocks suffered by the economy."
 
But "Blockupy" protesters see it differently. They are against the troika (the European Central Bank, the European Commission and the International Monetary Fund). They believe these unelected officials are to blame for Europe's woes.
 
All they know is that their currency has lost 35 percent of its purchasing power just since 2008. And that means that their costs have risen by that amount too, making them poorer.
 
You see, they aren't really "anti-capitalism protesters." Instead, they're really against the central bank, predominately. Why?
 
A long time ago, before the Internet, TV coverage of central bank decisions etc., the average Joe in the public could hardly tell you what the central bank did, much less be aware of their latest moves and how it affects them.
 
But we live in the age of the Internet. The public is much better informed than they used to be. There are enough of them that know that quantitative easing programs (money printing) will only dilute their purchasing power and cause their costs to rise, thus taking their standard of living lower . . . while the ECB erects its towering $1.4 billion building.
 
They're reminded of how rich these central banks really are and how rich are those who have the capital to invest in assets like stocks and real estate that benefit from a declining currency.
 
They're reminded that it widens the divide between the "haves" and "have nots" and it infuriates them. And as far as that goes, I can't blame them.
 
Just as they hate it that their euro gets undermined, I hate it that our dollar ultimately gets undermined long-term too.
 
However, where we differ is that I'm not going to smash in a window or burn down a police car. No, instead I'm going to live below my means and invest much of the difference in things that go up with inflation as the currency is devalued. And I'd urge you to do the same.
 
You see, once you know the rules of the game, then you know how to position your money to benefit from the ridiculous ways of these central banks rather than get punished by them. If you do nothing and strictly remain a consumer, you'll always be on the wrong side of the game.
 
This is the main reason why I started the Ultimate Wealth Report and Absolute Profits newsletters: 1) to help subscribers fight inflation and currency erosion and 2) to help them have a better investing game plan than they'd likely have on their own.
 
So instead of getting mad about what these central banks are going, just get motivated enough to position your assets to where they'll benefit from these central bank tactics and not get hurt by them.
 
If you don't know how to do that, then come join us in the Ultimate Wealth Report at www.ultimatewealthreport.com and I'll show you how through my monthly newsletter and weekly videos.
 
God bless!

About the Author: Sean Hyman
Sean Hyman is a member of the Newsmax Financial Brain Trust.
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SeanHyman
I'm surprised there wasn't much U.S. coverage of the protesting and rioting going on over in Germany with the opening of the new 605-foot high European Central Bank (ECB) building (worth an estimated $1.4 billion!).
central bank, protest, ECB, invest
822
2015-20-23
Monday, 23 Mar 2015 09:20 AM
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