Sunday, November 29th, 2009
As gold topped $500, the news became front-page across the country, and radio and TV financial programs led off talking about the price of gold. Invariably, all noted that gold had reached nearly a two-decade high. Yet it is doubtful any of the reporters assigned to the story really grasped the importance of gold topping $500.
Further, few reports dared suggest that the price of gold could climb still higher. Gold stands a good chance of seeing higher prices before the inevitable price correction, which always follows such a strong move.
Most reports saw $500 gold as a novelty, not the ominous sign that something is drastically wrong with the state of financial affairs in the United States. The truth: gold is responding to profligate spending in both the government and the public sectors. Further, gold is rising because of the massive inflation by the Federal Reserve under Alan Greenspan. Let’s take a brief glance at only one reason for gold’s jump above $500: federal spending.
The federal government now has more than $8 trillion in official (on the books) debt. Only three years ago, gross public debt stood at $6 trillion. For those calculating, that is a one-third debt increase in only three years. The United States took 226 years to run up a debt of $6 trillion. In three years, an additional $2 trillion was tacked on.
According to The Privateer, present projected spending will push the official debt to $11 trillion before the end of Bush’s second term. If this becomes reality, in only eight years the official federal debt will have nearly doubled. Additionally, there are the “off-books” liabilities.
Unfunded U.S. government liabilitiesSocial Security, Medicare, Medicaid, military pensions, federal workers’ pensions, and other promise such as picking up the tabs for bankrupt corporate pensionswill reach $50 trillion by the end of the year and climb to $70 trillion by the end of Bush’s second term.
The official debt is the accumulation of years of federal deficit spending. This fiscal year’s deficit (October 1, 2005 thru September 30, 2006) is projected to be $521 billion. Deficit spending looks to get worse.
Pulling statistics from the respected Congressional Budget Office’s January report on the federal budget and economy, Citizens for Tax Justice show annual deficits under Bush policies skyrocketing to $1.164 trillion by 2015. These projections are seven times the Bush administration’s numbers because the White House assumes, among other things, that current tax cuts “sunset,” that Iraq and Afghanistan expenditures will suddenly end, and that federal appropriations will “plummet” as a share of the economy.
The Congressional Budget Office forecasts that by 2013 “the government is likely to be spending more to pay interest on the debt than on all domestic appropriations put together.” Any wonder the price of gold topped $500?
It appears unlikely that the problem of deficit spending will be addressed any time soon in Washington. Sadly, our lawmakers do not yet even see it as a problem. While it is true that Democrats never miss an opportunity to carp about Bush’s refusal to “roll back” his tax break for “rich Americans,” the Democrats would be as quiet as church mice if the deficit spending were for welfare programs. Either way, the results would be the same: continued deficit spending.
The way gold topped $500 was a big deal because the price of gold is the thermometer for the health of a nation’s currency. A rising price for gold suggests a fever is building. However, the reporting suggests that few reporters understand the United States is infected with a deadly virus, not a common cold.
Bill Haynes heads CMI Gold & Silver Inc, one of America’s oldest precious metals dealers. See CMIGS’ website at www.cmi-gold-silver.com/. This article may be reprinted provided this signature remains intact, including the direct link to CMI Gold & Silver Inc.
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Friday, November 27th, 2009
Single market transactions involving distressed loan portfolios had until recently not been possible. They can now be bought and sold using a method popularised by the rise of e-commerce — the Internet-based bidding approach in the style of eBay. Now recognized as a nationwide platform, the loans are put together into packages which are then purchased at substantial discount levels. Thanks to this approach the collection of data can be standardized leveraging the transactions, while at the same time improving the chances for minor packages to be considered worthwhile.
All online businesses can reach a wider range of customers than their traditional counterparts, and the degree of access this service offers to investors is no exception. Time and location are no longer of significant importance and business can be conducted 24/7, which saves everyone a respectable amount of both money and time. Getting in touch with as many leads as possible is essential to the sale of any product. This system consequently offers all the pertinent information available to anyone who’s registered at a time of their asking — rendering dealing in portfolios less problematic. To sell loans, the more information you can get your hands on, the better the results will be. transparency when dealing with loan portfolios minimizes your exposure and creates an overall view of precisely where your money is actually going, no matter whether you are looking for consumer or subprime loans. Common wisdom claims that you must work through a broker to invest simply due to the lack of qualified evaluation standards — thanks to this service, this is finally changing. Direct communication with full disclosure helps put you in a position where both buyer and seller will benefit.
Checking that subprime and consumer loans remain standardized rather than fragmented means that picking out the right deal for you to invest in rapidly becomes much less effort. Time is not wasted by this approach — not simply for the investor but just as importantly, of course, for the trader. A system of open bidding offers plenty of opportunity for the best exchange possible, and the opportunity to maximize your profit margin, through negotiation between buyer and seller. Online dealing can take advantage of the boundless opportunities of the Internet world. With a wider reach, reliable standardization of information, and an opportunity to get hold of packages tooled to your exact requirements, why not make investments using the Internet?
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Wednesday, November 25th, 2009
Getting a top-notch property inspection in Phoenix is vital whether you’re about to sell a home or buy a home. Here are a few pointers to doing your own property inspection to be certain your property inspector does what is mandatory, but don’t take this as legal advice and always seek pro help. These axioms may also differ from state to state.
Before meeting with the Phoenix home inspector, you will want to bring copies of the deed, survey, tax bill, leases, and receipts for any major work on the property. These documents will familiarize the property inspector with your property ; moreover, the search of the same will cause the seller to invest time in the negotiation.
1 ) Exterior Inspection
Begin with an exterior assessment. With clipboard and pad, record impressions about neighboring property, driveways, walkways, stairways, and handicap access. Note the parking situation, grading, and landscaping. Check the condition of outside walls, doors, and windows. Use your binoculars to check the roof, or if at all possible inspect it close-up. Is it cracking or thick with too many layers? Are the gutters and downspouts in good condition? Water is deleterious, so be aware of drainage. Look for soggy conditions, peeling paint, cracking mortar, algae and mould.
2) Major Systems Inspection
The basement is one of the most important parts of a property. From there, begin assessing the major systems. Check the foundation by studying the exterior walls for sandy, cracked, or deteriorated mortar. To find air leaks, look for cobwebs-spiders spin them near openings to prey upon insects who enter from outside. Explain this entomology lesson to the seller as you pick at those energy inefficient cracks. Check the sump for water which indicates leakage. Water attracts termites, so use your screwdriver to probe beams for rotten wood.
3) Living Area Inspection
Next, inspect the living area. Check for an alarm system and smoke detectors. Note the smell-it can affect value. Tally the number of bedrooms and bathrooms. ( According to FHA, a’bedroom’ is not a bedroom if you have to walk thru it to access another room. ) Many older houses lack closet space, so make note. Inspect the composition and condition of floors and walls. Test all windows and doors for ease of use. Also check that all electric sockets are grounded ( three prong ) and functional ( you may use a cheap electric tester. )
These are just a few points to consider when you get a home inspection done. This does not replace the advice of a genuine, qualified and experienced professional. Please seek qualified help when you actually need your Scottsdale property inspection done or call 480-415-7977 if you are in the Cave Creek, Arizona area.
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Sunday, February 22nd, 2009
One of the most distressful financial nightmares is negative credit. People who face bad credit usually look to get out of it by engaging the services of a third party business. However, with the innumerable number of such companies all offering their own array of services, it can become hard to choose the most viable choice. Moreover, the fact that these agencies make it sound perplexed does not help the matter very much. Along with that is the difficulty of getting a loan with the current worldwide economic status; banks now require exceptionally high credit ratings before providing a loan on favorable terms. If you’re one of those people whose bad credit has wrecked financial position, then fast credit repair is what you need. Remember, that you do not need to have specific knowledge on fast credit repair. You can get out of that depressing credit standing without necessarily having to employ the services of a third party and pay expensive service charges.
Consistent use of credit cards is one of the main reasons for bad credit. Try not to use athe credit card if it is not required. And if you can, try to arrange a monthly limit on your credit card, so you don’t accidentally over-spend. This is one of the strategies used for fast credit repair and will assist to keep your credit card expenses down. Additionally, close any other unneeded credit accounts. They may not accrue you any substantial charges, their visual existence on your credit statements can hurt your aggregate score. You’ll understand that fast credit repair is not really rocket science!
People often tend to disregard the simple solutions to fast credit repair. They do not deal with the problem themselves. Rather, they hire expensive services. These services do nothing extraordinary. They evaluate the credit statements of the individual and come to a decision which is based on their findings. This task is not complicated, rather something that can easily be accomplished by the individual himself. Thus, people should be better off performing the simple tasks themselves, rather than paying high charges to get them done elsewhere. Because, towards the end of the day, pulling yourself out of bad credit is something you need to accomplish yourself, and not the agency you’ve utilized the services of.
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