Where the money is....

When Willie Sutton bank robber was asked why he robbed banks he said "Because that is where the money is". How things have changed.

The banker's Bank the Federal Reserve is now robbing savers with near zero interest rates. Why? Because that is where the money is. It is a hidden tax. No law was passed. Still you are having the your money stolen through near zero interest rates to restore bank's balance sheets. If you had $300,000 in an IRA (or 401k) earning 5% in 2007 ($18,000 a year with nearly no risk) you are lucky if you earn half that today. That is a $9,000 or more of hidden taxes.

I hope to expose these types of actions and others by the FED and government. Boomers need to be vigilant - because their savings is where the money is. I will also delve into other areas of finances of interest to Boomers.

Monday, December 27, 2010

The lies, the spin and the truth

If you believe the spin, it sounds like the extension of the 2003 tax cuts is a decrease in taxes. It is not. Taxes remain the same. It is the lack of a negative, not a positive. So how does that increase spending and consumption or in any way change the economic outlook?

You were told that the health care act did not contain a death panel. Why is it that Medicare will now pay for end of life counseling? Another lie from the government?

Extension of unemployment benefits - sounds like (if you don't investigate) they were extended 13 months to up to 3 years. Not true. They were kept at 99 weeks for those who had not reached 99 weeks of benefits. And even this varies by state depending on unemployment rates in that state. The number of 99ers will continue to increase making the UIC (Unemployment Insurance Claims) fall even if unemployment increases. See this: http://blogs.wsj.com/economics/2010/12/23/how-long-is-each-states-unemployment-extension/

Under the so-called payroll tax holiday, employees who normally pay 6.2 percent in Social Security taxes out of each paycheck will pay just 4.2 percent in 2011 on wages up to $106,800. But, the "Making Work Pay" provision, which was part of the 2009 Recovery Act, is set to expire Dec.31 and will not be renewed. The credit was worth $400 to taxpayers making $75,000 or less ($800 to couples earning less than $150,000). These two will mostly offset.

Stay aware, don't believe the spin or the lies.

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