Why Study Finance and Investing?

Posted on November 30, 2011 by Bernarr Pardo

Why Study Finance & Investing? Discover opportunities in the challenging global economy. Avoid investing mistakes; discover how to reduce your investing risk.  Learn some of the myths about finance and investing that can improve your cash flow and net worth. Explore great investing ideas and opportunities now & increase your financial learning by reading the posts below & finding topics of interest.

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We Want Your Feedback!

Posted on May 28, 2012 by Bernarr Pardo

Please take our short survey and receive the eBook “Think and Grow Rich” for FREE.

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Government Releases Sequestration Exceptions: or Your Government at (non) Work

Posted on March 4, 2013 by Bernarr Pardo
With all the greed and dishonesty, lack of guts to do what is right,…….in the government, I”m often amazed that we are doing as well as we are. It is part of the evidence that the country would do just fine without most of the government.

So the Big Sequester goes into effect:

1. The borrowing limit would automatically increase by another $1.2 trillion.

2. Automatic, across-the-board spending cuts called a “sequester” would kick in.

However, there are a number of exemptions to the spending cuts, including:

  • Social Security and Medicaid benefits
  • Refundable tax credits to individuals
  • Food Stamps
  • Children’s Health Insurance Program
  • Supplemental Nutrition Assistance Program
  • Temporary Assistance for Needy Families
  • Supplemental Security Income

So the question is: who is going to bear the brunt of the $85 billion in cuts? There is word on the streets that military support staff will be forced to take a 2-day forced furlough every 2 weeks, or a 20% paycheck cut.

That’s our government at “work.” Excuse me if I differ.

To Your Success–Bernarr

 

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Personal Income: Biggest Drop in 20 Years!

Posted on March 1, 2013 by Bernarr Pardo
In stark contract to December data, personal income for January 2013 dropped 3.6%, the biggest drop in 20 years. See the chart below:

While personal income has dropped, consumer sentiment has remained somewhat high (Univ. of Michigan consumer sentiment):

This is happening while the government needs to reduce spending (eg, less entitlements). Not a good combination.

Sources:

http://www.bea.gov/newsreleases/national/pi/pinewsrelease.htm

http://www.zerohedge.com/news/2013-03-01/consumer-taps-out-income-plunges-most-20-years-savings-rate-crashes-2007-levels

To Your Success–Bernarr
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Why the U.S. Economy is Falling Apart

Posted on February 8, 2013 by Bernarr Pardo
Just read interesting article about why the economy is falling apart:

“Things are falling apart–that is obvious. But why are they falling apart? The reasons are complex and global. Our economy and society have structural problems that cannot be solved by adding debt to debt. We are becoming poorer, not just from financial over-reach, but from fundamental forces that are not easy to identify or understand. We will cover the five core reasons why things are falling apart:

1. Debt and financialization
2. Crony capitalism and the elimination of accountability
3. Diminishing returns
4. Centralization
5. Technological, financial and demographic changes in our economy

Complex systems weakened by diminishing returns collapse under their own weight and are replaced by systems that are simpler, faster and affordable. If we cling to the old ways, our system will disintegrate. If we want sustainable prosperity rather than collapse, we must embrace a new model that is Decentralized, Adaptive, Transparent and Accountable (DATA).”

Read the full article.

To Your Success — Bernarr

 

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Why Reported Inflation Seems Different Than Reality

Posted on January 13, 2013 by Bernarr Pardo

“The subject of inflation has remained an emotionally charged topic of debate over the last several years.  As rising prices for individuals, and businesses, has negatively impacted their prosperity; reported inflation has remained at very low levels.  With the Fed pumping trillions of dollars into financial system the fear of much higher inflation, as the dollar is debased, has caused gold prices to soar in recent years.  As we will discuss momentarily, the issues surrounding government spending, and the massive deficit, has brought the topic of inflation to the forefront of the political debate.”….

“Furthermore, a side effect of artificially suppressing inflation is that taxes would slowly increase because annual adjustments to income tax brackets would be smaller.  This would eventually push more people into higher tax brackets…”

Read the full article

To Your Success–Bernarr

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Probability of Recession in the United States

Posted on January 6, 2013 by Bernarr Pardo
The following chart appeared on the website of the St. Louis Federal Reserve Bank. This has predicted recessions following a spike above 20 percent: this has happened 6 times in 46 years. Be careful in 2013.

To Your Success–Bernarr

 

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The “Entitlement Cliff”, Government Spending, Government Regulations,…and more

Posted on December 30, 2012 by Bernarr Pardo
OK, most of us pay taxes and almost all of us file our tax returns. Is that a productive use of our time and energy? According to the latest estimate, Americans spend 6.1 billion hours just complying with tax legislation.

Or consider this:

An article in Cato Institute’s “Regulation” magazine, Fall 2012, shows the cost of the 10 Top Regulations Affecting Small Businesses. These are: Energy Conservation Standards, Affordable Care Act Menu Labels, Transportation’s Hours of Service Rule, Affordable Care Act Vending Machine Labels, NLRB’s Union Notification Standards, Education’s Gainful Employment Rule, EPA’s Fracking Regulations, Dodd-Frank Regulation Z, Affordable Care Act Physician Fee Schedule, Dodd-Frank Regulation E. Together these cost small businesses $3.5 billion annually, according to the study. And they add 28.7 million hours of paperwork.

According to a recent email from “The Daily Reckoning”

“…data from the Mercatus and Weidenbaum centers show that budgets for the main federal regulatory agencies multiplied 14 times between 1960 and 2007, in constant dollars. The payoff from all this extra investment is hard to measure; most likely it is starkly negative.”

There are enormous costs to private businesses as a consequence of government regulations and programs; costs which do not add to our quality of life or enhance our economy. And it’s not just the United States. According to same email: “Nor do we have to single out the US as particularly wasteful. France is worse, with more than 50% of the nation’s GDP spent by the government.”

To Your Success–Bernarr

 

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The Developed World Losing GDP—The Shifting Economies of the World

Posted on December 20, 2012 by Bernarr Pardo
The share of world GDP of the developed countries is shrinking and the share of world GDP of many other countries is rising; particularly China—not a surprise. Note the shrinking GDP share of the United States, Japan and the United Kingdom. Note in the chart below comparing 2001 with 2011, how well the BRIC (Brazil, Russia, India, China) countries are doing.

To Your Success–Bernarr

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Economic Charts You May Find Interesting

Posted on December 18, 2012 by Bernarr Pardo

United States unemployment rate from the Bureau of Labor Statistics (bls.gov)

 

 

 

 

 

Even if you are fortunate to be employed, the value of the dollar has fallen dramatically over the past 13 years.

 

 

 

 

 

 

 

 

And this is the U.S. federal debt as percent of GDP, which adjusts for the growth of the economy. It is difficult to sustain an economy at a debt of 100% GDP.

 

 

 

 

 

 

Worldwide, the debt to GDP is a big problem. And these are all fiat currencies. The U.S. Fed and the Euro central bank continue to print new money; this must eventually lead to increased inflation.

 To Your Success–Bernarr

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More on the Fiscal Cliff: Some Facts on Your Government

Posted on December 7, 2012 by Bernarr Pardo
It seems no one really knows what will happen in 2013. There are some definite economic challenges, and it remains to be seen whether or not the government can or will make good choices. I don’t know how much more money the Fed can print to solve problems, but it can’t go on forever. This video should get you thinking more about where our economy might be headed in 2013, and your investment decisions.

 

To Your Success…Bernarr

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Fiscal Cliff or No Fiscal Cliff?

Posted on November 27, 2012 by Bernarr Pardo
This video presents a view of the impending Fiscal Cliff that warrants some thought. The central issue discussed is the huge, increase in Social Security tax. Since the Social Security fund is really just an accounting fiction, the argument is that this is just a tax increase on the backs of taxpayers. Related to this is the consideration of partially privatizing Social Security and the potentially massive effect on the stock market.

Whether you agree or not, it is important to think about what deals are being made in the government that may not be in our best interest.

To Your Success…Bernarr

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