Recently I read Robert Kiyosaki (RK) latest book. The title sounds catchy(this guy always use catchy title and turn his books to multi millions dollars business). When I finished chapter 1, I contend his views and related it to Forex Market.
Well, do you know greenback (USD) is backed by thin air. Yes, after 1972, USD is no more backed by Gold and it is backed by nothing. The so-called US economy is backing USD. The term "money" change to "currency" and every country use its currency to compare each others. This magnificent fusion of this process created the largest capital market in the world. Speculators take these opportunities make millions and billions of dollars. How? Simple, they use the "economy value" of each currency to define the rate of transaction each day.
Forex market is controlled by the rich. The rich have the power to influence government, media to move the so-called economy value. US government is the BIG BOSS to determine the movement of currency market since most of the world currency pair with it. It is easy for Uncle Ben to make money in FX market but he is just a US government servant who is obliged by law. I believe there is a group of unseen hands behind Federal Reserve to direct their policy. Who are they? They are the 'ultra rich' in the world. I am very sure most of you heard of Rothschild and the Gangs.
Back to RK book, we only need to equip ourselves to take advantage of the BIG BOYS move. The EUR/USD had a volatile move in the last 2 months has demonstrated my views. Before Christmas and Holiday season come, they take back huge profit what they have created since early of the year 2009. I warned this in my last articles of 2009. Look at EUR/USD now, I always remind myself that trading FX is like searching gold in the jungle full of wild animals. I always look for the strong rangers and follow them to the gold mine. Sometimes it is hard to catch the rangers footsteps, so I need to be extra careful before following the right path. Occasionally, we like to stop by river and fishing. (No a bad start for me, 300 pips profit in 1 week.)
I end this article with a famous quote;
"Let me issue and control a nation's currency and I care not who make its laws"-Amschel Rothschild, 1791.
