Tuesday, February 28, 2012

Why Oil Demand is Down and Price are Up

(Email from FutureMoneyTrends.com)

Yes, it is true, if you look at the economy, unemployment, demographics, home prices, incomes, and investment returns, the deflationist argument looks like the correct one. In fact, if you factor in all the debt that is about to be defaulted on, you are going to see the purest form of the very definition of deflation, a contraction in the money supply.
So why aren't we seeing deflation? Why aren't we seeing Dow 1,500 and Gold $750? The reason we are not seeing deflation is because deflation is the stated enemy of the western central banks. Deflation is a natural force that we should all be experiencing right now if it were not for all the money printing at the FED and ECB.
Deflation is bad for the government, less tax revenue, less war, and it is definitely not good for re-elections. Inflation, however, gives the masses the feeling of wealth, homes are up, stocks are up, maybe even incomes are up. Plus, the government revenues are up and the debt the government owes can be paid back with inflated dollars.
Now the reality for the people is that inflation hurts because it acts as a hidden tax that steals your wealth and future earnings, it destroys savings. It also hurts the poor specifically as it makes food and energy more expensive, the largest expenses for those that are impoverished.
Here is what the natural forces of deflation are up against.
The above chart is what the purest form of inflation looks like, this is an increase in the money supply. The result of this is higher oil and food prices.
How high can this inflation, all this currency in circulation cause oil prices to go? Well, in our opinion, oil will continue to rise until it wrecks the place, we believe we are easily looking at $130 per barrel this year. Throw in a new war in the middle east or even the threat of war, and we can very well see $150-200 a barrel oil. This would equate to about $6-10 gas price per gallon throughout the U.S., something that will absolutely grind our economy to a halt. Now the sustainability of this price is probably already nearing its breaking point. Once Americans see $4-5 gas, that is going to force Americans to cut back which should cause some demand destruction and hopefully rein in the price. We say hopefully because right now, that just isn't the case.
Oil demand is down 6% in the past 12 months and inventories are at 6 month highs. What these numbers show you is that the economy is not in recovery, demand for oil is down, yet the price keeps rising. This is a result of the currency itself losing value, and our warning to all who will listen, is that this is a trend that will continue. If there is one thing that you can count on, it is that the central banks will keep printing. Remember, deflation is their enemy. 
Right now the average price for a gallon of gasoline in the U.S. is $3.70. Looking at places like California and New York, gas prices are already over $4 per gallon. It is safe to say that these areas are already seeing demand destruction, but not just for gas, for all areas of the economy. Houses that may be further away from centrally located jobs like the city of Los Angeles, houses that may have been popular when gas was $2 per gallon, may no longer be realistic if those homeowners are driving 1 hour to work in traffic. More money spent on fuel, means less money for other goods like food, clothes, and movie tickets. 
We are in a vicious economic battle between the natural forces of deflation and the man made forces of inflation. FutureMoneyTrends.com believes that our members should prepare for both, severe deflation in non-need items and radical price increase for 'need items.' The definition of need items is a bit tricky, since some houses and some cars are need items, however, a beautiful house built in the desert is a non-need item to the majority, especially since those areas lack jobs. Vehicles are need items, but once gas is over 5 bucks, those $50,000 SUV's with the special spinning rims will see a major price collapse. Non-need items should see major demand destruction, mainly because 'need' items will soak up all the available cash from consumers, need items being food and energy.
The best economist we believe that meets our definition of what to prepare for is John Williams of ShadowStats.com, he is forecasting a hyper-inflationary depression. Hyper-inflation is when there is a loss of faith in the currency itself, which is exactly what is happening today all around the world.
Russia US Treasury Holdings ($BN)
The above chart shows that at least one major nation is 'dumping the dollar.' This trend is being seen all around the world to a lesser extent, never the less, it is a growing trend. Nations are moving away from the dollar, doing transactions in their own currencies and even gold.
To those that say, wait a minute, "why would we see rising oil prices if you are projecting a depression?" It all goes back to the central banks devaluing the worlds' currencies. And this is exactly what the deflationists are missing, you can have no jobs and a 50% unemployment rate, but if no one wants the currency, you will not have deflation in that specific currency. We expect radical deflation when it comes to things priced in gold and silver, just not federal reserve notes.
In our opinion, preparing for both hard times in the economy and severe price inflation is the best thing a person can do right now. As we have mentioned many times, buying long term food storage and living a debt free life is priority number 1. Once you feel that you have some wealth to protect, you should consider buying hard assets, both in the physical realm and in owning the shares of companies that control and produce hard assets like gold, oil, and other commodities. We also consider cash flowing real estate, apartments, farmland, high demand commercial property a hard asset as well, but only if it can cash flow. Your education is also a big investment that should be taken very seriously, now that you know the truth about government statistics and forecasts, choosing the right income strategy for the next 10-20 years should be focused on what type of economy we will be in. Producing wealth in the short term and long term is important, that is why we profile companies that are long term hard asset ideas and also companies that are just day trades. We want our members to see that you can thrive in this environment if you just apply the knowledge you have.
99% of the population will suffer greatly from the great currency devaluation and depression. We hope that all of our members will continue to learn the truth about the economy and protect themselves and their families.
For those who haven't downloaded our free report on the U.S. dollar, please do so by going directly to:
Focus on the trends, share our emails with friends and family.

Wednesday, February 22, 2012

Gold 1980 vs. Today

What If They Are Lying To Us?

At JLM Wealth Strategies, we strongly believe "economic liberties are entwined with civil liberties."

We think the Judge strikes a chord with these remarks.

Sunday, February 19, 2012

There Are Multiple Reasons Why Whole Life Is Better For IBC Than Indexed Universal Life

There are multiple reasons why Whole (WL) is more advantageous than Indexed Universal Life (IUL) when using it with the Infinite Banking Concept (IBC):

- WL has higher guaranteed values
- WL isn't tied to a fluctuating investment
- WL doesn't have increasing cost of insurance that is tied to an investment
- WL Doesn't have surrender charges
- IUL limits liquidty of cash value in the first 1-10 years (depending on the policy)
- Most IUL's limit the amount or total cash value you can access
- WL is less risky for the client
- When using IUL's with IBC the insurance policy is RISKY. Because the increasing costs of insurance is present within the policy, the cash value is needed to stay within the Index to off-set the increase. If the cash value is removed (as described in IBC), you have a higher risk of increased premium in the future and policy lapse.

So in essence you are taking an already unproven product (IUL), and adding increased risk to the client and the future viability of the policy.

One of the challenges faced when discussing IBC is rate chasing. If you find yourself rate of return chasing, you don't understand what IBC is about.

Friday, February 10, 2012

30 Facts About Debt in America That Will Absolutely Blow Your Mind

Debt slavery is destroying millions of lives all across this country, and it is imperative that we educate the American people about the dangers of all this debt.

The following are 30 facts about debt in America that will absolutely blow your mind….

Credit Card Debt

#1 Today, 46% of all Americans carry a credit card balance from month to month.
#2 Overall, Americans are carrying a grand total of $798 billion in credit card debt.
#3 If you were alive when Jesus was born and you spent a million dollars every single day since then, you still would not have spent $798 billion by now.
#4 Right now, there are more than 600 million active credit cards in the United States.
#5 For households that have credit card debt, the average amount of credit card debt is an astounding $15,799.
#6 If you can believe it, one out of every seven Americans has at least 10 credit cards.
#7 The average interest rate on a credit card that is carrying a balance is now up to 13.10 percent.
#8 According to the credit card calculator on the Federal Reserve website, if you have a $10,000 credit card balance and you are being charged a rate of 13.10 percent and you only make the minimum payment each time, it will take you 27 years to pay it off and you will end up paying back a total of $21,271.
#9 There is one credit card company out there, First Premier, that charges interest rates of up to 49.9 percent.  Amazingly, First Premier has 2.6 million customers.

Auto Loan Debt
#10 The length of auto loans in America just keeps getting longer and longer.  If you can believe it, 45 percent of all new car loans being made today are for more than 6 years.
#11 Approximately 70 percent of all car purchases in the United States involve an auto loan.
#12 A subprime auto loan bubble is steadily building.  Today, 45 percent of all auto loans are made to subprime borrowers.  At some point that is going to be a massive problem.

Mortgage Debt
#13 Total home mortgage debt in the United States is now about 5 times larger than it was just 20 years ago.
#14 Mortgage debt as a percentage of GDP has more than tripled since 1955.
#15 According to the Mortgage Bankers Association, approximately 8 million Americans are at least one month behind on their mortgage payments.
#16 Historically, the percentage of residential mortgages in foreclosure in the United States has tended to hover between 1 and 1.5 percent.  Today, it is up around 4.5 percent.
#17 According to Dylan Ratigan, 46 percent of all mortgaged properties in Florida are underwater, 50 percent of all mortgaged properties in Arizona are underwater and 63 percent of all mortgaged properties in Nevada are underwater.
#18 Overall, nearly 29 percent of all homes with a mortgage in the United States are underwater.
#19 If you can believe it, the mortgage lenders now have more equity in U.S. homes than the American people do.

Medical Debt
#20 Medical debt is a major problem for a growing number of Americans.  One study discovered that approximately 41 percent of all working age Americans either have medical bill problems or are currently paying off medical debt.
#21 Sadly, the number of Americans that are protected by health insurance continues to decline.  An all-time record 49.9 million Americans do not have any health insurance at all right now, and the percentage of Americans covered by employer-based health plans has fallen for 11 years in a row.
#22 But even if you do have health insurance, there is still a good chance that you could end up with huge medical debt problems.  According to a report published in The American Journal of Medicine, medical bills are a major factor in more than 60 percent of the personal bankruptcies in the United States.  Of those bankruptcies that were caused by medical bills, approximately 75 percent of them involved individuals that actually did have health insurance.

Student Loan Debt
#23 Total student loan debt in the United States is rapidly approaching 1 trillion dollars.
#24 If you went out right now and starting spending one dollar every single second, it would take you more than 31,000 years to spend one trillion dollars.
#25 In America today, approximately two-thirds of all college students graduate with student loan debt.
#26 The average student loan debt load is now approximately $25,000.
#27 After adjusting for inflation, U.S. college students are borrowing about twice as much money as they did a decade ago.
#28 One survey found that 23 percent of all college students actually use credit cards to pay for tuition or fees.
#29 The student loan default rate has nearly doubled since 2005.
#30 Student loans made to directly to parents have increased by 75 percentsince the 2005-2006 academic year.

At this point, most Americans are up to their eyeballs in debt.  According to a recent study conducted by the BlackRock Investment Institute, the ratio of household debt to personal income in the United States is now 154 percent.

Our entire economy has become based on credit.

Do you need a car?
Just get an auto loan.

Do you need a house?
Just get a mortgage.

Do you need to fill up your house with stuff?
Just get a credit card.

Do you need an education?
Just get a student loan.

In fact, if you are anything like a typical American, you probably have a mortgage you can barely afford, you probably have at least one auto loan, you probably have several credit card balances and you probably have a student loan that you deeply regret.

So what should you do if you are drowning in debt?

First, make a firm decision that you are going to break the chains of debt slavery once and for all.
The big financial institutions want to get us into as much debt as possible, because all of this debt makes them incredibly wealthy.  Don’t play their game.

Secondly, research how to set up your own private banking system as discussed in the best selling books Becoming Your Own Banker and Bank on Yourself.  Both are available on Amazon.com.  www.BankonYourself.com has a wonderful web site with plenty of information to get you started.  I have even videos on my site located at www.CashValueBanking.com.

It's time to break free from banks, don't you think?

Thursday, February 9, 2012

Ron Paul Speech 2-7-12

Ron Paul has taught me that economic and civil liberties are entwined.  If one goes, so does the other.  As an individual concerned about not only my liberty and freedoms, but for my children, there is no other person I can endorse to represent my convictions as clearly as Ron Paul does.  He cannot be bought and the mainstream press ignores him for good reason.  His ideas are treason to the status quo system we have which is pulling everyone but the very wealthy into poverty.

Listen to him speak.  He is the only candidate for President that gets understands why this country is falling apart and what needs to be done to turn things around.  Can you imagine a debate with President Obama against Ron Paul?  It would be very embarrassing for the President to get schooled by such an educated and principled individual as Dr. Paul.

Take a listen to what Ron Paul stands for.

Tuesday, February 7, 2012

Who Owns Your Labor & Income? - Judge Andrew Napolitano (2012-01-17)

Ron Paul Nevada Election Result Is Likely Fraudulent

Re-posting this from my email.  Simply passing along the message.
Please Read This Entire Email: Something Is WRONG with the Nevada Election Results

FutureMoneyTrends.com normally doesn't comment on politics, but we have to mention this as there is definitely something wrong with the Nevada election results. First off, this was a very small election, so getting the results should have been easy. Yet for some reason, the Nevada State Republican party took 3 days to give us a final count of only 32,894 votes.
***No matter who you support, anytime we have something wrong with an election, it effects all of us, so we should all be concerned. 
Did Ron Paul Really Come in 3rd?

Now one trend that has been obvious in this election is that Ron Paul's support is much larger than it was in 2008.
For example, when you compare 2008 to 2012 vote totals, Ron Paul has increased his support significantly.
Ron Paul Vote Increase
  • Iowa UP 119%
  • New Hampshire UP 210%
  • South Carolina UP 385%
  • Florida UP 86% (He didn't even campaign in Florida)
Now here is the part that makes no sense at all. Ron Paul who took second in Nevada in 2008 with 6,087 votes, only increased his support by 1.4% to just 6,175 in the 2012 results, despite all of the excitement, all the money spent, which was a lot more. In fact, the Paul campaign had brochures and volunteers almost knock on every door in Nevada this time around. Nevada is also very fertile ground for a candidate like Ron Paul, many people in Nevada just want to be left alone by the government, Ron Paul opposes taxing tips, seeing that they are not really income, but gifts, you would think this would go over real well in Las Vegas.
On January 31st, a FutureMoneyTrends.com staff member and his family were in Henderson, Nevada, at a rally. At this rally over 1,200 people showed up. Let's say that out of that 1,200, only 1,000 were from Nevada, that would mean out of the entire state of Nevada, at just one of his many rallies over 3 days, 17% of his supporters showed up. If we assume that most of the 1,200 were from Nevada, then that would bring that number up to 20%.
Are we the only ones that are looking at this and scratching our heads?

Sometimes a picture can help put things into perspective. Regardless of who you are voting for, if we can't trust the vote counters or the media to hold them accountable, then what is the point of even having an election.
The one caucus that was on live TV that was held special for Jews and Seventh Day Adventist was covered by CNN. Ron Paul won this one in a landslide, again we find this interesting because if Ron Paul is winning very religious people over in a landslide, we are willing to make a Las Vegas bet that he won the non-religious Las Vegas residents by even more. For people who just want to mind their own business and do their own thing, as long as it doesn't harm anyone else, Ron Paul is really their only option.
You can go through all of the articles we have written, videos produced, and emails sent out, we are not a conspiracy site at all, 99.9% of our content is about future trends and economy.
So, here is what we are asking our members to do. If this Nevada election result bothers you, forward this email. Maybe this email will eventually get forwarded to the right person who does have the authority and integrity to look into this further.
New to FutureMoneyTrends.com? Don't forget to read the trading rules we live by featured on our Trend Investments tab on our website.
Remember the #1 rule of investing is to not lose money and don't forget to lock in those profits. One of the biggest mistakes an investor can make is to see a massive increase in share price in a very short period of time, and not lock in that gain. Also, on our Trend Investments page is our ranking system so that all of our members are on the same page and understand the difference between a long term trading idea and a pure day trade like a momentum play.
Focus on the trends, share our emails with friends and family.

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Observations on Democracy

These the supposed observations attributed to a 19th Century Scottish Professor...

"A democracy is always temporary in nature; it simply cannot exist as a permanent form of government.  A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury.  From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse over loose fiscal policy, (which is) always followed by a dictatorship."

"The average age of the world's greatest civilizations from the beginning of history, has
 been about 200 years. During those 200 years, these nations always progressed through the following sequence:

From bondage to spirit;
From spirit to courage;
From courage to liberty;
From liberty to abundance;
From abundance to complacency;
From complacency to apathy;
From apathy to dependence;
From dependence back into bondage."

Monday, February 6, 2012

End the Fed (With a Comedic Twist)

This guy is funny and knows the truth about the Fed.  Share it with your network.