Sunday, September 10, 2006

Defend yourself against systemic, institutionally generated financial ignorance.

By Steve Savage "King of the Beasts"

The latest Federal Reserve Financial Literacy Survey reveals that only 52.4 percent of high school seniors understand personal finance and economics. Results by race: white 55 percent; Asians 49.4 percent; Hispanics 46.8 percent; and Blacks 44.7 percent.

Financial literacy is vital to the financial future of America. Because financial security requires the ability to understand and navigate the financial marketplace, this survey indicates that we're headed for the rocks and need a compass for that 47.6 percent who are adrift without a rudder.

We are devoid of fiscal knowledge because our educational system has failed to provide us with even the most rudimentary skills to protect ourselves against the "Financing on the Spot" predators who are now squeezing the equity out of everything we own. Remember - the motto of those "in the financial know" is: "Never make a sucker smart, unless that sucker happens to be your friend, my friend."

You cannot spend your way out of debt, despite the pretty picture painted by the consolidators. Interest rates will soon be skyrocketing to unprecedented levels. Taxes, bails, fines, fees, levies, fares, tolls and forfeitures, are continuing to rise at ever more rapid rates. Prices are soaring and the wage gap widening. Deflating housing bubble funds are being transferred to a new inflating stock market bubble. Un(der)employment is on the rise.

Check out rising Gold and Silver prices, General Motors employee buyouts, the aftermath of Katrina and other unexpected natural disasters, returning military, office vacancy rates, unable to fulfill political campaign promises, etc., etc.

The economic strength of a nation lies in the savings of its citizens. As of this date, November 21, 2005, America is enjoying a savings rate of negative 1.1%. This means that we're spending more than we're making. The average American household has more than $9,000 in credit card debt and mounting. Every man, woman, and child's share in America's $9,000,000,000,000 (9 Trillion Dollars) National Debt is $30,000.

Because Time is Money, and Time is Life; then Money is Life. In other words, do the Math: If a=b and b=c, then a=c.


Rising energy, health care and food costs are not what is creating inflation, they are the measure of it. The money printing presses are on a roll. We're being told that effects are causes, that high prices are the cause and not the effect of too many dollars chasing too few goods. Bankruptcy laws have been modified to accommodate the creditor. Credit cards are being used to buy Big Macs, groceries, and trivial purchases.

The average American household is experiencing too much month at the end of the money. If OPEC accepts Euros, or some other currency, e.g., the Yuan, because the dollar has lost its value, we will all be living in a Third World situation unless our armies can maintain the "stick up."

Sell everything you're making payments on while you can. If your credit is already lousy, let them repossess. "Downsize!" Ask for discounts on everything you buy, even at major stores. If you're walking down that dead-end road, loaded down with heavy chains that you've put on yourself, unload now and live, not at, but below your means. Be able to sleep nights.

As a hedge against chaos, buy yourself a bag of junk silver (Pre 1964 Dimes and Quarters) while they're still willing to accept worthless paper for intrinsic value.

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