The ‘Small’ Business Administration Is Now Bigger Than Walmart
.The ‘Small’ Business Administration Is Now Bigger Than Walmart
Notes From The Field By Simon Black
March 30, 2020 Bahia Beach, Puerto Rico
As you’ve probably already heard, the US government unleashed a giant tsunami of money on Friday, passing a $2 trillion stimulus bill to help boost the economy during the Covid pandemic.
Let’s put that number in context:
$2 trillion is more than it cost to wage 18+ years of war in Afghanistan and Iraq.
It’s nearly THREE times the size of the bailout from 2008.
It exceeds ALL corporate and individual income tax revenue collected by the IRS last year
We are clearly living in unprecedented times… and this bailout is equally unprecedented.
How Much Gold and Silver Should People Own?
How Much Gold and Silver Should People Own?
By Len Penzo
Ever since I started writing about the importance of owning physical gold and silver as insurance against the inevitable failure of the US dollar, I’ve been receiving an increasing volume of questions in my inbox from folks curious to know more about precious metals.
With that in mind, here’s one that I received last week from Joshua:
How much gold and silver should a person own? I’m 38, with a wife and three kids. My only debt is a mortgage and a small bank loan. Going by your prep list for a possible financial collapse, I’m well prepared.
My plan is to start buying precious metals mostly as an insurance against dollar devaluation. So how heavily should a middle-class guy be buying precious metals, assuming I have an extra $1000 per month?
The Most Important Insurance We Never Buy
.The Most Important Insurance We Never Buy
By Len Penzo
It’s ironic, but bankers and fiscally irresponsible governments despise gold and silver. Why? Because precious metals demand accountability, that’s why.
In short, gold-backed currencies force responsible governments to live within their means.
That is precisely why, back in 1971, Richard Nixon was forced to nullify the Bretton Woods agreement, which was signed at the end of World War II, and permanently close the gold window.
As you might expect, Nixon felt he had no choice. The US had been living well beyond its means for more than a decade, printing lots of federal reserve notes to pay for expensive endeavors the country couldn’t truly afford, like the Vietnam War and LBJ’s so-called “War on Poverty.”
That, in turn, led to an increasingly devalued US dollar. So, in order to preserve their wealth, many of the world’s central banks — led by West Germany, France and Switzerland — began redeeming their rapidly depreciating US dollars for the gold stored in Fort Knox; so much so that by the time 1971 rolled around, America had only half the gold reserves it did in 1960.
The 50 Biggest Money Mistakes Household CEOs Make
.The 50 Biggest Money Mistakes Household CEOs Make
By Len Penzo
I’m not ashamed to admit I make mistakes. After all, everybody screws up occasionally; for us humans, mistakes come with the territory.
For example, I remember the time I decided it would be great fun to play Wii golf for eight consecutive hours. Unfortunately for me, my middle-aged left shoulder vehemently disagreed — after the fact, of course — and so I spent the next week popping acetaminophen tablets like they were M&Ms. I know.
It can be even more costly when we make mistakes managing our personal finances; I know I still make them from time to time.
How Will The Coronavirus Affect Your Personal Finances?
.How Will The Coronavirus Affect Your Personal Finances?
By J.D. Roth —12 March 2020 (updated 19 March 2020)
How quickly things change.
Last week, the coronavirus (or Covid-19, if you prefer) was a distant problem. It was something other people in other places had to wrestle with. Sure, there was a looming sense that maybe this runaway train was steaming our way, but it still seemed distant enough that maybe it'd stop before it reached us.
Not anymore. Now it's clear that the coronavirus isn't just headed to the U.S., it's already here in our communities.
I'm fascinated by the financial implications of the coronavirus. They're going to be huge — they're already huge — but I don't know who is going to bear the burden or how we, as a society, are going to make sense of this in the long run.
The stock market is tanking, obviously, and will likely continue to tank for some time. But I expect (hope?) that when the dust has settled, things there will largely return to normal.
Yes, I know it's impossible to make predictions about the market's direction. But I believe the current movement is largely due to the coronavirus and its immediate implications.
When this event has receded into the past — in a few months, say — I expect stocks to regain most of what they lost. Not all, but most. (And again: I could be full of shit. Don't make any market moves based on what I personally believe will happen. I'm just a random guy behind a keyboard.)
But outside the stock market, there are a whole host of financial implications. We're entering uncharted territory. I don't know what to expect, and I don't think anyone else does either.
Here are some of my questions.
What’s the Best Way to Give a Financial Gift?
.What’s the Best Way to Give a Financial Gift?
By Anum Yoon
When it comes to gifts, we all know it's the thought that counts -- which is why there are certain self-described gift-giving mentors who don't encourage financial gifts. Of course, those same folks have probably been on the receiving end of monetary ... ifts and were ecstatic.
As with all things in life, there’s a right way to give a financial gift, and a lot of that has to do with the recipient and their age. Here are some things to consider for the next time you reach into your wallet for a gift:
Gift a 529 Account
Economic Collapse 101: Ten Ways to Prepare for the Unknown
.Economic Collapse 101: Ten Ways to Prepare for the Unknown
By Len Penzo
Economic Collapse 101: Ten Ways to Prepare for the Unknown
By Len Penzo
Most folks are really good about making sure they have the proper amount of insurance for their home and automobiles. But when it comes to ensuring the survival of their family in rough economic times, well … not so much.
It’s no secret that recent volatility in the world financial system has more than a few people openly talking about the threat of an economic collapse — and I’ve been explaining for several years now why I believe an economic collapse is inevitable.
If history is any guide, the good news is that it won’t result in a complete breakdown of society. Argentina has suffered through multiple collapses of its own economy through the years and life goes on — but it remains less than idyllic there.
Nobody can say exactly how the collapse of the “almighty” US dollar will unfold, but you can bet that most people will be unprepared if and when it happens. If we’re lucky, it will happen one weekend after the-powers-that-be announce a bank holiday followed by a complete fully-controlled system reset that results in significantly lower standards of living for everyone.
If not, collapse will be much more chaotic …
The 13 Most Important Items To Keep in a Fireproof Safe
.The 13 Most Important Items Everyone Should Keep in a Fireproof Safe
By Len Penzo
For some people, it’s tough letting go. Of anything.
Take my wife, for instance; she saves everything.
The other day the Honeybee showed me her baseball ticket from our very first date way back on September 24, 1995.
And if I ever feel oddly compelled to scrutinize the birthday card I received from my mother-in-law in 1998, I can rest easy knowing that the Honeybee has it dutifully stored upstairs in our bedroom closet.
What’s that? You say you’re looking for the operating instructions to a vintage Easy Bake oven, circa 1986? If I’m not mistaken, they’re in our closet too, not far from the rest of those 643 old birthday, Christmas, Easter, and Mother’s Day cards she’s been saving that nobody will ever look at again.
Protecting the Important Stuff
I’m a bit more judicious than the Honeybee when it comes to saving things — and I use a fireproof safe for the most important stuff.
If You Think It’s Too Late, Think Again. There’s Still Time
.If You Think It’s Too Late, Think Again. There’s Still Time
Notes From The Field By Simon Black
March 23, 2020 Bali, Indonesia
[Editor’s note: This letter was written by Tim Staermose, Sovereign Man’s Chief Investment Strategist and Editor of the 4th Pillar newsletter.]
I’m writing from my remote rural villa in Southern Bali. I made a mad dash to get back here from Hong Kong before the borders effectively shut to visitors, and airlines cancelled virtually all flights.
Nearly a quarter of a million tourists and other temporary visitors have left Bali in February and March, and no one has come in to replace them.
Up to 80% of the island’s economy relies directly or indirectly on the tourist trade. So, it’s going to be very hard for most people here to make ends meet for as long this coronavirus pandemic, and the extreme government measures instituted to try and deal with it, last.
What to Do if the Coronavirus Outbreak Is Affecting Your Finances
.What to Do if the Coronavirus Outbreak Is Affecting Your Finances
Lisa Rowan 3/12/20
All jokes about Netflix and social distancing aside, the coronavirus outbreak is causing financial uncertainty for a lot of people. From workers who rely on tips to events staffers for now-canceled festivals and trade shows, there are plenty of scenarios where the income you can typically count on may not come through.
If you’re lucky, it’s a minor inconvenience. But if it’s causing you greater stress than just having to tighten your purse strings for a few weeks, there are resources you can turn to for help.
If you can’t work
The U.S. Department of Labor has granted states the ability to change their laws so people can get unemployment benefits during the pandemic.
People who can’t go to work because of precautions around the coronavirus and those who are temporarily quarantined can apply for unemployment benefits. If you have to leave your job completely due to risk of exposure or because you need to care for a family member, you’re also eligible to apply for benefits.
Majority of Americans Have Cried Over Money
.Majority of Americans Have Cried Over Money, Study Says
Dhara Singh Reporter Yahoo Money October 21, 2019
Pass along the tissues, because Americans aren’t afraid of letting the tears roll when it comes to finances.
Seven in 10 Americans said they have cried about money in their lifetimes, according to a recent online survey of 1,004 Americans by Compare Cards.com. Many cited worries over their job or making ends meet.
And household debt, which peaked at $13.86 trillion in the second quarter, weighed the heaviest on Americans. Almost a third admitted to crying over this looming concern, according to the survey.
“So many people’s financial margin for error is so slim that an unexpected car repair can be a real hardship,” Matt Schulz said. “Then, if you factor in things like job loss or a medical emergency, that can make things even worse.”
Which debt hurts most?
Credit card debt evoked the second-most tears. One in 5 Americans said credit card debt – which increased $18 trillion since the 2008 – has made them cry.
Student loan debt – which hit a $1.48 trillion in the second quarter – followed, with 13% of Americans naming it as a top stressor.