August 24th, 2010
In the U.S. last year, despite all the bailouts,
the US economyy contracted by 2.4%
Meanwhile, China’s economy grew by 9.1%
Right now the U.S. economy GDP is growing about 2.4%.
China is expected to grow by 10%+
(4 times faster than the US economy).
Retail sales in China are up 18%
(6 times better than the US).
China consumes more energy than the US.
GM sells more cars in China then they sell in the US.
If you add up all of America’s gold in Fort Knox, plus
all the foreign currency reserves in the US Treasury…
you get a grand total of $490 billion dollars
(our government cash in the bank).
Against that, we have debts to foreigners of
$2.1 Trillion Dollars (and that doesn’t take into
account the trillions in domestic debt).
If you subtract America’s foreign debts from America’s
cash…
The US is underwater to the tune of $1.6 Trillion Dollars.
Cash in the kitty ($490 Billion) - debts ($2.1 Trillion) =
bottom line $1.6 Trillion in the red.
China has reserves of $5 Trillion minus $374 Billion in foreign
liabilities equals $4.6 Trillion in the black.
Score:
US - $1.6 Trillion in the red
China - $4.6 Trillion in the black
China is sitting on the biggest mountain of gold and cash
reserves in the entire world while the US is drowning
in red ink.
If you are drowning in debt like the US economy
and struggling to keep afloat, there are the 3 steps
you need to build yourself a money making system.
You need a system to make money.
Systems Work - People Fail!
Step 1) Identify a market
Step 2) Find a side door
Step 3) Find an offer
Identify a market. A market is a group of people that all
have a similar interest (like the make money market or
dog training market or weight loss market).
These markets are tremendously hugh with millions of
people looking for solutions to their wants and needs.
However, these markets are tremendously competitive.
You need to enter these markets through a side door.
So instead of “make money” - a side door would be to
make money by sewing, or make money by teaching
others how to play a musical instrument or swim
(whatever you’re good at or know something about).
Instead of “dog training” a side door could be “train your
dog to stop peeing on the floor” or ”train your German
Shepherd or Boxer to heel”. You get the idea.
Instead of “lose weight” a side door could be lose weight
by “fasting” or “lose weight by walking while you watch TV”.
Finally, you have to find an offer that is irrestible to people
such as offering a free report or a free video or a free
audio tape… something with a perceived high value that is
risk free to the prospect…
Important content that you can give away for free.
These steps will get people to sign up onto your mailing list.
Once they sign onto your list, you keep spoon-feeding them
relevant information.
And generally after about 6 or 7 relevant emails from you,
(if your information is good), they will like you, they will trust you
and they will buy from you if you make them a decent offer.
It’s not rocket science. People buy from those they know
and trust. Build up trust with your prospects by feeding them
relevant information and ONLY Then, offer them your product
or service and they will buy from YOU.
That’s how it works!
If you’d like to watch a video about making money
go to:
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TAGS:  China, GM, make money
Posted in Economy | No Comments »
October 24th, 2009
The U.S. Dollar is Dying a Slow Death.
The Dollar Is Losing Its Status as Global Reserve Currency.
I’m not an alarmist, but… Ding, Ding, Ding - Sound the alarms.
The U.S. Dollar is dying a slow death right this very moment.
Right in front of our eyes the value of your dollar is…
disappearing faster than a magicians coin.
Why do I say this?…
In the entire history of the U.S., there has never been a
period when Washington spent as much money as it is doing now
without major inflation rearing its ugly head.
Since March of 2009, the value of every dollar you have saved,
invested or set aside for retirement has plunged 15%.
A buck that was worth $1.00 just seven months ago is now worth
only $.85 (cents).
Just a few days ago, Washington revealed that the deficit
had exploded to $1,400,000,000,000.00 ($1.4 Trillion dollars)!
According to the Congressional Budget Office’s 2009 report…
“The growth of debt would lead to a vicious cycle in which
the government had to issue ever-larger amounts of debt
in order to pay ever-higher interest charges.”
It further goes on to state…
“If foreign investors anticipated an economic crisis,
they might significantly reduce their purchases of U.S. securities,
causing the exchange value of the dollar to plunge,
interest rates to climb, and consumer prices to shoot up …
“The growth of debt would lead to a vicious cycle in which the
government had to issue ever-larger amounts of debt in order to
pay ever-higher interest charges.”
- CBO 2009 report, “The Long-Term Budget Outlook.”
The dollar has plunged 15% against other major currencies since March.
When the value of your money plunges, nearly everything you buy like…
Food … Energy … and most of life’s other necessities —
WILL COSTS YOU MORE!
For instance:
In just seven months between March 1, 2009 and September 30, 2009:
- Gold has surged 14% to record highs of $1,050 oz
- Steel prices rose 17%
- Copper is up 88%
- Crude oil is up 96%
- Aluminum is up 38%
- Nickel is up 93%
- Cadmium is up 18% which means…
(The batteries in your cell phone and computer will cost you more)
- Cotton is up 45%
- Wool is up 24%
(which will only drive the cost you pay for clothing higher)
Food imported from overseas is already soaring:
- Coffee is up 26%
- Tea is up 42%
- Oranges are up 41%
- Sugar is up 71%
- Olive oil is up 14%
Your standard of living is being threatened.
Your quality of life is being reduced.
And this is just the beginning…
When reporting the national debt, Washington conveniently leaves out
the $104 trillion the government owes to seniors and veterans through
Social Security, Medicare, Medicaid and veterans benefits programs…
or $886,000 per household.
All told, Washington is now a staggering $125.8 TRILLION in debt!
Uncle Sam is spending money like there is no tomorrow.
Total burden per U.S. household: … More than $1 Million Dollars!
Our trading partners in China, Russia, the Middle East,
and around the world are getting ready to do something about it.
They’re ready to Dump the US Dollar.
These assaults on the U.S. dollar are happening right now.
And that is why the value of YOUR dollars…
has plunged 15% in the last 7 months.
If you are planning or living on a fixed income…
You have a problem that needs to be fixed!
98% of the world’s population earns less than $100,000 per year.
Join the 2%. Learn to stretch your ever shrinking dollar.
Start your own home business so you won’t have to worry about
the pending inflation and devaluation of your savings and dollars.
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TAGS: CBO, China, coffee, Congressional Budget Office, cotton, gold, inflation, medicaid, Medicare, olive oil, Social Security, sugar, tea, U.S Dollar
Posted in Economy | No Comments »
September 2nd, 2009
Americans are witnessing the first phase of a major, millennial shift.
A shift of power, capital, wealth, and investment opportunities …
A shift from economies that are bogged down in debts and deficits
(like the almost 2 trillion dollar deficit in the US).
A shift to economies that are rich in cash, rich in commodities,
and full of confidence in their future …
A wealth shift from the United States and Western Europe
to China and Asia (from the West to the East).
This shift in wealth is probably the most important megatrend of our time.
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Why is that?
China’s growth is clearly a big part of the West-to-East shift.
Here’s why…
While credit in the U.S. and Europe was literally drying up during the
economic crisis, credit in China has been flowing and even accelerating.
In the first half of 2009 lending by Chinese banks grew 201% to more
than $1 trillion. Right now, there are a record 275,000 construction
projects underway in China.
- The stimulus package in the U.S. is running into big obstacles.
- The stimulus in China is $586 billion - All paid with cash, not debt.
China does not have to borrow the money.
They don’t have to rack up a budget deficit.
China has the money in their piggy bank in cold hard cash.
Farmers who didn’t even have electricity a few years ago are now checking
rice prices on the Internet or reviewing their acres of rice paddies with a GPS.
China is jumping from the 19th century straight into the 21st century,
virtually leapfrogging the 20th century. And NOT with the Internet and computers….
With cell phones!
Most people in China and many countries in Asia connect to the Internet
through their cell phones. A cell phone is much more affordable than a computer.
One out every five people in the world is in China.
And worldwide, three out of every five people are in Asia!
Right now over 61% of the World population uses a cell phone on a regular basis.
That’s over 4 Billion people walking around with a cell phone in their pocket every
single day… those are some incredible numbers.
Is there was a way to make money legally within this huge pool of cell phone users?
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The BRIC countries are bursting onto the world stage and rising to global doninance.
(BRIC is an an acronym for the economies of Brazil, Russia, India and China combined).
It’s a megatrend that will shape the entire century.
Don’t miss out on this.
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TAGS: Brazil, BRIC, cell phone, China, deficit, India, money, Russia
Posted in Economy | No Comments »
June 6th, 2009
The official U.S. unemployment rate rocketed to 9.4%!
… the worst in a quarter century!
(And this doesn’t even begin to count the millions who suddenly
find themselves trying to live on a part-time income).
The government’s recent bank “stress” tests scored a big-fat… F.
They were were flat out dead WRONG.
They assumed an average employment rate of 8.9% this year.
With the government’s announcement (9.4%), it is now clear as a bell,
beyond a shadow of any doubt, that the actual rate will be far higher.
Our Treasury Secretary, Timothy Geithner, flew to Beijing to talk
(beg for mercy) from our biggest global creditor… China.
He was lectured in the ways of finance by Chinese officials.
He had to endure the laughter of Chinese students at Peking University.
They openly scoffed at his reassurances that…
… “Chinese financial assets are very safe.”
Who ever would have believed that Chrysler and General Motors file bankruptcy.
The worst layoffs are still yet to come… Not only from Chrysler and General Motors
but also from the thousands of auto dealerships and part suppliers.
Millions of small businesses all across America will feel the pinch.
Mortgage defaults and foreclosures will surge FAR more.
The Obama administration itself was just forced to raise its
2009 budget deficit estimate to a staggering $1,840,000,000,000.00.
(Up 5 % from a projection made just two months earlier).
The 2010 estimate was updated more than 7 % to $1.26 trillion.
Can You Read The Writing On The Wall?
The balance of world financial power is shifting
and not in a good way for the United States.
REAL MONEY investors are dumping bonds. They’re dumping the dollar.
They’re buying gold, oil, and other hard assets.
Crude oil has soared as much as 113 % from its December low.
Gold is closing in on $1,000 an ounce. Silver has almost doubled.
If you’ve ever considered working from home, then now
may be the best time ever to get started.
Watch this new video by an Internet Millionaire:
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TAGS: Beijing, budget deficit, China, Chrysler, General Motors, gold, oil, Peking University, Timothy Geithner, unemployment rate, video
Posted in Misc., Economy | No Comments »
July 2nd, 2008
This is an eye-opening story I read by Sean Brodrick…
I’ve been pounding the table about an energy crisis for quite some time.
As a loyal reader of my Money and Markets column, you might think
I’ve been proven right by gasoline soaring over $4 a gallon in 32 states
and oil hitting new record highs. But most of what I’ve been talking about is simply the long-term
supply/demand squeeze that will transform our oil-addicted civilization
in the future. It appears, however, that the future is happening now.
My fundamental and technical indicators are ALL sounding alarm bells.
Today, I’m going to give you an uncensored, no-holds-barred look
at the consequences of the energy crisis. First, let’s talk about
why Peak Oil poses such an extreme economic threat to both
Wall Street and Main Street.
The Short-Term Energy Crisis in America!
If oil reaches $200 a barrel, forget $4-per-gallon gasoline.
Think $6.64, according to a Rice University analysis of the link
between prices of crude and gasoline.
And they’re optimists in the bunch of experts who study Peak Oil.
What I’m telling you to prepare yourself for is a short-term spike in
oil prices where gasoline becomes unavailable. As in, you’ll want to buy it,
but it won’t be available at any price … or any price you can afford.
You see, the world’s producers are pumping flat-out.
Saudi Arabia just promised to raise production a little bit,
but that reduces their spare capacity to almost nothing.
There is no margin of error … no room for something to go wrong.
But something always goes wrong!
What will spark the kind of gasoline crisis I’m talking about?
Take your pick of potential disasters. Here are just the top three …
#1) U.S. Edging Closer to War with Iran
Last week, the Jerusalem Post reported that former U.S. ambassador
to the U.N. John Bolton said that Israel is likely to attack Iran in the time
between the November presidential election in the U.S. and the
inauguration of the new president.
Mr. Bolton also said that he does not believe the U.S. will participate
in the attack. Israel may attack because Iran will not give up its
nuclear development program.
However, in the U.S., CBS News reported that the Israelis are trying hard
to get the Bush Administration to mount an attack on Iran’s nuclear facilities.
And the U.S. Congress is debating a resolution that slaps new economic
sanctions on Iran, proposes a blockade, and seems to open the door
for military action.
Ron Paul, the courageous U.S. Representative who has long stood up
against the Iraq War, calls the new bill “a virtual war resolution.”
Do you think the Iranians are sitting on their thumbs, waiting for something
to happen? Hardly. According to another Israeli news service, Iran has aimed
its Shahab-3B ballistic missiles into launch positions, targeted squarely at
Israel … including Israel’s nuclear reactor in the Negev city of Dimona.
What’s more, Iran says that if it’s attacked, its Revolutionary Guards
would mount attacks on shipping in the vital Strait of Hormuz oil route.
Two-fifths of all globally-traded oil passes through the Strait of Hormuz.
And it’s not hard to figure that oil facilities in Saudi Arabia could also
be targeted.
If it comes to a new war in the Persian Gulf, don’t expect $200 per barrel oil.
Expect $400 per barrel oil … $500 per barrel oil … maybe higher.
#2) Monster Hurricanes in the Gulf of Mexico
Hurricanes Katrina and Rita proved that the Gulf of Mexico is America’s soft
underbelly, vulnerable to a devastating punch from Mother Nature during
hurricane season.
When a global weather pattern called La Niña is strong, hurricanes are also
more powerful than normal. Well, batten down the hatches, because a strong
La Niña is expected to last through the summer, delivering worse-than-average
storm activity THIS season.
The National Oceanic and Atmospheric Administration (NOAA) predicted
above-normal hurricane activity in its Atlantic Hurricane Season Outlook.
NOAA projects 12 to 16 named storms will form within the Atlantic Basin,
including 6 to 9 hurricanes, of which 2 to 5 will be intense during the upcoming
hurricane season.
And that could be a lowball estimate. The average number of Category 4 and
Category 5 hurricanes worldwide has nearly doubled over the past 35 years.
Now here’s the bad news: The Gulf of Mexico is home to 20% of the natural gas
and 30% of the oil produced in the U.S. and 40% of America’s refining capacity.
If that refining capacity gets taken out by a massive hurricane, forget $4
a gallon gasoline … $5 a gallon gasoline … heck, we might be looking at
$6 a gallon gasoline or higher, very quickly. And the higher we go,
and the longer we stay higher, the more “normal”
otherwise outrageous gasoline prices become.
And refineries are already playing with fire as it is …
#3) Refiners and Retailers See Profit Margins Squeezed With the rising cost of oil, America’s refiners are taking a gamble
by keeping low inventories of crude and lowering their refinery
utilization rates at the same time. According to the Energy
Information Administration, gasoline stockpiles fell by 153,000 barrels
to 208.8 million barrels in the most recent week.
Refinery utilization, which normally hovers in the 95% range
at this time of year, is currently at just 88.6%. In fact,
it’s at the lowest level for early summer in 15 years.
If refinery inputs are at 15.4 million barrels per day (mainly crude oil),
a one-percent change in yield is a 154,000 barrel-per-day
(4.7 million gallons) change in product volume. U.S. consumption
of gasoline is around 388.6 million gallons/day.
So those few percentage points mean a real difference in supply …
which means higher prices.
Meanwhile, demand for motor gasoline over the past four weeks
declined by an average of 9.3 million barrels per day — down 2.1%
from the same time a year ago, and down 5% from its peak of 21.3
million barrels a day on January 4, the EIA reported.
This lessening of demand is the excuse the refiners use for the low run
rates. Since American consumers are using less gasoline, they say
they need to process less. But less supply drives up prices,
so consumers use less gasoline — it’s a vicious circle.
While rising input costs have squeezed refinery margins mercilessly,
gasoline retailers — gas stations — are also seeing profit margins
tighten to the vanishing point.
In 2007, the average markup of gas sold at the pump was 14.3 cents
per gallon over what the owner paid, according to data from the National
Association of Convenience Stores, the trade group for the stores
that run more than 80% of the country’s gas stations.
The profit, or net margin after all expenses have been figured in,
has now shrunk to a measly 1.5 cents a gallon!
Now, with the price of gasoline rising, charges for credit card
transactions are rising as well, and many gas station owners are
making no money at all.
That’s why Exxon, the most profitable company in the history of the
world, announced in June that it is selling the 2,200 gas stations it owns.
Will it find buyers for those gas stations? If not, we can expect gas
stations to close. And we may see gas stations across America close
anyway, as station owners gets squeezed out of existence.
Some rural areas are served by only a few gas stations … as they start
to go out of business, it may become very difficult for some Americans
to buy gasoline. And that will lead us to a whole new problem …
Prepare for Hoarding and a
Recession-Turned-Depression
Why hoard? Well, when the price of gas rises 10 cents in a week,
as it did in my neighborhood, it starts to make economic sense
to hoard gas. Say you run a lawn service that uses 500 gallons
of gasoline a week. If you buy next week’s allotment ahead of time,
you can save $50 a week.
And if refinery utilization is so low that gasoline stations simply run out —
or a massive hurricane takes out refinery capacity — then you’ll see
hoarding kick into overdrive. This will only deplete stockpiles that are
already near historic lows, making the whole situation much worse.
Eventually, we may get to the point where you are unable to buy gas.
I’m talking about actual gasoline shortages … massive unemployment
and foreclosures … evicted families living in tent cities and cars they
can’t afford to drive … maybe, if things get really bad, food shortages
and food and fuel riots.
At $7 gasoline, those making less than $25,000 a year will see gasoline
expenditures go from 7% of their income to 20%. For some people,
it simply won’t be worth it to drive to work.
Factor in the airlines parking planes, delivery trucks no longer running,
fishing fleets staying in port, and car manufacturers going out of business.
Wait a minute — car makers going out of business?! Yep, GM is on
deathwatch now, and it’s not getting better. In fact, according to a
leaked report from J.D. Power and Associates, the June seasonally adjusted
annual sales rate will plunge to 12.5 million vehicles, down from 16.3 million
last June.
Add it all up, and America has the ingredients for a major economic collapse.
And Yet Oil Demand Is
Still Skyrocketing Globally!
Will reducing U.S. demand cause oil prices to plummet?
No, because demand in emerging markets is accelerating, and even if the
global economy slows, that won’t stop them. Much of China’s growth is
fueled by internal spending now. They may not like it if Americans are
out of work, but they’ll carry on.
Just think: How bothered were you by the collapse of the Soviet Union?
A major superpower hit the skids in 1985 and imploded in 1991. Did that
adversely affect your life in any meaningful way? I’m not saying a severe
recession in America won’t affect China … just not as much as we might think.
This year, emerging markets are overtaking the U.S. in consumption of oil
for the first time, and it won’t be long before they consume more than the
entire developed world.
At the same time, internal demand is rising in major oil producers and exporters.
Over the last three years, oil consumption among OPEC members has grown
by more than 5% a year. Hence, their exports go down and prices go up.
So while America’s car sales may be hitting the skids, 6.6 million to 10 million
new cars, trucks and vans will hit the roads in China this year. India will
probably grow at an even faster pace, percentage-wise. Bottom line:
They’ll use every barrel of oil we don’t.
And the Rising Price of Oil Could
Even Lead to Severe Food Shortages
American agriculture directly accounts for 17% of our energy use,
or the equivalent of 400 gallons of oil consumed by every man, woman
and child per year, according to the most recent statistics I could find.
If the cost of fuel gets too high, farmers won’t plant. If truckers run
out of fuel, they won’t deliver food to supermarkets. If enough of this
happens often enough, people won’t just sit there and take it.
They will lash out.
Now, what would you say the odds are of this happening in a year
when we are on the brink of war with Iran … when meteorologists
say this hurricane season should be worse than normal …
and when refineries are keeping historically low levels of inventories?
I’d say better than average.
And the sad thing is, I’ve just barely scratched the surface of what
could go wrong this year. I’d say America is in real trouble.
- Sean Brodrick -
How to Protect Yourself — And Your Family
The best way to protect and hedge yourself against the uncertainties
of the economy, is to have a successful home business
CLICK HERE for Naked Niches
TAGS: CBS, China, Exxon, gas crisis, Gulf of Mexico, iran, J.D. Power, oil crisis, OPEC, peak oil, Revolutionary Guards, Saudi Arabia, Straight of Hormuz, war with iran
Posted in Misc. | No Comments »
May 30th, 2007
Sallie Mae is the largest U.S. student loan group.
Sallie Mae recently announced its first foreign venture…
a loan program targeting British post-graduate students.Just as in America, higher education costs are hammering
other developed nations and forcing a reassessment of
who pays, how and how much.
A “Free” university education (meaning one paid for by taxpayers)
and not students or their families in much of Europe,
was seen for decades as a basic right… Not Any More!
Britain in the late 1990s became the first European country
to impose more than a nominal university tuition fee.
Today in the UK, tuition is capped at about $6,000 a year
for full-time students who started school last autumn.
Still cheap by U.S. standards, but costly compared to most systems.
Tuition is being imposed for the first time in other countries,
including Germany this year.
Even in China and former Communist countries (where a free college
education was once politically sacred), students now are paying fees.
Many take out student loans to make ends meet.
The U.S. is #1 in college costs!
The U.S. has the world’s most expensive higher education system.
And the cost keep getting higher and higher. American students
pay an average of $5,800/year in tuition.
That’s to attend a four-year PUBLIC university.
For a private four-year school, it will cost an average of…
$22,200/year… according to the College Board.
The College Board is an educational testing and services group.
For middle-class U.S. families, college costs are a major burden.
Just this morning a co-worker of mine was complaining about the
25,000 after tax, out of pocket dollar expense he has to pay
to send his daughter to Boston University.
That’s a huge chunk of money for the average American family.
Most families don’t have that kind of cash and will have to borrow.
Students can borrow directly from the government, or from banks
through federally guaranteed private loans.
On the increase are loans from banks with no federal guarantee,
so you will end up paying more interest.
What College Students really need is More Scholarship Money.
More Scholarship Money means Less Loans.
However, 95% of scholarship applications are thrown away
without consideration.
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TAGS: Boston University, China, College Board, college cost, Communist, Germany, Sallie Mae, scholarships, student loan
Posted in Student Loans, Scholarships | No Comments »
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