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Digg it UP - Defending Wealth Against the Great Enemy: Inflation
If you are a bad credit rating, we have less option to resolve your debt issues. And if you are at the disparate condition to pull yourself out from debt and get rids of all the harassing phone calls from your creditors, there are a few options of debt relief for bad creditors.Consumer Credit CounselingThere are many Consumer Credit Counseling service (CCCS) around to help you to solve your debt problems. You can enroll into their CCC program to get counseling on personal finance and follow their plan to resolve your debt problem. Normally CCCS is a non-profit community action organization whose staff members have the training and experience to help you help yourself. In many cases, CCCS assists consumers by contacting their creditors and arranging lower monthly payments. Some services are provided free to consumers. CCCS was founded by creditors to aid their financially distressed customers totally free of charge.A CCC program will not lower your credit
The increase in the money supply has had numerous side affects. No longer can a family be supported on one person’s income just to survive let alone have enough money left to send the kids to college. Social Security has become entirely depleted and the money being paid to retirees from Social Security isn’t worth enough to enable survival. The age of retirement is getting older and the number
Large service company franchise systems are a lot to manage. Luckily with many franchise owners they work much more efficient than straight managers because it is their money on the line and they know it. Franchise services companies which clean carpets, pave driveways, clean mini blinds, change oil in cars or even groom dogs need nationwide systems for customer credit card approvals, as well as gift cards and perhaps even loyalty credit cards too. With such system it is indeed important to have Universal Credit Card Approval. How so you ask?Well for instance what about a Nationwide franchise credit card processing software program? Your franchisees can log on (secured) and enter the customer’s credit card and charge it appropriately, via wireless device and it would go into the Intranet System and would be able to take the company credit loyalty cards too.Franchisees often have companies call them and tell them that they have software they can install on their computer to accept credit cards
When inflation is reported in mainstream media, lots of numbers are spewed forth and acronyms like CPI are often made reference to. What is the CPI and is there truly an accurate measure of inflation? Lets start with a working definition of inflation.
True inflation (referred to as monetary inflation) is an increase in the money supply. This includes: the increased printing of fiat currency, any bank loaning money it does not currently have possession of (either to another bank, a country, or an individual), and simply by paying interest on these loans with money that has been printed for this purpose. U.S. Federal Reserve measures monetary inflation by what’s called monetary aggregates, or M1, M2, and M3 – M3 being the most inclusive measure of the actual money supply.
The U.S. Federal Reserve uses the CPI as the measure of inflation as given to the public. According to the U.S. Department of Labor’s Bureau of Labor Statistics, “the Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.” The value placed on the basket of consumer goods is determined by “using hedonic quality adjustment methods.” Or rather the basket is composed of categories of goods and the lowest priced good in a particular category is used in the calculating of the CPI.
For example, if meat is the category and chicken and beef are the goods in the meat category and chicken is the least expensive, then only the price of chicken will be a part of the current month’s CPI. If the following month, beef is the cheapest, only the price of beef will be used. Thus the CPI could change 3% over a period of time, and the price of chicken could increase 9% over the same period. According to the CPI chicken increased 3% but according to your pocketbook, the price of chicken rose 9%. Because true inflation is the increase in money supply, an increase in the price of chicken and not beef is due to supply and demand, not inflation.
The most common method the Federal Reserve utilizes to increase the money supply is by lowering the federal funds rate. This is the interest rate at which the Federal Reserve loans money to private banks. When the interest rate is low, there is more incentive for banks to borrow from the Federal Reserve then loan the newly acquired funds to businesses and individuals.
The Federal Reserve is able to create the money available for loan out of thin air by adding money to its credits column. This is what might be called Creative Accounting and only the banking system can get away with this practice. This practice is also used when the U.S. government borrows money from a foreign bank. The interest payment is simply created on the books and then the payment is made. Any private individual who tried to use this type of method for creating money would be tried for fraud under the RICO act.
Monetary inflation becomes highly attractive to a government when taxes are already high and more money needs to be raised for further expansion. When the Federal Reserve increases the money supply the private individual is the one who gets stuck flipping the bill.
For example, if there is $10,000 already in the money supply, the total goods for sale can be purchased for $10,000. This is worked out naturally through the free market. If all of a sudden another $10,000 is flooded into the money supply, all goods being sold can be bought for $20,000. The purchasing power of the original money in the money supply has been effectively cut in half and those people less fortunate to have hung onto their hard earned money just lost half of their savings. The affects of an increase in money supply are not realized until six months to one year after the increase has taken place. This is usually then blamed on the weather or some such ridiculous event that has nothing to do with the all-around price increase.
The increase in the money supply has had numerous side affects. No longer can a family be supported on one person’s income just to survive let alone have enough money left to send the kids to college. Social Security has become entirely depleted and the money being paid to retirees from Social Security isn’t worth enough to enable survival. The age of retirement is getting older and the number
Troy got his website up by some college friends who, just like him, pursued the green bucks by way of putting up small-scale business enterprises. Troy wants his website as his communications portal to the rest of the world, and his friends got it for him splendidly. Until he needed to change his phone numbers. Then his business tagline. And more recently, his business address.His website still looks good, his friends’ collaborative efforts on the design proved effective in drawing traffic to his site, but the necessary changes that came and went, though necessary, had proven expensive.Troy wonders if there is a way he can “tinker” with his own site, adding news clips here and there, without necessitating a visit to his friends’ place, and get billed with few bottles of extra beer.Troy’s predicament is shared by many website owners who, having successfully navigated the internet for a few years, forgot that their site needs a facelift from time to time, in order to remain competitive. Ch
The U.S. Federal Reserve uses the CPI as the measure of inflation as given to the public. According to the U.S. Department of Labor’s Bureau of Labor Statistics, “the Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.” The value placed on the basket of consumer goods is determined by “using hedonic quality adjustment methods.” Or rather the basket is composed of categories of goods and the lowest priced good in a particular category is used in the calculating of the CPI.
For example, if meat is the category and chicken and beef are the goods in the meat category and chicken is the least expensive, then only the price of chicken will be a part of the current month’s CPI. If the following month, beef is the cheapest, only the price of beef will be used. Thus the CPI could change 3% over a period of time, and the price of chicken could increase 9% over the same period. According to the CPI chicken increased 3% but according to your pocketbook, the price of chicken rose 9%. Because true inflation is the increase in money supply, an increase in the price of chicken and not beef is due to supply and demand, not inflation.
The most common method the Federal Reserve utilizes to increase the money supply is by lowering the federal funds rate. This is the interest rate at which the Federal Reserve loans money to private banks. When the interest rate is low, there is more incentive for banks to borrow from the Federal Reserve then loan the newly acquired funds to businesses and individuals.
The Federal Reserve is able to create the money available for loan out of thin air by adding money to its credits column. This is what might be called Creative Accounting and only the banking system can get away with this practice. This practice is also used when the U.S. government borrows money from a foreign bank. The interest payment is simply created on the books and then the payment is made. Any private individual who tried to use this type of method for creating money would be tried for fraud under the RICO act.
Monetary inflation becomes highly attractive to a government when taxes are already high and more money needs to be raised for further expansion. When the Federal Reserve increases the money supply the private individual is the one who gets stuck flipping the bill.
For example, if there is $10,000 already in the money supply, the total goods for sale can be purchased for $10,000. This is worked out naturally through the free market. If all of a sudden another $10,000 is flooded into the money supply, all goods being sold can be bought for $20,000. The purchasing power of the original money in the money supply has been effectively cut in half and those people less fortunate to have hung onto their hard earned money just lost half of their savings. The affects of an increase in money supply are not realized until six months to one year after the increase has taken place. This is usually then blamed on the weather or some such ridiculous event that has nothing to do with the all-around price increase.
The increase in the money supply has had numerous side affects. No longer can a family be supported on one person’s income just to survive let alone have enough money left to send the kids to college. Social Security has become entirely depleted and the money being paid to retirees from Social Security isn’t worth enough to enable survival. The age of retirement is getting older and the number
A growing number of companies in uae are beginning to swear by the results of advergaming: interactive games on websites that site visitors can play. Whether they're simple sweepstakes, more involved knowledge-based quizzes, or full-blown video contests designed to engage discriminating teenage boys and girls, online advergaming is coming into its own as a marketing genre Online games come in many forms. Perhaps the most recognized are the highly visual, action-oriented pop-ups familiar to contest4uae.com users. They're primarily used by advertisers for branding purposes and are generally delivered via pop-ups and in various other ad formats on third-party sites. The objective is to attract traffic and acquire new customers. Advergaming is the use of games to deliver advertising messages, drive traffic to web sites, and build brand awareness.Advergames are a natural and increasingly accepted evolution from print ads, T.V. ads, and banners, taking full advantage of the interactivity of the Internet a
The most common method the Federal Reserve utilizes to increase the money supply is by lowering the federal funds rate. This is the interest rate at which the Federal Reserve loans money to private banks. When the interest rate is low, there is more incentive for banks to borrow from the Federal Reserve then loan the newly acquired funds to businesses and individuals.
The Federal Reserve is able to create the money available for loan out of thin air by adding money to its credits column. This is what might be called Creative Accounting and only the banking system can get away with this practice. This practice is also used when the U.S. government borrows money from a foreign bank. The interest payment is simply created on the books and then the payment is made. Any private individual who tried to use this type of method for creating money would be tried for fraud under the RICO act.
Monetary inflation becomes highly attractive to a government when taxes are already high and more money needs to be raised for further expansion. When the Federal Reserve increases the money supply the private individual is the one who gets stuck flipping the bill.
For example, if there is $10,000 already in the money supply, the total goods for sale can be purchased for $10,000. This is worked out naturally through the free market. If all of a sudden another $10,000 is flooded into the money supply, all goods being sold can be bought for $20,000. The purchasing power of the original money in the money supply has been effectively cut in half and those people less fortunate to have hung onto their hard earned money just lost half of their savings. The affects of an increase in money supply are not realized until six months to one year after the increase has taken place. This is usually then blamed on the weather or some such ridiculous event that has nothing to do with the all-around price increase.
The increase in the money supply has had numerous side affects. No longer can a family be supported on one person’s income just to survive let alone have enough money left to send the kids to college. Social Security has become entirely depleted and the money being paid to retirees from Social Security isn’t worth enough to enable survival. The age of retirement is getting older and the number
General Motors Corp. announced in late November 2005 that it will close 9 of its United States auto manufacturing plants as well as three assembly-related plants which includes one location in Canada. Ford Motor Co. followed suit in early December 2005 announcing it is considering the shutdown of up to 8 of its U.S. manufacturing plants, including engine and assembly operations, with one in Mexico. Americans are well familiar with the downsizing, outsourcing and offshoring of the U.S. manufacturing base which has seen 2/3 of its jobs lost in the past 20 years, having been traded in for third world cheap labor. And while white-collar workers have hardly been immune from offshoring practices infiltrating boardrooms, indication this week is that the tide has changed.Both the Intel Corp., the world’s largest computer chip manufacturer, as well as J.P. Morgan Chase & Co., one of the world’s largest financial institutions and 2nd largest in the U.S., are investing in creating new jobs in India over the next
Monetary inflation becomes highly attractive to a government when taxes are already high and more money needs to be raised for further expansion. When the Federal Reserve increases the money supply the private individual is the one who gets stuck flipping the bill.
For example, if there is $10,000 already in the money supply, the total goods for sale can be purchased for $10,000. This is worked out naturally through the free market. If all of a sudden another $10,000 is flooded into the money supply, all goods being sold can be bought for $20,000. The purchasing power of the original money in the money supply has been effectively cut in half and those people less fortunate to have hung onto their hard earned money just lost half of their savings. The affects of an increase in money supply are not realized until six months to one year after the increase has taken place. This is usually then blamed on the weather or some such ridiculous event that has nothing to do with the all-around price increase.
The increase in the money supply has had numerous side affects. No longer can a family be supported on one person’s income just to survive let alone have enough money left to send the kids to college. Social Security has become entirely depleted and the money being paid to retirees from Social Security isn’t worth enough to enable survival. The age of retirement is getting older and the number
Since the dawn of time, setting up a viable business has never been easier. Through the Internet, you can now tap the world’s marketplace from your living room. But here’s the problem: you don't know how to make a Web site!Access to the world's marketplace isn't the only big change. Traditional jobs are becoming scarcer. Maybe your job future doesn't look as assured as it once did. This is a good reason to look at income from a small business. In fact, there are entrepreneurs out there who have made a lot of money from the Internet.But you're not taking the first step. You don’t know how! And you think you can’t afford it.There are plenty of tools out there on the Internet that will help you. They are template Web sites that do nearly all the work for you. But there is one problem with them: you don't learn the skills you need to know to manage the site! As a Webmaster you will need to some HTML, the formatting language for Web sites. You'll need to add affiliate links and sho
The increase in the money supply has had numerous side affects. No longer can a family be supported on one person’s income just to survive let alone have enough money left to send the kids to college. Social Security has become entirely depleted and the money being paid to retirees from Social Security isn’t worth enough to enable survival. The age of retirement is getting older and the number of people who continue to work after retirement is on the rise. The U.S. (including private individuals) in 2006 is more in debt than any country in the history of Man. More and more people are filing for bankruptcy and savings are at an all-time low. Look around and ask if this is because “inflation” is supposedly a cool 3% a year or is it because the true inflation percentage is much greater.
It just so happens that there are ways to protect oneself from the nasty affects of monetary inflation policy. Currently the precious metals’ market is growing at a rate that is out pacing inflation. This is due to several reasons, one of which is that people are beginning to see the decline in not only the U.S. dollar, but also any fiat currency that has a devaluation policy behind it. Countries all around the globe are trading their reserve currency for gold and silver to protect their wealth against the inflation of most countries’ fiat currency.
There are several ways to get invested in precious metals but a solid investment strategy must first be developed. Part of developing a sound strategy is determining weakness and clarifying some basic goals. Lets examine fighting inflation with gold. Not only can we investors protect our wealth against the dollar and other fiat currencies by buying gold bullion, but can also take an offensive position by buying shares of a gold mining company. This leverages the investor’s investment and as the effects of monetary inflation become more severe, the portfolio becomes increasingly more aggressive. The key to this is no longer keeping a widely diversified portfolio (i.e. buying into the S&P 500) but by assessing needs and exploiting weakness.
If I am in my 30’s and have a limited amount of capital, and recognize the weakness of inflation, I may choose to protect some of my wealth by investing in gold bullion and transferring the remainder of my assets to small and medium sized gold mining companies. I can minimize the risk of such leveraging by intensively researching the history and the management of the companies to determine the likelihood of large returns on invested capital.
Patience is a key to a strong strategy. Remember, the strategy was developed during a period of relative calm; a period during which sound judgment ruled over strong emotions. Be sure your strategy includes plans for times of high stress and emotion. This plan could be as simple as knowing the type of market you are in. If you are in the gold market, and you know that gold is a bull, then you can be sure to buy instead of sell when the value takes a slight dip. This not only protects against emotions but also increases profits when gold continues up. Have patience and confidence in your strategy to stick with it and not give in to uncertainty and emotion. Remember, if you have made large profits, it is okay to sell and buy into the next big market - buy low, sell high.
If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle.
Sun Tzu – Art of War
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