[Black Improvement Economics] $ Media Wants to Brainwash & Bankrupt You

This is the                       G&G Associates Tax & Financial Consulting                                    e-Newsletter               The Financial Media Wants to Brainwash and Bankrupt You Imhotep (Wisdom To You) G&G Readers, The financial news media is conspiring to blow up your brokerage account and flush your retirement savings down Ben Bernanke's new commode. I'm not saying the editors of top financial newspapers and magazines sat down together and hashed out a plan to brainwash you and bankrupt you. I really don't think they did that. It only looks like they did it… The conspirator I'd like to focus on today is Barron's, one of the most well-respected publications in the industry. By the look of it, you'd think it made a bet that it could nail the best "cover story sell signal"… ----------------------------------- Internal Sponsorship With the falling dollar and the explosion in gold, silver, oil and other natural resource prices, you need to stay on top of your game and manage your "OWN Finances." Become a GGIS subscriber now and you'll be sure that we make sure you stay on top of your Tax and Financial Future to make sure your BUSINESS … AT HOME is protected.  Remember…most people look after their bosses business, but fail to look after their own business at home. Take advantage of our 2010 discount lifetime subscription offer if you are not yet a member of the GGIS paid newsletter service and you'll be on your way to knowing how to protect your portfolio...at least what's left of it.  I'll keep you informed on the "REAL DEAL" in our economy so you can protect your wealth. So....Sign up today before the price increases in 2011. To become a member of the G&G Investment Society newsletter subscription, send an e-mail to GGIS@gngassoc.com and/or visit our website at www.gngassociates.net and click on the "Products & Services" link and we'll get you signed up right away. DON'T WAIT ANOTHER DAY! - 1 year subscription - $49       (2011 Price Increase -- $99) - 2 year subscription - $89       (2011 Price Increase -- $189) - Lifetime subscription - $199    (2011 Price Increase -- $399) ----------------------------------- The cover story sell signal is one of the best contrarian indicators around. Whenever a trend is deeply ingrained enough in the public mind to sell magazines off the newsstand, you know it's about to end. It's most recent issue of Barron's, you'll find the most irresponsibly ostrich-like, head-in-sand attitude on the cover of the November 29 issue. It shows a retiree lounging with a cocktail next to a waterfall of money. The headline promises, "How to keep the income flowing." The article inside is called "Going with the flow." That doesn't sound very contrarian to me… It's essentially an invitation to throw caution to the wind and take on more overpriced risk. And the Barron's story is recommending a whole slew of risky investments… Among the high-risk offerings touted by Barron's: emerging market debt, foreign government bonds, high-yield corporate bonds, Build America Bonds (subsidies for municipal bond issuers), senior bank loans, MLPs, dividend-paying stocks (well, that one's a pretty good idea, actually), variable annuities, and the one that's been going straight to hell faster than the rest of them lately, municipal bonds. It's as though someone at Barron's sat down and decided to make a list of the riskiest stuff you could buy right now. Income – especially fixed income – is clearly a bubble. That Barron's is trying to sell this list of fixed-income and near-fixed-income investments as a retirement-worthy portfolio seems more irresponsible than usual. It even tells retirees to take more risk, saying, "Generating a rich stream of post-retirement income these days requires investments that retirees once might have shunned." Adding particular insult to injury, a smaller headline on the left-hand margin of Barron's latest cover says, "REITs have the right stuff." I guess as long as you ignore the loud crashing sound coming from the commercial mortgage-backed securities (CMBS) market, the equity in commercial real estate looks positively peachy. In particular, the delinquency rates on mortgage-backed securities secured by apartment buildings spiked more than 100 basis points in November, to 15.8%. That's from the same report by CMBS tracker Trepp that says the overall CMBS delinquency rate rose to 8.93%, up 35 basis points from October. The loans underlying U.S. commercial real estate are blowing up at higher rates. But Barron's thinks the equity slice, the riskiest piece of the pie, is somehow appropriate for retirees. If the bond holders aren't getting paid, the equity holders can throw their tickets in the trash, have a smoke and a shot tequila, and resign themselves to getting crushed. And like every other kind of yield, REIT yields have compressed. The U.S. Real Estate Index dividend yield has fallen from 11.19% in February 2009 to less than 4.6% today. For taking on all kinds of risk, you're paid just a little more than 30-year Treasurys. That's a bad deal. And you should turn up your nose. Barron's and the rest of the financial news industry is a shameless hype machine, by all appearances in the direct employ of Wall Street, the Fed, and anybody who's already got a ton of money. It's forgotten how to say, "Inflation is bad for business, and what's bad for business is bad for stocks. Sell fairly valued stocks. Hold cash. Buy only when valuations are dirt cheap and business quality is stellar." See, that wasn't hard. Sure, subscriptions to my GGIS newsletter won't have people pulling out their credit card with that kind of advice. But at least we'll all sleep soundly, knowing we understand exactly what the heck is going on. If you need a one-on-one consultation, feel free to contact me to setup an appointment. Until the next time, Ankh Uja Snb (Life, Health, Strength), Asar Gary Gray Tax & Financial Consultant, RFC G&G Associates 757-251-0174 office 866-361-3872 toll free fax www.gngassociates.net G&G Associates & G&G Travel are on Facebook, join our fan page. "Any fool can make something complex, but it takes a genius to make something simple"           Woodie Guthries P.S. If you're not a GGIS Paid Subscriber reader yet, it's not a bad way to start the year. The recent dollar rally has actually given everyone some new opportunities to invest on the cheap. And currently, our GGIS portfolio is packed with great plays to kick-start your "anti-dollar" portfolio for 2010. P.S #2 If you are looking to Travel and looking for steep discounted travel, visit www.gngassociates.net, click on the "G&G Travel" link and let your travel planning begin.  Let us know where you want to go and we'll do our best to find you the best deal your money can buy.  Become a Fan of G&G Travel on facebook. LEGAL NOTICE: This work is based on SEC filings, current events, interviews, corporate press releases and what I've learned as a financial consultant. Nothing herein should be considered personalized investment advice. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.

Quotes of the Week -- Must Read

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G&G Associates Tax & Financial Consulting
e-Newsletter

Alafia(Peace & Blessings) G&G Readers,

Just wanted to send you some tidbits from other sources to maybe validate some of the things I've been warning you about for years. If you haven't made any moves yet, please do so or you might get caught with your pants down.

I could add some more analogiies here, but I'll leave it alone and go on with the rest of my night.

IF YOU WANT TO SETUP A ONE-ON-ONE CONSULTATION, FEEL FREE TO CONTACT ME.

Asante (thanks)

Asar Gary Gray
G&G Associates, RFC
Tax & Financial Consulting Services
www.gngassociates.net
757-251-0174

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QUOTES OF THE WEEK:

From Richard Russell, editor of Dow Theory Letters, in remarks posted on his website on December 14th:

''China is using its yuan as its currency of choice in transactions with its hundreds of trading partners. In a slick way, China is displacing the dollar as its currency of trade. There is no doubt that, in its own good time, China is preparing to make the yuan convertible. The Russell prediction -- with China now the world's biggest producer and accumulator of gold, it's only a matter of time before the Yuan becomes the world's preferred currency rather than the dollar or the euro. I think the Chinese are going to part-back the yuan with gold. If you are an overseas investor, which would you rather have, a Federal Reserve Note backed by nothing and issued by a nation that is choking on debt, or a yuan part-backed by gold and produced by a nation with a the plane's largest positive trade balance?

Remember the 'Golden Rule,' ...... 'Who has the gold, makes the rules.' And China is in a headlong drive to produce and accumulate gold.

Today, both the Wall Street Journal and the Financial Times included feature stories on China's spreading use of the yuan with its trading partners while cutting out the dollar. This is most definitely a game-changer, and it foreshadows the ultimate fall of the dollar. All this is not lost on the price of gold, which has again pushed into the area above 1400.

Ultimately, I see the whole situation accelerating, leading to a worldwide panic out of dollars. This will correspond with the third speculative phase of the great gold bull market. Gold and silver will soar higher than anyone thinks possible. And remember, much of the world understands silver and gold and they are already into these metals. In the meantime, most Americans are totally oblivious of what's going on with the dollar, with gold, and with silver, and, I might add, with China.''

. . . and from Pham-Duy Nguyen on Bloomberg on December 15th:

''The U.S. Mint may produce American Eagle palladium coins if there is sufficient evidence that investors will buy them.

The mint was authorized to produce the 1-ounce coins 'if an independent marketing study demonstrates adequate demand to ensure that the coins could be minted and issued at no net cost to taxpayers,' according to the American Eagle Palladium Bullion Coin Act of 2010 that President Barack Obama signed into law yesterday.

Demand for precious-metal coins has soared this year as investors sought a haven from turmoil in global financial markets. The U.S. Mint currently sells 1-ounce American Eagle gold, silver and platinum coins. Last month, the agency sold a record 4,260,000 ounces of silver coins.

The price of palladium, used in jewelry and in automobile pollution-control devices, has gained more than 80 percent this year and touched a nine-year high of $780 an ounce on the New York Mercantile Exchange on Dec. 3.''

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Is America Becoming a Communist Nation?

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G&G Associates Tax & Financial Consulting
e-Newsletter

Dear G&G Readers,

This is an interesting article I came across. It's one of those you read that make you go hmmm...but, it makes so much sense. Enjoy...

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Is America Becoming a Communist Nation?
By Braden Copeland

As I showed you yesterday, the Greeks may be the most notorious of the world's profligate nations… but they are not the real problem.

The real problem is much larger and more complex.

The root of the problem the world is facing right now isn't really governments… or banks. The real problem is simply a very bad idea – the idea that the State ought to sit in the center of society. Let me explain…

The last 100 years (since 1914) saw not only the end of the classic gold standard, but also the fantastic ascendancy of the nation-state.

These two trends are inherently and dangerously related.

Until World War I, the central government of the United States, for example, played a small role in the lives of its citizens. Its powers were strictly limited, as were its revenues. It was specifically barred from taxing citizens directly. It was a humble government that interacted with the individual states in the union, but didn't interact much with individual citizens.

The first signs of change came after the Civil War. "Progressive" ideas began to emerge. Most of these ideas came from Germany, from philosophers like Karl Marx and Friedrich Engels. The core of these ideas was that the State itself was superior to its citizens. Therefore, the argument went, society ought to be organized to better accomplish the goals of the State.

Today, most Americans have no idea that the foundations of our modern State are based – nearly verbatim – on the demands of Karl Marx's Communist Manifesto.

In 1848, Marx threatened to organize a worker's revolution unless European governments:

1. Abolished property rights and applied all rents towards public purposes.

[Modern corollary: Don't pay your property taxes, lose your house. So who really owns your house?]

2. Levied a heavy, progressive income tax to equalize wages.

[Modern corollary: Combined federal and state marginal income and payroll taxes approach (or surpass) 50% in many U.S. states.]

3. Abolished all rights of inheritance.

[Modern corollary: The estate tax.]

4. Confiscated the property of all emigrants.

[Modern corollary: The 2008 "Hero's Act," which forces people leaving the U.S. to pay the equivalent of their estate taxes on the global assets before they turn in their passports.]

5. Centralized access to credit in the hands of the State by means of a national bank and an exclusive monopoly.

[Modern corollary: Fannie Mae and Freddie Mac, which make more than 90% of all of the mortgages in the U.S. and have dominated the market for mortgages for decades.]

6. Centralized the means of communication and transport in the hands of the State.

[Modern corollary: AT&T was a legal monopoly for decades. Amtrak is a ward of the states. The government owns all the roads. And the State controls all air traffic.]

7. Provided free education for all children in public schools.

[Note the emphasis on public schools. Paying for education isn't enough. What counts is indoctrinating the kids in glorifying the State.]

8. Produced a common agricultural policy to maximize the productivity of the land.

[Modern corollary: Massive ethanol and agricultural subsidies.]

Most people in democracies like these ideas for one simple reason: They hold the allure of getting something for nothing. They are the siren song of living at the expense of your neighbor.

These ideas became extremely popular over the last 100 years, all around the world. As a result, as democracy spread, so did these ideas. Politicians of each party and persuasion throughout the Western world quickly adopted them as their own (and never mentioned Marx).

As these ideas took hold, one big problem developed… How do you pay for them?

Progressive politicians believed they had the answer. They just took Marx's big innovation: A progressive income tax. Let the rich pay!

It's a popular idea – but it never works because decisions to add more benefits don't take into account the expense of paying for them. It doesn't take long for the budget to get out of control. Or said another way, everyone can't live at the expensive of his neighbor. His neighbor can't afford it… and he moves.

More serious, the flaw in communism is obvious. Communism doesn't account for the fact that people expect to control the fruits of their labor. People don't like their assets being stolen and their wages being heavily taxed by a government that regulates their businesses and sends their children off to war. Incrementally, people stop working. Wealthy people flee… or hide their incomes.

Tax revenues fail to meet projections. Deficits grow. Deficit spending soars. And debts mount.

That's where paper money comes in. Paper money isn't only good for financing a war. It's also perfect for closing the gap between what an economy ought to produce and its paltry real production when it has been beaten into submission by communist ideas. I like to explain it this way…

The central truth of economics is scarcity. There can never be enough of anything to satisfy everyone. The central truth of politics is patronage: promising to give everything to everyone. Paper money is the bridge between economics and politic s.

The unpaid debts of an entire generation of people in Western countries are coming due. The so-called "baby boomers" grew up in a world dominated by Marxism and Keynesian economics. These are bad ideas. They are destined to collapse.

And the collapse is here.

Regards,
Braden Copeland

------------------------------

If you need a one-on-one consultation, feel free to contact me to setup an appointment.

Until the next time!

Ankh Uja Snb,
Asar Gary Gray
Tax & Financial Consultant, RFC
G&G Associates
757-251-0174 office
866-361-3872 toll free fax
www.gngassociates.net

Become a Fan G&G Associates and G&G Travel on Facebook.

"Any fool can make something complex, but it takes a genius to make something simple"
Woodie Guthries

P.S. If you are looking to Travel and looking for steep discounted travel, visit www.gngassociates.net, click on the "G&G Travel" link and let your travel planning begin. Let us know where you want to go and we'll do our best to find you the best deal your money can buy. Become a Fan of G&G Travel on facebook.

LEGAL NOTICE: This work is based on SEC filings, current events, interviews, corporate press releases and what I've learned as a financial consultant. Nothing herein should be considered personalized investment advice. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.

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The Best Time to Buy Property

Here is some info' I read that I agree with !
For any buying or selling real esate needs in Hampton Roads Virginia consult with me !

Seko VArner,
Real Estate & Financial Freedom
Positively Great Homes & Finances
757-248-3820
www.HappilyEverAfter.Be

"The Best Times To Buy Property !"
The article's direct link:

A Conventional wisdom says that you need to stay in a home a minimum of five years to ensure that you recoup your purchasing costs. But with some markets soaring, this advice doesn't always apply. Article from Yahoo.com & Zillow.com !

It's All About the Market
Market conditions play a huge part in any decision about when to buy. Housing market values have varied widely from region to region in recent years. While the Florida market has seen meteoric rises in home values, Ohio has seen its real estate prices go into negative territory in the last year.

Do not buy high and sell low - if your market is softening or has hit its peak and is heading south, you may want to wait on your purchase.

The magazine Smart Money has created a worksheet to compare the costs of renting vs. buying using market appreciation calculations to determine at what point you come out ahead. Plugging in the price, down payment, your income bracket, interest rate, and current market appreciation rates, the worksheet will break out what you will gain.

For example, say you were to buy a $400,000 house in Boulder, Colorado and you estimate the market will soften from the current 11% appreciation to about 9 percent annually. If you stayed in the house three years, you would recover $88,750 in equity at the end of that period; if you stayed five years, you'd realize $120,360.

It's All About You
The top three reasons people file for bankruptcy are change of job status, divorce, and unforeseen health expenses. If you face any of these challenges and don't have a financial cushion, this may negatively impact your ability to pay a mortgage. Big life events dictate your readiness to buy now or to wait for a little more stability.

Signs you should not buy right now:

•Will you be moving within the next five years?
•Will you be having kids soon?
•Will you be making a job change?
•Have you recently filed for bankruptcy or is your credit score below 630?

If you answered yes to any of these questions, or you are experiencing other life-changing events like illness, marriage, divorce, or breakup, you may want to wait.

Your Financial Future
Aside from life events contributing to your decision, getting your financial house in order before you begin your home search is key. Even with all the programs available for buyers with a low-or-no down payment, if your debts are growing steadily and you don't foresee an increase in your income, you are putting yourself in greater financial risk by taking on a mortgage.

With only a few exceptions, many loans for people who are still repairing their credit or recovering from bankruptcy carry higher rates than those available once your credit is in better shape. So the question comes down to this: Do you buy now, before prices appreciate higher than you can afford, but do so with an expensive loan? Or do you wait and repair your credit, then get a favorable loan, and pay more for your home?

That's the sort of analysis you need to go over with a financial counselor or mortgage broker before you start hitting open houses.

Ways to Cushion the Blow
On the other hand, if you are willing to buy a home that needs a bit of work and, over time, you can afford to get it done, your home could appreciate faster, strengthening your financial position. If you are willing to take on a roommate or renter, you can also soften the expense of a mortgage, which almost always costs more than rent. Buying a home is a risk, and it's worth asking yourself hard questions about what you're willing to do to protect yourself from getting in over your head.

If you answered "no" the life-change questions, and have the down payment or equity from your current home, you still need to look at interest rates and at how buying affects your taxes. You can't time the stock market, but you can time interest rate hikes, as they are a little easier to predict. If they are going up fast, you can jump in before they rise too far; if they are already high, you will have to calculate how refinancing in the future affects your budget.

What to Do First
If you are anxious to get moving, be patient. You have a few things to do first:

1.Go to open houses - get the lay of the land
2.Talk to a mortgage broker to get pre-approved
3.Interview agents (You may want to find an agent at the same time as you look for a mortgage broker - a good agent can recommend reputable brokers and help you make sense of the terms of the loan) - Call Seko @ 757-248-3820
4.Review credit report and scores with mortgage broker to determine if any repairs are needed
5.Use Zillow.com to find info on neighborhoods that interest you and then use the Home QandA feature to ask current homeowners.

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Black Improvement Economics is a service of The Imani Foundation
http://www.imanifoundation.com
These posts provide information that may aid financial improvement. The information on this site is provided as opinion and should not be construed as professional legal advice, nor professional financial advice, nor professional tax advice. The end reader is advised to seek professional assitance to address one's particular situation. The posts on this site may be third party information and may not be copyrightwritten by the poster of the information.