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Money Matters last 2012 Update. December 30, 2012
Marc’s Notes:
Writing from snow covered Tahoe I want to wish every one of you the happiest of New Years and hope all of you had a great holiday and continue to do so into the New Year.
Being my last post of 2012, today’s news of stalemate on the Fiscal Cliff negotiations is no surprise. Even if they do reach some sort of last minute deal it will be of no consequence. How could it be? We owe over 16 trillion as a nation. Add in all of what we owe (as businesses are required to do on their books) and we owe somewhere in the area of 80 or 90 trillion with estimates as high as 120 trillion. That is so much money no one can comprehend it let alone have a chance of even paying the interest on it, let alone again paying it off!
The debt ceiling meanwhile was reached almost a year early (as I predicted when we raised it last time) and now we have to deal with that as well. Washington is getting tired of asking for new credit so now the talk is eliminating the Constitutional requirement of the ceiling itself and making the new limit unlimited.
What can I say? Its ridiculous, all of it.
The numbers are that large.
What can we look for in the coming weeks? A deal of some sort to satisfy the media and make the stock market run a tad but that is all. The real problem is we spend too much and borrow too much and no one (or few) in Washington has the stomach to deal with it.
Obama doest face re-election so why is he handing it off to others to “come up with a deal”? It is just plain absent leadership.
All he wants is more unemployment benefits (again) higher taxes, bigger government and more regulation. As if we don’t have enough of all that already.
He also wants the rich to “pay a little more”. What is his definition of a little more?
The average family will pay about $3,500.00 more! Low income tax rates DOUBLE and if you happen to make a million or more a year, you will pay about $250,000.00 more. That’s not the tax, that’s the increase!
Are you kidding me? At this rate, there will be no high wage earners anywhere except the super rich of which the new rates wont affect them much if at all because the super rich can do things to offset the taxes while the rest of us cannot.
Add in the payroll increases and Obama-care taxes and you and I are set to have a much smaller paycheck. Inheritance taxes are set to go to 55 % with the exemption dropping to a million from 5 million. This money is ALREADY taxed so if you have a business you want to hand off to your kids worth over 1 million the government is set to take more then half of it.
Assuming a 35 % tax rate on what you paid while you were alive and it works out to:
Original worth- Lets say 2 million, less 35 % tax you pay while alive = $1,300,000.00
Less 55 % when you die = your kids get $585,000.00 from a business originally worth 2 million!
More then 70 % of what you worked for goes to Washington. How can we expect to build a strong country when family businesses have to be liquidated every generation!
This is madness and it goes on while the Federal Reserve gives TRILLIONS to the banking industry to buy their toxic mortgages while paying themselves huge bonuses.
Sadly the country cannot survive policies such as these in the current form. We as a nation must face a cataclysmic economic event before we turn this around. A Greek like moment awaits us with severe spending cuts and much economic pain. They may stave it off for months or even years but the math does not lie. The compounding interest, blatant theft, political lack of will and basic economic truths will eventually force our hand.
They will not offer a remedy until they have to and when they have to it will be because the situation is horrendous.
Much pain awaits each and every one of us. It’s that certain. Do the math yourself. The interest alone cannot be paid and it’s only a matter of time before a default happens by the US government. How that default will look is anyone’s guess.
For now, we wait and watch the circus of the absurd. You must protect yourself by diversifying according to the plan. Keep listening and reading the material. Get safe and keep stocks, gold, offshore assets, property, silver, foreign currencies and even cash and savings accounts. All of that does not guarantee you will keep much of your wealth but it does give you an advantage over the rest. Having all your money in stocks and bonds is akin to economic suicide in my opinion. Diversify, diversify, and diversify.
I only hope we as a people don’t lose more of our basic rights and privacy but governments do what they can to protect themselves and their power over us so I am afraid we will see our basic rights pared back even further as things get more critical.The good news in all of this is America will emerge as a stronger nation in the end with sound monetary policy brought upon us by necessity. If only we can learn the lesson and pass it on to future generations, something up until this point we have failed to do. Lets hope we get it right next time around for good.
Our lesson of the day: Profits and security go hand in hand with education and preparation so get more education then prepare using that knowledge.
Money Classes are scheduled for January and consults are available as well. Email me for either. A low cost all woman's class is being offered through our partner See Jane Do. Here is the link:
See Jane Do is proud to announce a women's only seminar with financial consultant and award winning talk show host Marc Cuniberti of KVMR's Money Matters.
Money Management for Women Part 1
Tuesday, January 22nd, 2013
6:00-9:00 PM
Nevada City, CA
"Kudos to Marc Cuniberti for his informative presentation at See Jane Do's seminar Money Management for Women today. I feel so empowered to reach my money goals!"
~Mary Elizabeth Young
Correctly managing your money is one of the most important things you can do. Most people spend their whole lives making money but pay little attention to keeping it, blindly handing it over to a money manager or spouse to take care of. In today's changing economic world, that's just not good enough.
In this 3 hour seminar, the mystery of managing your money yourself is explained in an easy to understand format. Marc has taught thousands of people just like you to manage their finances without outside help. It's easy to do and only requires a few hours a year.
Woman can and do manage their own money successfully all the time whether its because they choose to, are forced to due the death of a spouse or because they are just living an alternative life style. Whatever your reason, understanding what money is and where it should be to protect your future is tantamount to a fulfilling and rewarding life.
In this seminar you will learn:
*Marc's Risk and No Risk designation of where money can be placed
*Why today's economic environment is more dangerous then ever
*Why it is important to understand exactly where your money is at all times
*What are stocks, bonds, bank accounts and other investments?
*Forget watching and worrying. Put your money on "Autopilot"
*What and who to avoid at all costs
*What to buy, where and from whom
Learn what thousands of people have learned. You CAN DO THIS and its takes less time then reviewing your cell phone bill.
When: Tuesday, Jan. 22nd, 2013 6:00-9:00 P.M.
Where: Nevada County Superintendent of Schools Houser Conference Room
112 Nevada City Highway, Nevada City, CA
Here is the link for more info and to register for the See Jane Do Money Mgmt Class for Women with Marc Cuniberti:
Join us next month by clicking on the link and signing up!
Money Matters airs this Thursday Jan 3, 2013 at noon PST on KVMR FM and www.kvmr.org.
All for now, I will follow it all for you so stay tuned.
Marc Cuniberti
Bay Area Process, Inc. encompasses all business related communications and all communique should be regarded as coming from the corporation of Bay Area Process Inc.Pumps, parts, systems. Open 24 hours, 365 days/ week. (800) 326 4039 FAX (530) 272 2753
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