A Sneaky Way to Grab Your Retirement Savings

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Posted on 4th August 2015 by Administrator in Economy |Politics |Social Issues

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With an $18 trillion debt and $97 trillion or so in unfunded liabilities, Uncle Sam is anything but flush with money. So Congress and President Obama are looking for ways to stem the flow of red ink. And your retirement or pension plan is square in their sights.

No, Congress isn’t going to confiscate your IRA or 401(k) retirement plan, although there are lots of people marketing various products and services that want you to believe that. Sensationalism sells, after all.

But as I discussed in this essay, confiscation isn’t politically feasible. Look at the numbers. More than 60 million Americans have IRAs or 401(k)s, holding nearly $6 trillion parked away for retirement. Sure, the Feds would love to get their hands on these assets. But any politician who openly advocated confiscation would face near-instant impeachment.

Instead, Congress will whittle around the edges of the Tax Code to raise some additional revenue. President Obama even wants to end tax-deductible contributions to IRAs and other pension plans once their combined account balances exceed $3.4 million. And since we’re now dealing with the “rich,” no real political obstacles to changing the rules exist.

The biggest objection that the tax-and-spenders have is that Americans in higher tax brackets get a bigger tax benefit for retirement plan contributions than anyone else. Someone in the 39.6% tax bracket saves almost $40 in income tax for each $100 contributed to a retirement plan. In contrast, someone in the 15% tax bracket only saves $15.

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MILLENNIALS ARE TO BLAME

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Posted on 4th August 2015 by Administrator in Economy |Politics |Social Issues

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As usual, the mainstream media reporter buries the lead in the body of the story. There is much scorn for the millennial generation by the older generations. Of course millennials will have the lowest credit scores. They have lower paying jobs and less time to build up a credit history. Duh.

The chart below actually shows Generation X to be in the worst shape. Millennials have a debt to income level of 1.5, while Gen X has a debt to income level of 2.5. Even Boomers have a debt to income level of 1.9.

Millennials are burdened with more student loan and auto loan debt than Gen X at similar ages. The eye opener is how few millennials are using credit cards – far less than Gen X at the same age. This fact combined with the fact that millennials have just surpassed the dying off Boomers as the largest generational cohort in the country, explains why retail sales have gone stagnant and credit card debt is billions lower than it was in 2008.

The millennials may have their issues, but not going into credit card debt as the political and financial status quo desires could be a game changer. An ever expanding level of consumer debt is the only thing sustaining this Ponzi Scheme. If the millennials refuse to cooperate, the game is over. 

Guest Post by

This generation of Americans has the lowest credit score

Michael D Brown / Shutterstock.com

The largest generation of Americans has the lowest credit scores.

Millennials — those roughly defined as aged between 19 and 34 — have the lowest credit scores of any generation of Americans. They have an average credit score of 625 on an average debt of $52,120. By comparison, Generation X (aged 35 to 49) have a credit score of 650 on average debt of $125,000, while both baby boomers and the Greatest Generation (with a combined age of between 50 and 87) have credit scores of 709 on average debt of $87,438.

“It’s important to keep in mind that credit scores are built on credit experiences,” says Michele Raneri, vice president of analytics and business development at Experian, while talking about millennials. “While this generation has been slower to use credit, they have plenty of opportunities to build a positive credit history.”

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Trump Tops Pre-Debate Polls, Slams Koch Conference Attendees As “Puppets”

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Posted on 4th August 2015 by Administrator in Economy |Politics |Social Issues

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Tyler Durden's picture

Another weekend of glad-handing and Sunday talk-shows and still The Donald dominates the GOP Presidential nominee race. With all eyes firmly glued on this week’s debate, Trump had a few choice words for those who attended the Koch brothers’ biannual conference (which he was not invited to), tweeting “I wish good luck to all the Republican candidates that traveled to California to beg for money etc. from the Koch Brothers… Puppets?” As WSJ reports, Mr. Trump poses a more delicate short-term challenge for the GOP, thanks to high name recognition, celebrity appeal and a populist message that taps a powerful anti-Washington vein.  “I don’t think you should underestimate how frustrated people are,” Florida Sen. Marco Rubio said Sunday during a lunch at the Koch gathering. “Mr. Trump has tapped into some of that.”

 

Still ahead…

 

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NSA: A Tax & Economics Espionage Agency

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Posted on 4th August 2015 by Administrator in Economy |Politics |Social Issues

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NSA

Anyone who thinks this is about terrorism is pathetically naive. The NSA is a top-notch Tax & Economic Espionage (TEE) organization; with terrorism so low on the agenda, it is laughable. You do not collect every phone call worldwide of billions of people to sort out even 100 terrorists. They store all that data and can input your name and wham – up pops everything. I am waiting for some smart lawyer in a divorce case to subpoena such a file to prove someone has been cheating to get a pile of money.

 

NSA-Utah

In theory, the existence of such files should be open to everyone just like the Nixon Tapes. They must have copies of all the emails Hillary erased to hide her dealings with foreign governments to get money for the pretend Clinton charity. They all exist. Why has someone not demanded that the NSA turn them over? Well, it would open the floodgate on everyone else. The NSA didn’t build that immense storage facility for nothing. They erase nothing – retain everything. They remembered their childhood songs of how Santa Claus knows everything and said gee, we can do that. So why is Congress or even Trump demanding the NSA turnover all her emails? Guess to they do not want to publicly admit Snowden was correct.

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LAST FLIGHT

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Posted on 4th August 2015 by Administrator in Economy |Politics |Social Issues

Via Knuckledraggin


The Plot to Destroy Nixon

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Posted on 4th August 2015 by Administrator in Economy |Politics |Social Issues

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Guest Post by Patrick J. Buchanan

In his new biography “Being Nixon: A Man Divided,” Evan Thomas concedes a point. Richard Nixon, he writes, “was not paranoid; the press and the ‘Georgetown set’ really were out to get him.”

Carl Bernstein’s review found Thomas’ book deficient in its failure to chronicle the “endemic criminality” of the Nixon presidency.

Yet, recent revelations suggest that “endemic criminality” is a phrase that might well be applied to the newsroom of The Washington Post when Bob Woodward and Bernstein worked there.

Consider. In “All the President’s Men,” Woodward and Bernstein admit that, in collusion with Post editors and with the approval of Post lawyers, they approached half a dozen Watergate grand jurors.

Admitting this was a “seedy venture,” they assured us no grand juror had violated his or her oath, and they got nothing.

Yet, from recent books by Jeff Himmelman about Ben Bradlee, Max Holland about Mark Felt, a.k.a. “Deep Throat,” and Geoff Shepard’s “The Real Watergate Scandal: Collusion, Conspiracy, and the Plot That Brought Nixon Down,” out today, the truth is otherwise.

Woodward and Bernstein deceived us about not breaching the grand jury.

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QUOTE OF THE DAY

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Posted on 4th August 2015 by Administrator in Economy |Politics |Social Issues

“Those among the rich who are not, in the rigorous sense, damned, can understand poverty, are capable of giving alms, perhaps, but are incapable of stripping their souls bare. They may be moved, accompanied by the sound of beautiful music, at Jesus’s sufferings, but His Cross, the reality of His Cross, will horrify them. They want it made all out of gold, bathed in light, costly and of little weight; pleasant to see, hanging from a beautiful woman’s throat.”

Léon Bloy


Washington’s Fifth Columns Inside Russia and China

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Posted on 3rd August 2015 by Administrator in Economy |Politics |Social Issues

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Guest Post by Paul Craig Roberts

It took two decades for Russia and China to understand that “pro-democracy” and “human rights” organizations operating within their countries were subversive organizations funded by the US Department of State and a collection of private American foundations organized by Washington. The real purpose of these non-governmental organizations (NGOs) is to advance Washington’s hegemony by destabilizing the two countries capable of resisting US hegemony.

Washington’s Fifth Columns pulled off “color revolutions” in former Russian provinces, such as Georgia, the birthplace of Joseph Stalin and Ukraine, a Russian province for centuries.

When Putin was last elected, Washington was able to use its Fifth Columns to pour thousands of protesters into the streets of Russia claiming that Putin had “stolen the election.” This American propaganda had no effect on Russia, where the citizen back their president by 89%. The other 11% consists almost entirely of Russians who believe Putin is too soft toward the West’s aggression. This minority supports Putin as well. They only want him to be tougher. The actual percentage of the population that Washington has been able to turn into treasonous agents is only 2-3 percent of the population. These traitors are the “Westerners,” the “Atlantic integrationists,” who are willing for their country to be an American vassal state in exchange for money. Paid to them, of course.

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Rewriting the History of the Financial Crises and the Repeal of Glass-Steagall

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Posted on 3rd August 2015 by Administrator in Economy |Politics |Social Issues

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Guest Post by Jesse

In December 1996, with the support of Chairman Alan Greenspan, the Federal Reserve Board issues a precedent-shattering decision permitting bank holding companies to own investment bank affiliates with up to 25 percent of their business in securities underwriting (up from 10 percent).

This expansion of the loophole created by the Fed’s 1987 reinterpretation of Section 20 of Glass-Steagall effectively renders Glass-Steagall obsolete. Virtually any bank holding company wanting to engage in securities business would be able to stay under the 25 percent limit on revenue. However, the law remains on the books, and along with the Bank Holding Company Act, does impose other restrictions on banks, such as prohibiting them from owning insurance-underwriting companies.

In August 1997, the Fed eliminates many restrictions imposed on “Section 20 subsidiaries” by the 1987 and 1989 orders. The Board states that the risks of underwriting had proven to be “manageable,” and says banks would have the right to acquire securities firms outright…

As the push for new legislation heats up, lobbyists quip that raising the issue of financial modernization really signals the start of a fresh round of political fund-raising. Indeed, in the 1997-98 election cycle, the finance, insurance, and real estate industries (known as the FIRE sector), spends more than $200 million on lobbying and makes more than $150 million in political donations. Campaign contributions are targeted to members of Congressional banking committees and other committees with direct jurisdiction over financial services legislation.

PBS Frontline: The Long Demise of Glass-Steagall

“It is difficult to get a man to understand something, when his salary depends upon his not understanding it.”

Upton Sinclair

The Glass-Steagall Law was enacted as a key reform in 1933, the depths of the Great Depression, in the overall effort to prevent the corruptions and abuses of the 1920’s from enabling such a dire result again.

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The World Explained In One Chart

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Posted on 3rd August 2015 by Administrator in Economy |Politics |Social Issues

Tyler Durden's picture

We could not have put it better – Progress indeed…

 

Source: @Not_Jim_Cramer

ANOTHER REASON I DESPISE BANKS

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Posted on 3rd August 2015 by Administrator in Economy |Politics |Social Issues

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Yesterday was a day from hell. A 14 hour ordeal moving my son into his apartment at Penn State Altoona. It included 8 hours of driving, rest stop food and the consequences thereof, battling the hoards of freaks at Wal-Mart, and the latest reason I despise banks.

I had Jimmy drive the entire trip so he could get used to the roads and the tedious boredom of driving on the PA Turnpike. Avalon followed with my youngest son in the car behind. It gave me plenty of time to impart my years of wisdom upon him. I’m sure he has already forgotten everything I said. And I had to listen to four hours of Phish.

All went smoothly and it was time to make a rest stop at the 2 hour mark just before Blue Mountain. The plan was to grab a quick bite to eat and complete the journey for a 1:00 pm arrival. The selection was limited. Either a personal pan pizza from Pizza Hut or something from Roy Rogers. I grabbed a box of pizza and they got Roy Rogers.

Within 30 minutes of departure there was a rumble in my tummy. The rumble became shooting pains. I guess you can screw up a pizza. For the last 90 minutes of the trip I was in various stages of discomfort. But, I gutted it out. When we arrived and got the key, I grabbed the case of toilet paper we brought and ran for the bathroom. And Jimmy’s new apartment was christened.

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WEST PHILLY STICK FAMILY

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Posted on 3rd August 2015 by Administrator in Economy |Politics |Social Issues

Via Knuckledraggin