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Baby Boomers
Beware! by Major Yield
Remember the book “1984”?
Big Brother controlling and old people dealt with by government etc.
Well, in a way you are
there. How you ask?
Do you have savings?
Equity in your home?
Live on a fixed income?
Inflation is killing these once good ideas on investments and cash flows - killing you.
**Understand, inflation is a good thing for corporate bad management and
government bad management, (there’s lots of it) but just not good for you
or the hard working taxpayers.
Small
Business Owners Beware
Taxes will go up no
matter who wins the election this fall. It’s an inside the beltway thing
that common folks like you and me, do not understand. Only the elite can.
While on the road in
Daytona Beach, Florida I met an owner of a souvenir store that put the
future of government management in a few words. Our choices for president
so far, are between a Communist, a
Socialist and an Idiot. You pick who is who.
Everywhere I went, I
heard stories. Taxes and the increased cost of living and working are
hurting enough now;
*A painting and flooring
contractor that can not make it any longer and will lay-off folks over the
gasoline cost;
*An Italian couple who’s
parents could not afford to visit the Untied States for many years are now
buying a condo in the US, as a second home – the Euro’s increased value
and the dollars demise;
*A guy who lost his last
parent and the family estate, one to cancer and the other to taxes;
*While being told by a
beach shop owner that the government will not let their store sell zinc
oxide anymore because it’s a drug, is considering closing the business, as
sales are bad and cost are going up on insurance etc. let alone taxes.
**Understand that Big, Decoupling, Global Firms don’t pay taxes, in fact many
get very much government support – inside the beltways of the world and
political campaigns.
Banks
Beware
Hotels are busy,
airlines are full, rental cars are everywhere, low end restaurants are
busy, gas stations are pumping and Disney is writing great profits - and
the cost of all these things are all going on credit cards. It feels like
many are on their last spending spree. Will they walk away from a 25%
interest rate, as they have their homes?? What ever happened to Usury
Laws? Here again we see bad management. If people can’t pay their credit
card debt; charge more interest and ask for larger minimum payments. How
much real estate do banks own and will not re-negotiate with home-owners
now that are in default, awaiting foreclosure?
Perhaps, Mr. Bernanke
and the Feds will bail them out – again. At taxpayer expense.
**Understand, this would not be the first time for the inside the beltway
folks.
Beware
Governments.
Better hope that the
unemployment rate does not get too high. No job – No pay taxes. No pay
taxes – No government funds.
The Feds should ask City
and County Government folks about – the lack of cash flow – the cost of
borrowing – and the prayer for inflation to bail them out and the taxes
revenues to increase.
**Understand that it’s not anything now, but employment – keep them working outside of the government
payroll system.
Beware
Investors
Low interest rates – low
yields – credit worthiness questioned; and that of the US government debt at
all levels of government. The good news in this sector, unlike corporate
debt or equity is that you will be paid your interest and principal as the
Feds own the printing press to make as much as is needed…… the problem….
No job – no pay taxes…..or create more debt and sell it to other
countries….oh yea, we do that now. What do we do when that fails? **Understand, governments have
defaulted and governments have failed; along with their currency and
debts. Is AAA, really AAA??
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