Sunday, October 28, 2007

A Few Things About Money

The share interplay of interest if it bears it is the green in your checking accounts, the change in your pockets and the dollar in your wallet are defined as fiat. As well as, your mutual funds, 401k, IRA, gold bullion, stamps both gold and paper, plant, equipment and real estate, patents and various other financial holdings, paintings and even certain ideas might be so defined. Money ranges from its most liquid form to the illiquid. As are some unpublished books, manuscripst and music. At present many people's money are captive to an illiquid real estate market. Mostly, money is anything that can be converted to cash at some point in time, hopefully before its value changes in a disadvantageous way.

Then too what is always coming around the bend is change and at some point in time, in the United States and most countries around the world gold as a standard of economic value or money was changed. Since we no longer use the gold standard as a means to value our dollar the questions beckons what is relied upon? Answer: Fiat Money. Which is money backed by government demand for it as legal tender in payment of legal liabilities such as taxes and social security benefits. Since the government has an unending income stream in taxes and can create as much money as it deems fit, fiat money is said to be backed by the full faith of the government.

It is argued then that the excess of fiat money creates inflation. Which in a market economy the actors thereof will attempt to predict the government officials action in order to advance the value of their assets. During times of inflation then those said actors will seek to tranfer their fiat money to other forms of money that will not be discounted as fiat during inflationary periods. This in and of itself creates an opportunity for the financially vigilant and the nimble who can see the change in course and manuver to take advantage before it happens.

The business cycle is affected by the creation of liquidity and the reduction of liability which when applied starts a chain reaction of increasing money supply which leads to both consumers and business' borrowing more money to acquire and or facilitate growth. The borrowing leads to profits for corporations and the subsequently higher taxes for uncle sam. Business' expand and hire more employee's who now are required to pay taxes on the salaries earned and consumers spend more this creates economic activity which boost Gross Domestic Product or GDP. Which measures economic activity. It is the federal government that initiates this cycle both to wall street and the local man on the street but they do it for primarily self serving reasons. As described above a lot of the benefits is returned to the government in taxes and the confidence of the voting public.

How then might one profit from any of this? For one in the preparation for the federal governments action or the lowering of interest rates many stock market participants will remove from the market hoards of its capital this causes a devaluation of stock prices as measured by the S&P 500. Thereby creating a buying opportunity for those prepared to do so. One can use the high S&P index number prior to the action then measure for a 5% to 20% retracement which when this occurs before the federal goverment lowers interest rates,savy investors with start dollar cost averaging back into the market. One can remove from the market some portion of ones investment only to replace it on the the day the fed start the very first cut in interest rates since the last time it had embarked on increasing said interest rates. This same occurrence took place on Sept 18 2007 when the S&P Gained over 3.3% in just two days this confirms a new bull run. Which with more stoking and proding from the fed, in the continued lowering of interest rates. This starts a new cycle where we can all be berry merry and have a great Christmas.

It might be meaningful to be aware that during the trading year there are about 3 to 7 days that one does not want to be out of the market Semptember 18, or slightly before say one or two weeks before would have been ideal. They say you can't predict the market and perhaps there is some level of truth to that. however, it was sure noticeable that the FOMC or Federal Open Market Committee had scheduled their meeting months in advance where anyone could have been informed.


One more piece of information to consider. What made the FOMC lower interest rates on this date? Answer: the need to fulfill a dual mandate that is clear to all who know it and that is to maintain full employment and price stability the very same prices that affect you and I each and every day. When some of the goods, such as real estate, consumed by all of us reaches high prices where others are unwilling to buy them there tends to be a retracement of prices. This has occured in the Housing Markets which comprises almost 24% of economic activity if one include financials and Insurance. Since the first quarter of this year GDP grew at a paltry .06% the gatekeepers at the FOMC needed to reinsure us that they are doing their jobs. Since a potential 24% of GDP growth was known to be in jeopardy it would be unthinkable not to act. Additionally the Economy is like 200 Titanics they don't turn on a dime, it takes time to stop whatever direction they are going in and turn them around. So the FOMC had to act now so that there would be adequate time to see a turning around of the economy. The economy is, as stated by the former FOMC's chairman, likely to head into ression by a 33% likely hood. Due to the slow nature of turning the Titanic I believe this number is 45% therefore in the next six to nine months will lend themselves to a deffogging of the seas she sails. The reported GDP number will be clear to see.


We retain our vigilance and be mindful of economic forces and activities learn what types of assets rise when and why seek to be owners of the right assets at the right time otherwise you will continue to suffer the setback of corrections. Such as those being experience by non-vigilant real estate investors and subprime booboo heads who knew or should have known what the money was going into. We see that the fed has acted in changing its interest rate policy by being more accomodative and this leads investors to speculate that the future will be brighter. You should follow their lead. A wise man once said, we do not need to know why they do what they do but we certainly can too. Even though we, duh! do.

Thursday, September 20, 2007

Make Money With Speaking Characters

Studies show that Speaking Characters can increase sales and provide a neutral tone. They are never tired nor do they become frustrated, annoyed, and are never rude. Here you can employ one for free for half a month without any obligation. You can also monetize this by joining the affiliate program

Monday, August 13, 2007

Multiple Income Stream

In the big bad busy business world the need for a second income stream is a necessity for many. Who then must search all the internet for a simple enough program to meet the time requirement and the income needs they have. Here then is one possible solution to this dilemma. Income For Life! This is a program offered by a website aptly titled Making Money Online located at that allows an individual or a group of people the opportunity to earn a possible unlimited amount of income by sharing a simple video with anyone who will take 7 minutes to watch it. Furthermore, one can deliver a link to the video via e-mail. There is never any pressure to join and you can cancel at anytime. The company charges a $10 monthly charge to participate and what you get is the opportunity to invite as many others as possible to join. When they do you are compensated with a 10% kickback or commission. Since your cost is only $10 per month and you have the opportunity to invite an unlimited number of people. You can easily see that the odds are stacked in your favor.
Additionally, the plan used to pay you allows that if you successfully invite ten people these people become your partners and 10% of the monthly fee's of your partners will boost your income. This continues for five levels deep. So now if your original ten people invite 2 people you would have a group of partners adding to your income totaling 30 people this is only your second level. Now when the second level invites others this can add an additional 60 people to your group and your partners grow along with your income. Again, this continues for 5 levels deep. It is therefore possible to have a massive army of partners in your group that can add $200 to $2000 of monthly ongoing residual income. This income can come to you for the rest of your life hence Income for Life! To see a short presentation click the link and you will know what many already know and what many more will.