Why Political Parties Suck

Follow me on Facebook!  – Democrats and Republicans need to stop blocking each other. One of these 3 groups is going to have power: large government, big money, or the people..seems to be big money with the power and influencing the government to get bigger but do what they want..It needs to be the people’s time. It’s our money, let’s govern ourselves. Washington is a zoo.

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S&P downgrades US debt

“If the US Government was a family, they would be making $58,000 a year, they spend $75,000 a year, & are $327,000 in credit card debt. They are currently proposing BIG spending cuts to reduce their spending to $72,000 a year. These are the actual proportions of the federal budget & debt, reduced to a level that we can understand.”

– Dave Ramsey

3 months ago S&P downgraded the economic outlook on US debt from “stable” to “negative.”

Last week Moody’s downgraded the economic outlook on US debt from “stable” to “negative.”

Last night S&P downgraded the US debt from it’s sterling “AAA” rating to” AA+ with a negative outlook.”

Just like S&P and Moody’s didn’t downgrade subprime CDOs until the mortgage-backed bonds they held were practically worthless, S&P waited for U.S. debt obligations to reach five times GDP and for the U.S. dollar to lose 84% of its purchasing power over the course of a single decade.

 

Debt Ceiling Deal Passed at Last Minute – US credit downgraded

It’s said that as Rome declined, the emperors said, “Give them bread and circuses.” Feed the populace and entertained them, and they’ll never revolt—until you run out of bread. People can live without entertainment, but they need bread.

Sadly, our government is the circus, and many people are starting to get hungry.

 

 

Update 7/30: Gold prices all time high! – debt ceiling drama.. – US credit rating downgrade? QE3? Real estate prices.

Written by: Joshua Gamen

GOLD

Gold hit an all time high of $1,633.80 per ounce on Friday! Driving up the price is the result of central banks buying gold and coincidentally(sarcasm) the decline in value of the dollar. The drama in the white house regarding the debt ceiling has had quite an impact on the price of gold lately, as has the news that the US can’t keep perfect credit by devaluing it’s current debts from printing more money. But what is really key here, is that the central banks(the people who print pieces of paper that people use as money around the world) are buying gold.

SILVER

Silver has been idling around $40 per ounce this past week or so, and looks to continue it’s descent upwards along with other commodities including oil which is at a price of $95.70 per barrel and approaching $4 per gallon. The increased price in silver, just like gold and oil, is an economic reaction to the depletion of value in the US dollar. This is because value does not leave the planet, it simply transfers between different asset classes. Right now the money is flowing out of the dollar and into gold, silver, oil, real estate, food, etc.

I am holding to my recent prediction of silver hitting $200 per ounce by October 2012. If silver hits $200 per ounce, that would put gold at a price of $8,156 per ounce based on the current ratio of silver to gold at roughly 41 ounces of silver to 1 ounce of gold. Strong projection, but I’d like to get some talk going on about the subject. With Federal Reserve Chairman Ben Bernanke recently telling Congress they are working on doing more of the same thing(creating debt for free, devaluing the currency, buying back treasury bonds, QE3…) along with the possible default on the US debt, a credit rating downgrade of the US, and rising prices in oil and gold, I think it’s a harsh reality we could face. What it would ultimately mean would be very bad for the poor and middle class, inflation..

Debt CeilingCredit Downgrade

The politics are what they always are, a battle for power.

The reality is, they’ve argued over the debt ceiling being raised for too long and it has already took effect on the credit rating of the country. The reality is that a credit rating downgrade will be just as catastrophic as a default on the debt. The stocks will tank, the dollar will free fall, and gold will surge.

Tho many me be interested to see who wins the heated debate over the hot topic between the Democrats and the GDP, the truth is as Robert “Rich Dad” Kiyosaki puts it: ” that no matter who wins this battle, the war may already be lost—and the American public will be the casualties.”

Like I said, politics are a battle for power –  Here is the fact:

WE HAVE A BIG DET, AND WE CAN’T PAY IT BACK. SO IF WE PILE MORE DEBT ON THAT, WE WON’T BE ABLE TO PAY THAT BACK EITHER. The Credit Rating Agencies know that we can’t pay this debt back, even tho they have took this long to finally admit it. According to the Wall Street Journal:

Moody’s Investors Service, Standard & Poor’s and Fitch Ratings have all warned they might cut the U.S. credit rating. S&P, in particular, has said it could move even if a debt-reduction deal is met and the $14.29 trillion federal debt ceiling is raised.

S&P has cited $4 trillion in debt reduction as a figure that would be appropriate for keeping the triple-A rating. S&P has also said it wants a credible agreement, meaning one that has bipartisan support.

Neither side is close to a $4 trillion figure. And given the wrangling, the chances of strong bipartisan support for any deal seem unlikely, investors said(“Downgrade Threat Looms”).

..Now, the question shifts from what will happen to what am I going to do now that I know what is happening.

The definition of insure is this: “to guaranty against future loss or harm.”

The US dollar is a commodity. Everything going on right now is sending that commodity to the tank, and since it has no intrinsic value as it’s physical body(paper), it will now stop until it reaches zero. Now, you can have your political beliefs on everything and that’s fine, but you wouldn’t buy a house without insurance, and you wouldn’t drive your car without insurance, so why do you hold your money as a piece of paper with no insurance? Gold and silver are insurance to the dollar.

My point is that it’s not about what I want to be money, right? We all have ideas of what we want or think should be money, it’s about what probably is going to be money.

Real Estate

Meanwhile it remains a perfect storm -a good one 🙂 – to invest in real estate! Prices are still low while sales are high. Most important is that interest rates remain at all time lows, making the oppertunity to leverage and cash flow abundant. We’re getting it done with outstanding returns here in Phoenix, AZ. Give me a call if you are interested in doing some investing – 623-252-3234, let’s talk.

-Joshua

GOP is in control over the debt ceiling drama as Obama feels the pressure

There is no reason for the Republicans to get on Obama’s plan. Either way the debt ceiling will be raised, and either way, the dollar is toast. The debt is rising so fast that it doesn’t matter what cuts we make. The reality is we are already bankrupt. Devaluing our debt by printing more money(or having the issuer of the debt buy it back, as is the case with QE) proves that. I am not a Republican or a Democrat, but I am definately not an Obama supporter. If the Republicans fold now they will give Obama a great shot at re-election in 2012, if they let this thing play out and don’t give in, people won’t remember Boehner, they’ll only remember how it all happened under Obama. The Republicans have all the pressure on Obama and he is trying to play to gain the public’s support(like he always does), but if you watch his actions instead of his words, it’s the same thing over and over..bigger goverenment, more debt, higher taxes, and an inflated dollar.

Obama vs GOP debt ceiling showdown continues! Stay tuned for inflation…

Inflation either way, whether we default or simply raise the ceiling and print more money. The dollar will continue to crash and silver will continue to rise along with other commodities. Rich Dad preaches cash flow and a great way to take advantage of taxes, inflation, your retirement, and debt(good)is  by investing for cash flow with real estate.

From the Wall Street Journal: “President Barack Obama pressed congressional leaders Monday to forge a $4 trillion, 10-year deal. But after another contentious meeting at the White House, the odds that Democrats and Republicans can bridge their differences over taxes and social programs to reach such a sweeping plan ahead of an Aug. 2 debt-limit deadline appeared to diminish.”

Watch here for a video I gave a couple months back regarding the subject of the debt ceiling and the dispute between the GOP Republicans and the Liberal Democrats.

And here…

In 6 months, the only thing that has changed is the calendar. Now with backs against the wall, and the Republicans still want huge spending cuts and no tax hikes, while the democrats still want to increase spending and also increase taxes. Neither side wants to give in, as Robert Kiyosaki puts it: “The result is a high-stakes game of economic chicken.

If the two sides do not reach a deal, the US will default on its debt. If the US defaults on it’s debt, more than likely the credit rating to the US will be downgraded further.

So what does this mean for you?! Well…At this point it does not look good either way for the middle class. Like I said, it’s inflation either way.

If the US defaults, confidence in the Dollar would crash. Since all currencies are pegged to the Dollar, it would be catastrophic. Add to that the fact that the world’s economies would scurry to exchange their dollars, which would flood the market with dollars and turbo jet downward the value of the dollar. Which would of course, turbo jet UPWARD the cost of living for us here in the US.

If the US comes to a deal that does not include huge spending cuts, their only options would be to print more money, raise taxes, or a combination of BOTH. This also means… The middle class will lose more of what they have worked hard for and inflation will rise.

Either way, the cost of living in the US goes up.

Work hard and invest wisely. In the midst of all of this madness there is a huge oppertunity to attain cash flowing assets at super low prices.

By Joshua Gayman

US Debt downgraded from Stable to Negative

Joshua Gamen talks about Standard & Poor’s (S&P’s) downgrade of US Debt from stable to negative, and discusses how this will next lead to a downgrade from a AAA credit rating. This is due to the budget deficit and debt ceiling, looming government shutdown, and showdown in Washington between the Republicans and Democrats. These events are surging the prices of gold and silver and that will continue to happen.