Profit From Government Lying
The Dynamic Wealth Report
August 10, 2009
Our Government's Lying To You!
by Brian T Mikes, Editor
I love it when hypocrites get caught telling lies, don’t you? The look
of fear in their eyes when the web of deceit comes tumbling down. I know
I shouldn’t, but I do get a bit of pleasure out of the whole thing.
Just last week, the Wall Street Journal highlighted a huge lie.
Believe it or not, it came from our esteemed leaders in Congress. They’re spending like drunken sailors on shore leave. Then they turn
around and hand the good taxpayers (you and me) the bill.
Nancy Pelosi and crew just allocated half a billion dollars for new
luxury jets for Congress. This comes just months after tarring and
feathering CEOs for using private jets to attend Congressional hearings.
Seems kind of two-sided, don’t you think?
Here’s where the lies start… our members of Congress all claim to
support fiscal responsibility. But, they sure don’t act like it. The
Defense Department says they don’t need these new jets. Since when is
spending $550 million on something you don’t need fiscally responsible? I call that a lie.
Now before you get all upset, realize every member of Congress, regardless
of political party, is a liar. Republicans and Democrats alike.
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Here’s the crazy thing… These lies don’t stop. They
happen all over the world in every type of government, at every level.
Just look at the European Central Bank (ECB).
The ECB is just like the US Federal Reserve. The ECB controls monetary
policy and interest rates for the entire EuroZone. They have a huge
impact on the growth of Europe’s economy. They influence interest rates,
and indirectly, the banking industry.
To ignore them would be dangerous.
Lately, economic news from around the world has been positive. Even in
the EuroZone. Recent business surveys are positive. Businesses are
starting to emerge from a recession funk. Corporate executives see rays
of hope emerging in the economy.
Economic statistics are starting to turn the corner. The EuroZone
economy is clearly improving.
EuroZone PPI numbers are good. German factory orders are up. And,
consumer confidence numbers are improving.
Then, the ECB works up a giant LIE.
They crush all hope by saying economic growth won’t resume until 2010.
Meanwhile, economic indicators are improving and many private economists
see a recovery starting in the 3rd and 4th quarter of 2009. Where’s this
disconnect?
Why would they lie?
Just look at the euro for an answer.

It just keeps climbing higher and higher.
That’s what happens when Europe’s economy starts to improve.
But it also presents a problem. It makes exports more expensive.
Suddenly, European businesses are less competitive on the global stage.
Their product prices start moving higher because of the exchange rate.
If EuroZone companies can’t sell overseas, their sales will suffer and
profits will fall. That means slower growth. And slow growth in the
business sector means a weak economy. It’s a big risk to the EuroZone…
and the ECB knows it.
So what do they do?
They lie to the public.
They say things aren’t going as well as they could be. They downplay
positive news. They say growth is still a long way off. They dismiss
positive economic data and put on a sour face when addressing the
public.
And talk like that scares currency traders.
They start wondering what the ECB sees that they don’t. It never occurs
to them the ECB might be lying.
So what can we learn from these big lies?
I take them to mean the EuroZone economy is doing better than expected. It also means the recession is starting to fade and growth can’t be far
behind. It also means the euro should start moving higher.
This week, the US Federal Reserve is meeting. They’ll review all the
economic data available then determine the direction of interest rates.
It makes me wonder what lies they’ll be telling this time around.
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• Home Construction (Up 49%)
The last month has seen some big moves in the home construction
industry. A number of homebuilders are moving off their lows and jumping
higher. Positive economic news is driving the stocks.
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