Casey Research economist Bud Conrad reports that for a month already through its daily bond market operations the Federal Reserve has effectively reduced the Fed Funds interest rate by about a third of a percentage point below the Fed’s nominal “target” rate of 5.25 percent.

“Watch what the Fed does, and not what they say,” Conrad cautions. “While talking about holding the line against inflation, they have already gone ahead and made a cut in the Fed Funds rate. It is our opinion that their rate cutting has only begun. … Investors need to understand that further cuts in the Fed Funds rate, which effectively bail out the bankers by injecting money into the system, risk triggering an exodus from the dollar and causing a knock-on currency crisis. That is the scenario investors want to be preparing for.”

You can find Conrad’s report at the Casey Research site HERE.

Blogger’s Note: This is my 300’th post since I started blogging on July 10 2006. Those of you that have been reading the posts have accumulated all necessary knowledge and information to weather out the approaching financial “tsunami”.
A financial storm of gargantuan proportions is brewing just below the economic horizon and we have already witnessed some heavy thunderstorm clouds and lightning activity in the vicinity (please excuse the met parallels).
So stay tuned for more up-to-date reports as this generational economic cycle unfolds, and dont’t forget to keep buying gold and gold stocks on dips!