More Fiscal Cliff Talks

My Quick Rant On This Topic

You know...this crap of fear mongering by the media is so elementary and obvious it's sickening.  This whole show about the Fiscal Cliff and taxes, and the wealthiest Americans paying more, and blah blah blah, is such a racket that is designed to divide us all.

When really looking at the numbers the top earners don't pay as much in taxes as you think they do folks.  Warren Buffet even said openly that he pays less in taxes in terms of percentage of income, than the average person does.

The very top earners pay people to find ways to reduce their taxes. Don't get me wrong I'm not against being wealthy and making money and living a very good life - who doesn't want to live a rich and fulfilling life? Everyone does that's a no brainer.. My point is this is a sneaky way to divide people through social stratification.

If you have money and ran a business or several businesses your goal would be to reduce your tax expense..duh.. Who likes to pay taxes? Nobody does.  The real people who pay taxes are the ones in the middle.  They carry the load which is why the soundbites are always targeted to "middle class" Americans which again the labels create a huge problem as it divides people into groups which leads to warfare...which is what they want!

If we're too distracted fighting a false paradigm, we can't actually come together as a nation and figure out a way to fix the problem.  "Class warfare" they label it ensues only worsening the problem.  It's trickery and is designed to keep us distracted, fighting, and living in fear and confusion.

What you fail to realize is that inflation is a silent tax and is way worse than what we're dealing with here on income taxes.  Have you noticed your food bill lately?

Oh but they want you to think that's a good thing because if prices are going up then that means your incomes will go up to match and plus the stock market is doing good and home prices are rising so just shut up and "feel" more wealthy when in reality you're income is not going up and the only ones profiting from the rising prices are the ones that control the lever...

If it's not a war on drugs, it's terrorism or taxes, or a bad economy, or murders, shootings, rapes, car wrecks, environmental calamities...It's a constant stream of bad news designed to keep people distracted, scared, confused, and worried all the time..

Jesse Ventura says it best when he describes our Congress as the world federation of wrestling as in front of the camera's they hate each other we have division, they're fighting it out but behind closed doors they're all buddies.

What you need to do is educate yourself and don't be fooled by what's going on around you.

This economy isn't going to get any better any time soon.  You need to decide how you are going to utilize your skills, talents, and brains to create extra income you can convert to stores of value like gold and silver and protect your family from the worst case scenario.

There are many ways to get started now in creating additional streams of income in your part time and start protecting yourself now - create your own economy and don't let this trash talk distract you or rob you of joy, happiness, and peace in your life.  Spend time with loved ones and cherish the special memories.

God Bless,

D...out...

Fed Unleashes More Liquidity

Just as I mentioned a couple of days ago in my post Mortgage Rates Updated, I said the Fed will keep the faucet flowing baby and with the news hitting today just a few hours ago, this has been confirmed.  The Fed will continue to purchase mortgage bonds to keep rates low and even try to get them lower to fuel demand.

This isn't going to stop ladies and gentlemen.  It's too late to take the foot off the gas now.  The excuse is the Fed will continue, "as expected" to stimulate the economy due to job numbers and economic indicators.  If you haven't seen the article check it out - http://finance.yahoo.com/blogs/daily-ticker/bernanke-bazooka-open-ended-qe3-very-aggressive-says-173314037.html.

As you can see from the article, now, as different in other announcements, this QE is "open ended" meaning no deadline to stop it.  As I mentioned before - call it QE infinite baby!

We're going to continue seeing this as now it's too late to stop it because they won't let the market liquidate all the bad debt and mal investment as this would uncover just how vulnerable alot of corporations really are and how unhealthy the financial system really is. 

If they would just let the system liquidate, it would be really bad for awhile, but would quickly bounce back stronger than before; however this strategy of pumping more and more cash into the system, is just going to lead to an even bigger collapse later on.

Ole Ben Bernanke doesn't care.  All he's concerned with is keeping his special interests and banker buddies happy.  Who benefits from all this? Yea, we have lower mortgage rates (which is good for lower payments but our dollar continues to decline) that are causing a frenzy right now with refinances and new purchases but lenders are not properly staffed which is causing a tremendous amount of backlog and issues getting loans to closing on time for purchases and in a reasonable amount of time for refinances.  Some loans are taking 90 days sometimes or longer to close because so many people are refinancing right now under the HARP 2.0 and new FHA streamline refi programs. 

According to some reports the Fed is saying they are going to keep rates low until mid 2015! Wow! First it was only a year then 2012, then 2013, now mid 2015.  Take a look at the chart below regarding the purchasing power of the dollar since the Fed took over in 1913; the dollar has lost over 96% of the purchasing power it used to have.  This isn't going to stop and countries all across the world are following suit of the Fed pumping massive liquidity into their economies to spur demand.  The only people really benefiting is the corporations and mega banks of the world as they profit hugely from this. 

The stock market sky rocketed today on the news continuting to fuel asset prices.  When will it ever stop? Never baby - hold on to your hats and enjoy the ride becasue you ain't seen nothing yet!

The big boys are making all the money and average saver is losing their purchasing power day by day by day while the Fed helps their bank buddies, big boy corporations, and special interests profit hugely by these moves as they are contrived and planned before the announcement to the public is ever made. 

We'll definitely get to see some rhetoric from Mitt and strutting peacock Barack I'm sure regarding this which continues to fuel the real life soap opera we call the 2012 Presidential Campaign.  The false sense of choice we have between the two candidates is not real choice - it's controlled opposition.  But that is another story for another day. 

New Mortgage Rate Lows

Well how about those mortgage rates? Right after Thanksgiving mortgage rates plummeted to new lows driving up refinance volume to new highs. How did this happen? Why the sudden drop? What is going on and how long will it last?

Readers what we're seeing is yet more government intervention trying to stimulate the housing market, which is roughly 16% of the U.S. economy. Starting in 2007 we started to see home prices drop and record foreclosures pulling home prices down even further. Yes i know it sounds so horrible and people are losing their homes and causing banks to lose billions and billions of dollars, but, home prices must come down to restore equilibrium.

You're probably thinking I'm crazy right now. Dustin what are you talking about? Well its simple. Home prices were artificially inflated and rose too high for incomes to catch up. We're not seeing incomes rising in America and with home values and prices sky rocketing into double digits, people couldn't afford to purchase homes. Not to mention the very lax regulatory initiatives from the government to keep predatory lenders at bay. If anything they promoted it.

The Community Reinvestment Act provisions in 1995 set off a chain of events that led us to the current sub-prime, Alt-A meltdown. Guess what? We're not finished. So what has the government been doing lately to promote growth in the housing sector? Well first the Treasury, and now the FED - also known as the Federal Reserve - has been buying up billions of dollars in mortgage-backed securities issued by Fannie and Freddie. Without going into too much detail, mortgage-backed securities are bonds issued by Fannie Mae and Freddie Mac - which are government sponsored enterprises known as the Federal National Mortgage Association and the Federal Home Loan Corporation - aka Fannie/Freddie.

These companies buy mortgages from banks and mortgage lenders, and promote the funding of mortgages by providing liquidity to lenders, through their purchases, freeing up lender capital to continue to fund these loans. Fannie and Freddie then package these loans into securities and sell them to investors worldwide while providing a specific guarantee to investors for any losses and receipt of timely interest payments. When money flows into this secondary market, it drives the price of these bonds higher, resulting in lower yields, thus lower mortgage rates.

Well before the Treasury and Fed stepped in, this market was unstable and had little confidence from investors, and for good reason. Our country was seeing rapid foreclosure with no end in sight. So steps were taken to try to subsidize mortgage rates in hopes that it would make mortgages more affordable thus bringing buyers back into the market, stabilizing home prices, and stimulating the economy.

Its worked in generating business but very few realize what had to be done in order to do this. The Treasury, in order to pay for this, has been issuing billions of new bonds, which is debt, in order to achieve its goal. Now for many of you, this may not send off red flags in your head. Not because you're unintelligent, but because nobody explains it to you. Believe it when I say, if it doesn't want to be known, it won't be told, but that doesn't mean you can't find out or learn.

The government is expected to run a 1.2 trillion dollar deficit in 2009. YES YOU READ THAT RIGHT, 1.2 TRILLION DOLLARS. This means that we are spending 1.2 trillion more than we're taking in and on top of that we are borrowing this money from the Federal Reserve and foreign countries. If Obama gets his stimulus package through Congress it'll turn into 1.6 trillion dollars.

So while I'm very happy to be busy behind keeping up, I'm very concerned about our countries debt load, and the burden it will place on my children and their children for years to come. This debt must be paid and if interests begin to rise again, and they will, this debt will become harder and harder to service putting an even greater burden on the government and leave them to no other option but raise taxes on EVERYTHING they can.

Be very aware of what our government is doing and speak out against actions that will jeopardize the well being of our economy, families, country, and our civil liberties. We are spending our way into bankruptcy leaving us at the mercy of foreign countries who, some of them, don't like us very much. Think your dollar is worth something? Think again. Since the inception of the Federal Reserve in 1913, our dollar has lost 96% of its value and it continues to drop.

WAKE UP AMERICA, its time to be heard!

God Bless!

Copyright © 2008 by Dustin Swigart