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Thursday, August 30, 2012

No Real Recovery: Who is at Fault?

According to Peter Schiff, CEO of Euro Pacific Capital, the US Economy is not in a recovery mode. He opines that the loose monetary policy by the Fed and the fiscal policy by the Federal Government is preventing this recovery. He believes that the environment of low interest rates and expansionist fiscal policy created the Real Estate Crisis, the current Bond market bubble, and it is putting off the economic pain. Personally, I think he is on the right track with his line of reasoning. Listen to this interview.



Wednesday, August 29, 2012

Inflation: The Silent Tax

Inflation is a silent tax. It can usurp the purchasing power of goods and services by reducing the value of the currency. Currently, the CPI(Consumer Price Index) is one way of measuring inflation. There is a debate if this is an accurate way of measuring inflation since it does not include many goods that are purchased by individuals. This is an important topic for people that are investors, saving for retirement, college education, etc. As a long term investor, it is a must that your retirement savings outpaces inflation.

The article titled, "Why Investors see Low Inflation for 10 years" is an interesting article. The author cites the current low CPI as a rationale of low inflation. However, readers of this blog would notice the huge flaw in this argument. Food prices are high, commodity prices are high, Precious metals are also higher, but there is no inflation? Inflation does not make all prices rise at the same time, but rather certain segments rise at a different rate than others. Some market segments go downward in price. To imply there is low inflation is a fallacious argument based the fact that CPI does not include all items in the calculation of inflation.  It is economic impossible not to have some inflation after having an aggressive monetary policy with low interest rates, and an intrepid fiscal governmental policy with record levels of spending and borrowing.



Tuesday, August 28, 2012

LIMRA: Many Americans Don't Fully Read Retirement Plan Disclosures | LifeHealthPro

 This is vital. A contract agreement is between two parties. Regulations require that financial services companies must place the contracts in a relatively easy format for most to understand. Please review all documents before signing AND providing consideration(Money). This trend, as per this article titled, "LIMRA: Many Americans Don't Fully Read Retirement Plan Disclosures | LifeHealthPro" is highly disturbing.

Friday, August 17, 2012

The Causes of the Rising Price of Corn

Corn Prices are sky rocketing based on many factors. Currently, the drought is impacting farmers production output, thus this shrinks the inventory. This action forces prices to rise. However, mandating that farmers must allocate a certain percentage towards ethanol is another factor. The Government mandate calls for 40% of all corn production must be allocated towards fuel production.  This mandate has cause corn prices to increase, this is before the drought. Now with the drought in full swing, corn prices have increased well over 60% since June. While investors can play the futures market with this commodity and possibly make some gains, overall the global economic impact is major. The article titled, "End the Ethanol Mandate" discusses this in more detail.

The Biggest Risk to a Senior’s Finances: Family

An excellent article regarding the financial concerns with the Geriatric population. This population will grow at a faster rate due to the Baby Boomer generation. This segment comprise approximately 28% of the United States Population.


The Biggest Risk to a Senior’s Finances: Family

Thursday, August 16, 2012