Obama continues Bush policy of surveillance secrecy despite campaign promises, tax protests spark conservative insurgency online, submit video footage of your tax woes to CNN and you might be aired nationally, Fed historian and political economist predicts worse inflation than 1970s, consider real estate as an inflation hedge, municipal bond market shows signs of life, older workers 45 years and older face brunt of recession, and flood of government debt crowds out private economy…
Obama Continues Bush Policy of Surveillance Secrecy. President Obama’s most liberal supporters are both dismayed and disgusted with the administration’s continuation of “state secrets” privilege in covering up domestic surveillance operations. President Obama campaigned on the promise of transparency and accountability with eavesdropping programs, but has since reneged. The government continues to do what it wants without open public oversight.
Tax Protest Tea Parties Spark Conservative Insurgency Online. Tea parties have sparked an online insurgency, with independent media sites driving coverage of the protests. Activist groups across the country are banning together to protest growth of big government and policies of borrow, spend, and print.
The Freedom Factory covered the Feb. 27th Santa Monica Tea Party.
Struggling To Pay Taxes? April 15th in the deadline for filing state and federal taxes. Amidst job losses and other economic hardships, many Americans may be finding it difficult to pay taxes this year. Are you looking for financial help? Have you filed a hardship extension? Pull out your camera and share your thoughts on video…your story could be featured on CNN.
Boost Your Career, Earn Your CFA. Tough economic times mean we should focus on cutting spending, repairing our balance sheets, and enhancing our careers. Financial professionals should consider earning a CFA charter to boost your earning potential and make you more competitive in your labor market. Check out this CFA study program to help pass the Level I exam.
Fed Historian And Economist Predicts Big U.S. Inflation. Federal Reserve Chairman Ben Bernanke is flooding the financial system with money. Fed historian and professor of political economy at Carnegie Mellon University, Allan Meltzer, says that if history is any guide, the effort will end in tears. Inflation “will get higher than it was in the 1970s.” So far, Bernanke has proven right and inflation has remained in check.
Real estate investing is an excellent way to hedge inflation risk. Rents can grow with inflation and fixed rates on mortgages are almost certainly below what inflation will be over the next 15 to 30 years. This is a decent program to learn how to buy your first apartment building. It gives the basics, shows you how to pick a good commercial Realtor, find a ‘diamond in the rough’ property, and structure a deal. Visit SoCal Real Estate Advisors if you want detailed consultation on how to value acquisitions and quantify risk…you know, the important stuff!
Municipal Bond Markets Show Signs Of Life. State and local governments have been able to raise billions this year in bond offerings, despite tight lending markets. Utah and Georgia, for example, just raised $614 million and $270.8 million, respectively, in AAA-rated general obligation bond sales through private negotiations with banks. California, on the other end of the credit spectrum, managed to beat expectations and raise $6.5 billion last month in a competitive public auction. It appears as though there is still life in the economy.
Older Workers Face Brunt of Recession. Workers 45+ years of age are facing the brunt of the recession with unemployment rates 37% higher than their younger counterparts. Even workers that do find new employment end up taking lower paying jobs. Couple this with severe asset devaluations in retirement accounts and older Americans face tough times ahead.
Flood of Government Debt Crowds Out Private Sector. All the government bailout programs are flooding the market with debt, crowding out private borrowers from obtaining scarce capital. The influx of cash that government borrowing will push into the economy is expected to cause inflation, which will send interest rates higher and make it harder for private businesses to obtain needed capital. chief economist at Delta Global Advisors, Michael Pento says:
The prescription of massive debt, of money printing, of releveraging the economy, is exactly what engendered the depression of 2008, and all of the remedies are the same virus that killed us. You’ve exacerbated everything that went wrong in the beginning.
Everyday the news points in a single direction: the growing size of government and its role in the economy. With every new bailout, every new trillion dollar printing press party by the Federal Reserve, and every new regulatory edict by the President or Congress, our society moves closer to a political economy. Free trade, free enterprise, Capitalism…these are words of a forgotten age. Regardless of your political persuasions, we must all face the reality that confronts us. Now is the time to learn how policy drives markets, so that you can protect your portfolio, insulate it from the whims of the Bureaucratic Machine, and maybe even make a profit along the way. To learn how the New Order will affect your portfolio and how you can protect yourself, read Obamanomics: A Guide to Investing Over the Next Administration.
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