China is afraid of Fed Bond Move

China is Afraid of Fed Bond Move

Recently, the US Government has announced US $ 600 Billion of QE2.

China says that, Fed Bond move may hurt other countries.

USA has planned to print literally US $ 600 Billion over the period of next year to save its economy. But now the governments and economists of all around the world are afraid that, USA Government’s this move will flood the world economy with excessive liquidity and when this newly printed money will enter into the emerging economies like India and China, it will artificially balloon the stocks, gold and real estate prices in these countries.

Not only this but because of weakened dollar, the exports of these emerging countries will become more costly and ultimately suffer.

Many people ask me that, “What all these means to us? We are the average investors who play safe and don’t invest in equities and real estate at all. We only invest in SAFE investments like FDs, Bonds, Pension plans, PPF and Post-office savings schemes.

Than what is the advantage of reading such kind of NEWS on your blog? We are not the economists so why we should worry about such things?”

Well, in simple words, all of the above NEWS to you means, your retirement is going to be extremely difficult and for many people next to impossible.

This is because the fixed income instruments that you think are safe are no longer safe. Because the rules of money have been changed and the US Government is printing billions and trillions of dollars out of thin air which is diluting the purchasing power of the existing money in the economy including the shrinkage of your money parked in the fixed income instruments.

Inflation will erode and shrink the purchasing power of your money parked in the fixed income instruments making your retirement practically impossible.

So it’s time to get financially well educated and learn how to invest in equities. This is because equity is no more a risky investment now. In my opinion, equity is the safest investment in the world. Safer than the Bank Fixed deposits, PPF accounts and other savings schemes.

If you want to retire peacefully now onwards, then you MUST need a knowledge of the Equity Investing. Otherwise, Retirement will be only dream for you…!!!