FEDERAL RESERVE, DIGITAL DOLLARS, INTERNATIONAL TRAVEL: Q&A with Lynette Zang

By ITM Trading / February 20, 2009 / marketsanity.com / Article Link

Viewer Questions:Jimmy - Instead of targeting a two percent inflation level and raising rates to head off price pressure, Federal Reserve Chairman Jerome Powell said the central bank would aim for an average of two percent over time, which would let inflation run higher. I understand this to mean that the Fed will need to move real interest rates to negative - but wouldn't that be deflationary to government bonds? Would the Fed then have to use another one of their tools which is yield curve control of government bonds?. Could you please explain yield curve control and how this will help the Fed reach their inflation target? Also please give an example of how the Fed might use yield curve control.

Chalon- In speaking with an advisor from ITM, I remember talking about holding precious metals enough that would be able to sufficiently cover taxes and insurance for land that was completely paid off and owned outright. Do you have a recommendation of how many years worth of taxes and insurance to have backed up and saved with PM? With the digital dollar and fed now accounts, would you see it wise or necessary to use fed now accounts in limited ways? Or do you think they should be stayed away from until we have no choice. I'm really interested with any new information or insight you would have on the digital dollar/fed now accounts.

Stephanie-I live in India, and was wondering about what I need to watch out for if I am traveling to the US with gold and silver.

Dan-Lynette speaks of possible reset of the dollar for bank assets to be $1 for every $1,000. Does this mean that a $10,000 mortgage will be reset using the same correlation? Mortgage will now be $10 for $10,000 mortgage balance?

Lynette Zang has held the position of Chief Market Analyst at ITM Trading since 2002. Ms. Zang has been in the markets on some level since 1964. Her mission is to convert financial noise into understandable language. She has been a banker, a stock broker and studied world currencies since 1987. She believes strongly that we need to be as independent as possible and at the same time, we need to come together in community in order to survive and thrive through the hyperinflation she sees in the near future.

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