Been a few months since my last post. Just busy being busy. A lot of time has gone by, but unfortunately not a lot of truly good economic news has occurred. Oh sure, you hear the stories about this part of the economy improving blah, blah, blah. Same rhetoric, they are just being more positive about it and throwing more band aids on our gaping economic wounds.
Unemployment is nearly 10%, if you add in long term discouraged workers that rate is more like 15%. This will continue to increase due to the fact, that we stopped making goods years ago and service industries are in decline due to people no longer having extra money to throw around.
Who knows what the real inflation rate is, cause the rates we are told do not include food or energy expenses. I do know this. There are many food items that I purchased last year that have risen approximately 30% from last year's prices. If you want to believe the below article, I guess we could assume it's at least 6%, cause that is what the decline of the dollar was. When you EXPAND the money supply by printing off more dollars, the one's in your pocket are immediately worth LESS. This is why goods keep increasing. Silver and Gold are not more valuable than they were 1000's of years ago, our DOLLAR is simply worth less. This is why it takes more of them to buy a single ounce of gold.
We (our Government) keep printing off more money and spending more money like it's produced out of thin air. Duh, oh yeah, it is produced out of thin air by the Federal Reserve. What was I thinking there? This will, of course, DESTROY the dollar and it's just a matter of time before foreign countries stop buying our debt. They are beginning to discover that it is a lousy investment. You need to be obtaining silver and gold before it becomes too late.
Moving on....
Credit card companies are hurting too, so consequently they are coming up with more ways to charge consumers. Be careful to read any new terms coming in on your credit card statements. Example: Some cards are now charging fees for NOT using your credit card. Personally, this happened to me and nearly cost me a 30 day late on my credit file. On this particular card, it went unused for over a year and statements were sent electronically. Well, when no purchases were being made there was no need to send a statement. Thankfully, my wife was calling in to see what limit was, cause we were going to use it for some early Christmas shopping. Surprise, surprise we had a balance of almost $70. $19 for the fee they charged for inactivity and then late fees for not paying on the balance. After a few phone calls and finally talking to someone who could speak good English, we did manage to get all the late fees removed but still had to pay the $19 inactivity charge. Just making you aware of potential changes in credit and debt policies and will strive to keep the updates coming more often.
Once again we are in full hype mode that the economy is turning around, we have hit the bottom, it is starting to ease up, and blah blah blah.
They are set to send out part of the "stimulus" package sending out $250 to roughly 50 million citizens, saying it will provide a timely boost to the recovering economy.
What are these "experts", and I use that term loosely, smoking and where can the rest of us get some?
Fixing the economy is very simple. Start making stuff in the United States again, and not overseas. I am not an economics expert, but I have enough common sense enough to know, that printing more money and flooding the market with more useless cash is NOT going to fix the problem.
Here is what is happening and why the bottom is nowhere near and you best be preparing yourself.
1. Consumers are spending less, cause they no longer have access to use their homes as ATM's and their wages have not increased since 2001.
2. The U.S. is a consumer spending and mainly a service oriented economy. Meaning we make less goods and spend our money mainly on imported Chinese crap and companies providing us services.
3. People spending less, will cause many service companies and retail companies to start laying off their employees.
4. When more people start losing their jobs, there is even less consumer spending thereby causing more companies to layoff their workers. Repeat #3. REpeat #4 Repeat #3 Repeat#4 etc,. It will continue to snowball and get much worse. Every dollar not spent by a consumer is a dollar less that someone else will make.
Example: I have a service business. I help people clean up their credit reports and straighten out their debt problems. Less people are buying homes and cars, so less people are looking for my services. Therefore, I will be spending about $30,000 LESS this year on Chinese crap, restaurants, gas, donations, golfing, groceries and etc. I think you can start to see my point here.
5. Americans are much smarter than the government gives them credit for. We are actually starting to save money and spending less. This is what our government should be doing. Americans saving more means less spending. See #3 again.
NO amount of stimulus money will fix this problem, one cannot get out of debt by creating more debt. I fail to understand why our astute economists/advisors/politicians cannot see this, or simply choose to ignore it. Unfortunately, it will take our treasonous politicians saying NO to any New World Order and World trade organizations to fix this problem. Unless we get back to manufacturing stuff in the United States, this coming Depression will not be avoided AND will last possibly decades.
Inflation cannot be avoided when you print trillions of dollars. You better be putting your money to work for you cause what you will be saving, will be eaten up by massive inflationary policies. You need to be getting hold of precious metals.
I normally do not post this often, but our government is vastly overstepping their bounds here. I know, big surprise. Before getting into my rant, if you have read my previous posts, you know I was NOT in agreement with one penny of our money going to a bailout. So do not assume I was for it, BUT this latest ploy to "make up" for their mistakes is absurd and needs to be criticized. They are simply throwing us a few crumbs, so we will shut up.
AIG etc., they all should have been allowed to fail. Well, our astute politicians decided to give too much power away, to the FED, and just starting throwing money at all these companies. Now, that the public is pissed off, they tax AIG bonuses 90%, cause as Nancy Pelosi says, "We want our money back". Well that troll did not care in the least, to "give" our money to these clowns in the first place, and its not like they are going to send all the taxpayers the borrowed money back. Democrat or Republican, makes no difference here. It's all just posturing to make it look like they care. Well, these toads have allocated trillions of dollars and the FED will not even disclose where alot of these funds even went. Where is their uproar about that? This was simply a small gesture by politicians, to make it look like care. Sort of like, the powers that be going after Martha Stewart like it was some big bust. Greed and corruption were going on in massive amounts, and they threw us a bone so we would settle down.
Where are we living here? Communist china? The government gave the money to AIG, so AIG will do with as they should to run a business. Granted, AIG should not have given ridiculous bonuses using taxpayer money, BUT it was given to them and they should do as they please with the money. Yes, it was a stupid thing to do with the money, BUT how do you presume they got in position to need a bailout in the first place? Maybe all these treasonous bastards will deny the next bailout they ask for, although doubtful.
The one positive, is maybe these companies will think twice before accepting bailout money. Now they know what happens when you open the door to let them "help" you out. I never commented on this before, but it was admirable of the several governors that would not accept stimulus money cause of the permanent changes, they would need to make, to accomodate the qualifications to accept the money. Unfortunately, those same governors will probably not get re-elected, although long term it was the right thing to do. The AIG lesson, should be a testament to that. Those governors did not want permanent higher taxes on their consitituents to accept some short term relief.
I am going to stop as I could probably write for hours, but then my blood pressure would start popping my eyeballs out of my head.
Wow, the NYSE hype is in full swing again! There is absolutely no reason for the stock market to be climbing again. What has changed? NOTHING. We are still printing dollars to pay our bills. We still rely on foreign countries to keep buying our debt. There are no new jobs being created, cause we do not MAKE anything. Our companies are still sending what few jobs there are over seas. Unemployment is still rising. Massive numbers of home are going into foreclosure. Blah, Blah, Blah.
NOW here is what has changed. Everybody just wants things to get better and will believe whatever they hear from the talking heads on television. So the big O, Ben Bernanke and etc., are all talking a good game. The recession will be over in 2009 and other nonsense. I have always believed the stock market is is a big gambling arena. Just like your standard casino, but on a much grander scale. If you dump your money into the stock market now, cause you believe what these clowns are saying, then you deserve to lose it all. The public has gotten so tired of all the negative economic news that they were just begging for some good info. Well, the FED and our boys stepped up to make it happen for you. The good news is coming daily, but too bad it is all a pack of lies. Sadly, alot of Americans are buying into it.
They have not fleeced the entire middle class of America yet, but maybe this new surge will do just the trick. So go ahead, throw what little money you have left into the market, cause the fear of all the money you are "losing" not being back in at the bottom. We are a far cry from the bottom.
Do not be suckered into buying bonds either. They may be "safe", but your earning next to nothing. At an auction last year for charity, I bought a basket that had a $100 savings bond in it. It was worth $50 last March. I was so excited to learn that my bond is now worth $51. (yes, that is sarcasm) I was trying to think how I was going to spend that $1 in profit, until I checked the CPI calculator for my dollar. That dollar I made in 2007, now takes $1.02 in 2009 for the same purchasing power. I'm not a mathmetician, but I think I broke even. The purchasing power lost was about the same as I gained in interest. NOT a good investment.
If you have piles of cash lying around and nowhere to put it, I will make a few recommendations. I am not an economist, but they seem to be the last ones to figure things out anyway, so that should be good news for you. Here are my no LOSE picks.
Gold......bullion or coins. Who says that "paper" certificate you own in gold, actually has it if you want it delivered.
Silver....same as gold.
Oil...
Food....I suggest canned or long term storage goods. Think I'm crazy? Well, I know 3 years ago I could get assorted canned meat for a $1 a can. Now, $1.30 and higher. Canned veggies 3 for $1 was common a few years ago. Now, 2 for $1 if you are lucky. Inflation is high folks. The government takes food and energy out of the inflation equation they talk about on the news. There is a reason for that. To make the numbers look better than they really are.
Ammo...The powers that be, are having problems outlawing guns, due to the populace outrage. However, there is backdoor legislation going on now, going after the ammunition instead. Ammo will become scarce and will have to be coded to be legal. It will get more expensive. If you need it for hunting etc., you may be well served to pick up a little extra.
I cannot stress this enough. Do not believe the media. This recession will turn (if not already) into a depression. You must prepare. The USA cannot keep borrowing trillions of dollars and increasing the money supply by those same trillions. It will cause hyper inflation at best, currency collapse at worst. Either way, your Gold/Silver will keep up with inflation or trade it for the new currency (Amero etc.), at a much better rate than your battered dollars will. Food, obviously that $.50 can of veggies you have stored will be much more affordable than the multi dollared can in a few years/months will cost.
Now for some credit/debt news as this was my original intentions with this blog, but I keep getting pissed off about our government betraying this once great nation. Anyway, credit card companies are starting to lower credit limits on consumers. Nothing you did wrong, but the banks are trying to limit their potential losses. Forget the fact that you are the one getting screwed and possibly lowering your credit scores because of it. Example: You are penalized for having balances near the credit limits of your cards. Let's say you have a $10,000 limit and a balance of $3,000. You are at 30%, which is decent. However, these bastards lower your limit to $4,000 with no warning. Now you are at 75%. THIS impacts your scores in a negative manner. Here is a more detailed article about it.
If you have read my previous posts from last year you will notice my strong recommendations for purchasing silver and gold and my warnings about the economy.
Well NOW this is a WARNING that you must heed. With another socialist bailout being approved there is another trillion or so dollars added to the money supply. A government cannot keep adding trillions of dollars to the money supply and NOT have inflation. There WILL be massive inflation soon. It cannot be avoided. The world's wealthiest are moving into the gold markets. They know what is headed our way.
Why do you presume there are literally hundreds of Cash4Gold sites popping up everywhere? They are hoarding what they can. I am not talking about buying "paper" silver but getting hold of physical gold/silver coins or bars. Trust me, you want that real money in your hands not some certificate stating you own silver in some vault somewhere.
If you need to check out what silver/gold has been doing for years now here are some excellent charts: www.kitco.com/market
Being I am a debt settlement specialist there are a few changes that seem to be occurring.
1. With the massive foreclosure crisis going on, there are rumors in the grapevine that mortgages will not quite carry the influence they once had on your credit scores. I would assume this would be from people just walking away from their homes due to their negative equity.
2. Many credit card companies are starting to lower credit limits with no warning, even for those who have never had credit issues.
As I have posted earlier there are some substantial changes being made to the FICO scoring system. In my opinion, most are NOT in favor of the average American. According to FICO, over 30 million Americans will be affected by these changes. You must start acting now, to avoid being one of those negatively impacted by these changes. As you know, the lower your score, the more interest you pay and worse rates.
Authorized Users: These were once a great way to establish credit when you did not have any. However, from various companies abusing the system, the authorized user is being removed from the scoring formula. If most of your credit is due to be a user on your loved ones credit cards, you need to be looking for other options to establish credit. Prepaid credit cards are one way to establish credit without having any.
***From what I have read this may be rescinded***
Inquiries: This is one of the better changes. Inquiries, are supposedly to no longer have an impact on your score at all. Finally, you will be able to shop around and get those better offers without being penalized for pulling your credit too often.
Established credit lines: This is one of their dumbest changes. If you have an older credit line, say that first credit card in college for example, that you rarely use you are going to be penalized. Approximately 1/3 of credit score is length of credit history. With this new formula, that account will be taken out of your score and it could be very damaging. I suggest "dusting" off those old accounts and using them every now and again, this is your only counter attack to this ridiculous change.
Assortment of credit: If your credit is not more evenly balanced out you may be penalized. For instance say you have 5 credit card (revolving accounts), but not car, loans, home (installment accounts) you may see a score droppage from this alone. Same thing if reversed. Too many installment and no revolving accounts.
Debt load: Higher balances on credit card debt, car loans etc., is going to have a larger impact on your scores. You need to focus on paying down these debts as rapidly as possible.
Derogatory credit: This has a good and bad side. You will not be as heavily penalized for that occasional ding on your credit file, however, you will be penalized worse for multiple dings than with the older formula.
As always, I will tell you what is best for your credit and situation, not necessarily what is best for my business. Get a free consultation: www.myfutureventures.net
The credit and debt laws are constantly changing and being revised. As I learn them, they will be posted.
I had planned to get into, the scoring formula changes that, for the most part, were officially done this month. On a future post, I will get into that, but I need to comment on all these government bailouts.
I mentioned in previous post about our 7 trillion dollar debt. Well, who really knows what it is now, with the bailout of Freddie, Fannie, Aig etc. People naturally assume this is a good thing, it is NOT. These tactics are simply delaying the inevitable. These business must be allowed to fail, regardless of economic consequences. It is not MY responsiblility, and I say MY, because they are using taxpayer money to bail these clowns out, to salvage their companies.
LET me explain.
Have you ever had a failed business? If so, did the government come in and rescue you from your poor business decisions or bad luck? NO, they did not.
This is unconstitutional for one, and immoral at best. This is SOCIALISM for the rich corporate entities, that are deemed "too big" to fail. There was only one LOSER, in these deals and it was us. I am so sorry if you owned shares of these stocks, because you are truly the ones shafted in this deal.
A country cannot function forever on a FIAT monetary system. The more dollars printed, the less the value of the dollars you now have are worth. That is the true source of "inflation", the increase of credit expansion and money supply. Well our fearless leaders just increased money supply by TRILLIONS of dollars, practically overnight. God help my kids, grandkids, great grandkids and probably longer, to try and pay this debt off. Some say 71 TRILLION throwing in future debts of Medicare, SSI as our baby boomers retire.
If the debt is not paid, that leaves one alternative. BANKRUPTCY.
Think it can't happen. Well it can and will at some point. Regardless of your religion, most talk about a one world government albeit it political/economic/religious. The U.S. dollar is the world's reserve currency for now. I am not a prophet, but have enough sense to know that foreigners are not going to continue to buy our bonds to fund our reckless spending.
Still not too late to obtain Gold/Silver at a good price. I would say you have about 6-9 months after this election, to get yourself in order, before the proverbial crap hits the fan.
One reason I write these articles is for business, but it also gives me an outreach to the masses. I am very passionate about the economic well being of all those I come into contact with. Not necessarily making money but teaching the basics, or the things that one is not taught in school.
There is a huge attack on the middle class of this country (U.S.A). Lost wages, inflation, jobs going overseas, unemployment, foreclosures, changing credit score formulas,massive debt, decling dollar and etc. You can do something about it, but will take persistence and knowledge. Anyone with any detailed questions, just need to ask. I never sugarcoat the truth and you will get an answer what is best for you, not necessarily what is best for my business. Here is short summary of what I recommend right now.
Long Term Investment: MUST get hold of physical gold and silver. Still not too late. With declining dollar, your best hedge against inflation is Gold and Silver. YES, inflation is occurring regardless of what the talking heads on TV tell you. Everything is going up and it is due to the declining dollar and the FED keeping the printing presses hot. See past 10 years of silver/gold www.kitco.com/market Do not be fooled it will continue to be bullish. Although our astute president said we are in a slow down and not recession. (means same thing to me but whatever) We are in recession, and dollar will continue to decline. As long as Ben Bernanke keeps printing those dollars, YOUR dollar value will keep going down. Simply put. The dollar used to be valued at 1/20th ounce of gold. Now it is roughly 1/900th ounce. For those that want the truth on the Federal Reserve, (it has no reserves and is about as federal as Federal Express) I highly recommend obtaining the book "The Creature from Jekyl Island" On my next post I will get into the huge deficit this country has and what that means to you, your children, grandchildren etc. It is HUGE, and most people I speak to, really have no idea what this means to their futures. It is over 7 trillion dollars. Who do you think is going to pay this back?
NYSE: Taking my money out, but if you must be in stock market or already heavily invested I suggest Covered Calls: Make anywhere from 3-20% monthly regardless if stock goes up or down. You sell CALL options from stock you own, to others willing to gamble on buying the stock at certain prices later on. There are obviously many other tactics, but I am a bit conservative with my "gambling" in the stock market.
Bad Credit: Use the laws of the Federal Credit REporting Act to your advantage, to remove anything that you feel is misleading, inaccurate, obsolete or unverifiable. Regardless of your story or history, the way the system is set up is based on your credit score. You can also hire others, like myself, to do this for you. Just make sure they abide by the laws of the Credit Repair Organizations Act
Too Much Credit Card debt: Several options here and would need more details so as to not lead you astray. Feel free to visit our main page for a FREE consultation. www.myfutureventures.net However, there are programs out there to get out of debt as low as 60 cents on the dollar.
There are major scoring formula changes coming soon, and MOST are not in favor of the average American. According to FICO estimates, roughly 30,000,000 can expect to see significant differences in credit scores due to these changes. Come back later, as I will focus on these changes and what you can expect your credit scores to do.
