Wednesday, December 1, 2010

November 10 Net Worth 97K: Thankful for

November is done and whew...what a month! If you look closely you will see there is a new value in "Real Estate/Home Value" and in Mortgage. We purchased our first home this month. We did it despite my thinking that the housing market is going remain falling. We are trying to start a life and we found a home that we love. We also do not look at this an investment but more of a home where live and become a family, which is way more valuable than any price of money. We feel we got a great deal and we are not going to look back. We are happy and thats all I have to say...
Lets break it down:

Cash & Savings: We have been saving up for a house down payment but looks like we got one heck of deal on a home, so we will be keeping most of this. Our first goal is to get about 50K in the bank(cash) for saving before we really start putting our money to work. This has grown despite purchasing some major things for our new home(washer, dryer, and fridge). This bracket holds the funds for insurance, auto maintenance, Roth IRA, and vacation. It also holds my monthly budget in it. The rest is used on a daily bases for covering expenses, mortgage, food, auto, etc...

Stocks/Brokerage: Has been remained a good run with my brokerage account the last couple of months. I have purchased a few other stocks Silver Wheaton(SLW), Fronteer Gold (FRG) and Silvercorp Metals, Inc. (SVM). I sold off my GLD with a 20% gain from where I purchased and hoping these remaining gaining like they have the last couple months. I am just saving up some cash in the mean time to start dollar cost averaging into these. I am up around 13% in these. The list of stocks I currently own: (SLW)(FRG)(SVM)(EXC)(PWE)(PHYS)(EGO)(AUY)(AVARF)(RGLD)(ZQK)(XOM)(CVX).

*As you can see I am heavy in commodities in my brokerage account. This is all based on my thought that over the next decade the best investments are going to actually be in hard assets. My Roth/IRA/401k are in pretty common index funds and mutual funds so I figure I can go more risky with brokerage. I believe these will out perform equities in the next decade and if nothing else I feel more comfortable with my portfolio being diverse. I am bearish on the US Dollar and US Economy, I believe that trillion dollar deficits are not going bode well for the USA.

Retirement 401k: This bracket is just both my wife and my retirement, adding money to our retirement funds every month. Steady growth here...(update - the fed announced quantitative easing or money printing and the market has kinda been up and down, will wait and see what happens here.

Retirement IRA's: Still having some cash on the sideline and will figure out what this market wants to do and see if I can put it to work. In this bracket I have all Vanguard Funds (VTSMX, VGSTX, VEIEX, VGPMX)

Real Estate: So this is a new category, based off getting 100% financing, right now its not even an asset based of not having any equity in our home. The plan here is to keep our money that we were going to put down as a down payment in the bank or investments. We will try and hedge our payments with trying to pay off the home in 10-15 yrs depending on what comes our way. This might change along the way depending on kids, economy, jobs and so forth.

Debts and Liabilities -

Credit Cards: Debt for home stuff, will be paid off without any interest.

Car Loan: I am paying 4% APR on it so I am paying a little, but not a ton. Still looking to pay it off early-will probably be a goal this or next year. Now that we don't need to save up on the downpayment we might have to start paying a bit more per month even though our mortgage will be higher than we are paying now...will keep you posted.

Home Mortgage: Sending off first payment today, more to come in the next few years :)

I am so looking forward to hitting 100k in net worth hopefully in the next month or two, we have come so far in just two short years. I am blessed to have what I do and during these hard time for most families, we have been able to create a small amount of wealth.

In this time of year we will be thankful for what we have and hopefully spread some cheer over the holidays! We will be supporting a child at an elementary school, along with a family that is in need. My family decided not to give gifts this year but to sponsor a family who's mother is dying. We will try and donate to more as they arise.

Tuesday, November 2, 2010

Is Gold a dead asset?

The following if from one of my favorite websites FOFOA:

'The falling price of Gold has had various effects on people. The common person says, "Of course it is falling, because Gold has been demonetized." The Goldheart knows better, so the falling price has a more remarkable effect, bringing out insecurities and irrationalities of some. Though these people don't question that Gold is money, their insecurities start to question whether the world really needs money at all... that somehow this greatest device of mankind has been antiquated. Simply preposterous. If they knew the truth they would confidently buy today at triple the price and call it a bargain of a lifetime. People ask, "Why waste effort to dig up Gold from the ground, only to rebury it in vaults?" I say, "For the same reason the central banks toil to print millions of fancy notes that nobody reads. If you've read one, you've read them all." The effort is needed to prevent cheating, though we easily see the fancy cash does not stem the abusive tide of money from nothing. People also say, "Gold is a dead asset. It does not earn interest." What is the point of such a comment, to demonstrate their naiveté? Did banks not pay interest when coins were stamped from Gold?

You see, it is not the nature of money itself to earn interest, but rather, it is the investment risk that maybe earns a reward. A modern dollar in a shoebox is as a Gold coin beside it. No interest for either. You should know the interest paid by a bank savings account is not a product of the money itself, but instead it is the rewards on the risk the bank takes with the money you have provided for their investment use. Sometimes these banks choose poorly, and in those cases even the modern dollar earns no interest, and does not come back at all--lost with the closing of the bank doors. Money must be risked (invested) to expect a yield, and in this regard, the big players in the world risk Gold money as they do paper money (though often not as aggressively), while the small players are content with the shoebox yield. You are forced to be more aggressive (more risky) with paper because its value dies quickly, unlike Gold that stands forever even in a shoebox of no risk.'

Thursday, October 21, 2010

How I See the World Today | Jim Rogers

Jim Rogers is one of my favorite investors to listen to. These are a must watch:



Friday, October 1, 2010

September 2010 Net Worth: 90K, I can smell 100K!

August and September are all in the books and things keep looking up despite whats going on. Thats because the wife and myself have combined all of our money. We still have some tinkering to do with her retirement and such but overall we are feeling good. That is another reason I did not put up our net worth last month so bear with me.
Lets break it down:

Cash & Savings: Huge jump since last time I posted our net worth, this is mainly due to combining my wife's saving and my savings. We have been saving up for a house down payment but looks like we got one heck of deal on a home, so we will be keeping most of this. Our first goal is to get about 50K in the bank(cash) for saving before we really start putting our money to work. We have to purchase some major things for our new home(washer, dryer, and fridge) so this will be drained a bit over the next couple months. This bracket holds the funds for insurance, auto maintenance, Roth IRA, and vacation. This is why it can be a little deceiving, it also holds my monthly budget in it. It has about 13-15k sitting around as savings the rest are funds that are going to be used at some point over the year. The rest is used on a daily bases for covering expenses, rent, food, auto, etc...

Stocks/Brokerage: Has been a good run with my brokerage account the last couple of months. I decide to go ahead and pull the trigger on Exelon Corp. I am just saving up some cash in the mean time to start dollar cost averaging into these. Overall I am up around 10% in these. The list of stocks I own (EXC)(PWE)(PHYS)(GLD)(EGO)(AUY)(AVARF)(RGLD)(ZQK)(XOM)(CVX).

*As you can see I am heavy in commodities in my brokerage account. This is all based on my thought that over the next decade the best investments are going to actually be in hard assets. My Roth/IRA/401k are in pretty common index funds and mutual funds so I figure I can go more risky with brokerage. I believe these will out perform equities in the next decade and if nothing else I feel more comfortable with my portfolio diverse. I am bearish on the US Dollar and US Economy, I believe that trillion dollar deficits are not going bode well for the USA.

Retirement 401k: This bracket is just both my wife and my retirement, adding money to our retirement funds every month. Big tick up this month because of combining...we will wait and see how the stock market plays out come the fall. (update - Fall is here and based off quantitative easing or money printing coming down the line, I am starting to think the market might raise dramatically, as money will have to flow somewhere)

Retirement IRA's: So I have jumped back into some funds as I had a large amount of cash sitting on the sidelines. I put most into precious metals & mining fund(VGPMX). In this bracket I have all Vanguard Funds (VTSMX, VGSTX, VEIEX, VGPMX)

Debts and Liabilities - Vehicle under 7K!! Credit Cards done...

Credit Cards: don't have much to say here! $0.00

Car Loan: I am paying 4% APR on it so I am paying a little, but not a ton. Still looking to pay it off early-will probably be a goal this or next year. Now that we don't need to save up on the downpayment we might have to start paying a bit more per month even though our mortgage will be higher than we are paying now...will keep you posted.

I am still extremely bearish on the world economy and the US economy...We are headed for a financial storm and it is very important for all of us to be up to date on current events. It time to be prepared for the worse and pray for the best.

Thing will be getting shifted here and there over the next few months with everything we have gong on with the home purchase and combining finances but overall I feel pretty good and cannot wait to see what happens come of end of year to see how far we have come. Until then good luck with your own budget and growing your wealth.

Thursday, September 9, 2010

Is Ayn Rand’s Atlas Shrugged Future Possible?

I highly suggest you read Dollar Commentary's post "Is Ayn Rand’s Future Possible?" DC has done an great job of summing up Atlas Shrugged and where we as a country could be heading.

Read More at www.dollarcommentary.com

I have been saying, if you have ever wanted to read Atlas Shrugged,now is the time because as you read the book, you turn on the TV and the ideas and situations that Rand talks about in the book are happening everyday.

Thursday, September 2, 2010

The Sacred Cow

Socialism: If you have two cows, you give one to your neighbor.

Communism: If you have two cows, you give them to the government and the government then gives you some milk.

Fascism: If you have two cows, you keep the cows and give the milk to the government; then the government sells you some milk.

New Dealism: if you have two cows, you shoot one and milk the other; then you pour the milk down the drain.

Nazism: If you have two cows, the government shoots you and keeps the cows.

Nanny Stateism: If you have two cows, we’re going to show up at your house at dawn with a cease-and-desist letter and forbid you to do anything useful with their milk until you comply with General Laws Chapter 94, Sections 13 and 16 through 16K, Chapter 94A, and the regulations found in 330 CMR 27.00 et seq.

Capitalism: If you have two cows, you sell one and buy a bull.

Monday, August 30, 2010

Jim Sinclair's Mindset on Federal Reserve

Seriously, it is hard to hide my contempt of this disgusting scene. This band of fools somehow believes that prosperity can be created by printing money without any consequences whatsoever. The US is sinking under a mountain of indebtedness and the Fed chairman tells us that it stands ready to engage in even more QE should the need arise. Flash to Ben – the need shall arise. China is already balking at buying US debt meaning you are going to have to buy it all yourself Ben.

What we are witnessing is the death throes of a debt-based monetary system of which those presiding over it apparently have come to believe their own delusions. The US public is learning what our grandfathers learned as a result of the Great Depression – Debt is something to be avoided – not heaped up and accumulated. That the borrower becomes the lender’s slave and that living beyond ones own means is inherently foolish and dangerous. That saddling one’s children and grandchildren with a debt burden that they did not create is immoral and wicked. Yet, all of this is lost upon the monetary lords who have their noses so close to the ground sniffing out the scent that they cannot see the path ahead leads off the edge of an abyss from which there is no escape. Or perhaps they do see and are attempting to secure their own parachutes before leading the rest of the masses over the edge.

I repeat – if lasting prosperity could be created by printing money and giving it away, previous generations that were wiser and more frugal than ours would long ago have stumbled upon this axiom.

That brings us to the war on gold. I am still amazed that after all these years and notwithstanding all the evidence to the contrary, there are still those obtuse enough to insist that there are no official sector attempts to manage or stem the rise in the price of gold. Gold is the only currency that these debasement thieves cannot pollute by conjuring more of it into existence. It rises when distrust of paper currencies is high and confidence in the ability of those who supposedly manage monetary affairs wanes. Thus it is and always will be in direct competition with unbacked fiat currencies.

Our money masters hate the yellow metal because its rise mocks their absurd assertions and debunks their claims of being able to “manage the economy”. It strikes, dagger-like, at the very hubris of these elitists who think that they are wiser than the collective judgment of the entire market, they alone possessing such keen insight into the nature of these matters that we should entrust our financial health to their hands. Imagine the conceit of a few men who think that by pulling on this lever or pushing on this button, that they can assure continuous prosperity and lasting wealth for all. Every generation considers itself wiser than the previous one which is why history does indeed repeat itself. Arrogant men never learn for they lack the one thing essential to make one truly wise – the ability to admit that we do not know all things nor that we mere mortals can always fix what ails us.


-Dan Norcini

Tuesday, August 10, 2010

The Story of Spending

Again I have learned with my studies that its really not a left or right, Republican or Democrat, all politicians love to spend our money...

Saturday, August 7, 2010

Jesse's Café Américain: The Inflation and Deflation Debate Deconstructed

Jesse's Café Américain: The Inflation and Deflation Debate Deconstructed: "'What most people call reason is really rationalization. Given a new set of data, most people will search through it only for those example..."

Monday, August 2, 2010

July 10 Net Worth: $58k Overall 6.59% Growth

Another good month for us with the total net worth jumping up by 6.59%. This is the last month before we join our finances! We didn't have much going this month, we did have to put new breaks on one of our vehicles. We just need to keep this up we are feeling really good about our situation...
Lets break it down:

Cash & Savings: We saw a slight dip in our cash savings because of the purchasing of stock and PMs. Hopefully in the next few months we will see some growth as were have started to really kick up the saving for a downpayment for a home. This money grows from money directly transferred from paycheck into my money market, savings account and checking. This bracket holds the funds for insurance, auto maintenance, Roth IRA, and vacation. This is why it can be a little deceiving, it also holds my monthly budget in it. It has about 13-15k sitting around as savings the rest are funds that are going to be used at some point over the year. The rest is used on a daily bases for covering expenses, rent, food, auto, etc...

Stocks/Brokerage: This month we was slight tick up but that is mostly because purchasing of a gold stock Sprott Physical Gold Trust(PHYS) and Penn West Energy (PWE). I have about another 1k in the account which I am eyeing Exelon Corp (EXC) or more Exxon (XOM). As of right now I am holding back and hopefully save up some cash. The list of stocks I own (GLD)(EGO)(AUY)(AVARF)(RGLD)(ZQK)(XOM)(CVX).

*As you can see I am heavy in commodities in my brokerage account. This is all based on my thought that over the next decade the best investments are going to actually be in hard assets. My Roth/IRA/401k are in pretty common index funds and mutual funds so I figure I can go more risky with brokerage. I believe these will out perform equities in the next decade and if nothing else I feel more comfortable with my portfolio diverse. I am bearish on the US Dollar and US Economy, I believe that trillion dollar deficits are not going bode well for the USA.

Retirement 401k: This bracket is just me adding money to my 401k every month. Slight tick up this month...we will wait and see how the stock market plays out come the fall. Until then not tinkering with this.

Retirement IRA's: Slow growth here this month. I still think the market is going to correct itself. I pulled back half of my Roth into cash, so have about half my retirement in cash right now. I will keep cash on the sidelines and just try and max out my fiancés and my Roth's next year. In this bracket I have all Vanguard Funds (VTSMX, VGSTX, VEIEX)

Debts and Liabilities - Vehicle under 8K!! Credit Cards done...

Credit Cards: Breaks on one of our vehicle and flights out to a wedding on the west coast, they will both be payed off by end of the month. I pay off any Credit Card debt monthly.

Car Loan: I am paying 4% APR on it so I am paying a little, but not a ton. Still looking to pay it off early-will probably be a goal this or next year. We are still saving up for a house so not sure its in our best interest to get rid of our cash sitting to be debt free on my vehicle.

May is now in the bank, I am still extremely bearish on the world economy and the US economy...We are headed for a financial storm and it is very important for all of us to be up to date on current events. It time to be prepared for the worse and pray for the best.

One thing I am excited about next month is the we will be combining our finances in August and will be showing it next month...looking for a jump in total net worth. Until then good luck with your own budget and growing your wealth.

Tuesday, July 20, 2010

Monday, June 14, 2010

How To Save On a Wedding

This is a guest post by Sharon Smith. She offers advice on frugal living and various debt management programs. She can be contacted at findsharonsmith@gmail.com

Church Bells, Wedding Day,
Dating Hell gone away,
What I've Dreamed all my life,
soon to be man and wife.

Are you humming this in your mind? Is it time for you to get betrothed? This is one of the biggest moments in our life. We tie the knot and take vows to be together for a lifetime. Getting pronounced and Man and Wife always call for a beautiful ceremony. Even I had one, so in order to fulfill my desire I got too extravagant and had to part with all my savings. However the lesson here is for a beautiful wedding you need not always put your bank balance at stake. Instead a smart approach towards spending can fetch a better result. Through my own experience I can throw some light on how you can save money on wedding with out giving up on the grandeur of your dream marriage.

Stop spending all your fortune behind wedding. Money can never buy love as the adage goes. So a good planning and some frugal tips can really make your D day worth cherishing.

Here are snippets of some of those frugal wedding mantras that I learnt from my wedding and now letting it out to you.

Wedding guest list needs to be pruned: You can save an enormous amount of cash if you start pruning your guest list. Often there are people who are your acquaintance and not friend. Try to cancel them from the list. Call people who are close to you and your family. Don't take the pressure of inviting all your office colleagues. Invite only the couples instead of inviting their whole family that includes the children.

Save on wedding invitation card as well as on postage: Send an e- card instead of a printed card. It would surely help you save a lot. You can also order a plain invitation and decorate it yourself. Show your creative streak. It's fun! Instead of a reply card ask your near and dear ones to reply on line. This also saves you postage expenses.

Make your wedding dress, make up and hair simple yet elegant: Simplicity is the toughest job. Did you know that? With expensive gowns or an uptown hair-do, you can always look beautiful. But a simple and classic look can actually make your fiancé smitten by love! Try not to hire a designer to design your gown as they won't give you some thing out of the world. If your mother's wedding gown is in perfect condition then you can alter as well as redesign it and use it for your self. It would be nostalgic wearing your mother's wedding gown. This would save a lot of money too. Try to hire someone who is competent in hair do as well as in make up.

Use cash instead of credit cards: Try to use cash while you go out for shopping instead of depending on the credit cards. There is always a tendency to spend more when we use these plastic cards. It becomes really difficult to pay off the piling debts soon after marriage. If you do not use the credit card then you do not have to settle credit card debt. If you get things on cash you can keep a check on the amount you are spending. It would even restrain you from being a spendthrift as well as help you to save money without incurring debts.

Save money on decoration: Decoration means making the wedding place beautiful. That can be a simple gladiola or some nice white drapes! So you can always choose something that will cost you less. You need not go for a rose-laden pathway. Rather just sprinkle some wild flowers and walk away with your spouse. What is important is being together. Before shopping for the decorative item go through an Internet search looking for the cheap stores and bargain prices. Dollar stores have nice and simple products that can be used as an item for decoration like candles, candle holders and plastic flowers. Use silk flower to decorate the reception venue and the church. Silk flowers instead of original flowers can be pocket friendly. The flowers can be too expensive especially during the off season. So some chic artificial flowers can also make your day. Save money by getting silk flowers.

Select a cost-effective menu when it comes to Wedding Food and Drink: Wedding calls for sumptuous brunch or a nice cocktail dinner. But you can always go for a simple yet filling menu. Talk to your caterer stating the motive that you are planning to save money. They would tell you whether a buffet would be less expensive than a seated dinner. The liquor provided by the caterer might cost you more as they would levy extra tax on the total amount. It would be cheaper for you to shop for the liquor in a bulk as they might give you concession. Serve the cocktail after the dinner is laid. And if your fiancé is not too fond of drinking then you may consider organizing a dry wedding.

Don't hire a professional photographer: Even if you hire a professional photographer give him the contract to capture some special moment. If you ask him to take picture of the whole occasion then he might charge you much more. You can afford to pay him for few snaps he would be clicking. Ask your family members and friends to click the wedding photographs. There might be few members in the family as well in the friend circle who can be talented enough to take photographs. In this you can avoid the unnecessary expenses of hiring a professional photographer.

Take my word and do what others might not have done before. A simple wedding can be way above an expensive ceremony. Get closer with your family and friends on this auspicious day! The essence is being together and sharing the best moment of your life! You can have a beautiful wedding and save money at the same time. Just make sure, not to start your newly married life on debts.

Friday, June 11, 2010

Wedding Time

Hey guys, sorry for not posting in a long time. I am headed out for my wedding so I will not be posting here for the next couple of weeks. Check back though, because I will have a guest post on saving money on weddings.

In the mean time, check out some of these previous post:

Thomas Sowell: The Pattern of Failure (this applies so well today)

Wednesday, June 2, 2010

May 10 Net Worth: Chugging along...

Another increase in net worth, only by 2.4% but we will take it! This is the first time in last five months that my total assets have gone negative. It fell only -.23% so not a big hit but still not a gain, mostly from stock market pullback. Either way still positive growth overall.
Lets break it down:

Cash & Savings: This month we managed to grow by $550.00. Not a lot but considering how much we are spending on the wedding, I feel this is still really positive. This is probably going to take a hit this coming month because the wedding and the honeymoon which has out vacation fun in this bracket. This money grows from money directly transferred from paycheck into my money market, savings account and checking. This bracket holds the funds for insurance, auto maintenance, Roth IRA, and vacation. This is why it can be a little deceiving, it also holds my monthly budget in it. It has about 13-15k sitting around as savings the rest are funds that are going to be used at some point over the year. The rest is used on a daily bases for covering expenses, rent, food, auto, etc...

Stocks/Brokerage: Slight move down for the stocks that I own...mostly Exxon and Chevron with the decline of crude oil and the BP oil spill. With gold movement it is making all the mining and etfs I have go up as well. Still watching Silver Wheaton Corp (SLW) and could pull the trigger if stock/silver declines. As of right now I am holding back and hopefully save up some cash. The list of stocks I own (GLD)(SLV)(EGO)(AUY)(AVARF)(RGLD)(ZQK)(XOM)(CVX).

*As you can see I am heavy in commodities in my brokerage account. This is all based on my thought that over the next decade the best investments are going to actually be in hard assets. My Roth/IRA/401k are in pretty common index funds and mutual funds so I figure I can go more risky with brokerage. I believe these will out perform equities in the next decade and if nothing else I feel more comfortable with my portfolio diverse. I am bearish on the US Dollar and US Economy, I believe that trillion dollar deficits are not going bode well for the USA.

Retirement 401k: This braket is just me adding money to my 401k every month. Took a slight loss this month in 401k and feel we will be losing a lot more down the line. Think we might be headed for another downturn in the markets until Zimbabwe Ben starts up the printing press again, which should reflate the market.

Retirement IRA's: Slow growth here this month. I still think the market is going to correct itself. I pulled back half of my Roth into cash, so have about half my retirement in cash right now. I will keep cash on the sidelines and just try and max out my fiancés and my Roth's next year. In this bracket I have all Vanguard Funds (VTSMX, VGSTX, VEIEX)

Debts and Liabilities - Vehicle under 10K!! Credit Cards done...

Credit Cards: This is just a more wedding stuff purchased with credit (Wedding outfit), it will be paid off before I am charged - I pay off any Credit Card debt monthly.

Car Loan: I am paying 4% APR on it so I am paying a little, but not a ton. Still looking to pay it off early-will probably be a goal this or next year. We are still saving up for a house so not sure its in our best interest to get rid of our cash sitting to be debt free on my vehicle.

May is now in the bank, I am still extremely bearish on the world economy and the US economy...We are headed for a financial storm and it is very important for all of us to be up to date on current events. It time to be prepared for the worse and pray for the best. I will be saving as much as I can but with the wedding I am going to be running low on cash flow. (sorry used the same statement as last month but I am still in the exact feelings)

Monday, May 17, 2010

Ayn Rand's Egalitarianism and Inflation: Production to Consumption

In Ayn Rand's Egalitarianism and Inflation she demonstrates the consequences of the introduction of paper money into a thriving agrarian gold-based economy. And she shows how the resulting inflation actually destroys the real-world capital that had previously been accumulated by shifting society's focus from production to consumption.

"Now project what would happen to your community of a hundred hard-working, prosperous, forward-moving people, if one man were allowed to trade on your market, not by means of gold, but by means of paper—i.e., if he paid you, not with a material commodity, not with goods he had actually produced, but merely with a promissory note on his future production. This man takes your goods, but does not use them to support his own production; he does not produce at all—he merely consumes the goods. Then, he pays you higher prices for more goods—again in promissory notes—assuring you that he is your best customer, who expands your market.

"Then, one day, a struggling young farmer, who suffered from a bad flood, wants to buy some grain from you, but your price has risen and you haven’t much grain to spare, so he goes bankrupt. Then, the dairy farmer, to whom he owed money, raises the price of milk to make up for the loss—and the truck farmer, who needs the milk, gives up buying the eggs he had always bought—and the poultry farmer kills some of his chickens, which he can’t afford to feed—and the dairy farmer can’t afford the higher price of alfalfa, so he cancels his order to the blacksmith—and you want to buy the new plow you have been saving for, but the blacksmith has gone bankrupt. Then all of you present the promissory notes to your “best customer,” and you discover that they were promissory notes not on his future production, but on yours—only you have nothing left to produce with. Your land is there, your structures are there, but there is no food to sustain you through the coming winter, and no stock seed to plant.

"Would it make any difference if that community consisted of a thousand farmers? A hundred thousand? A million? The entire globe? No matter how widely you spread the blight, no matter what a variety of products and what an incalculable complexity of deals become involved, this, dear readers, is the cause, the pattern, and the outcome of inflation."

Monday, May 10, 2010

Ron Paul : Greece Is Just The Beginning!

Time to sit down and start to really listen...

Tuesday, May 4, 2010

April 10 Net Worth:

Another great month even though we didn't see a huge amount of growth. We didn't see the stock market do it normal routine of going straight up daily. Still pushing through and hoping we don't hit a bumpy road with the stock market and wedding expenses.
Lets break it down:

Cash & Savings: This month we took a bit of a hit, mostly because purchases of stocks. I am not sure we will see much growth here the next couple of months, the wedding expenses are starting to add up, and do not see it stopping for the next couple months. This money grows from money directly transferred from paycheck to my money market. I do not see this money unless I have a big emergency. It is the money that we are saving for a downpayment on a house.
This bracket holds the funds for insurance, auto maintenance, Roth IRA, and vacation. This is why it can be a little deceiving, it also holds my monthly budget in it. It has about 13-15k sitting around as savings the rest are funds that are going to be used at some point over the year. The rest is used on a daily bases for covering expenses, rent, food, auto, etc...

Stocks/Brokerage: My stocks seem to perform well for me this month as gold is moving up everyday. With gold movement it is making all the mining and etfs I have go up as well. One of the best performing miner that I hold right now is Eldorado Gold Corp. (EGO) I am really happy with the purchase of this and wish I would have bought more. One of the stocks I have on my watch list is Silver Wheaton Corp (SLW) which some think is easily worth $30/share. As of right now I am holding back and hopefully save up some cash. The list of stocks I own (GLD)(SLV)(EGO)(AUY)(AVARF)(RGLD)(ZQK)(XOM)(CVX).

*As you can see I am heavy in commodities in my brokerage account. This is all based on my thought that over the next decade the best investments are going to actually be in hard assets. My Roth/IRA/401k are in pretty common index funds and mutual funds so I figure I can go more risky with brokerage. I believe these will out perform equities in the next decade and if nothing else I feel more comfortable with my portfolio diverse. I am bearish on the US Dollar and US Economy, I believe that trillion dollar deficits are not going bode well for the USA.

Retirement 401k: This braket is just me adding money to my 401k every month. Saw a nice little jump this month with the stock market. I'm not really checking on this bracket(daily/weekly) as it really long term and I just keep pumping money into it every paycheck.

Retirement IRA's: Slow growth here this month. I still think the market is going to correct itself. I will keep cash on the sidelines and just try and max out my fiancés and my Roth's next year. In this bracket I have all Vanguard Funds (VTSMX, VGSTX, VEIEX)

Debts and Liabilities - Vehicle under 10K!! Credit Cards done...

Credit Cards: This is just a more wedding stuff purchased with credit (Wedding outfit), it will be paid off before I am charged - I pay off any Credit Card debt monthly.

Car Loan: I am paying 4% APR on it so I am paying a little, but not a ton. Still looking to pay it off early-will probably be a goal this or next year. We are still saving up for a house so not sure its in our best interest to get rid of our cash sitting to be debt free on my vehicle.

April is now in the bank, I am still extremely bearish on the world economy and the US economy...We are headed for a financial storm and it is very important for all of us to be up to date on current events. It time to be prepared for the worse and pray for the best. I will be saving as much as I can but with the wedding I am going to be running low on cash flow. We will see how it all plays out here...

Tuesday, April 27, 2010

Big Government Rewards Failure

"Big government rewards failure, that's the way it sustains itself, it needs a constant failure as a way to justify its existence and expansion. It fails ultimately, but the saddest thing is, that before it happens, big government would suck a lot of resources from anything even distantly productive that the economy ends up completely destroyed with multiple generations of people being impoverished in this process."

Found in the comment section of one of the blogs I follow. In its simplest form, this statement sums up big government.

Thursday, April 22, 2010

Debating a Lunatic

This is a debate I had over the heath care bill with a friend over facebook. Unfortunately, I feel we have a major problem in our country and I want to have an open minded debate and hear the other opinions to see if we can come to a common ground and start to fix the problem. I laid out my side to the best of my ability. This is what took place with commentary on the side...

I am the yellow square, I have a couple other friends jump in as well.

The only modifications of this exchange is the names, and any irrelevant discussion ie. Mike-"Let's get together and the first round is on me."

schooled_1schooled_2schooled_3schooled_4

Please let me know what you think of this debate!

Thursday, April 15, 2010

Another Must Listen: Dr. Lawrence Parks

Dr. Lawrence Parks Executive Director Foundation of the Advancement of Monetary Education (FAME) Topic: Collapse of the Dollar

via: Financial Sense News Hour

Monday, April 12, 2010

Ron Paul at SRLC

Ron Paul is the type of leader/s we need in Washington. I am not sure why Ron Paul isn't more popular than he his? If anyone would just listen to him, they should see why he is the only guy in Washington making any sense. His is one of few that believes in The Constitution and let me leave you with this statement for the people that believe that The Constitution is a living and breathing document(that the document is old so we should just take the parts relevant to todays times):

"We are not sufficient of ourselves to stand against it, and if we knock down the law, the Constitution, to chase it with expediency and private justice, what will protect us when it turns around to devour us?

But we should never be a willing victim, and even worse, a silent bystander or mocking accomplice. This is why were you born here and now, to stand witness to the truth, as you can find it and value it above all else."

-via Jesse


Friday, April 9, 2010

Tuesday, April 6, 2010

March 2010 Net Worth:50K! 100k On Deck

After a few months of saving a little more and trying to get over the $50,000.00 mark, we finally reach another goal. This month was a little crazy with having to pay close to $700.00 in vehicle maintenance. Along with having to pay for a few wedding things. The stock market is really the reason we jumped up this month. We are going to enjoy March because the next few months are not going to be a good to us(at least I believe)
Lets break it down:

Cash & Savings: Still smooth sailing with the cash savings, a nice little $1500.00 jump. I would love to have this growth every month. This has a few fund in it that we are saving instead of reinvesting. For the most part, this money grows from money directly transferred from paycheck to my money market. I do not see this money unless I have a big emergency. It is the money that we are saving for a downpayment on a house.
This bracket holds the funds for insurance, auto maintenance, Roth IRA, and vacation. This is why it can be a little deceiving, it also holds my monthly budget in it. It has about 13-15k sitting around as savings the rest are funds that are going to be used at some point over the year. The rest is used on a daily bases for covering expenses, rent, food, auto, etc...

Stocks/Brokerage: Stocks still seem to be slowly growing. I bought more stocks and sold out of my (FAZ). I have decided to hedge with commodities rather than a leveraged ETF. I bought the rare earth metals I was watching last month (AVARF). I purchased some Royal Gold Inc. (RGLD) at the end of the month as well. The other gold/silver and mining stocks and couple other random ones - (GLD)(SLV)(EGO)(AUY)(ZQK) ZDK finally took off after their earnings report, now I wish I owned more, it is up 103% since I bought it. I am one month from dollar cost averaging in silver every month. I believe that silver is going to be one of the best investments and that it could get up to $100 (spot).

As you can see I am heavy in commodities in my brokerage account. This is all based on my thought that over the next decade the best investments are going to actually be in hard assets. My Roth/IRA/401k are in pretty common index funds and mutual funds so I figure I can go more risky with brokerage. I believe these will out perform equities in the next decade and if nothing else I feel more comfortable with my portfolio diverse. I am bearish on the US Dollar and US Economy, I believe that trillion dollar deficits are not going bode well for the USA.

Retirement 401k: This braket is just me adding money to my 401k every month. Saw a nice little jump this month with the stock market. I'm not really checking on this bracket(daily/weekly) as it really long term and I just keep pumping money into it every paycheck.

Retirement IRA's: Slow growth here this month. I still think the market is going to correct itself. I will keep cash on the sidelines and just try and max out my fiancés and my Roth's next year. In this bracket I have all Vanguard Funds (VTSMX, VGSTX, VEIEX)

Debts and Liabilities - Vehicle under 10K!! Credit Cards done...

Credit Cards: This is just a more car maintenance along with purchase of airplane flights to a wedding that I put on credit, it will be paid off before I am charged - I pay off any Credit Card debt monthly.

Car Loan: I am paying 4% APR on it so I am paying a little, but not a ton. Still looking to pay it off early-will probably be a goal this or next ear. I ended paying near $458.00 dollars in interest last year, but still just contemplating paying off early. We are still saving up for a house so not sure its in our best interest to get rid of our cash sitting to be debt free on my vehicle.

March was another great month considering how bearish I am on the economy, sovereign debt, and our government. Next few months are going to remain crazy with all the wedding stuff with time and money so we will see how everything goes, would love to keep having months like this one.

Monday, April 5, 2010

Greenspan, Summers and Economy

"One cannot fight this sort of evil with hatred and violence, or hysteria and intemperate accusations, for these are its creatures, and it uses them always to further its ends. The only worthy adversary of the darkness is transparency, openness, justice, and truth based on facts, in the light of reason, with the guidance of the light of the world. We are not sufficient of ourselves to stand against it, and if we knock down the law, the Constitution, to chase it with expediency and private justice, what will protect us when it turns around to devour us? But we should never be a willing victim, and even worse, a silent bystander or mocking accomplice. This is why were you born here and now, to stand witness to the truth, as you can find it and value it above all else.

It is not easy to find the truth, as it is a journey, a way that never ends. And without a proper guide and companionship, it may be all too easy to grow weary or panic, and lose one's bearings and one's heart. But sometimes it is easier to discover where and what is not the truth by its acts, its results, the fruit that it produces, and the darkness and secrecy in which it dwells."


via Jesse's Café Américain

Sunday, March 28, 2010

Liberty

"The fact is that liberty, in any true sense, is a concept that lies quite beyond the reach of the inferior man's mind. He can imagine and even esteem, in his way, certain false forms of liberty - for example, the right to choose between two political mountebanks, and to yell for the more obviously dishonest - but the reality is incomprehensible to him. And no wonder, for genuine liberty demands of its votaries a quality he lacks completely, and that is courage. The man who loves it must be willing to fight for it; blood, said Jefferson, is its natural manure. More, he must be able to endure it - an even more arduous business. Liberty means self-reliance, it means resolution, it means the capacity for doing without."

- H.L. Mencken

Wednesday, March 24, 2010

Economics: Fiat Currency

In Ayn Rand's Egalitarianism and Inflation she demonstrates the consequences of the introduction of paper money into a thriving agrarian gold-based economy. And she shows how the resulting inflation actually destroys the real-world capital that had previously been accumulated by shifting society's focus from production to consumption.

"Now project what would happen to your community of a hundred hard-working, prosperous, forward-moving people, if one man were allowed to trade on your market, not by means of gold, but by means of paper—i.e., if he paid you, not with a material commodity, not with goods he had actually produced, but merely with a promissory note on his future production. This man takes your goods, but does not use them to support his own production; he does not produce at all—he merely consumes the goods. Then, he pays you higher prices for more goods—again in promissory notes—assuring you that he is your best customer, who expands your market.

"Then, one day, a struggling young farmer, who suffered from a bad flood, wants to buy some grain from you, but your price has risen and you haven’t much grain to spare, so he goes bankrupt. Then, the dairy farmer, to whom he owed money, raises the price of milk to make up for the loss—and the truck farmer, who needs the milk, gives up buying the eggs he had always bought—and the poultry farmer kills some of his chickens, which he can’t afford to feed—and the dairy farmer can’t afford the higher price of alfalfa, so he cancels his order to the blacksmith—and you want to buy the new plow you have been saving for, but the blacksmith has gone bankrupt. Then all of you present the promissory notes to your “best customer,” and you discover that they were promissory notes not on his future production, but on yours—only you have nothing left to produce with. Your land is there, your structures are there, but there is no food to sustain you through the coming winter, and no stock seed to plant.

"Would it make any difference if that community consisted of a thousand farmers? A hundred thousand? A million? The entire globe? No matter how widely you spread the blight, no matter what a variety of products and what an incalculable complexity of deals become involved, this, dear readers, is the cause, the pattern, and the outcome of inflation."

From FOFOA:
Indeed, this is a big problem. Wouldn't you agree? Perhaps she is right, we must return to gold money if we hope to save the Western world from its ultimate destruction. Maybe this is the only way. But what if returning to an economy based only on gold and silver coins in your pocket is a complete pipe dream? What if this will never happen? Is there no hope for our future?

Sunday, March 14, 2010

The Making Work Pay Credit

Part of the government's 2009 American Recovery and Reinvestment Act, this credit was designed to put more money in taxpayers' pockets by taking less money out of their paychecks throughout the year. With less money being withheld, fewer people are getting large refunds. Remember, getting a tax refund means you've given the government too much and now you're getting your money back. Since the government took less, you have less to get back.


I believe there are going to be a lot of pissed off people when they realize this when they pay taxes this year. You do not want to owe the government and do not want the government owing you. If you are a saver than you would rather owe than be receiving tax return. This is why you set up a fund and withhold taxes(you want to be around $0.00). So when it is time to pay uncle sam you have that money sitting somewhere making a little interest rather, than letting the government borrow it from you and they make interest off it.

Thursday, March 11, 2010

Jim Rogers on Bailouts

Daily Bell: Do you believe in the bailouts taking place in America?

Jim Rogers: Of course not. This is what the Japanese tried to do in the 1990s and it led to zombie banks, zombie companies, lots of problems generally. And the same thing is going to happen this time too. America already has its zombie companies. We are going deeper and deeper into debt. With Fannie Mae and Freddy Mac, the debt is just staggering. And of course all those derivatives and off balance sheet items are obligations of the US taxpayer. This will continue to get worse and is a horrible disaster.

The way things are supposed to work is, when somebody goes bankrupt or somebody fails, he goes bankrupt. Then competent people come in, take over the assets, reorganize and start over from a sounder base. Just as what happened in Scandinavia, Korea or Mexico or Russia, or many other countries in the past twenty years. Yes it is horrible for two or three years but then things get much better. The Japanese did it the other way round, and they still have not recovered. What America is doing is taking the assets away from the competent people and giving them to the incompetent people - and then saying, "OK now you can compete with the competent people with THEIR ASSETS." I mean it is absurd economics, it's outrageous morally and the politicians don't care about morality of course, and it's a disaster that is being imposed on America and the rest of the world.

See rest of interview at The Daily Bell

Tuesday, March 2, 2010

February 2010 Net Worth: More Growth

Another month in the books and another positive growth- 4.68% Not quite as good as last month but still growing. Last February my net worth was $35,410.64 that is a growth of around 65% or so. That is real encouraging to me! This is why I add these number every month, to see how my wealth is growing.

I started my taxes and it looks like I will be owing uncle sam this year with the new Making Work Pay Tax Credit. I will not go their because we are happy, but it will effect a lot of people not expecting to owe the government this year. So, the next couple of months might not be as good to us as these last few. I am also hoping that we do not see another downturn in the economy which could start to kick in later this year.
Lets break it down:

Cash & Savings: This category jumped this month and I actually thought I would have saved a little more than I did. I did have one of our vehicles worked on for around $400.00 which would have been nice to add. For the most part, this money grows from money directly transferred from paycheck to my money market. I do not see this money unless I have a big emergency. It is the money that we are saving for a downpayment on a house.

This bracket holds the funds for my down payment on house(which is pushed back until after the wedding), insurance, auto maintenance, Roth IRA(before I max it out), and vacation. This is why it can be a little deceiving, it also holds my monthly budget in it. It has about 13-15k sitting around as savings the rest are funds that are going to be used at some point over the year. The rest is used on a daily bases for covering expenses, rent, food, auto, etc...

Stocks/Brokerage: Stocks have been slowly growing over the past few months. I have bought some stocks I've been watching along with with some hedging. I bought some Exxon(XOM) and Chevron(CVX) stocks as a hedge for crude oil prices, which I see going up (I expect 100 a barrel in 2010). I drive around 40 miles to work everyday so gas is a big expense. I bought the stock while crude oil was around 76 a barrel. If crude oil goes down the stock goes down, but if it raises, my stocks hopefully will raise with it. I also have gold/silver and mining stocks and couple other random ones - (GLD)(SLV)(EGO)(AUY)(FAZ)(ZQK) I have also added on to my watch list (AVARF - Avalon Rare Metals Inc.)

As you can see I am heavy in commodities in my brokerage account. This is all based on my thought that over the next decade the best investments are going to actually be in hard assets. My Roth/IRA/401k are in pretty common index funds and mutual funds so I figure I can go more risky with brokerage. I believe these will out perform equities in the next decade and if nothing else I feel more comfortable with my portfolio diverse. I am bearish on the US Dollar and US Economy, I believe that trillion dollar deficits are not going bode well for us, citizens of the USA.


Retirement 401k: This braket is just me adding money to my 401k every month. Saw a nice little jump this month with the stock market. I'm not really checking on this bracket(daily/weekly) as it really long term and I just keep pumping money into it every paycheck.

Retirement IRA's: Not much growth here this month - I still have a big chunk of cash sitting on the sidelines which will hopefully be maxed out before April 15th. If I still think the market is going to correct itself I will keep it on the sidelines and just try and max out my fiancés and my Roth's next year. I am currently still waiting with cash on the sidelines - In this bracket I have all Vanguard Funds (VTSMX, VGSTX, VEIEX)

Debts and Liabilities - Vehicle under 10K!! Credit Cards done...

Credit Cards: This is just a car maintenance that I put on credit, it will be paid off before I am charged - I pay off any Credit Card debt monthly.

Car Loan: I am paying 4% APR on it so I am paying a little, but not a ton. Still looking to pay it off early-will probably be a goal this or next ear. I ended paying near $458.00 dollars in interest last year, but still just contemplating paying off early. We are still saving up for a house so not sure its in our best interest to get rid of our cash sitting to be debt free on my vehicle.

February was another great month considering how bearish I am on the economy, sovereign debt, and our government. Next few months are going to be a little crazy with all the wedding stuff with time and money so we will see how everything goes, would love to keep having months like this one.

Saturday, February 27, 2010

Weekend Listening: James Dines Author of GOLDBUG!

This is one of the most interesting and most entertaining interview I have heard. I would take the time and listen to this interview. This is from Financial Sense Newshour Enjoy!



James Dines has become legendary for having made correct forecasts that were in complete contradiction to the rest of the financial community. He has a new book called "GOLDBUG!"

Friday, February 26, 2010

Thursday, February 25, 2010

1975 New York = 2010 California

Take the time and view this series, it is very scary. I know my generation doesn't know much history, much less situations like this. Especially events that happened before we were born, besides the major wars and the great depression. I ask anyone who was born after 1975 to watch this because this can happen and it will happen if we do not get our fiscal house in order. I believe that California will go first...














Monday, February 22, 2010

My Money Shrugged Turns 1 Year Today!

My Money Shrugged turns 1 today! I want to thank everyone who has checked out the site and who continues to come back daily, weekly or monthly! It is the viewers of this site that keep me posting things I find and other thoughts and ideas I have.

This site started out as a personal finance blog and has evolved into a personal finance/political blog. I know I probably lost a lot of viewers when I started posting about government intervention...*shrugged*. When I started looking at my finances and how I wanted to always be a saver and be prepared for the future, I realized there are so many outside factors that influence my capital. I also dove deeper into economics and now see how government intervention can strongly decrease not only mine but others people's saving through taxation, inflation, and a loss of our freedoms.

I only other thing I would say, is that I would love to start more of a community here, if you feel like commenting on anything I post please do and we can start a conversation so we can learn and exchange ideas and solution that could help with our personal finances and most importantly our freedom.

Thanks again for everyone who reads and send out my links to friends/family/twitter/etc...

“Educate and inform the whole mass of the people... They are the only sure reliance for the preservation of our liberty.” - Thomas Jefferson

Tuesday, February 16, 2010

Capitalism vs Socialism - What about Freedom?

Read this in the comments section over at Zerohedge:

Statism; and socialism, corporatism, fascism are all variants of the same authoritarian dynamic, where the state exerts authority over individuals. The difference between socialism and fascism is, in terms of the principles involved, one of degree, not kind. I.e. You Do Not Own Your Own Life.

The cause to rally behind is, in general umbrella terms, freedom. The fight is against centralized power and the curtailment of individual rights. The facilitator of that power, right now in the US, is the Federal Reserve. Get the government and quasi-government entities out of trying to manipulate and manage currency and the economy, and the rest becomes just quibbling. I would love it if the fundamental debate nowadays was simply capitalism versus socialism, but the fact is there is no capitalism now. All we've got now is massive government intervention and manipulation of the economy, and whether the intervention favors the rich or the poor, at this point doesn't matter because they're running on fumes, over the edge of a cliff. Getting back to a real and healthy economy means breaking the government's power to distort markets, especially the currency. Once we get back to that point (if ever), then I'm happy to talk capitalism versus socialism, and what can we afford to allow the government to provide, etc. But until then, to me all forms of state interference in the economy are part of the problem, not the solution.


"The cause to rally behind is, in general umbrella terms, freedom. The fight is against centralized power and the curtailment of individual rights." This is where we are...People get so wrapped up in fight against this or that but we have to get to the point of it being about individual's freedoms . I highly suggest you watch the video in the last post.

Saturday, February 13, 2010

The American Form of Government

This is a must watch...

Thursday, February 4, 2010

¡El Pueblo Unido Jamás Será Vencido!

More comments from Zerohedge.com this time from a commenter JR - These are well thought out comments that address history and how free people are willing to fight/die for freedom:

The US fiat dollar did not become the global ”reserve currency” until 1944. That is not what built America. But in the hands of the Fed, IMO, it is what is destroying America.

The American Dream was about individualism and the opportunity to achieve success without interference from others. The American Dream was about freedom; its lifeblood was free enterprise.

Its heartbeat was America’s superior patent system. That’s what gave men the incentive to burn the midnight oil--a chance to own a property right in their own invention. A 1997 study of the inventors honored in the National Inventors Hall of Fame in Akron, Ohio, revealed that 91% of the world’s greatest inventors worked in America and only 9% in other countries.

Global fascism or Red China pseudo capitalism can never give the spring to invention that our Founding Fathers gave to Americans when they included in the United States Constitution the provision “to promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries.”

I have faith that men who have known freedom will always, in the end, sacrifice everything to retain that freedom. Americans are close to that point now where they will tap into that thirst for freedom that brings revolution if the few now wielding raw power do not respond to the call for change – real change, not Obama “change.”

“Government exists off surpluses created by the people whom they rule. The ruling classes, i.e., those people who refer to themselves as ‘government,’ do not produce wealth, thus their existence depends upon the expropriation of assets from others.” -- Robert J. Ringer in “Restoring the American Dream.”

It is now a question of opportunity—as things get worse, and they are going to get much worse, and when the government clamps down more and more with no redress, that desire for freedom is going to kick in, and men are going to drop everything to get that freedom back. And they are going to fight: and will kill if they have to kill as they always have, in the cause of freedom.






I hope it doesn't come to this point. We as citizens of this country have to get together and get the government out of our business. Governments, since the beginning of time, have always been oppressive and the bigger and bigger it grows, the harder it is for the people to gain control. This isn't about politics as usual, its about government growing to a point that they want more and more control and power. Once they get drunk off power, they will do whatever it takes, to not lose control, including what are in these videos. They have a strangle hold on the US economy and are a part of almost every aspects of our life...

medicare
medicaid
social security
SSI
extended unemployment benefits
emergency unemployment benefits
socialized medicine
corporate welfare
bailouts
just to name a few..

They tax us to death, and they try to tell us what to spend and not spend our money on, and they claim to know what is best for us. Last time I checked, they are the ones that got us into this problem, why do I believe they are going to get us out of it? I DON'T, it is time for this government to step aside and allow for the free market to get us out of this recession. Wake up America? Demand less involvement of you incompetent government and its policy makers!

Read Atlas Shrugged and open you mind, trust me I know very little, but I have started to open my mind and what I am finding out is scary. At least I know that I am doing my best to wake up the people to be united.

¡El Pueblo Unido Jamás Será Vencido! (The people united will never be defeated!)

Tuesday, February 2, 2010

Money As Debt

This should be mandatory viewing in order to get a High School Diploma.

Monday, February 1, 2010

January 2010 Net Worth: Starting Off Right

The start of 2010 was a good month for us even though the market was down. We have a lot on tap for 2010—our wedding, honeymoon, bachelor party, 2-3 friends wedding. If we can just keep it up in 2010 as we did in 2009 we will be truly blessed.

Lets break it down:

Cash & Savings: We saw cash savings drop 5k, but that was because we paid off our credit cards which were interest free that had my fiancé diamond and our honeymoon. It feels amazing to know that our honeymoon is paid in full. This is why I was didn't see much growth in this area over the last few months. I also bought some stock at the beginning of the month. Hopefully we will start to see some growth in this area over the net coming months, even though with wedding stuff, it might not grow the way I would like. This bracket holds the funds for my down payment on house(which is pushed back until after the wedding), insurance, auto maintenance, Roth IRA(before I max it out), and vacation. This is why it can be a little deceiving, it also holds my monthly budget in it. It has about 13-15k sitting around as savings the rest are funds that are going to be used at some point over the year. The rest is used on a daily bases for covering expenses, rent, food, auto, etc...

Stocks/Brokerage: Stocks have been slowly growing over the past few months, as I have bought some stocks I have been watching along with with some hedging. I bought some Exxon(XOM) and Chevron(CVX) stocks as a hedge for crude oil prices which I see going up in 2010. I drive around 40 miles to work everyday so gas is a big expense. I bought the stock while crude oil was around 76 a barrel. If crude oil goes down the stock goes down but if it raises my stocks hopefully will raise with it. I also have gold/silver and mining stocks and couple other random ones - (GLD)(SLV)(EGO)(AUY)(FAZ)(ZQK)


Retirement 401k: This braket is just me adding money to my 401k every month. Not seeing much growth here this last month. I not really checking on this bracket as it really long term and I just keep pumping money into it every paycheck. This month it jumped up based of my company 401k match which is nice since the match was suspended in 2008.

Retirement IRA's: Overall I lost money this month with my Roth as I have started to dollar cost averaging in to max it out the rest of the year. I still have a big chunk of cash sitting on the sidelines which will hopefully be maxed out before April 15th. If I still think the market is going to correct itself I will keep it on the sidelines and just try and max out my fiancés and my Roth's next year.

Debts and Liabilities - Vehicle under 10K!! Credit Cards done...

Credit Cards: All the credit card debt we had was from a credit card with a 12 month 0% APR. Last month also I had a balance because we paid for our honeymoon, and it was on the balance but we paid it off before we accrued any interest. This is a great feeling even though I could have paid the other credit card off but we had cash sitting in a high yield saving account gaining a small amount of interest.

Car Loan: I am paying 4% APR on it so I am paying a little but not a ton. Still looking to pay it off early-will probably be a goal this or next ear. I ended paying near $458.00 dollars in interest last year(dang) but still just contemplating paying off early. We are still saving up for a house so not sure its in our best interest to get rid of our cash sitting to be debt free on my vehicle.

So overall January was a exciting month with our credit card debt being gone. Still kicking up the saving as we have the wedding and possibly home owning in our future.

Sunday, January 31, 2010

A Scared Trust: The American Experience

This is a sermon that is a must listen to about our freedoms as a God given unalienable Rights:

Friday, January 29, 2010

What Happens If The Debt Ceiling Is Not Raised?

Yesterday America just got permission to hit 100% Debt/GDP. The Senate approved an amendment increasing the US debt ceiling by $1.9 trillion. for a total of $14.3 Trillion. I was reading Zerohedge when someone asked what would happen if the ceiling wasn't raised? This is what came out of the comments section that I found very interesting.

(The following are from comments by readers on Zerohedge.com)

Short answer: Nothing happens (but you knew that)

Long answer: Current law requires a budget ceiling and a vote to raise it. Violating that law would open up violation of other similar laws. Not too far down the path of similar broken laws, the states start printing their own money. In US dollars. At which point hyperinflation ignites and the USofA ceases to exist as a functioning union. Much hilarity ensues.

The monetary system of the world (not just the USA) is based upon the illusion that there will always be greater fools available to pay the last greater fool.

The only reason people remain in the room that's about to be flooded with poisonous gas is the complete and utter belief (supported by group think and conventional wisdom along with healthy dollops of denial and self interest trumping rationality) that each person can get out before the gas can over come them.

As long as the majority continues to believe in the lie, the lie remains solid and fully formed. Thus the illusion is reality because the belief (and by extension the actions) of the people makes it real. One of the realizations one has when looking at this philosophically is that reality is simply what the majority says it is.

The banks are stable despite horrendously convoluted and distorted balance sheets and non-performing assets simply because the government says they are and people want them to be. Thus they are. If a rule or law threatens to upset the illusion, it's changed to conform to the group think.

What most people don't understand is that this "reality" is extremely fragile and will fail quickly. The Fed, Treasury and the President understand this extremely well. This is why this is considered a National Security issue and every lie, theft, payoff and Ponzi is encouraged and endorsed at the highest levels. Our reality is supported by a lie and thus by extension is a lie. Since there is no more real support under our economic reality, every effort must be extended to support the lie.

Do or Die! Seen from that point of view, everything that's going on is perfectly understandable.

The lie holds until the first person breaks the pact and heads for the exit. It takes no more than one. Then the stampede erupts because while nobody wants to be first, everyone wants to be second.

I think California is that "person" at the sovereign level. As goes Cali, so goes the nation, so goes the world and in rapid fashion. We will see, come summer, if Cali stays within the illusion or bails.


Someone pointed out this video as metaphor for our current situation:

Cunning lions await the herd as it lumbers forward, trustingly, behind their dear leader. If divided, the weak in the herd are slowly picked off, unless...




Anyways, if someone has a better explanation to what would really happen, send it to me!

Monday, January 25, 2010

Which Pill Will You Choose?

I have just recently started to look down the rabbit hole and it has been uncomfortable at times, thinking, could this really be the country that I live in. Do not get me wrong, America is the best country in the world and it truly is the last hope for the rest of the world.

We have to get back to knowing history and start moving in the opposite direction of what we have being doing the last 50+ years, Darryl Robert Schoon writes:

In the early stages of capitalist systems, interest and principal can be serviced out of the debtor’s cash flow. In the final stage of “mature capitalist systems”, they cannot.

Capitalism’s final stage is what Minsky calls “ponzi-financing”, when debt payments can only be made by additional borrowing. This is what the US, the UK and Japan are doing today, having to borrow against tomorrow in order to pay yesterday’s bills.

For 50 years, not one Dollar of new debt created by the US government to fund the activities it does not wish to tax for has been repaid. The debt has simply been “re-financed” with new debt being sold to retire the existing debt.
(www.the-privateer.com)

At some point, the end finally arrives. Ponzi-financing cannot service debt forever. Investing in unhedged paper assets is the bet that it can.


I only have a few agenda's on this blog, which is growing and preserving my wealth and helping people see that what I am just starting to see. What is the use of creating wealth if a government can destroy it, tax it, steal it from its people. It is becoming more and more clear to me that government is not our answer. It is not a right(Rep.) or left(Dem.) fight, it is about believing in the America people and that we do not need a group of people telling us what decisions are good for us. Both parties have grown government to bigger and bigger proportions. It comes down to one word "FREEDOM"!!! Through out history, governments have oppressed it's people. There was a reason our founding father wanted us to question our government:


"Any people that would give up liberty for a little temporary safety deserves neither liberty nor safety." - Benjamin Franklin

The Constitution is not an instrument for the government to restrain the people, it is an instrument for the people to restrain the government." - Patrick Henry

"Resistance to tyrants is obedience to God." Thomas Jefferson

"Government is not reason; it is not eloquence. It is force. And force, like fire, is a dangerous servant and a fearful master." -George Washington

"A wise and frugal government, which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned. This is the sum of good government, and this is necessary to close the circle of our felicity." - Thomas Jefferson

So I ask you...Which pill do you pick?




If you picked the Red Pill here is where to begin:

Gold and Economic Freedom by Alan Greenspan

America's Impending Master Class Dictatorship by Stewart Dougherty

I certainly do know know a lot, and there is so much corruption going on in Washington these days? I am constantly trying to form my own opinions about our situation and look what is going on currently and how we got where we are today. I think Ron Paul is the best fit person right now for President, but I would always watch and keep a close eye on him. One thing I do not understand is how we think politicians are some how better or smarter than we are and trust them to do what is right by us? All I can ask is for you to join me in taking the red pill...are you ready?

Thursday, January 21, 2010

USA watchdog Greg Hunter

Audio from Greg Hunter of USAwatchdog would take the time and listen to these men. They address the deficit's, spending and entitlements.



And David Walker, former Comptroller General of the U.S. On America's economic comeback. He is the guy in I.O.U.S.A, you can read more about that here.



Audio from Brad & Brit Show