Have you ever been paid off by the government for keeping a secret? It’s more common than you think, but they’re very inconspicuous about it.
You don’t receive a letter explaining any of it, and they have all their angles covered in case you squeal, but you could be cashing in a $9,886 check if you can keep quiet.
Why would they bother paying people like us?
Because they know that we’re capable of spoiling all they’ve worked so hard for. I’ll explain…
As you know, the Chairwoman of the Federal Reserve, Janet Yellen, revealed the Fed’s decision to raise U.S. interest rates last week for only the 3rd time in 10 years.
Usually, this news takes the stock market through a bit of a bumpy ride before it’s able to regain stability, but this time was different.
The interest rates were raised on Wednesday, March 15th, but it seems as though investors were readily prepared for the small hike.
After the decision was released, the Dow Jones ($INDU) jumped 113 points, the S+P 500 ($SPX) jumped 20 points, and the NASDAQ ($COMPQ) jumped 44 points.
This is a somewhat unfamiliar reaction from these U.S. indices, as the last two rate hike announcements saw some setbacks in all three charts.
But, why is this time different?
Well, there’s clearly some things going on behind closed doors that we will never know about, but the fact that we can tell something is going on means that we could be receiving checks very similar to the $9,886 one that was just paid out.
Why does the Fed want you to keep quiet?
If you’re not familiar with how the Federal Reserve uses interest rates to dampen the blow from a recession, it works somewhat like this:
In healthy economic years, the Federal Reserve should be gradually raising interest rates as the economy is growing. This means higher rates on loans and mortgages, but in a healthy economy they remain affordable.
When a recession rolls around, like the one we saw in 2008, the Federal Reserve then cuts interest rates in an attempt to keep finances flowing.
The Fed cut rates to 0% in 2008, but didn’t touch them again until December, 2015.
This means that even when our economy regained its health, our rates didn’t budge.
It seems to me that the Federal Reserve realizes its mistake, and understands that if we were to see a recession soon, there wouldn’t be much of a rate to cut.
Chairwoman, Janet Yellen, has secretively organized a payout for those who realize that the Fed has made a mistake in exchange for keeping quiet.
How does the government disguise this payout?
Now, of course the government isn’t just going to send you a check for $9,886 with a note saying: “This is a bribe to keep quiet.”
They’re smarter than.
The payoff seems to come in all different forms, but this last one was paid out through a stock—ProShares UltraPro S&P 500 (UPRO).
If you would’ve caught the signals given by the Federal Reserve in time, your immediate action would’ve been to make a move on 100 shares of UPRO on the first day of the Fed meeting (Tuesday). Your payoff, 1 day later, would’ve been $9,886.
Not a bad payout in exchange for not outing the Federal Reserve.
Obviously one person wouldn’t be able to take down the whole organization, that’s why thousands of people are able to claim this check.
Just because you missed this payoff, it doesn’t mean you’ve missed the train completely.
The Fed has pledged at least two more rate hikes in 2017, and you can be sure that there’ll be more next year. There’s no limit to how many payoffs you can take, but you have to know the signal when you see it.
I’ll be keeping a close eye on the Federal Reserve, because I also take advantage of these payoffs. We don’t know exactly where it’ll come from next time, but by waiting for the clues, we’ll have all we need.
