Inflation Blindfold Conspiracy

Right now we have at least 14 million unemployed and growing. There is a high probability that unemployment could exceed its historic norm of 5 percent to 6 percent for several more years.

Our consumer price index (CPI) is way up. Our consumption of food, energy, clothing, recreation, education, transportation, toys, cosmetics, etc. makes up 58% of the Consumer Price Index with the housing market making up the other 42% and we know housing is down.  I don’t know if our leaders have gone to the grocery store lately or do a family budget and look at food as a line item but my family does  and what we are seeing is that prices are going up.

Everything is going up as we track our budget whether it’s education, health or life insurance, medical care, or our most precious groceries and water.  Yet the government keeps telling us there’s no inflation. Where are they shopping and are they doing it blindfolded?

The formula is quite simple and no wool pulled over your eyes should be able to keep you from the truth; even if media assists our government in this blindfolding experiment. First, our government borrows money from the Federal Reserve.Then the Federal Reserves says “sure we can help you out” and they loan the government some money. However, the Federal Reserve does not have any ‘real’ money but have control of the monetary system in this country and get the Treasury to fire up the printing presses and manufacture some money; or debt notes if you prefer.

The final stage is is where these dollars (debt notes) are created out of thin air and it gets its value by draining from existing money. Every time this new money or debt notes are manufactured and released, it takes away some of the value of the current money you’re holding; in essence it is stolen.

An example of how this effects you would be; you have $10,000 in a CD or the bank and most prognosticators agree the real effect of inflation is about 9.6%. Some even believe inflation it is running as high as 13%. However, we’ll stay with 9.6% to be conservative; perhaps even naive. So if you have this $10,000 in a CD or bank it would look like this

The Value of $10,000 with 9.6% inflation imposed on it for 5 years.

Ultimately the purchasing power of your savings; never mind the little interest it might acquire as it would have taxes to lessen it out. The purchasing power would be reduced by 36.8% in just five short years. By 2016 you will be left with just $6,323 out of your original $10,000 and have lost $3,677 just by doing nothing. This means things are not always about return which is nice and should be sought in tax-free environment going forward. But equally important is to consistently add to what you have and not lose anything. In other words, you need to protect principal, consistently and regularly add to your pot and try to eliminate as much tax imposed on it as legally possible. This 3 step process is a simple formula for wealth but many will not take advantage as it requires self-discipline and “know-how” on protecting principal and eliminating tax.

We teach seminars on smart money management and how to acquire corporate credit to fund your business aspirations and really succeed in what is now some of the toughest years in our country’s history. You have to ask this question – am I taking the right steps necessary to be able to retire? If you are not you will be working for the rest of your life and never taste true freedom which is to work on your own terms and time frame or choose to not work at all and know your family. Know  your family folks; how many of you can truly say you spend quality time with them and “know” them. I bet the number is resoundingly LOW.

We can help you as it is our life’s mission to reduce retirement poverty in this country and get those on track who will take the ” RED” pill rather than the “BLUE” pill (“ignorance is bliss”) and choose to not stay blindfolded in the dark but wake up.

James Burns

(866) 544-8825 Ext. 1 Office

Consumers Get Insult to Injury in a Worsening Economy

I was paying my T-mobile bill today when I noticed that if I didn’t sign up for electronic billing and kept the hard copies coming in the mail I am now going to be charged $1.50 per month for the luxury of getting a bill sent to me.

As if it wasn’t bad enough, now you have companies trying to stick it to you even for the bills they need to send to you. I’m not a fan of receiving the electronic bills because I receive so many e-mails and a lot of them are junk and might miss the bill or delete it by accident. I’m old school on my billing and want it in hard copy so I can organize it in a file with dates and make sure they get paid.

This is akin to the airline practice of hitting you up extra for a bag. It started out with no more meals. OK we said, we had enough of that cardboard food anyway but it was nice to get it offered or included in the outrageous price for flying. Now they are charging you not just for an additional bag, but every bag you check; even if it is one. We need to rebel Americans and show them we’re not going to take it. Forget sending a tea bag to your public representatives, start sending tea bags to these company CEOs who allow such caustic policies to be deployed that are not consumer friendly.

If we as consumers don’t work together to show them what is unacceptable they will continue to push us down and before you know it they be billing us for our carry on bag and to bring your own meal on the flight and there will be no stop to their adverse creative ideas to bilk you.

Sincerely,

James Burns, Esq.