Is A Global Crash Just Around The Corner?

Is A Global Crash Just Around The Corner?

Central Banks Are Cutting At The Fastest Rate Since The Financial Crisis

By Tyler Durden   Sun, 12/08/2019 -

There is something very fishy about the world's economic situation. On one hand, US president Trump keeps repeating that the US economy is the strongest it has ever been, with global strategists, economists and officials parroting as much they can, repeating that the world economy is also set to rebound sharply any minute now. And yet, two things stand out.

As we pointed out first last month, and as Convoy Investments echoed last week, with the US economy allegedly doing very well, the Fed's balance sheet is now expanding at a rate matched only briefly by QE1, and faster than QE2 or QE3, in the aftermath of September's repo fiasco which provided Powell with an extremely convenient scapegoat on which to hang the return of "NOT QE" (which, we now know, is in fact QE.)

The Fed's unprecedented balance sheet expansion in a time of alleged economic stability and solid growth is a handy explanation why the S&P has been soaring in the past two months, and as we pointed out, a remarkable correlation has emerged whereby the S&P is up every week the Fed's balance sheet is higher, and down whenever the balance sheet has declined.

And so, while helping us understand what has been the fuel for the market's recent blow-off top meltup, the Fed's emergency intervention does beg the question: is there something amiss more than just the repo market, and is Powell telegraphing that a far more serious crisis may be looming.

It's not just Powell, however. It's everyone.

As Bank of America's Michael Hartnett notes in his latest Flows and Liquidity weekly, global monetary policy has flipped from Quantitative Tightening (net 42 hikes & $650bn liquidity removed in 2018) to aggressive Quantitative Easing (net 53 cuts) and represents that fastest pace of central bank cuts since the financial crisis.

Of course, back then, there was a legitimate reason for central banks to be cutting rates as if their lives depended on it: they literally did, because absent stabilization at any cost, fractional reserve banking, modern economics and the entire western way of life was on its way out in the aftermath of the Lehman failure.

Yet now there is none of that.... or so conventional thinking goes. In fact, the global economy - while sputtering - is supposedly doing just fine. And yet, central banks are acting as if a global financial crisis is just around the corner.

To continue reading, please go to the original article here:

https://www.zerohedge.com/markets/global-crash-just-around-corner-central-banks-are-cutting-fastest-rate-financial-crisis

The Buying Power of the U.S. Dollar Over the Last Century

The Buying Power of the U.S. Dollar Over the Last Century

The Money Project is an ongoing collaboration between Visual Capitalist and Texas Precious Metals that seeks to use intuitive visualizations to explore the origins, nature, and use of money.

The value of money is not static. In the short term, it may ebb and flow against other currencies on the market. In the long-term, a currency tends to lose buying power over time through inflation, and as more currency units are created.

Inflation is a result of too much money chasing too few goods – and it is often influenced by government policies, central banks, and other factors. In this short timeline of monetary history in the 20th century, we look at major events, the change in money supply, and the buying power of the U.S. dollar in each decade.

A Short Timeline of U.S. Monetary History

1900s

After the Panic of 1907, the National Monetary Commission is established to propose legislation to regulate banking.

U.S. Money Supply: $7 billion

What $1 Could Buy: A pair of patent leather shoes.

1910s

The Federal Reserve Act is signed in 1913 by President Woodrow Wilson.

U.S. Money Supply: $13 billion

What $1 Could Buy: A woman’s house dress.

1920s

U.S. dollar bills were reduced in size by 25%, and standardized in terms of design.

The Fed starts using open market operations as a tool for monetary policy.

U.S. Money Supply: $35 billion

What $1 Could Buy: Five pounds of sugar.

1930s

To deal with deflation during the Great Depression, the United States suspends the gold standard. President Franklin D. Roosevelt signs Executive Order 6102, which criminalizes the possession of gold.

By no longer allowing gold to be legally redeemed, this removes a major constraint on the Fed, which can now control the money supply.

U.S. Money Supply: $46 billion

What $1 Could Buy: 16 cans of Campbell’s Soup

1940s

The massive deficits of World War II are almost financed entirely by the creation of new money by the Federal Reserve.

Interest rates are pegged low at the request of the Treasury.

Under Bretton-Woods, the “gold-exchange standard” is adopted.

U.S. Money Supply: $55 billion

What $1 Could Buy: 20 bottles of Coca-Cola

1950s

The Korean War starts in 1950, and inflation is at an annualized rate of 21%.

The Fed can no longer manage such low interest rates, and tells the Treasury that it can “no longer maintain the existing situation”.

U.S. Money Supply: $151 billion

What $1 Could Buy: One Mr. Potato Head

1960s

An agreement, called the Treasury-Federal Reserve Accord, is reached to establish the central bank’s independence.

By this time, U.S. dollars in circulation around the world exceeded U.S. gold reserves. Unless the situation was rectified, the country would be vulnerable to the currency equivalent of a “bank run”.

U.S. Money Supply: $211 billion

What $1 Could Buy: Two movie tickets.

1970s

In 1971, President Richard Nixon ends direct convertibility of the United States dollar to gold.

The period following the Nixon Shock is uncertain. The federal deficit doubles, stagflation hits, and the oil price skyrockets – all during the Vietnam War.

Over the decade, the dollar loses 1/3 of its value.

U.S. Money Supply: $401 billion

What $1 Could Buy: Three Morton TV dinners.

1980s

The stock market crashes in 1987 on Black Monday.

The Federal Reserve, under newly-appointed Alan Greenspan, issues the following statement:

“The Federal Reserve, consistent with its responsibilities as the nation’s central bank, affirmed today its readiness to serve as a source of liquidity to support the economic and financial system.”

The Dow would recover by 1989, with no prolonged recession occurring.

U.S. Money Supply: $1,560 billion

What $1 Could Buy: One bottle of Heinz Ketchup.

1990s

This decade is generally considered to be a time of declining inflation and the longest peacetime economic expansion in U.S. history.

During this decade, many improvements are made to U.S. paper currency to prevent counterfeiting. Microprinting, security thread, and other features are used.

U.S. Money Supply: $3,277 billion

What $1 Could Buy: One gallon of milk.

2000s

After the Dotcom crash, the Fed drops interest rates to near all-time lows.

In 2008, the Financial Crisis hits and the Fed begins “quantitative easing”. Later, this would be known as QE1.

U.S. Money Supply: $4,917 billion

What $1 Could Buy: One Wendy’s hamburger.

2010-

After QE1, the Fed holds $2.1 trillion of bank debt, mortgage-backed securities, and Treasury notes. Shortly after, QE2 starts.

In 2012, it’s time for QE3.

Purchases were halted in October 2014 after accumulating $4.5 trillion in assets.

U.S. Money Supply: $13,291 billion

What $1 Could Buy: One song from iTunes.

The Changing Value of a Dollar

At the turn of the 20th century, the money supply was just $7 billion. Today there are literally 1,900X more dollars in existence.

While economic growth has meant we all make many more dollars today, it is still phenomenal to think that during past moments in the 20th century, a dollar could buy a pair of leather shoes or a women’s house dress.

The buying power of a dollar has changed significantly over the last century, but it’s important to recognize that it could change even faster (up or down) under the right economic circumstances.

To continue reading, please go to the original article here:

 http://money.visualcapitalist.com/buying-power-us-dollar-century/

The Dinar Rate Planning

The Dinar Rate Planning

By Muhammad Ali

 I was online chatting with my good friend and CEP customer Jerry, actually, he and I were chatting about golf, and the topic of Dinar rates came up and I was telling him about different plans and strategies to capitalize on the higher rates, then he asked me to tell him more.

The following advice I shared with my group here in Malaysia years ago.

 Many believe the Dinar will come out at $1 USD to 1 Dinar, I don't and I wrote an article about that and gave proof as to why it won't.  I am convinced the Dinar will come out somewhere around $3.89 - $4.19 USD per Dinar, and that's the starting point.

I believe once the Dinar hits the open markets, it'll then get into the hands of the Smart Money and they are going to make a field day of it.  From the initial $4 rate, I can see the Dinar go as high as $32.  Now wouldn't that be awesome.

 I remember, many years ago, I think it was 2010, in 1 week in December, the Euro against the US Dollar rose  in price about 2,000 pips.  That was a crazy move and not often do you see huge movements like that in a short time frame, but it happens.  Key point here to think about, it can be done.

The movement on the Dinar that I am talking about is even greater than what I experience with the Euro.  I read posts on Dinar Recaps that when the Kuwaiti Dinar RI'd, it went from 0.10 to $3.50 and then up to $19.  So why can't the same thing happen to Iraq?  And I believe it will.

So to prepare for it, let me give you a couple of suggestions and strategies that can help us get some extra money from the movement.

 When the Dinar goes international at its initial rate of $4 exchange what you need, to start your Team, to settle any immediate debts/issues and then wait and monitor the rate.  You can check the rates online or download various apps to your phone, such as Xe or any other.

How soon it will rise, is the next million dollar question, next to the WHEN IS RV?

I can't say, but I do believe it will be about 2 weeks after the get go to within the first month, and then the next question once it starts to move, how fast will it take to go up and peak?  That's another impossible question to answer.  You just have to be patient and wait for it.

 So I have advised my group on a couple of strategies that we can benefit from the movement and I will share them you all now.

The first method would be to exchange as the Dinar climbs.  In my currency exchange planner software, I designed it with 4 exchange options in mind.   Trying to capitalize on higher rates is the very reason why I added this into my planner.

So it means you've got 4 target rates in mind, you can have more if you like, but for now we'll work with 4.

 Let's say you have a total of 10 x 25k IQD notes.  If you were to exchange all ten notes @ $4, your exchange amount would be $1,000,000.

Let's see what happens if we were to go for the higher rates, so in your first exchange, you want to exchange 1-2 notes, we'll just say 2 notes for now, that would give us $200,000.

The second exchange we want to change 2 more notes @$8, then 2 more @$10 and 4 @$15.

 So let's list this down before it gets confusing:

First Exchange 2 notes x $4 = $200,000

Second Exchange 2 notes x $8 = $400,000

Third Exchange 2 notes x $10 = $500,000

Forth Exchange 4 notes x $15 = $1,500,000

So if that's your plan, stick to it.  Now, let's see how you fared, a total of $2,600,000.  That's a big difference from the initial $1,000,000 if you had exchanged all of your notes at the get go.

So trying to make money as the rates climb higher is one strategy, I will now share another.

On your first exchange, do the same, change 1 or 2 notes as you require, and for the remaining 8 notes you wait.

Let the smart money go crazy with the Dinar and put it as high as they want to.  So you see it go to $10...  Then $20...WOW!... now you're heart is racing... should I go to the bank or not?  This is where the greed factor kicks in.

 Just relax and wait.  Now it goes to $30... OMG!!!   Now, this is where  you pay very close attention to your phone app and check the rates frequently, may be even camp out outside of the bank. No, No, don't do that!

But what you want to start to look forward occurs when the rate starts to drop, as we know the rate will peak and then come back down to $4.  So from the $30 rate that you saw, maybe it'll even push higher, I don't know?  But when the rate starts to go down, $29, $27, $26, $25 etc... Then just go ahead and exchange ALL of your remaining notes.

So how would that work out?  8 notes x $25 = $5,000,000, wow, wouldn't that be awesome if we nailed that rate!

So either your plan is to make money going up or make money when it comes down, the choice is yours.  Everyone will have different targets based upon the amount of currency they hold.

But always rest assured that the rate will eventually stabilize at the $4 area, it'll never go back to 0.0008.  So don't panic and don't camp outside of the banks as you're just looking for trouble.

And one other piece of advice don't get greedy, if your plan is to exchange all of your notes at $10 and that target hits, just follow thru on your plan and go to the bank.  Then delete the Xe app and never check the rate again.  Be happy, travel, help others and keep moving forward.

 Just have a plan and execute your plan accordingly, my Currency Exchange Planner is the best tool available for all Dinarians to help effectively plan their exchange.

 Thank you and I wish you all the success in your currency exchange.

 Muhammad Ali

www.CurrencyExchangePlanner.com

Woman Wins $188 Million Lotto Prize But Ends Up Losing Control Over Her Life

Woman Wins $188 Million Lotto Prize But Ends Up Losing Control Over Her Life

Sukriti February 10, 2018   Shallotte, North Carolina

What a compelling invention it is; the whole concept of the lottery. Have you ever tried your luck in lottery tickets? We all know the probability of winning a lottery, its almost zero. Still, these lottery tickets attract us every now and then.

Some of us never buy these tempting tickets but everyone has wondered at least once about winning them. How incredibly it can change one’s life within a blink of eyes. But everything comes with a cost that most of us won’t understand what it might take unless we’ve experienced it.

A story of luck, fate, good, bad, consequences, threats and more. The story of Marie Holmes has all in it. Like most of us, her life too was filled with ups and downs. Sadly for her, life was mostly about hard times and very rarely she had good days in her life. But the way her life changed has always been a dream for millions of people.

Trying Hard

Marie Holmes, a 27-year-old single mother was on her daily job routine. Working hard to fulfill her four kids’ daily needs. She was trying to save as much as she can for their future. No matter how hard she tried to bring things in the right place, Marie was never able to cop up with the rapid speed life actually demanded out of her.

At this time she was completely unaware of the fact that her life was about to change forever. Only time would tell how long Marie’s life is actually going to be on track.

In 2015, Marie’s life changed in no time when she won the North Carolina’s Powerball lottery. She didn’t win any ordinary amount rather a huge amount of $188 million. It wasn’t just a simple win and settled life from there on as this lottery took Marie to an episode of “Iyanla: Fix My Life.” What happened to her that after winning such a huge amount also she ended up on a show that is all about guiding people about their choices and mistakes?

The Win-Win

Marie was working at different jobs to earn. Although we all know the easier way to earn money is to give a lottery ticket a try. That day when she went to buy a ticket, she knew the chances were zero for her to win the lottery yet she went on to give it a try. Isn’t that the case with most of the people who spend money on the lottery tickets? Well, this one ticket that Marie bought one day was her biggest gift and nightmare to herself.

The Pastor

Marie is a strong believer in Christianity. She followed the words of pastor Kevin Matthews who worked as a leader of his community at Shallotte, North Carolina. Marie has been attending his meetings since childhood. Kevin has been giving Marie advice at every other stage of her life. He has always been a savior to Marie and the fact that whenever she was in trouble or a doubtful situation she ran to Kevin for help. But Marie’s winning of the lottery was the start of bitterness in their relationship.

Winning The Jackpot

The day she bought this state lottery ticket from a nearby convenience store, she prayed before entering the shop. When the time to announce the winner was here, she patiently waited for the announcement of the winning numbers and try her luck on the state lottery.

When the lucky numbers were announced, Marie couldn’t believe the ticket she was holding in her hands read exact numbers as the anchor said. It was February of 2015 when she felt as if she’s at the top of the world. Who knew that the real challenges and criticization were still on the way.

Claiming The Money  

Marie couldn’t really believe that she won the lottery and she stood there in shock, not saying one single word. All she knew that she had around 6 months for claiming the big amount of money. She had two different methods of claiming this money.

The first one was to get the $188 million in yearly installments for the next 30 years, ie, $530,000 each year, the second option was to get all at once but in that case, she’ll be getting $127 million all in all after deducting the taxes. Marie made the obvious choice.

Take It All

Marie made the choice of getting it all at once. She was assuming that this will make her and her kids’ lives better. Just as the grass always looks greener on the other side, Marie was looking on the other side as a doorway to the perfect future that she has been longing for throughout her life. Keeping her hopes high she was having all these great ideas of what she’ll be doing with this money.

Dressing The Part   

Marie, who lived in poverty since her birth was now one step away from becoming a millionaire. Life has been so tough on her that she knew what it was like living in a trailer, that was her home for the most of her life. Her excitement was on the ninth cloud and obviously, she couldn’t hide it anyway. “I thought I was going to have a heart attack when I saw the ticket and checked it,’’ she told how she felt that life was offering a second chance which rarely anyone gets.

Stay Anonymous

Mostly lotteries give an option to the winners to keep their names hidden as anonymous, however, telling everyone and becoming the center of everyone’s attention, who doesn’t want that? Not only this once the lottery winner starts spending the amount lavishly eventually everyone gets to know about it. So, why not tell it to them aloud? The winners don’t see what comes up with this overnight achievement and fame can easily get trapped under the dense clouds of danger.

What To Do With It All?

Well, most people think of what will they do of this money even when they are buying the ticket and as Marie won the lottery everyone wanted to know what was her plans. Although the most advisable thing to do is to get a financial planner as well as a lawyer who can save and prepare you for the unforeseen consequences of so much money.

Like almost every lottery winner Marie too wasn’t interested in doing any of this. This is normal to think that one can handle her money by herself and that she doesn’t need any help. Her first big mistake.

All For Them

Marie was so overwhelmed that she told in an interview, “everything is all for them…All the struggle that I ever went through, it was all for them. I want them to understand that money doesn’t change you, but it can help you. So they don’t have to worry about debt, none of that. They can go to college, all on me.”

Take Me To Church

Marie was about to climb the ladder of her dreams. Her first step was to donate a large amount to her community church. The church has been by her side in rough times. Especially Kevin Matthews, the savior who helped her both emotionally and financially at times.

 It was in return of the community’s favor towards Marie and her family. According to Kevin, he would stand by her side no matter what. The pastor was actually about to bring her into the biggest problematic situation of her entire life.

Giving Back To The Community

Marie discussed with Pastor Matthews about her willingness to give at least 10% of her total in hand amount. She wanted this money to go towards the building of a retreat. As per her, the agreement was of donating $1.5 million to the church which was quite a good amount to give. And being generous towards those who stood on her side is the best thing one can do, right?

Her Donation

This happens a lot where a lotto winner decides to donate a large amount of their prize to the place or community they believe in. However, Marie’s donation was one of the biggest ever given to a particular house of worship. Many people promised and gave huge amounts to monks, fathers or priests but Marie was appreciated everywhere for her work.

From Poor To Rich

Marie’s life is a perfect example of the statement, “more money more problems.” Marie was hoping it to be the biggest day but in reality, this money was about to cause her great troubles. She obviously never lived or felt what richness is like.

More Money, More Problems

http://healthzap.co/wp-content/uploads/2018/10/unnamed1.jpg

Marie settled on $1.5 million dollars to be given to the community in two installments. It was a direct verbal agreement with Kevin. Marie paid the first installment, ie, $700,000 on time soon after she won the lottery money. Meanwhile, Marie was preparing to give her second and final installment, pastor Kevin’s demand suddenly raise.

To continue reading, please go to the original article here:

http://healthzap.co/woman-wins-188-million-lotto-prize-but-ends-up-losing-control-over-her-life/?utm_campaign=lottogirl-ad-hz-v-g-2&utm_source=gemini&utm_medium=vhz&k=e46644&utm_term=NEWS_US&utm_content=2&sp=2

Creating a Holiday Budget: The Most Wonderful Time of the Year

 Creating a Holiday Budget: The Most Wonderful Time of the Year

Ah, the holiday budget season always approaches so fast.

One minute you are sipping umbrella drinks in Summer at the beach — and then out of nowhere — you are creating a holiday shopping list, hoping not to overspend this year.

While the holidays are great for spending time with family, friends, and giving to others — it can also be stress-inducing when it comes to your bank account.

But there are ways to ensure you stick to your budget and keep your personal finances happy. Below are a few essential tips to ensure you don’t go into debt or overspend this holiday season.

Holiday Spending Statistics

It’s crazy to see stores and online ads for holiday shopping before November even starts. Sometimes it even begins before Halloween even has a chance to slow down.

Sigh.

But at the same time, many people (myself included) like to get a head start on planning and purchasing items before the mad seasonal rush begins.

I thought before we got into some holiday budget tips, I’d share some interesting statistics around holiday spending.

According to Cloudways:

Gen X wins the award for the highest holiday spending with an average of $782 in the USA and £425 in the U.K.

Millennials spend the second most during the holiday season with an average holiday spend of $609 in the USA and £416 in the UK.

Baby Boomers tend to spend the least during the holiday season with an average of $576 in the USA and £350 in the UK.

Today, the average consumer spends $1,226 on Holiday Gifts

And if you look back on any historical data, you’ll see these numbers continue to rise each year. Of course these are just some averages, so you might typically spend less or even more.

Additionally, 22% of Americans believe their Christmas spending will leave them in debt according to Fortunly. Yikes!

This is where creating a holiday budget will become critical to helping you avoid debt and not overspending based on impulsive buying.

How To Create A Holiday Budget

As you begin saving for the holiday season, you should create a budget to help you stay on the right financial path. Going into debt and overspending is not a great way to go through the holidays and start off the upcoming new year.

But remember, it’s not just gift giving that adds up either. It’s everything from parties, work functions, decorations, and food. All these things can wreak havoc on your financial goals and debt.

Here are some tips to creating a simple, but effective holiday budget.

To continue reading, please go to the original article here:

https://investedwallet.com/creating-a-holiday-budget/

.Is the U.S. on Its Way to Becoming a Cashless Society?

Is the U.S. on Its Way to Becoming a Cashless Society?

Posted in Dinar Recaps Archives on 7/30/2019

Is the U.S. on Its Way to Becoming a Cashless Society?
Shelle Santana JULY 23, 2019
Is the U.S. becoming a cashless society?

As digital payments spread from coastal coffee shops to rural restaurants, business owners, lawmakers, and consumers across America are asking themselves this question. And depending on where you live, the concept of “cashless” is either a heated debate, the wave of the future, or a term you’ve never heard of.

Where the debate does exist, it highlights the growing tension between an evolving consumer payments landscape, a desire for increased business efficiency, and a growing concern that un- and underbanked consumers may be marginalized in a cashless economy.

The rise of digital payments, which includes traditional debit and credit cards as well as mobile payments, have contributed to the steady shift in payment practices among consumers.

According to the FDIC, cash represented just 30% of all payments in 2017. Furthermore, 68.7% of U.S. households had a credit card in 2017 vs. 63.8% in 2015.

Business owners who recognize this trend are responding accordingly, with some opting to go entirely cashless in an effort to increase operating efficiency, reduce wait times for customers, and create a safer work environment by mitigating the risk of theft.

Perhaps the most high-profile example of a cashless business are the Amazon Go stores, which use computer vision technology instead of cashiers to record what customers select and then automatically charges their card.

But does this mean we’re on the verge of a cashless revolution? To answer this question, I collaborated with Square, the payments and financial services company. Together, we analyzed millions of payment transactions from their database to determine just how close–or far–the U.S. is from becoming a truly cashless society.

Our findings suggest that the cashless trend is clear but nuanced, and highlights a few factors that sellers should consider when contemplating whether to forego cash payments.

First, our analysis shows that more consumers are using their credit and debit cards for smaller purchases. In the past four years, the use of cash for transactions under $20 has dropped from 46% to 37%.

Specifically, in 2015, half of consumers at Square businesses used their card for an $8 transaction, like a sandwich. Just four years later, in 2019, the transaction size has been cut nearly in half. Now 50% of consumers use their card for as little as a $4.50 purchase, like a latte.

This behavioral shift can partially be attributed to marketing from credit card companies aimed at increasing usage of cards for small, day-to-day purchases. It used to be that credit cards were strictly for large, special, or emergency purchases.

That mindset no longer exists, so people are increasingly comfortable using their credit cards for smaller transactions at places like drug stores, coffee shops, and delis.

Second, this trend isn’t limited to coastal, major metropolitan areas. Outside the top 25 metropolitan markets, the transaction amount at which consumers prefer their cards to cash dropped from $8 to $5.50 over the last four years.

Within the top 25 metropolitan markets, the decline isn’t quite as steep; the transaction amount at which consumers used their cards only dropped from $5 to $4 over those four years. As smartphone penetration and digital payments expand, so will cashless capabilities.

Third, for some business owners, a cashless business model is a strategic choice that provides clear benefits. While much of the current narrative regarding a cashless society is focused on the downside, there are advantages for both business owners and consumers. The key is understanding customer payment preferences.

For example, Travas Clifton, owner of ModCup Coffee and a Square seller, has seen the benefits of being cashless first-hand at his three New Jersey cafes. When he learned that 81% of transactions across all locations were made with credit or debit cards, he decided that the remaining 19% of cash transactions were worth potentially risking to gain more time with his family and business.

“An hour and a half [away from my shop to deposit cash] at 9 AM in the coffee business is valuable business time. That means I could be at one of my espresso bars serving people coffee. Instead I am having to hire someone to take my place at the bar.

What I’ve realized is that [cash is] the same as a credit card, it’s costing me money to process so I said, scrap it, we’re going cashless” explains Clifton. Turns out, most of his customers were fine with the switch.

But almost 1,000 miles away in St. Louis, Missouri, Laura Leester, owner of Pieces restaurant and game bar, had a very different experience running her cashless business.

She decided to open her business with a cashless model, drawn by the increased efficiency and safety, but quickly realized that nearly each day, she interacted with disgruntled customers frustrated they couldn’t pay in cash.

“When I opened my business there were so many balls rolling I didn’t really reflect on how I could be isolating a group of people in my community by not accepting cash,” she says. ”As a responsible business owner and someone who wants to share my goods and services with all socio-economic levels, I felt it was my duty to start accepting cash.”,,

Shelle Santana is an assistant professor of business administration in the Marketing Unit at Harvard Business School.

To continue reading, please go to the original article at

https://hbr.org/2019/07/is-the-u-s-on-its-way-to-becoming-a-cashless-society

Anna Von Reitz: "Understanding Source, Q and the Plan"

Understanding Source and Cause; Q and The Plan

Friday, November 29, 2019

By Anna Von Reitz

There are three (3) dates and three entities that every American should have cause to know and to memorize. All three occurred during The War of Independence.

The first is the publication of The Unanimous Declaration of Independence on 4 July 1776. This created "The Union" known as The United States.

The then-colonies redefined themselves over a period of years first as the "United Colonies" and later as "estates". The soil jurisdiction holdings were defined as private holdings of separate nations and the geographic bounds of what would become States were recognized as (e)states belonging to the people living within those boundaries, both as public and private holdings.

In the Roman system of nomenclature this gave rise to states including: new york, massachusetts, rhode island, new hampshire, etc. while in the English nomenclature, gave rise to New York, Massachusetts, Rhode Island, New Hampshire, etc.

The second is the creation of The United States of America on 9 September 1776. This created "The Federation of States", an unincorporated Holding Company.

This secondary "union" represents the international land and sea jurisdiction which underlies the soil of each (e)state and the international powers accorded to each State which were combined for mutual aid and benefit. This Federation of unincorporated States is the "doing business as" name of the American States and People.

The third is the creation of the States of America on 1 March 1781. This Confederation of States was formed under The Articles of Confederation to serve as an incorporated business structure doing business in the global jurisdiction of the air under the charter of the Several States and in their mutual behalf.

Both The United States and The United States of America are unincorporated entities, free-standing and existing under the direct provisions of the sovereign States and People.

By contrast, the States of America was created as a separate chartered business enterprise of the Several States and People to provide essential government services in the realm of global commerce.

There is a clear progression and delegation of power inherent to this process.

The (e)states (national jurisdiction) gave rise to the States (international jurisdiction) and the States gave rise to The States of States (global commerce jurisdiction).

There is an equally distinct progress in kind.

The Union known as The United States is "corporate" in that is stands apart from each separate and sovereign (e)state and so is our Federation doing business as The United States of America, but neither one of these entities are incorporated. They are independent, free-standing entities that are designed to do mutual business for the (e)states of the living people and the Estates of the Lawful People of this country, in two separate jurisdictions: national and international, respectively.

The Confederation begun in 1781 is chartered by the individual States and incorporated by them using The Articles of Confederation.

The difference is akin to the difference between two independent businesses and a commercial corporation.

Thus you may think of Massachusetts as an independent business and The United States of America as a Federation of independent businesses. You may also think of Massachusetts and the People thereof as granting a charter to The State of Massachusetts and then authorizing its membership in a Confederation of similar state-of-state franchises doing business as the States of America.

So there are three (3) different entities right from the start, separate in name, separate in jurisdiction, separate in date of creation, and separate in kind: union, federation, confederation.

The United States, The United States of America, and the States of America each served a different function and were designed to operate in different capacities.

The United States, a union of states formed by Unanimous Declaration, derives its existence from the (e)states and living people of this country.

The United States of America derives its existence from the land jurisdiction States and the Lawful Persons known as People of each State.

The States of America derives its existence from the States and People granting charters to States-of-States and thence to their Confederation.

The States of America, the Confederation of States of States, is the missing piece that went off-line during the Civil War.

This country has been operating like a 12-cylinder engine firing on six cylinders ever since and nobody bothered to explain the situation to the populace so that this could be corrected.

Therein lies the specific Gross Breach of Trust amounting to Fraud which has been committed against us by our own Government Service Subcontractors and Employees, both Military and Federal Civil Service.

People often ask me about "Q" and "The Plan".

It seems like that elements in the Military and Intelligence Community have been working for some time to correct their operations and honor their actual service commitments; I have no argument against "Q" and their treatment of the Deep State Actors as criminals --- for such, they are.

This is not now and never has been about politics, race, religion, or much of anything other than fraud and commercial crimes.

This is about identity theft, impersonation, constructive fraud, unlawful conversion of assets, inland piracy, human trafficking, enslavement, illegal securitization, patent, trademark and copyright fraud and infringement, press-ganging, peonage, extortion, racketeering, kidnapping, collusion, conspiracy against the Constitutions and a host of other heinous crimes-- mostly of a commercial nature-- and all committed against the people of this country and our estates.

Perhaps it was the existence of 800 FEMA camps and industrial-scale foreign military operations staging out of Free Trade Zones within these United States that finally jolted at least some members of the Joint Chiefs awake and alerted patriotic members of the Officer Corps and Senior Enlisted.

Maybe it was our General Civil Orders issued in July of 2014, denying them all any plausible deniability, that kicked the football hard enough to get things moving.

So long as the ball is moving in the right direction, and the restoration of good order and public safety is secured, we can't complain about their initiative and the arrest of large numbers of criminals.

We estimate that if law already standing on the books were to be satisfied, upward of two million people in this country would have to be arrested and charged with heinous offenses against their fellow man and against the lawful government of this country.

We must, however, point out that these actions are not, by themselves, sufficient to restore the government we are heir to, nor to provide for its correct functioning.

In order to get the 12-cylinder engine back up and running, we have to assemble our States of the Union, we have to severally charter new American States of States, and restore the States of America Confederation in order to do that.

Beyond that, we must invest in educating a great many people about their actual government and their responsibility for it. Self-governance begins with attitudes learned and responsibilities accepted at home, at school, at work, and in the social fabric of a country. It cannot be achieved by the promotion of dependency and victim-hood and unearned trust.

Our country has been steered off track deliberately and kept off track for generations by foreign interests we mistook as friends, allies, and treaty partners. They have used us as gun fodder in their wars for profit, and stolen us blind for 150 years.

It cannot be supposed that restoration of our government or our educational system can happen over night, after such a long and damaging period of abuse by foreign powers and misdirected public employees. Instead, we must patiently expose and understand the rot we are dealing with, and secure as much assistance, good will, and understanding as possible going forward.

This same system of deceit, impersonation, identity theft, and commercial criminality has infested not only "the US" Territorial and Municipal Governments, but similar incorporated governmental services corporations worldwide.

So, by all means, let the Q Plan materialize, but let's not fall asleep again and think, oh, goodie, things are back on track....because it will take major work on all our parts to finally accomplish the restoration of our self-governance.

http://www.paulstramer.net/2019/11/understanding-source-and-cause-q-and.html

Thanksgiving, As How It Relates To The RV.

Thanksgiving, As How It Relates To The RV.

By Muhammad Ali

Now, I bet that just by looking at the title, you were thinking of the mouth watering smell of a homemade Thanksgiving dinner with stove top stuffing and cranberry sauce, right?  Well this article is far from that. ;)

However, that does sound very delicious.  Alright! let's get back on track.

Just recently, one of my Dinarian group member passed away.  His name was Hisham, he died of leukemia and his condition deteriorated the past couple of years and he finally could not hold on any longer. 

He was a good friend and provided spiritual intel to my group.  Hisham, you will be missed my brother.  I attended the burial and visited with the family and I was reminded by the sense of thanksgiving. 

What I mean by this, is that, we are all holding various currencies with the belief that their values will increase and we will become wealthy. 

However, for some, this will not be the case, as God has His own plans.  For some, their 'Blessings' in this investment was only to hold or touch the currency but never to exchange it.

As in the case of my friend, Hisham, he was holding Dinar, but he will not be able to exchange it.  His wife and children will, but he will not.  I have had many cases in my group, several people that I know moved houses and some how, some where, their currencies got misplaced. 

And then, there are those who due to financial stress had no choice but to sell off their currency just to survive.  I have even had one of my group members lose his currency in a house fire.

 He, inadvertently, left the iron on and some how that led to part of his house burning down and the part that did catch on fire housed a bookshelf, in which he kept his currency.  The currency went up in smoke as it be.  So whatever the reason might be, all of these people at one point had the currency in their hands, and that was their 'blessing', that was all God intended for them. 

This is something that you should think about and reflect upon.  We do not know what God has in stored for us tomorrow or down the road, maybe we may also become like those whose Dinar left their hands.

So in my article today, I wish to remind myself, and you all to give thanks to God and as we pray daily for the RV, not only pray that it will happen today but pray that you will be among those who will exchange their currencies.

I hope this article has helped you in some way as it was also meant to act as a tribute to my friend Hisham.

God bless us everyone and may we all be part of the exchange process and what comes afterwards. Amen.

Thank you and I wish you all the success in your currency exchange.

Muhammad Ali

www.CurrencyExchangePlanner.com

"Will The Dinar Come Out At 1 To 1?" Reply: Answering Tim

"Will The Dinar Come Out At 1 To 1?” Reply: Answering Tim

By Muhammad Ali

​DinarRecaps, posted an article of mine called "Will The Dinar Come Out At 1 To 1?  I think not!  And here's why..."   It was November 9th, 2019 https://dinarrecaps.com/our-blog/will-the-dinar-come-outnbsp-1-to-1nbsp   and I thank the Good folks at Recaps for it, God Bless them. 

Now it may have been yesterday if you're reading this article today or it may be been some time ago, it was certainly a couple of years ago for me when I originally wrote it.

However, I had a wonderful question emailed to me by a gentleman named Tim.  So here is his question and my reply below:

Hello Mr Ali,

Read your breakdown of dinar.  Can you give a little more info on something that was in your article.

You said iraqis would take a 25000 dinar note to bank and get a new 25 dinar in return. But you said that everywhere else in the world you would take. 25000 dinar to the bank and multiply it by the new exchange rate. That would have drastically different values.

25000d into 25d x 3.85 = purchasing power on Amazon of 77$.

Or 25000d into 250- 100d notes x 3.85 = purchasing power on Amazon of 80000$.

Or in us: 25000d into 25 d x 3.85 = 77$

Why should it be a lop in Iraq but not everywhere else?

Thank you, Tim

Answering Tim:  Greetings Tim,

Ok Tim, let's put aside the numbers and look at this from a whole perspective.  Because the concern here is NOT the calculations but whether the 25,000 will still remain as 25,000 whether in or out of the country.

I am not looking at this from any inside information but just a common sense and logical approach, that is how I always look at things so let's keep this in mind.

Firstly Tim, I never said it was going to be a LOP in country, you did.

If we analyze the options, we can start here: Either they will cut zeros off the note or they will not. That's the first thing.

And I said in my article, countries suffering from hyper-inflation have cut zeros.  Iraq is NOT, therefore they do not need nor do I believe they will cut any zeros, therefore NO LOP.  So they are not removing zeros from the note and the 25,000 will still remain as 25,000.  Therefore the notes inside and outside of Iraq should still remain the same.

I hope that's clear so far.  OK let's look at this a bit more further.

Next, If they maintain the note size of 25,000, and I'm talking in country, then it is only logical that ALL of Iraqis holding IQD will become extremely wealthy... 100% of the country.  Again, logically they cannot have this, the consequences are too great.

So that makes us think, logically again, that there must be 2 processes.  If the 25,000 in Iraq still remains as 25,000 then it means the whole of Iraq will become extremely wealthy, as I said. 

Now we know the project to remove 3 zeros was not to remove zeros from the notes but was to pull in the large bills, 10k 25k, 50k, from the hands of the general public and we can conclude as we have been told, the majority of these notes has already been pulled in.

So now it gets tricky.  Pay close attention, I'll give you couple of scenarios that I believe may play out. 

Scenario 1: So Let's assume the 25,000 will remain as is, in and outside of Iraq, how will they achieve this?

As I said in my article, inside Iraq, the citizens will take their 25,000 note to the bank for a 25 note of the new dinar, BUT what if that will not be the case since the CBI has already pulled in 90-95% of the large notes.  What if, the 25,000 still stays as 25,000, in Iraq? 

The  5% of the notes remaining right now are most likely in the hands of the greedy politicians and big businessmen and that means the rich will get richer scenario,  but what is happening now?  They are going after all the corrupted politicians and taking back the money they stole and prosecuting them for crimes. 

The rich will not get richer.  So maybe once they are done to a point they will raise the value of the Dinar and the 25,000 may still remain 25,000 in country and the citizens will exchange like us and have some wealth but not enough for the whole country to stop working. 

They will pay their debts, travel, enjoy life and then back to work.  For all of us, outside of Iraq we'll go to the bank and exchange back to our local currencies and everyone is HAPPY!  So that's one scenario. 

Now, let's look at this from another logical approach,

Scenario 2: They will still go after the corrupted politicians taking back the dinars they stole but THIS TIME, they will control the wealth of the citizens and tell them, bring us your 25,000 note and we will give you a new 25 note.  Notice they never said we have removed zeros, a swap for swap. 

So what choice do the citizens have?  Everyone has a choice, right?  Do the citizens know that they have choice?  Have they been told, that they can take their notes to Kuwait and you'll get alot more than 25 dinars?  Do you think the CBI will tell them this?

The CBI is holding the trump card (NO POTUS pun intended) over the citizens. The citizens can keep their 25,000 notes and complain about it and after 10 years those notes will be demonetized and then worthless or they can just take the note to the bank as good little citizens the CBI has been programming them to be, via bill boards etc. and they change their money and move on. 

To me, it would be like a bait and switch technique on to the citizens but what choice do they have, they cannot just pickup and move somewhere else?  Immigration is becoming and more tougher in every country.  So they have no choice.  What the CBI says, you follow.  The Iraqis as I see it, may get the short end of the deal, but in time, they can pick themselves back up and move forward.

Another piece of evidence that points to scenarios 2 and this is something you have to think about right here right now is, why has the CBI been doing very strong banking campaigns to get the citizens to bring in their remaining IQD and deposit the money into bank accounts?  WHY? 

Why are they bribing the citizens with Visas and Mastercards and Debit cards and gifts and such things?  WHY?  Actually the reason is very simple, once the citizens deposit the money into the bank, the money is no longer in their hands any more, it's in the Bank...Digital, can you see where I am going with this? 

So let's say I am an Iraqi and I have 500,000 Dinar in my bank account and once the CBI pulls the switch my account now shows 500 Dinars.  Presto!  Did I have choice, nope! 

Any choice that I did have, it's too late now.  So now they do not need to worry about the dinar in the hands of the citizens because alot of them have been opening bank accounts and depositing the dinars.  Remember, logically as I said, there has to be a control on the wealth of the citizens. 

This is how I see it and if I was running the CBI, this is what I would do.  I do not want the citizens to be super wealthy because the consequences will be too great.

Now, going back to our LOP scenario.  If Iraq was going to LOP in country and out of Iraq, would you think they would be concerned about how much DInar was leaving Iraq and how much was entering Iraq?

 Now, think logically?  What difference will it make?  You going to cut 3 zeros from the notes, in and out of the country, so who really cares how much currency comes in and how much goes out?  Is that a fair question?

OK read on, here is some very interesting evidence that tells us the CBI is and has been putting tight restrictions on the currency entering and leaving Iraq.

2016 and before, you can enter Iraq with virtually any amount of Dinar and leave with any amount of Dinar, then I noticed around July of 2017, entering Iraq you could only bring in 8 x 25K notes, leaving 4 x 25K notes. 

I know this for a fact because I was planning a trip to Iraq early 2017 to try and exchange out a $1.75 usd per Dinar (But that's another Dinar story) and then in July they changed the amounts of Dinar that can enter the country and that put a damper on my trip. 

February 2019, that restriction changed again to "Up to 25 Dinars can be imported and sums no greater than 5 Dinars can be exported out of the country." ... Now did you pay attention to what you just read? 

Read it again and again.  Did you catch that 25 Dinar and 5 Dinar?  When the smallest note is 250 Dinars? hmmmm, interesting, isn't it?

Now here's the link that I got that information:

https://www.visahq.com/iraq/customs/?fbclid=IwAR1q7X7-sPJ_odECUDC-R1UgrDBL--2Z7DOp_45Mtr5ZSP6hTvbCNVww8kc#!import-regulations

and that has been changed yet again to ANY Dinar entering the country must be declared.  So that means if you have 1 note you must declare it.  Why the BIG change, so we can assume if they are controlling the DInar coming in, they are definitely controlling the Dinar going OUT. 

But one may think did they let the cat out of the bag too early?  By displaying 25 Dinars and 5 Dinars?  And then removed it, you know what, this can actually be considered as more proof that Iraq will raise the value as in one of my previous articles.  Anyway, let's continue.

Because some citizens are becoming aware that they can change their notes at higher values out of the country, the CBI needed to clamp down on this and they implemented tighter controls.  And my reasoning for this, is the CBI wants to control the wealth of the citizens.

Iran is the same, my supplier that I get Rials from, is an Iranian, he said, Mr. Ali, now if they search your bags and find you leaving with Rials, they do not question you any more, they take it.  2017 he could bring back to Malaysia 1,0000 notes of 100K Rials.  About 10 x 100 note bundles.. easily. 

Last July he brought 5 bundles and hid it among things in his bags because he was scared they would find it.  He did not want to risk bringing out too much.  Next week, he is going back to Iran for 1 month, and he said he will try to bring back Rials but no promises, as he said now the control is even more tight.

So, it makes you wonder and think what is the purpose for the clamping down.  It is and it must be for a very important reason.  The only thing I can see, is they are controlling the movement of the money for a reason, the RV and to control the wealth of it's citizens.

OK Tim, so that's a couple of scenarios that I believe can play out.  How it goes, I don't really care, as I see it, either way, my 25,000 will still remain as 25,000.  As for the Iraqi people, well that's another story, they have survived for 1,000s of years and will continue to survive.  Selfish as that may sound on my part, but life goes on as we know it. 

OK my friend, take care  regards  Muhammad Ali

www.CurrencyExchangePlanner.com

The No. 1 Planning Tool for the Dinar community.

Available in Desktop PC/MAC and Mobile App (Android & IOS) versions

 https://www.currencyexchangeplanner.com/article-21-answering-tim

Inspiring Presidential Quotes On Life, Liberty, And The Pursuit Of Happiness

Inspiring  Presidential Quotes On Life, Liberty, And The Pursuit Of Happiness
By   Drake Baer   

In honor of America's 238th birthday, we collected the finest aphorisms to come from the Oval Office.

They include life lessons from George Washington, leadership advice from Thomas Jefferson, and reflections on success from Abraham Lincoln.
 
These leaders probably had the toughest job in the world. Here are a few of the things they learned from it.

George Washington   1789-1797    "Associate yourself with men of good quality if you esteem your own reputation; for 'tis better to be alone than in bad company."
 
John Adams   1797-1801    "You will ever remember that all the end of study is to make you a good man and a useful citizen."
 
Thomas Jefferson   1801-1809     "When angry, count ten, before you speak; if very angry, a hundred."
 
James Madison   1809-1817    "The advancement and diffusion of knowledge is the only guardian of true liberty."

James Monroe   1817-1825    "It is by a thorough knowledge of the whole subject that [people] are enabled to judge correctly of the past and to give a proper direction to the future."
 
John Quincy Adams   1825-1829    "If your actions inspire others to dream more, learn more, do more and become more, you are a leader."
 
Andrew Jackson   1829-1837    "Take time to deliberate; but when the time for action arrives, stop thinking and go in."
 
Martin Van Buren   1837-1841    "All the lessons of history and experience must be lost upon us if we are content to trust alone to the peculiar advantages we happen to possess."
 
William Henry Harrison   1841    "I contend that the strongest of all governments is that which is most free."
 
John Tyler   1841-1845     "Wealth can only be accumulated by the earnings of industry and the savings of frugality."
 
James Polk   1845-1849    "May the boldest fear and the wisest tremble when incurring responsibilities on which may depend our country's peace and prosperity, and in some degree the hopes and happiness of the whole human family."
 
Zachary Taylor   1849-1850    "It would be judicious to act with magnanimity towards a prostrate foe."
 
Millard Fillmore   1850-1853    "An honorable defeat is better than a dishonorable victory."
 
Franklin Pierce   1853-1857    "The storm of frenzy and faction must inevitably dash itself in vain against the unshaken rock of the Constitution."
  
James Buchanan   1857-1861    "A long visit to a friend is often a great bore. Never make people twice glad." 

Abraham Lincoln   1861-1865    "Always bear in mind that your own resolution to succeed is more important than any other one thing."
 
Andrew Johnson   1865-1869    "Honest conviction is my courage; the Constitution is my guide."
 
Ulysses S. Grant   1869-1877    "The art of war is simple enough. Find out where your enemy is. Get at him as soon as you can. Strike him as hard as you can, and keep moving on."
 
Rutherford B. Hayes   1877-1881    "For honest merit to succeed amid the tricks and intrigues which are now so lamentably common, I know is difficult; but the honor of success is increased by the obstacles which are to be surmounted. Let me triumph as a man or not at all."
 
James Garfield   1881    "Be fit for more than the thing you are now doing. Let everyone know that you have a reserve in yourself; that you have more power than you are now using. If you are not too large for the place you occupy, you are too small for it."
 
Chester Arthur   1881-1885    "Good ball players make good citizens."
 
Grover Cleveland   1885-1889, 1893-1897    "A truly American sentiment recognizes the dignity of labor and the fact that honor lies in honest toil."
 
Benjamin Harrison   1889-1893    "I pity the man who wants a coat so cheap that the man or woman who produces the cloth will starve in the process."
 
William McKinley   1897-1901    "Our differences are policies; our agreements, principles."

Teddy Roosevelt   1901-1909    "We must dare to be great; and we must realize that greatness is the fruit of toil and sacrifice and high courage."
 
William Taft   1909-1913    "Don't write so that you can be understood, write so that you can't be misunderstood."

Woodrow Wilson   1913-1921    "One cool judgment is worth a thousand hasty counsels. The thing to be supplied is light, not heat."
 
Warren G. Harding   1921-1923    "America's present need is not heroics, but healing; not nostrums, but normalcy; not revolution, but restoration; not agitation, but adjustment; not surgery, but serenity; not the dramatic, but the dispassionate; not experiment, but equipoise; not submergence in internationality, but sustainment in triumphant nationality."
 
Calvin Coolidge   1923-1929    "Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb ... Persistence and determination alone are omnipotent."
 
Herbert Hoover   1929-1933    "Older men declare war. But it is youth that must fight and die. And it is youth who must inherit the tribulation, the sorrow and the triumphs that are the aftermath of war." ​

​Franklin D. Roosevelt   1933-1945    "Yours is not the task of making your way in the world, but the task of remaking the world which you will find before you."  

Harry S. Truman   1945-1953    "I have found the best way to give advice to your children is to find out what they want and then advise them to do it."
 
Dwight Eisenhower   1953-1961    "Neither a wise man or a brave man lies down on the tracks of history to wait for the train of the future to run over him."
 
John F. Kennedy   1961-1963    "Life is never easy. There is work to be done and obligations to be met — obligations to truth, to justice, and to liberty."
 
Lyndon B. Johnson   1963-1969    "If we succeed, it will not be because of what we have, but it will be because of what we are; not because of what we own, but, rather because of what we believe."
 
Richard Nixon   1969-1974   "The American dream does not come to those who fall asleep."

Gerald Ford   1974-1977    "The founding of our Nation was more than a political event; it was an act of faith, a promise to Americans and to the entire world. The Declaration of Independence declared that people can govern themselves, that they can live in freedom with equal rights, that they can respect the rights of others."
 
Jimmy Carter, Jr.   1977-1981    "Piling up material goods cannot fill the emptiness of lives which have no confidence or purpose."
 
Ronald Reagan   1981-1989    "The future doesn't belong to the fainthearted; it belongs to the brave."

George H.W. Bush   1989-1993    "No problem of human making is too great to be overcome by human ingenuity, human energy, and the untiring hope of the human spirit."
 
Bill Clinton   1993-2001    "If you live long enough, you'll make mistakes. But if you learn from them, you'll be a better person. It's how you handle adversity, not how it affects you. The main thing is never quit, never quit, never quit."
 
George W. Bush   2001-2009    "Life takes its own turns, makes its own demands, writes its own story, and along the way, we start to realize we are not the author."
 
Barack Obama   2009-2016    "One voice can change a room. And if one voice can change a room, then it can change a city. And if it can change a city, it can change a state. And if it can change a state, it can change a nation, and if it can change a nation, it can change the world. Your voice can change the world."

To continue reading, please go to the original article here: 

https://www.businessinsider.com/best-inspirational-quotes-from-us-presidents-2014-7

The Treasury Department is in Desperate Need of A Sucker

The Treasury Department Is In Desperate Need of A Sucker

Posted in Dinar Recaps Archives on 7/30/2019

Notes From The Field By Simon Black
July 30, 2019 Vilnius, Lithuania

The Treasury Department is in desperate need of a sucker

Ten years ago, at the peak of the global financial crisis, the Board of Trustees which oversees Social Security in the United States issued a stark warning:

They projected that Social Security’s enormous trust funds would completely run out of money in 2039.

Naturally nobody paid attention. Back in 2009 the economy in shambles, so focusing on a future economic crisis that was more than three decades away was a low priority.

And for the past decade, the US government has continued to ignore its Social Security problem.

But it’s become much worse.

Ten years later, the Board of Trustees now projects that Social Security’s primary trust fund will run out money in 2034.

That’s five years earlier than they projected back in 2009. And it’s only 15 years away.

Now, 15 years might seem like a long time. But take a minute to grasp the magnitude of this problem:

According to the US government’s own estimates, Social Security and Medicare combined are underfunded by $100 TRILLION.

$100 trillion is literally more than FIVE TIMES the size of the entire US economy. And this giant fiscal chasm is actually growing.

The big problem for Social Security is that tax revenue is no longer enough.

Every worker who is legally employed in the United States currently pays roughly 15% of his/her wages each month to help fund Social Security and pay benefits to retirees.

But there are now so many people receiving Social Security benefits that all the payroll tax revenue is no longer enough.

Social Security also derives a portion of the income it needs to pay benefits from the investment returns on its $3 trillion worth of assets.

Problem is-- Social Security is forbidden by law to invest in anything EXCEPT United States government bonds.

Most countries who have large Sovereign Wealth Funds or Pension Funds have the latitude to invest that capital in a variety of asset classes.

I personally know several national pension fund and sovereign wealth fund executives in Europe and Asia, and they typically buy a wide variety of assets-- real estate, private equity, stocks, bonds, etc., with a target annualized return of between 6% to 8%.

To continue reading, please go to the original article here:

https://www.sovereignman.com/trends/the-treasury-department-is-in-desperate-need-of-a-sucker-25425/

To your freedom and prosperity, Simon Black, Founder, SovereignMan.com