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 [...]]]> 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 they concluded they’d continue loaning out federal funds for practically free.  On top of that, they concluded they’d continue to borrow money into existence – roughly $85 billion a month – and use it to buy Treasuries and mortgage bonds until unemployment falls to 6.5 percent.  This second activity, known as quantitative easing, artificially suppresses interest rates so the federal government and home buyers can borrow money at record low prices.  In other words, it encourages more public and private debt.

Where are the Jobs?

Nowhere in the Fed’s utterings did we pick up any recognition that there’s no such thing as a free lunch.  In fact, a perusal of the gobbledygook leaves the impression that Fed money can actually improve the economy, lower the unemployment rate, and bring prosperity for the hoi polloi.  Somehow, by pushing and pulling on money prices, we will all enjoy fresh fruits without having to labor for them.

But the reality of it all is far different.  There are consequences for controlling prices like there are consequences for engaging in road rage.  At the same time, whatever positive effect the Fed’s designs were supposed to produce has been a grand disappointment.  Here’s it is, part way through the second quarter and, once again, the economy’s flagging.

“Private-sector job growth slowed more than expected last month, with employers adding just 119,000 net new workers in a harbinger of a stalling labor market, payroll processing firm ADP said Wednesday,” as reported by the Los Angeles Times.

“It was the second straight decline in the widely watched reading, and marked the poorest pace of growth since September.  ADP also lowered its March figure to 131,000 from the initial estimate of 158,000.”

What’s going on?  With all the money – nearly $2.5 trillion – that’s been added to the money base over the last four years, shouldn’t we be experiencing a rip roaring boom?

Overloaded With Debt and No Jobs to Be Had

Ben Bernanke and the Fed have been pushing and pulling with everything they’ve got.  Yet, to their chagrin, Washington’s been busy doing everything they can to trip things up.  After several months with no apparent impact, the double whammy of increased payroll taxes and federal spending cuts has now come down on the economy like the blunt edge of a meat cleaver.

Later today we’ll learn if the Labor Department’s April jobs counts are much different than ADP’s. Likewise, in addition to the quantity of jobs, there’s the quality of jobs to consider…which have been a fantastic disappointment…

Professional jobs are still out of reach for many recent college graduates.  That’s the finding from a recent survey we came across on Spectrem’s Millionaire Corner.

“Four-in-ten working Millennials who graduated from college in the past two years give their career paths low marks, according to new research by Accenture.

“Forty-one percent of the more than 2,050 Millennial respondents to Accenture’s 2013 College Graduate Employment Survey said they are underemployed and working in jobs that do not require their college degrees.”

What’s more, according to the New York Fed the average student loan balances among 25-year-olds with student debt grew by 91 percent over the last nine years from $10,646 in 2003 to $20,326 in 2012. Something ain’t right here…and rising stock prices won’t fix it.

[MN Gordon (send him email) is the editor of the Economic Prism.  Visit Economic Prism.  The Economic Prism is published by Direct Expressions LLC.  Subscribe Today to the Economic Prism E-Newsletter at http://www.economicprismletter.com]

1. Penny Stocks

Penny stocks are stocks [...]]]> Even small amounts of money can show substantial growth when invested wisely. Small amounts of money also have the added benefit of allowing an investor to be riskier with their investments in the hopes of larger returns. There are many great ways to invest small amounts of money, especially today.

1. Penny Stocks

Penny stocks are stocks in extremely small businesses, so named because the stock prices are very cheap. Investors buy penny stocks in the hopes that the business will either grow dramatically or be purchased by another, larger corporation. Penny stocks are a challenge to an investor because the majority of small businesses will not grow, or will even go out of business. Penny stocks are a high-risk, high return, investment, which makes them perfect for investors that are looking to invest a small amount of money in hopes of a larger return.

2. Foreign Exchange

The foreign exchange market allows trades that are as low as just a few cents, and mini accounts will let traders begin with just a few hundred dollars. The foreign exchange market is deceptively complex, so investors looking to get into the market should do a lot of research and use demo trading platforms to simulate trades before entering the real market. The foreign exchange market is another high-risk, but high return, investment. Playing with a lot of money on the foreign exchange can be very dangerous, especially for a beginning investor.

3. Dividend Reinvestment Plans Or Index Funds

Both DRPs and index funds usually have a low financial barrier to entry. Dividend Reinvestment Plans allow people to invest in a company directly with less than a hundred dollars, and the investor can continue investing in this plan as time goes on, slowly building up their investment. DRPs are offered by the companies directly, so the investor should do their research before making an investment and select the companies they want to invest in wisely. Index funds allow an investor to invest in the stock market without having to pick specific stocks. Index funds can be priced anywhere from a few hundred to a few thousand dollars, and should be researched before being invested in to see their historic returns.　

Before anyone should begin investing they should already have the other aspects of their financial picture complete. This means paying down debts, creating an emergency fund, and planning for retirement.

Author Bio

Hayley is a freelance blogger. Are you struggling with debt?

Lexington Law credit repair services can help manage any debt or credit issues before you begin building your investment portfolio. For more financial advice, visit http://money.cnn.com/.

Outside of basic texting and calling options, most smartphone users will begin to eat into their data limit when it comes to the most exciting and useful features and programs. Everything from searching through maps to updating apps can become a huge drain on their data package during each billing cycle. [...]]]> Guest Post By Madyson Grant

Outside of basic texting and calling options, most smartphone users will begin to eat into their data limit when it comes to the most exciting and useful features and programs. Everything from searching through maps to updating apps can become a huge drain on their data package during each billing cycle. Even those with unlimited data could have their internet speeds throttled after passing a certain threshold, and that is why everyone should keep these five easy tips in mind when it comes to maximizing their own particular data package.

5. Install a Data Maximizer

No matter the operating system that one’s phone is running on, there will be a number of options for a data maximizer. Also referred to as data managers, these simple apps offer a single stop that will keep the user up-to-date with how much data they have uploaded and downloaded for that billing cycle as well as their texts and phone calls.

4. Use Wifi Regularly

While 3G and 4G speeds are better than ever, Wifi should be used whenever it is possible. Many restaurants and other types of businesses provide free Wifi to their customer,s and this could make data usage much more efficient. All information that is uploaded or downloaded over a Wifi network will not count towards the phone’s data plan.

3. Check on App Settings

After purchasing a Bell.ca phone, most individuals will immediately hit the app market to begin skimming through hundreds of thousands of sensational programs. When each app is downloaded, the user agreement and the settings should be carefully read as many of these programs will automatically update themselves unless the user chooses to manually update at their own discretion.

2. Avoid Tethering and Hotspots

Many iPhone, Android, and Blackberry Canada experts will also suggest that users tether their phones and create hotspots sparingly. This feature will immediately provide access to any a laptop or tablet PC, but the data usage can be astronomically. Even a single video could push one over their data limit when tethered to another device.

1. Fully Close Programs and Apps

Many programs appear to shutoff when no longer in use, but they could still be actively running in the “background” of the smartphone’s processor. These background apps will continue to upload and download information and use up huge amounts of data. Some of apps to look out for include stock, weather, and social networking programs that must provide new information regularly.

The History [...]]]> Given global economic uncertainties, many investors are considering investing in gold as a store of value and hedge to inflation. Historically, gold has performed well during periods of high inflation, since the supply of gold increases only modestly each year from mining activity, whereas paper currencies can be inflated by central banks at will.

The History of Gold as Money

Gold has been used as money for at least 5,000 years, due to being rare, durable, divisible, and fungible. With its unique physical properties, gold is universally recognized as money, and therefore can be taken across borders to be exchanged for a local currency with ease. Though silver shares many characteristics with gold and also historically has been considered a monetary and precious metal, gold is more practical for central banks to store, since its value is about 55 times greater per ounce. Gold requires significantly less space than silver for storage and is easier to transport.

Gold As a Hedge to Inflation

Since the collapse of American and European real estate markets in 2008, Western central banks have been printing massive amounts of money to keep asset prices inflated. The belief among the central banks is that by keeping asset prices elevated, consumers will feel wealthier and spend more money, thus stimulating the economy. Additionally, large financial institutions have depended on the Federal Reserve and other central banks to purchase their toxic assets tied to real estate to prevent their insolvency. All of this money-printing by central banks has elevated the prices of commodities, such as precious metals, oil, and food, since commodities are tangible assets that cannot be inflated as easily as paper or electronic money. As a result of the monetary easing of central banks, the price of gold has risen for 12 consecutive years.

Gold As a Safe Haven

As recent financial unrest in the European Union has shown the world, bank deposits are not safe from confiscation during times of financial crises. Due to the financial gambling of Cypriot banks, they required a 10 billion euro bailout from the International Monetary Fund (IMF) and European Central Bank (ECB) in order to remain solvent. As a condition to the bailout, deposits of over 100,000 euros have been confiscated. Though European officials have denied that the confiscation of bank deposits in Cyprus sets a wider precedent, it should be noted that two major global institutions, the IMF and ECB, pressured the Cypriot government into confiscating these deposits. Given the interdependency and interconnectedness of European economies, a problem in one area is likely to create a problem in another area, leading to contagion. Though confiscation of bank deposits may in fact be limited to Cyprus, the risk that wealthy Europeans perceive in keeping their money within the European Union financial system will encourage more of them to invest in precious metals, which are largely immune to financial calamity. Many wealthy individuals outside of Europe, by perceiving Cyprus as a financial canary in the coal mine, are also going to perceive some risk to their deposits and react by placing more of their wealth into precious metals.

The Gold Outlook

With monetary easing likely to be continued for the next few years by central banks, since it is their principal tool to stimulate the economy, the gold bull market will likely continue for at least a few more years. Additionally, with central banks moving into uncharted territory in their degree of monetary easing, significant systemic risks are being introduced into the financial markets, such as collapsing currencies and hyperinflation. In the case of high inflation or hyperinflation from a devalued currency, the price of gold will move inversely to the rate of inflation. Though gold has moved up substantially in value over the last 12 years, a serious financial collapse as a result of the massive money-printing could cause the price of gold to rise from where it is today. Given the systemic risks to the financial markets, concerned investors should allocate at least 5 to 10 percent of their wealth into precious metals.

Byline

David Francis has a keen interest in precious metals, materials science, finance, investment, chemistry, gold, silver,Investing in Oil and Gas and other related topics. Those looking to invest should consider Gold as well as Oil and Gas to properly diversify their portfolios.

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 [...]]]> 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 and Apple Macs. By then the trade had become a graphic artist trade. Graphic artists were trained by colleges.

The difference between a creative and talented Graphic Artist and a printer was often their ability to recognize existing fonts. Most Graphic Artists were not trained in this area of our trade. So duplicating an existing advertisement in type was not something they were capable of doing. Most skilled printers could duplicate that ad pretty close to the original.

Computers can be frustrating at times. Most graphic artists do not know the tricks of the trade. Most Printers never learned Adobe Illustrator and Photoshop. So there is always a trade off of skills.

I was lucky. I had graphic artists willing to teach me the areas of the trade that I did not know very well. In return I taught them areas that they did not know.

If you look at any car ad in the country right now, it is most likely being produced by graphic artists either here or in India. How do I know? When they use an apostrophe it is often turned the wrong direction. That is the computer programs doing this. They do not know how to turn it around. Our printers discovered how to turn it around to the proper way.

Like Blacksmiths, the trade as originally practiced is gone. This is the case with many skills in our modern world as computers have invaded our lives. I only comment on this because I am an engineering type of person.

I get frustrated by poor engineering in other areas. I guess it is because I have been in a field of engineering type most of my life.

Today we had a rather heavy 4-5 inches of snow. It was right around freezing last night when it fell. The snow is one small step away from being compact ice. The gasoline snowblower will not work with this type of snow. So I have to go back to the electric paddle snowblower that is one step removed from a shovel. What is frustrating is I know I could design a snowblower much better than the one I have. Yet they are all pretty much designed the same way.

If I were designing a snowblower it would be designed to channel the ice/snow differently. A plow handles it fine. So what I would do is put a plow attachment on the front of the blower to be used as an alternative snow removal. This is easy enough as most blowers are self-propelled. The plow would be about the size of a snow shovel. It would have to cover the width of the machine.

I would probably use paddles instead of the iron tillers that most use. The electric models have this designed in and it works better on compacted snow that is almost liquid. I would offer paddles as an alternative to the tiller blades.

I would probably heat the paddles so ice cannot stick on them. Or use a slick surface that enables the blades to work with sticky snow. I would most likely put paddles in front of the plow and channel it into the front so the excess snow is plowed forward in front of the blower.

What they have done is put a second blower in the channel to push the snow over our heads. It really doesn't work that well.

I am by nature someone that invents personal things for my own needs. I think next year, I will probably put one of these designs on my existing gas snow blower. Usually if I have thought of something, then others have also. It is a business figuring our if someone has patented a machine similar to one for personal use.

The Internet is a fine resource to research whether someone has or has not done some idea and whether or not it is original or not.

What I cannot understand is why we are using yesterday's technology and engineering on Snow Blowers you can find in stores right now.

In the time it has taken for my trade to become obsolete, the channels of communication have made graphic artists obsolete as well. The place I worked for just laid the entire crew of Graphic Artists off and replaced them with contracted workers in India. This was done last Thanksgiving time. The company can now channel the work to people half a world away and get the work back in time for an edition. This is future shock for all of us. The last printer in the place retired last year.

I have given no names here and will not say which company this is. The point is not any one company doing things like this. The point is we no longer get taxes from people contracted in countries other than our own.

The point is if we are going to have a world economy then the outrageously poor working conditions and wages of these people are not in competition with us. The question is what are our representatives going to do to protect all of us ? Or can we protect our people at all? The laid off people were about 30 citizens of this country with college educations and mountains of experience doing the job.

The problem is that there is a huge gap between their economic circumstance in their countries and us. If we fail to protect our people, then the entire wage system of this country is in jeopardy. The wage system is what pays the taxes that supports the government. If it goes, the government goes too.

This is not a problem of any one minority economic group like the rich. It cannot be solved by discriminatory taxes against the rich.

The problem is the common people in this country paying taxes compounds. When it compounds with the common people being laid off by workers in foreign lands, something is going to have to be done to stop it cold. Otherwise, there will be no one left to support the government with income taxes.

The compounding of taxes created by the common people is far larger than any one group in this country. But that is what is happening to cause the economic disaster we face right now.

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 [...]]]> 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 utilities? There is a difference between living in a suburb and living in an apartment in a town.

Maintenance. Things go wrong in both a rental and a house. Is money set aside for this?

Real Estate Insurance and Taxes as part of the monthly payment?

A short cut to learning the value of a currency is to ask a simple question. How much is a gallon of gasoline where you live? This is an eternal question. It is the same then as now. I maintain that our currency is not based on gold. It is based on all of the above. The price of gasoline is what your money is actually worth as a short cut to knowing what your money is worth. Why? Because all prices are at least partly controlled by how much it cost to transport goods.

This is basics. It is not some high theory of economics. It is everyday basic things we all have to live with regardless of how poor or how wealthy you are. The variables are how much you pay.

We are talking about the vast majority of people in this country and abroad. These were the little people of Jonathan Swift fame. The mechanics of their existence is important to all of us.

The important thing for retailers is How much do you have left over after all of this to buy discretionary goods?

If the answer is very low, then the retailer goes broke.

I am spelling this all out for a reason. Most of our retailers are facing this situation right now.

All government is supported on the discretionary income of the general public.

Every school district in the country is effected by this. Time and time again levies are put on the ballot to be passed or failed on putting taxes on our real estate. When times are good, this is not a real concern. Levies often pass. Especially if the school system is thorough in educating the public as to the benefits of these levies. Most often they are not. The school system itself is ignorant so they fail to educate the public to their needs.

Every city in the country depends on the general public for their existence financially. It all depends on discretionary income of the average person.

When the general public can no longer afford the taxes then everything goes bankrupt. And that is what is happening world wide right now. All of the parasitic, service related industries of government are hard put to find the funds necessary to exist. The general public no longer has the funds to give them. If the money isn't there, what do you do?

The solution has been to print money. So more and more money is chasing commodities. The prices go up. The general public wages do not. So things become more expensive to buy. People's discretionary income goes down.

The Nixon solution to this was to increase the amount of commodities with cheap goods from China and taking us off an unrealistic gold standard. This was supposed to make discretionary income go up. It worked for a while. It was a temporary solution. The government people that did not understand it was temporary have tried to make it a permanent solution. It didn't work.

What did work for Nixon was inflation. We still had a good portion of our country able to negotiate wages. By 1980, we were paying back the war debts of Vietnam to the tune of 400 billion dollars. It was paid back with currency worth 1/10th of what it was worth 15 years past. The ones cheated were those people that lent us money to pursue the war.

Those goods were a part of our wage economy. As more and more goods are produced overseas, then those wages are lost to income taxation. Lost income taxes means less money for government to operate on. Solution was to counterfeit more money.

Counterfeit money means more money chasing fewer commodities.

Wages do not go up in a non-union economy because people simply do not have the negotiating ability to make it happen. Jobs go to less expensive people overseas. People that do not pay our taxes. Those people here making those wages are laid off. It is a nasty circle. Government revenue goes down.

If this were a country that encouraged small independent businesses this would be different. We encourage giant corporations. Small businesses would gradually increase the price of things. Corporations take the work and go overseas to produce the goods at a fraction of what they would cost to make here. All the rules are set aside in a foreign country. That is very attractive to businesses. It is ruinous for collecting taxes. So government loses no matter what they do.

What hasn't stopped is the bills. Both with the people upon which all taxation is based and with the government still spending like we have all the real money in the world. We are fighting wars we have no real money to fight them with. We are producing very expensive weapons that have a short life in wartime. Things like helicopters, drones, expensive satellite spy stations, tanks, battle cruisers, aircraft carriers, submarines, and more. The list goes on and on without fail. We have one of the most expensive armies in the world when it comes to intelligence services.

Simply, we cannot afford any of it.

We are still giving enormous amounts of money away in foreign aid.

We are acting like we are wealthy and we are no longer wealthy. The space program is a good example of enormous amounts of money with little tangible results to our economy.

The result of the government gradually going broke are obvious. The government is going to steal what money is available from the general public. They will do this by reducing social security pensions, stealing industrial pensions outright, stealing a percentage of everyone's savings in the banks, and increasing taxes on the general public. Obamacare is ill-conceived in such an economic environment. The additional expense of implementing it is going to bankrupt a good portion of the public.

The important question here is what are our representatives in the Congress going to do to preserve our economic way of life? Because what is happening now is they are destroying the financial base of our nation and have been doing so since the early 60s when we went to war in Vietnam.

Like a big ocean liner, it is impossible to change course in a very little time.

The basics are we have to preserve the General Public's discretionary income. We have to make it possible for people to make a living or we have to do away with the way we produce revenue for the government in favor of one that will work. If people make no wages, they pay no taxes. The only other way that government can be supported is with a national sales tax on anything produced. That will do as much harm as good. It means people have no money to buy goods. The price of goods goes up past their ability to pay. Even doing away with Income Taxes at the same time will only work for a little while.

The other factor is we are supporting an enormous work force abroad. What happens when they are cut off? I don't mean cut off from producing goods. I mean there is no longer a market for those goods because people no longer have money to spend past the basics.

In foreign countries people starve when that happens.

Starving people go to war with those people they perceive as having caused their problem.

I have spelled out the problem. Finding solutions is going to be a real challenge for everyone.

Something magical happened Tuesday.  The Dow Jones Industrial average closed at a new all-time high of 14,253…eclipsing its previous closing high of 14,164 set nearly five and a half years ago.  What a feat.

Wall Street cheered.  Jim Cramer pumped his fist.  Then, right when it seemed the day [...]]]> By MN Gordon, Economic Prism

Something magical happened Tuesday.  The Dow Jones Industrial average closed at a new all-time high of 14,253…eclipsing its previous closing high of 14,164 set nearly five and a half years ago.  What a feat.

Wall Street cheered.  Jim Cramer pumped his fist.  Then, right when it seemed the day couldn’t possibly go any more favorably, Venezuelan President Hugo Chavez up and croaked.  We had to pinch ourselves twice to make sure this had all just really happened.

Unquestionably, these sorts of disjointed combinations salt and pepper the world in ways we never could’ve imagined.  Would it have been possible to plan a better day upon rising in the morning?  Perhaps, yes.  Though, it wouldn’t have been nearly as random or satisfying.

Of course, we don’t like to celebrate the dead.  That’s rather uncouth.  But we’re not perfect…we do slipup every now and then.  There was this time and that time, to be exact.

Nonetheless, we pledge not to do so today.  Instead, we’ll reset our sites and take aim at the new bull market in stocks.  Like a magic act or a mirage, upon second glance, it’s hardly what it first seems…

The New Bull Market

There’s nothing like a new bull market to capture the imaginations of men and propel their heads into the clouds.  Up there, among the moist vapors, the thin air and hopes for easy riches snuff out even the brightest of minds.  Yet not all bull markets produce the same dizzying effects…

A bull market in gold, for instance, is no fun at all.  Financial talk show hosts groan and moan over it.  Mutual fund brokers find every chance to knock it.  The big banks lever up and short it.  Central bankers do everything they can to suppress it.  Even the true gold bugs grunt and grimace…fearing this could be the final paper money crackup they’ve been warning of.

As bull market’s go, a residential real estate bull is much more attractive.  Every man becomes a Donald Trump.  They line up Saturday mornings to buy condos before they’re built…so they can flip their way to riches.  Hot shot developers blot the landscape of the outer reaches of suburbia with eye lacerating monstrosities, which encroach upon rudimentary dairy farms and their hair curling aromas.  What’s more, people mortgage their lives away to buy them.

Still, when it comes down to it, a bull market in stocks brings forth the most awesome and ridiculous behaviors.  For what’s not to love about rising stock prices?

They make a man feel wiser, richer, younger, and better looking all at once.  Suddenly his bald spot’s no longer getting bigger…it’s getting smaller, along with his waist line.  Conversely, his 401k statement’s no longer getting smaller…it’s getting bigger.  Upon opening his monthly statement, he’s greeted with the pleasing satisfaction of ballooning wealth.  He fancies his shrewd investing abilities to equal Warren Buffett – maybe even superior.

Obviously, rising stock prices solve all problems and hide all failings.  Yet, before we throw caution to the wind, we must take a moment to review what this new bull market’s all about…

On the Good and Proper Way to Celebrate the New Bull Market

The Dow closed yesterday at 14,329…a new all-time high for the third day in a row.  In nominal terms, that’s 165 points higher than its former high set on October 9, 2007.  That means that over the last five and one half years, the Dow’s returned 1.15 percent.

So if you’d invested $10,000 on October 9, 2007, yesterday you would’ve had $10,115 sitting in your brokerage account – not including dividends.  But that’s just in nominal terms, not real – inflation adjusted – terms.

Apples must be compared to apples.  According to the Bureau of Labor Statistics’ inflation calculator a dollar today has the purchasing power that $0.90 had in 2007…a loss of 10 percent.

So in inflation adjusted terms, you get a negative real return of 8.85 percent.  That initial $10,000, while it now shows up as $10,115 in your monthly statement, is only worth $9,103 in year 2007 purchasing power.  So to really be a new bull market, and overcome inflation, the Dow must reach 15,738.

Will it get there?  No one knows for sure.  But we do know that Federal Reserve Chairman Ben Bernanke has placed an $85 billion per month bet that it will.

Therefore, as stocks approach a new bull market, we want you to be prepared to celebrate it in a good and proper way.  Our recommendation is to celebrate it the way a designated driver celebrates at the company holiday party…

That is, up close, in person…but as a spectator not a participant.

You’ll wake up the next morning with a clear mind and a clear conscience.  Moreover, you’ll retain the hilarious memories of your boss’s tipsy wife spilling the beans – plus her cookies – and mail room Joe and receptionist Julie behaving like jack and jenny asses.

You will thank us for sure.

[MN Gordon (send him email) is the editor of the Economic Prism.  Visit Economic Prism.  The Economic Prism is published by Direct Expressions LLC.  Subscribe Today to the Economic Prism E-Newsletter at http://www.economicprismletter.com]

Smart shopping starts with [...]]]> What dreams do you and your spouse share? Maybe you want to build your dream house, finance your child’s college education or travel around the world. These dreams require money, and money doesn’t grow on trees. Smart shopping is one way you can save the cash you need and finance your dreams.

Smart shopping starts with coupons. By clipping paper coupons from the Sunday newspaper inserts, you can save money on groceries, toiletries and cleaning supplies. Use online coupons too. Send them to your grocery or drugstore loyalty card or scan money saving QR codes to your smartphone, and save money at the checkout counter.

In addition to using coupons, delay your purchases until the items you want to buy go on sale. There’s no reason to pay full price on household goods, landscaping products or clothing. Buy these items during sales, and save a bundle.

You’ll also want to use sales to stock up on essential items. Buy extra meats, canned goods, toilet paper and cleaning supplies when they’re discounted instead of paying full price.

Finally, shop for items you need during off-season sales. Most retail stores stock large quantities of seasonal inventory. When the season’s over, demand for these items decreases. Stores heavily discount the excess inventory to make room for next season’s items. Take advantage of their excess when you shop for five popular items during the off-season.

Swimwear

Whether you need a new swimsuit or your kids have outgrown theirs, look for deals at the end of July and into August. You’ll find the best deals, including up to 90 percent off, at the end of August, but the selection may be limited if you wait too long.

Patio Furniture

Tables, chairs and other outdoor living accessories aren’t cheap. Deck your patio with attractive, stylish and functional furniture at a deep discount when you buy these items in August or September. That’s when stores want to start displaying winter items instead of patio furniture.

Christmas Decorations

Resist the temptation to buy all new lights, ornaments and other Christmas décor as soon as it hits the shelves in October. If you wait until the weeks after Christmas, you’ll save tons of money on Christmas decorations, wrapping supplies and other holiday products.

Gas Grills

Perfect for entertaining year round, gas grills help you prepare meat, vegetables and tailgating foods for your family and friends. It’s an expensive appliance, so buy it in August or September instead of in April or May to save money.

Winter Gear

Jackets, snowsuits, boots, hats and gloves keep you warm all winter. At the end of the winter clothing season, retailers want to get rid of this bulky inventory. Stock up on necessities for next year, and stay warm.

Groceries

After every major holiday, you can save money on canned goods and candy. With holiday themed wrap, these products can’t be sold for retail prices. You stock your pantry and save money on grocery items you use.

Off-season sales and other smart shopping techniques give you extra cash. With the money you save, finance your dreams. Get out of debt, buy a house, build your child’s college fund or fund your retirement. With smart shopping, you can live the life of your dreams.

Lindsey is a professional writer living in the Indianapolis area and she writes on behalf of Sears and other deserving brands. She specializes in writing guest posts on social media and education. Currently, Lindsey is completing work on her master’s degree.

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 [...]]]> 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.

5. Welfare people will not get their checks in the mail.

6. Social Security people might not get their checks or deposits.

7. Unemployment insurance will not get paid.

8. The stock market will crash. Anything that uses American Dollars will be no good.

9. There will be no gasoline at the pumps. We are dependent on foreign oil for our gasoline.

10. Food will be rationed. All food will be nationalized and redistributed. That knock on your door is a federal agent inspecting your property to see if you have any food you are hoarding.

11. Banks will all be closed in a massive bank holiday as the government tries to figure out how to put the pieces back together again. I suggest that banks will nationalize any moneys you have in the bank to be given out at a later date with new currency exchanges. That should create chaos if anything will.

12. There will be a massive foreclosure of all property with a mortgage to a bank on it. There will be no way to pay anyone while the banks are closed.

13. People's money supply will run out almost immediately as the banks are closed.

14. Our currency won't be worth the paper it is written on. People will begin trading goods instead of using money.

15. Gasoline will become a currency for a while.

16. Canned food will become a currency.

17. The President of the United States will address the people. He will urge everyone not to panic. They will panic and there will be riots all over the country.

18. Martial law will be declared nationwide. That means even reserve person in the country will be recalled to active service to police the country. It might mean people recalled from their early 20s all the way up to 70 years of age. It will be that massive a need for armed forces to control the country.

19. All food will be on a need basis. So being in the armed forces will be a blessing. You will at least be fed and clothed.

20. People will protect their homes with guns. The government will want to take the guns away. Not a realistic option but they might have teams doing this everywhere.

At this point, I get the feeling that Executive Orders will come to have a whole new meaning.

Like any bankruptcy, the courts will determine who gets paid what. I feel the government will attempt to close the court actions down so no one gets paid.

Under bankruptcy protection, the government will issue a new currency for the old one. Foreigners will be excluded here.

It will finally be realized that all those factories abroad are being taken over by the foreigner's governments in lieu of payments. So the corporations abroad will get paid back for their massive use of foreign labor. They will be broken by the default. China especially will nationalize everything we own in their country.

New currency for old. That means all the dollars out there in the world have to be turned in for a new currency yet to be specified. I suggest that $100 will suddenly become a very reduced amount of money. For accounting purposes, the money might be 10 cents on the dollar or even 5 cents on the dollar in the exchange.

Most of this exchange will occur within the banking system itself. How will debts be handled. Will the old currency dollars be transferred to new? Or will you still owe the old amount in the new currency?

How will the governing bodies be treated? Like the Congress for instance if Martial Law effectively closes both Houses of Congress.

How long will Martial Law rule the country? Right now the Congress has given the Executive Branch control over Due Process in recent legislation. It has given life and death control to the President.

By executive orders, the President can confiscate anything he wants to in such a crisis.

In conclusion, the real winners of a default are the government agencies. I would bet money that these agencies will all be armed to the teeth. And they will set rules for everyone.

Most of the billionaires in this country have already been putting their money in off shore accounts and other more stable currencies until the storm passes. They were given advanced warning by someone! I guess we know who owns who.

What I have outlined here has already happened to countries much smaller than our own. It was the fall of the South Korean government in the 60s, that gave me some idea of what might happen. The government itself fell and a new one took its place. The reigning President of South Korea was put in jail.

Similar things have happened elsewhere like the Philippines. But nothing like the scale of what is about to happen here.

When will it happen? Don't know. I am not a prophet. It has happened here before. Most people do not know about it. It happened in 1840s. Needless to say, the creditors in Europe cut the entire country off from any further line of credit at the time. It was state defaults back then, not federal defaults.

I suggest this is all part of a massive plan to create a world currency. I suggest also it will be a currency in the minds of our computers rather than a literal currency in your pocket. Why? There is a massive underground of people that do not pay taxes! Everything is done under the table.

Which means we will be one step closer to being controlled by a credit card economy instead of real money.

The incredible thing is that no one has figured out that 3-d printing can be used to counterfeit currency. This makes just about every currency in the world obsolete. Or have they? Only currency controlled by the government will be honored. There is no way to have a wallet currency anymore with the advent of technology that enables cheap printing of duplicate paper money. They can even change the numbers on the Bills so no two are alike. This is a Treasury issue and emergency of staggering change.

The only currency that would be valid would be a coin currency. Metals cannot be reproduced by a 3-d printing system.

The ultimate goal might be the Mark of the Beast as described in Revelations. That is the only motivation I can see that would make sense. To bring on the devastating bankruptcy of the standing world currency of the dollar has to have some kind of major motivation behind it.

Personally, I think that no person should have to choose their faith or rejecting their faith and having the mark of the beast. That is really the ultimate injustice. But no body every said the Devil in all of this was going to be fair . . .

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 [...]]]> 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 everyday lives.

Jesus said, "Render onto Caesar . . . "

Recently I divided up my bills to see who owns me.

The Gas company owned $167 of me this month.

The Power Company owned a similar amount.

The telephone company owned $300 of me. As I have both internet and cable mixed in and two houses for the Internet and telephone.

The bank shares ownership with me on one mortgage on a house.

The bank shares ownership with me on a truck.

The City water owns about 90 dollars of me on two houses.

The government owns a lot of me on my industrial pension.

I own a little bit of them on Social Security and Medicare.

Everything I have stated above is a monthly occurrence and is public record somewhere.

Then there is the money I donate to God. It is my tithe to God. I keep that number very private between me and my God.

The point is not numbers. The point is who really owns me. What is my soul worth. You see we will all have to answer those questions soon.

I declare myself owned by Jesus Christ under God. Anything and everything I own really belongs to my Master. And yes, I consider all true Christians to understand we are slaves to our Master, Jesus Christ.

But like Peter, who denied Christ three times before the Cock crowed twice, I have a problem. You see I don't know if I have the courage necessary when it becomes terribly inconvenient for all of us to follow Christ. Peter, in his arrogance thought he did. And eventually he was crucified upside down, because he didn't consider himself worthy after that twice denial. I don't judge or blame Peter. We are talking the ultimate sacrifice and an enormous amount of torture and pain while we die.

Eventually, we will all have to make that decision as the government intrudes more and more on our lives and our morale and ethical nature.

Think not? We have suffered the abortionists to be legal in this country since Roe vs. Wade. A lot of babies have died because of that decision. Why do we tolerate it?

Well I don't have anything to do with that, do I? Courts made that decision. Yes, but we tolerated the courts that made that decision without a general rebellion against them.

Our Republican Leaders are against it aren't they? Not really. If they were, it would have been gone 30 years ago. They are the devil's own when they go out there and lie about it.

What about the court decisions against Freedom of expression of our religion? Well, that too is a court matter, isn't it? Not if we make it different. But that would be a sacrifice. We would have to impeach half the Justices in our court system to change it. Anyone ready to be crucified?

If we do have the chaos that will follow a bankrupt federal government, we will all have to make decisions. Those decisions might come down to who owns you? Are you willing to make a stand or will you accept the Mark of the Beast that government requires you to have in order to live?

As you probably know, fiat money is prone to devaluation and we’re living in terrible times when almost [...]]]> During times of economic crisis, like the in the 1930’s and during the current economic turmoil, it’s not a bad idea to invest in precious metals. It’s trendy, it’s nice, but most importantly: it has solid financial basis.

As you probably know, fiat money is prone to devaluation and we’re living in terrible times when almost anything can happen to any currency. The euro is on the brink of collapse, the US debt is shooting through the roof and experts are predicting a coming dollar crash.

Smart investors like billionaires and major banks keep at least a small part of their wealth in gold, silver, platinum or, they hold land.

Even if you have a very small budget, you could afford to buy at least a few silver coins.

Experts like entrepreneur Robert Kiyosaki and economist-investor Peter Schiff, as well as advisor sites like Prime Values are giving us plenty of reasons and information to start building savings in the form of metallic hard asset holdings – as a hedge against inflation.

Here are several reasons why you should take this step:

1. The have intrinsic value: precious metals are the best hedge against inflation, as they have value of their own
2. Gold and silver have always constituted value, they have always been recognized during millennia, while paper money is mere “certificate money” like poker chips in a casino (with no intrinsic value).
3. Precious metals are rare: quite often, when something is rare – it’s expensive
4. States and major banks hold gold – s
5. In the past, during hyperinflation, those who held their money in paper lost almost all of it, but those who kept precious metals even gained a bit, in addition to being able to save their wealth!

These are just 5 of the most important reasons why you should own precious metals.

You might also want to consult this advisor article about why precious metals constitute and ideal

If you don’t keep at least part of your wealth in gold, silver or other similar assets, then your wealth is in danger.

I am not exactly qualified to be an economics person. I am basically anti-machine when it comes to the drastic takeover of industry. I am anti-foreign labor person as well. What I see happening is the natural competition of the market place taken to extremes. And that is what is destroying economies [...]]]> Authored By Dave Webb

I am not exactly qualified to be an economics person. I am basically anti-machine when it comes to the drastic takeover of industry. I am anti-foreign labor person as well. What I see happening is the natural competition of the market place taken to extremes. And that is what is destroying economies all over the planet. No one and I mean no one has come up with a successful plan to compete with this problem population.

There is no way any industry can compete with starving people in a national economy from India or China. We are talking about two populations that are massive. So massive that it is difficult to even conceive of how cheap human labor in those countries has become.

The nearest description I can come up with is an ant hill. That is how bad it is. In the 60s, a product produced here for $20 would be available there for $2. Add in shipping by bulk cheap carrier and you might come up with $3-$5 depending how far the product had to be shipped. Subtract a currency exchange way out of control and you are back down to maybe 75 cents for massive shipping of goods. The $20 is now at $200 for the same product. So it would cost $20 there.

Our own government people recognized this as far back as the 30s. Their answer was tariffs. If you cannot compete with their products then add to the price to bring our products into competition with them. That means that $20 product from China that is $3 has to have a $17 tariff attached to it to make our products competitive with theirs. That worked in the 30s to keep competition from Japan, China, and India from hurting us too badly.

The barn door has been open too long. The horses(meaning our corporations) have already left the building. Our stores are full of cheap products from China. There is no way back to genuine equalization of competition at this point in time.

To do so would make products selling for $3 increase in price overnight to $20. There is no way that our government can do that and survive economically.

I am anti-machine because the machines take over people's jobs without compensation. The problem with all progress is the disruption it causes in people's lives. A lot of those people are not capable of learning new ways of doing things. So they end up on the junk pile better known as welfare and unemployment. It is a jungle out there in the real world. And all of those people are food for the predators. With change must come responsibility. That means re-training people to earn a living at something else.

This is happening all over the world, not just here. We are on the verge of a massive collapse based on technological advances, robotics, anthill economics of poor nations, and gambling of derivatives of major banks throughout the world. The chickens have come home. The economies of every middle class nation on the planet are ready to come crashing down. I think it will happen within the next 3 months based on the errors in judgment our government and others are making.

What is going to happen?

1. We are going to see currencies fail in a domino effect all over the planet.
2. The entire banking system of the planet is going to be changed. There will be at least a 2-week bank holiday as governments around the world struggle to contain the disaster.
3. Food is going to become a currency exchange. People have to have food and water to live.
4. Gasoline is going to become a currency. This is basically part of a larger exchange of having energy to run the machines and transportation.
5. The commodities markets are going to go crazy. Anyone with the ability to warehouse commodities and resources will become rich.
6. Gold will skyrocket in price. That is until the government takes over the exchange of precious metals trades and keeps people from buying any of these things in a panic situation. Read about the Hunts and Silver and you then have an idea what governments are capable of doing to ruin people that speculate when it is advantageous.
7. When the banks go down, they will steal people's homes as there is no way to make house payments from banks that have failed. So your money is no good to pay your payments with. See Houston in 1988 if you don't believe me. The Oil business went south for a while. Banks all over Houston failed. That did not stop them from foreclosing on people's homes. Even though some of them had $150,000 in the bank that failed. They could not access their money in time to pay their mortgages, often to the bank that stole their money in the first place.
8. What happened in 2007-8 will happen again only a lot worse.
9. In a nation without a currency and banks, commodities, products, and services are going to be king. But it is going to be a hard road for anyone when that happens.
10. The only people I know that will survive intact in this situation might be those that have prepared for it before it happens. Those people with adequate food supplies backed up. Those people that put their trust in God, not governments, to survive.
11. There will be government intervention. It won't be nice. I see riots all over this country if it is not quickly contained by intelligent use of resources to keep everyone taken care of temporarily until the nation is able to recover enough to put food in the stores, gasoline in the pumps, and a general relief from paying bills until the banks are back in business.
12. I believe it will take universal credit cards instead of money at a set rate of exchange to keep this nation going until the crisis is over.
13. It will take rationing of everything required to live.

This crisis will need leadership we have not known in the past. I hope the government is up to the challenge.

The other problem is those ant hills I was talking about in India and China. What happens when the markets all close down? How will they feed their peoples?

What do we do with India and China? This is the critical question that governments all over the planet have no answer for. A huge population that has to be fed? Or will they push them into some kind of war to eliminate people?

It is already happening in China with severe population control in place. One baby per family.

There is all ready signs of a huge male/female balance problem. They kill the females because everyone wants a male baby. The only way to get a male is to have no children in place. Males support the families in their old age. Females don't. So what happens when you have a population of 75% males and 25% females? Besides an intense hormone problem, you have a commodity problem. How do you prevent a huge rebellion? You send the males off to war to be killed. That has been the historical answer that places like China have come up with in the past.

I think they all ready have a treaty with the U.S.S.R to cross their territory with a massive army. The army will then go over Russian Territory and build a bridge to go into Alaska. The deal will be to give Alaska to the U.S.S.R. They will invade Canada and eventually the United States. Russia will not engage in the war, just the profits of war.

How will they get us into a war? I suggest they will start an incident at Taiwan. They will destroy our navy battleships there and cross into and take over Taiwan.

That will put them at war with us.

What has to happen is not easy for anyone.

We have to stop using war as a convenient diversion to keep people from rebelling against their leaderships.

We have to cooperate with one another despite our differences in order to survive.

The world is much smaller now than it was in years past. What effects one effects all.

The world has to come up with a solution to both take the pressure off China and make sure everyone has enough to eat. China has too many people to feed itself when the economies of the entire world are having problems.

We have to direct those people to the means of survival. We are going to have to piece together a program to help them survive. That is going to take a lot of leadership on the part of China and the United States if it is going to happen at all. It is going to take salesmanship and diplomacy.

I think it is going to take a lot of engineers as well. The main problem with China being self-sufficient is arrid land that will not produce crops. That land has to be restored. That means shipping in plenty of water and other things to make it happen. It is going to take some sophisticated engineering to make it happen.

We have enormous amounts of land hidden in plain view. I refer to every continent's shelves that extend many miles out to sea. In the past they have been useless. We have no choice, we have to make those shelves productive. No one is better than the Chinese at making something like that happen.

It is going to have to be a joint project.

The alternative is going to be a planet wide world war. No one wins a war like that. Even the winner will be a loser.

I am only an old printer. But even I can see what will happen next. My field in printing was related to engineering. What is needed is the combined engineering of both our countries to come up with solutions that will mean peaceful co-existence for both our countries for many years to come.

I heard you turned down a full time job with good benefits, is that true?

Yes!

Why?

If I had taken that job, I would have to take a big loss in my income per year.

How you figure that?

If I am under a certain income level, I qualify for Medicaid for me and my children. [...]]]> Authored By Dave Webb

I heard you turned down a full time job with good benefits, is that true?

Yes!

Why?

If I had taken that job, I would have to take a big loss in my income per year.

How you figure that?

If I am under a certain income level, I qualify for Medicaid for me and my children. That insurance would cost me a lot of money otherwise.

If I am under a certain income level, I qualify for help with my utility bills.

I qualify for $350 a month in food stamps.

There are other benefits too. I am home a lot with my children while they are growing up.

I figure if I took that job, I would be down something like $1,000 in real income a month.

So if I took that job, I would not only not be home with my children, I would no longer qualify for any of these government benefits. I would have to make $35,000 a year to break even by working.

If I am working, I am paying taxes on that money. We all work for what we bring home, not what we make on paper. So if I earn $100 a day, I take home maybe $65. I get no help with anything. It isn't worth it to work.

Well, that really explains a lot. Doesn't the government mind?

No actually I am employing a lot of people by doing this. You see the government has a lot of paper work to fill out. And they are glad to do it for me. The utility help alone employs 40 to 50 people. Then the welfare system has to cross all the t's and dot all the i's to make it legal. They have to make very sure that I stay within the limits of income they have set down. If I make one dime more, they will disqualify me from benefits.

What about child support?

I am better off without it. The bum skipped town. He works under the table most of the time so he doesn't have to pay on it. If he pays it, I over qualify and get nothing. He works but not where anyone can see what he makes.

So, the game rules say you cannot work and get the same quality of life you have now, is that right?

Yes. The government rules are that I cannot work and receive what I am getting now.

That sure sets me straight on a lot of things. Like how come we have all those people on welfare. Gee, can I take advantage of this program?

No, you made the mistake of working all your life, Gramps. Now they have you where they want you.

I am not your grandfather. We aren't even related.

Sure you are. Where do you think they got the money to pay for all these benefits I am getting? You must be family since you are paying for everything I get . . . Even my rent is supplemented by your taxes.

If you were going to work, what would you do?

Probably work under the table so the government vamps don't get my money. But I don't need to do that. Everything I need is given to me without working.

Well, makes sense to me. Give my love to your Uncle.

Uncle?

Sure, your Uncle Sam. He seems to be quite the philanthropist.