Fed Decision Day Approaches

Next week may be an important turning point for America. It holds a very key date.....

No, not Election Day - Tuesday, November 2nd, where Americans for the most part get to choose between two sides of the same coin.

The key date is Wednesday, November 3rd, when the Federal Reserve announces to the world the details of QE2, the second round of its quantitative easing or money printing.

The first round of massive money printing occurred during the peak of the financial crisis. It can be summed up as a lifelife for American policymakers and their Wall Street banking cronies, but it was a disaster for the American public.

Not only did the Federal Reserve nationalize the banks' losses but more importantly Mr. Bernanke's money creation efforts have seriously undermined the viability of the US Dollar.

As any student of history knows, there is no such thing as a free lunch. By creating additional trillions of dollars out of thin air, Mr. Bernanke may succeed in bailing out his friends in high places but he is seriously jeopardizing the country's currency and its future.

And look where the money is going...To Wall Street and its new way of making fast money - high frequency trading. High frequency trading now accounts for about 70 percent of the daily trading volume on the stock exchanges.

Their specialty is speculating..they trade stocks as if they were playing slot machines. According to an estimate from Raymond James analyst Patrick O'Shaughnessy, the holding period for stocks is mere seconds, around 11 seconds.

Whatever happened to actual investing and holding stocks for years? Wall Street just spends all day gambling, grabbing a penny or two on millions of shares of stocks and on thousands of individual stocks.

These are the people that the Federal Reserve is gambling the future of the Dollar and our nation on. I don't know about the readers, but I find that deeply troubling.

From an investment standpoint, that tells me to keep doing what I have been doing, especially if we see a correction downward in prices.

And that is to move into real assets - commodities and commodity producing companies and into other countries, especially emerging markets, and into other currencies like the Australian Dollar where savers can still get a decent rate of return, due to higher interet rates, on their money.