Death of the Consumer

by MN Gordon Economic Prism

Something peculiar is going on.  One data point says the economy’s improving.  Another says it’s floundering.

Nonetheless, we strive to connect the dots and draw inferences as we go.  For example, according to data released Tuesday, manufacturing and construction spending is on the rise…

“Stronger-than-expected data on U.S. manufacturing and construction spending on Tuesday hinted the world’s biggest economy was gaining traction,” reported Reuters.

“The U.S. manufacturing sector grew last month at its fastest pace in more than two years, with the Institute for Supply Management’s (ISM) index of national factory activity rising to 55.7 in August from 55.4 the prior month.

“That comfortably beat expectations for 54, with the index at its highest since June 2011.

“A reading above 50 indicates expansion in (Read More….)

Overloaded with Debt and No Jobs to Be Had

By MN Gordon Economic Prism

The Federal Open Market Committee met on Tuesday and Wednesday.  The masses waited with anticipation.  What did they talk about?

Generally, they talked about price controls.  More exactly, they talked about controlling the price of the economy’s most important and fundamental element…its money.  By controlling the price of money they can influence the price of every single good and service there is.

Some believe this is for the good of the people.  That it will somehow boost consumption and stimulate demand.  That it will create a new hiring boom.  We have our reservations.

When it comes to the Fed, they believe – or at least pretend to believe – that with just the right policy mix the economy will be restored to glory.  But what’s the right mix…and how can a handful of bureaucrats with a handful of charts ever know what it is?

After several days of belaboring (Read More….)

Future Shock And Our Jobs . . .

Authored By Dave Webb

In the printing business, we had an over scale position($5 a day over scale in the 1950s). That is equivalent in today’s currency to $50 a day over scale. No one ever made $50 a day over scale while I was there. Instead the money disappeared as our business changed.

Marking up advertising from sales people’s layouts was a kind of mechanical engineering. My mentor in this part of the trade was a man who knew his type so well, he could give it the proper markup in his sleep. He could literally visualize what it would look like as a finished product.

This was hot type. It was done on linotype machines. If he made an error it cost the company money to get it right. That was why very few printers ever became markup men in advertising.

Because this man was my friend, he went out on a limb and taught me that part of the trade the right way. Most apprentices did not learn it well enough to become markup men.

Later on, the business changed again and again, and each time the skill level to do this markup was reduced. Eventually we built ads on lcd monitors (Read More….)

Spelling Out In Simple Terms- WHAT IS WRONG

Authored By Dave Webb

The future is controlled by economics. So has the past been controlled by economics. In theory, money represents commodities. And commodities are what controls everything we know.

The current economic situation is controlled by how much it costs you and me to buy commodities. The price of basics determine how well we all live.

Transportation:

How much does it cost you to own your car?

Do you have a lease or car payment?

How much does it cost to maintain the car?

How much does it cost to fill the tank and how long does it last you?

What do you pay per month for insurance?

What do you set aside for emergency repairs?

Groceries:

Do you plan for food? When I was in service I never gave it a second thought. (Older married men wanted a refrigerator and bought their own food.)

Do you plan to eat out occasionally and how much do you set aside for that?

Place to live:

Most of us start out renting. Is it possible to own a house?

Pay your (Read More….)

What Happens If The United States Does Not Honor Financial Commitments Here And Abroad?

Authored By Dave Webb

The first thing that will happen will be a massive display of horror from our creditors. Nations like China, India, and Japan. You will see protests in the streets all over the world. It will not be safe for any diplomatic mission anywhere in the world. A good portion of our embassies will be burned to the ground with the people in them.

The implications of a default are listed here:

1. All foreign nations will stop exporting goods to our shores. The shelves will quickly empty at Walmart and all other retail places dependent on those goods.

2. There will be a demand from our many creditors to honor our debts. This could lead to a World War! Especially from governments we are heavily in debt to. These nations will demand we honor debts to their countries.

3. Diplomatic relations world wide be broke off by the creditor nations. All our embassies will have to close.

4. The empty shelves of Walmart will lead to a revolt from the citizens of this country.

(Read More….)

Who Owns You?

Authored By Dave Webb

In the coming default of the Federal Government on its debts, there is an important question all of us must ask of ourselves. Who owns you?

In ancient times if a person could not pay their debts they went to prison. It was called debtor’s prison for a reason. If you could not pay the government owned you body and soul until the debt was paid. If some relative cares for you it was assumed they would cover your debt to get you out of prison.

In Rome, they sold you as a slave if you couldn’t pay your debts.

In today’s world we do not sell people as slaves anymore. It is far too inefficient. Rather we delete their ability to borrow money which is just as bad.

If you cannot borrow money you cannot own a house. You cannot get a car loan so you are stuck with whatever junk you can pay cash for. You have no credit cards to cushion you in an emergency. Your housing rental is probably limited as well.

I am sure the list goes on. Like what kind of medical care can you get if you have no credit? It is all a kind of sophisticated slavery most of us endure in our (Read More….)

Should You Tap Your Home Equity?

If you have been thinking about applying for a home equity loan or line of credit and are not sure whether you should do so or not, then you should definitely take the time to think about the risks of tapping into the equity in your home before making a decision.

Home Equity Loans Can Help You Cover Unexpected Expenses

If you have been hit suddenly with unexpected expenses or an emergency, then you may be thinking about applying for a home equity loan to cover unexpected expenses. Many homeowners in similar situations tap into the equity of their home when they need extra money to pay for expenses. While applying for a home equity loan in this type of situation is not ideal, experts indicate that it is better to tap into equity to cover expenses and unforeseen emergencies than to tap into the equity of a home to pay for vacations and frivolous items.

Home Equity Loans Can be Used to Increase The Value of a Home

In addition to (Read More….)

Eliminate Debt In 7 Simple Steps

Having a lot of debt to pay can be very troublesome. Credit card debt as well as other forms of debts is actually a big issue especially in the United States. For example, most people who have credit cards still have balances to pay. And these balances even have an interest rate of 10%-30% APR.

If you would like to get out of debt, then you are on the right page. You should read the rest of this article in order to stop amassing more debt and to start paying them one by one.

Write down everything you have spent for a day; this is the best way to keep track of what you are spending. Every single day, you have to write down everything you have purchased or paid for. This will help you check if you are spending more than your required budget for a particular day.

Avoid amassing more debt.

Cut down all of the credit cards that you have. Only one credit card should remain. And this credit should only be used to buy during “emergencies.” The remaining credit card should only be used to purchase thing you are capable of paying off in a short amount of time.

Divide your spending into categories.

You should (Read More….)