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The Titanic's Cognitive Dissonance

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On April 10th, 1912, the largest, most robust ocean liner of its time, the RMS Titanic, set out on its maiden voyage. Thanks to White Star Line's advertisements of the ship claiming to have scores of fail safes and water-tight compartments, it was dubbed unsinkable. Required lifeboats on board were stripped to carry only about half of the passengers, and were there more for show than anything else... Four days later, on the night of April 14th, 1,517 passengers would learn a hard lesson. A little after 11:30pm, the ship hit the infamous iceberg, poking several holes into the ship's hull, far beneath the surface... The next two hours defined three types of people: The few who sprung into action and either jumped on lifeboats, or took whatever buoyant material they could find and made their own. Those who knew they had to do something; but instead of working on anything productive, they panicked. The majority that, after hearing the loud screeches and feeling the tr...

You've Fallen for the Most Destructive Sleight of Hand of All Time

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Neo, sooner or later you're going to realize, just as I did, that there's a difference between knowing the path and walking the path. ~ Morpheus, The Matrix It's no secret that the U.S. dollar — or Federal Reserve Note — is the world's reserve currency. It's been that way since 1944, when the dollar was backed by gold... A time when the United States held more than 50% of the world's gold reserves. A time when the U.S. produced more than 55% of the entire world's manufactured goods. Of course, times have changed... Since 1971, our dollar hasn't been backed by anything other than the fact that it is the world's reserve currency. Today (2011), we only produce 27% of the world's manufactured goods. America also holds less than 25% of the world's gold reserves. And on September 30th, 2011, our national debt will exceed more than 102% of our GDP. USD As World Reserve Currency And Inflation An auto manufacturer in Korea importing ...

When Gold Stops Going Up

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As the rest of the world deals with skyrocketing energy, food, and clothing prices, there is still a handful of in-the-know investors becoming filthy rich. What you need to understand as an investor is the long-term cycle of markets. Gold will continue to go up until three things change: - Inflation is recognized. (It will be an issue in the 2012 presidential elections.) - Helicopter Bernanke is replaced at the Fed with an inflation hawk. - U.S. get a new president. Until then, the best returns are ahead for gold. As you can see by the gold chart above, the trend line keeps getting steeper... but it has yet to go parabolic. And as you can see from the CSCO chart, the last years of a bull market see the fastest gains. http://www.wealthwire.com/news/metals/913