Whom are the Terrorists?

The Coming Credit/Financial Debacle for Consumers

I firmly believe that all major economic/financial/spiritual cycles are pointing hard down from this coming September 13, 2015.  Little time is left to prepare for this coming financial debacle.  Procrastination is not your friend. Do whatever you can now to eliminate all your debts.  Also, work on getting your FICO score to at least 750, above 800 would be optimal.  Why?  No one will grant you credit if you do not have an excellent credit score.

Two Faces of Evil -- Enough Said!

The Delusional American Public!

Civil Asset Forfeiture: A New Twist

If you thought you had a disdain for the "Civil Asset Forfeiture" that is being imposed by cities and municipalities, which by the way is alive and doing well, you will really despise them for this one. Cops are now going after kids shoveling snow in Philadelphia (City of Brotherly Love) and in New Jersey for money and any loose change that these kids have.  That is, if these kids do not have a proper "Snow Permit," which cost between $50 and $450 and is only good for 180 days, Big Brother can impound all shovels involved for evidence.

Maybe It's Just a Woman's Preference for Panties

Implications of a Strong Dollar

A strong dollar has three, so-called, important implications for the U.S. economy, financial markets, and policy makers, mainly the FED:
    1.    Deflation just as the FED is trying to raise the core-inflation rate to 2%. (Core inflation excludes food and energy, which is great if you don't eat and drive. We all know that price inflation is all around us, especially if one has recently visited a grocery store. And, what is really wrong with deflation? Don't we all love a good bargain?
    2.    It hurts exports and thus GDP growth. Exports count for approximately 13% of GDP. Not a major negative impact on GDP growth, which could be offset by a reduction in falling dollar oil prices on the import side.
    3.    Demand for domestic financial assets, stock and bond prices, could exasperate the current bubbles in these assets. (EURO weakness causes investors to flee the EURO to the Dollar denominated assets.)  This impact on financial assets of a strong dollar is the one that I consider to be the most important going forward.

The "DECEIT" Continues

The U.S. budget deficit for fiscal year 2014 was the smallest of President Obama's tenure at $483 billion, which is down from the previous fiscal year of $683 billion.  So states the administration.  Now, what does the actual figures from the Treasury say?  Well, the total public debt outstanding as of September 30, 2013 was $16.738 trillion. For the current fiscal year, which ended September 30, 2014, the total public debt outstanding was $17,824 trillion.  If my math is correct, the true deficit is not $483 billion but $1.086 trillion.  But, why the discrepancy?  Deceit.  See, our government takes the excess (from what comes in and goes out) from the Social Security and Medicare tax receipts and claims that is a deficit reduction.  No deception in that logic, right?  Wake-up America, but, then again, America is already in "Sheol."

You Know the U.S. Economy is Bad When Lottery Sales are Collapsing

 
Lottery sales overall declined 19% in Fiscal Year 2014 vs Fiscal Year 2013!  Say, what?  Yes, and even more stunning is the fact that lottery sales in the first half of Fiscal Year 2015 are down 40% from the first half of Fiscal Year 2014. Oh my golly! I was really counting on winning several "multi-million jackpots" this year.  What about increasing the price of each lottery ticket to offset the decline in sales?  Oh, I guess the demand for lottery tickets is not inelastic, given how sales have plummeted. Well, I didn't need those extra millions. 

Your Money is No Longer Yours!

American banks are now required to report any wire transfer of $3,000 or more and any cash withdraw as well.  If you want to withdraw $5,000 in cash, you have to now fill out a form.  And, you thought your money was yours!  Think again, my friend.  It really belongs to the government; and it is coming for it, especially if it is in a bank.

Majority of Americans are Flat Broke

According to the latest "Bankrate" consumer saving survey that was done in December 2014, most Americans (62%) don't have enough savings to pay unexpected bills, such as a $500 repair bill or $1,000 emergency room visit. (See the following pie chart.)  But, then again, we are suppose to believe the media and government (Bureau of Labor Statistics) when they tell us that Americans are doing just fine in regard to their finances.  Now, tell me who is telling the truth, consumer or the government?

ObamaCare 2015 Employer Mandate

Over coming days, we will be hearing about the "Employer Mandate" for 2015, which started today, January 1.  However, since this 2015 mandate is for employers that have at least 100 employees, I don't believe that will have a negative impact on employees that work for these large corporations. The reason is that most of these companies already have "qualified health plans" for their employees. 

The real problem starts in January 1, 2016 when companies that employ at least 50 but less than 100 employees must comply with the employer mandate. These so-called small employers, typically, do not have qualified health plans in place.  Therefore, it will be the employees of these small firms that will be at risk to find their own health insurance and pay the premiums.  Why?  Because for these small firms, it will be cheaper for them to pay the "$2,000 penalty" than to pay the health premiums for their employees.  Or, these small firms will make every effort to keep their work forces at less than 50 employees.