It's Not The Money's Fault

Have you ever heard people say that some of the richest people they know are also some of the unhappiest? I argue this is because of one of two reasons. The first is that money may not be the actual route to happiness for that person. If the true key to your happiness is the approval of your parents, or finding true love, or having a child, if you don’t have that one thing, all of the money in the world is not going to provide you with the happiness you seek.

The second reason is the fact that once you have enough money to guarantee yourself financial peace of mind, if you had the ambition and drive to obtain that much money in the first place, chances are you will need some other type of goal to strive for or else you will find yourself feeling unfulfilled.

Now, I know a lot of you out there want to cite the actual money itself and having it in large quantities as the root cause for the unhappiness of the rich, but it’s never the actual money itself – it is either the fact that the money has still failed to fill whatever void in that person’s life they were trying to fill with money, or the fact that the successful attainment of that money has left that person with nothing else for which to strive. As much as those without money want it to be the actual money that is causing those they feel are rich to be unhappy, it is just not the money.

So, the next time you find yourself blaming their stacks of money for the unhappiness of the rich, all the while, not feeling the least bit sorry for them, or if you’re standing amongst your stacks and stacks of money, trying to figure out why you’re still not happy, remember that it’s not the money’s fault.

The Problem With The Value And Faith We Put In Paper And Electronic Currency

If you reach into wherever it is that you keep your on-hand cash and pull it out, there are four things that you should keep in mind:

• You have exchanged something of value to you in order to obtain that note, and you should have a good understanding at all times of just how much of that valuable thing you traded for that note
• From the time you exchanged that item of value for that note, there has been and will always be continual fluctuation in how much of that valuable thing each note is worth to you and others
• The actual note in your hand only has a perceived value, granted to you by others who also believe in that same perceived value, otherwise all you hold in your hand is a piece of paper
• Without an exchangeable value other than its perceived value, all of the value you put into that note could completely disappear instantly…yes, instantly!

No matter where you sit on the political spectrum, no matter how you earn your money/dollars/notes, and no matter your age, location in the world, or your socioeconomic conditions, these four things apply to you. Pretty scary, isn’t it, especially that part about the value of your notes disappearing instantly, right?

There was a time in history when all of the paper currency in the world, whether issued by a bank or a government, was exchangeable for, and therefor backed by, a stockpile of precious metals somewhere. The value of the paper money in your hand was tied to the value of gold, silver, or some other metal that was under lock and key somewhere, and any time you wanted, you could go and trade in your paper money for that tangible precious metal. Today, however, this is no longer the case. And that is why whenever we are dealing with paper currency, we need to remember those four things above.

But, how did we get here, and why? That’s the trillion-dollar bill question, isn’t it?

Sadly, the answer is very simple. It all boils down to the fact that governments need your value through either your labor or your money, in order to operate and exist. That means that governments need to provide a currency that can be used to perpetuate their economic system and provide the means to take value from you. But today, there are far too many people, there is far too much potential value, and there is far too little precious metal to have paper currency tied to actual tangible real-world assets any longer. In short, the world’s governments and their economic systems need far more value in paper money than all of the already-mined precious metals in the world can provide.

Following the chaos of World War II, the 44 Allied nations came together and agreed that in order to create economic stability, they would all peg their paper currency to a gold standard and that each of their gold standards would be tied to the U.S. dollar at an exchange rate of one ounce of gold for 35 U.S. dollars. This created a scenario in which these nations and their central banks could exchange U.S. dollars for gold on demand. This system worked well and helped fuel the economic growth that would ensue for the next 25 years.

But that amazing growth would yield a problem by the 1970s. The Allied nations’ populations and economies had grown so large that the amount of U.S. dollars in circulation had far surpassed the amount of gold the U.S. held in reserves. This meant that if the world’s governments cashed in their greenbacks, there would not be enough gold to pay everyone their stored value. Fearing that this would cause a run on U.S. gold and result in economic collapse, in 1971, the U.S. government removed the gold standard from U.S. currency, allowing the central bank to just print money that has no actual real-world, tangible value except for what we perceive in our minds as a collective. No longer could the world’s governments exchange U.S. currency for a fixed amount of gold. Instead, the value of each piece of currency would be tied to its perceived, or market value.

Let’s think about that for a second. When banks and the U.S. government first started printing paper money, the value of that paper money was tied to a precious metal like gold or silver, but that meant there could never have been more paper money out there in circulation than the amount of physical precious metal the bank or the government had on hand. That also meant that at any time, you could walk into the bank or the right government office and demand precious metal in exchange for the paper currency in your hand.

Do you see how this system of paper money based on a precious metal stockpile makes perfect sense? People no longer had to carry cold coins in a purse or large amounts of gold bars on a carriage, but instead, just had to carry light paper currency in their pocket.

But now, people can no longer walk into the bank or a government office and demand something of real-world value in exchange for the paper currency in their pocket. Today, all you can get for that paper money in your pocket is other forms of paper currency, or worse, a balance on the bank’s or government’s electronic ledger.

And, if the fact that paper currency is no longer tied to anything of actual real-world value is not scary enough, the next step, which is already well underway, is to transform that paper money into electronic numbers on an electronic balance sheet somewhere in the cloud.

Imagine a planet where the governments of the world convince us all that the cost of producing that actual paper currency is just too high, and even worse, completely unnecessary now that we have this beautiful digital world in which everything is stored on electronic ledgers and we can all carry around little plastic cards in our pockets instead of that costly-to-produce and now completely unnecessary paper money. Oh, and don’t even get them started on producing coins! It costs a nickel to make a penny now. How impractical is that? You humans don’t actually want to carry around coins any more, do you?

If you don’t believe this is where the governments of the world are taking us, think a little about how you transact now compared to ten or twenty years ago. How often are you using actual paper currency versus those plastic cards in your pocket? How many of your bills do you pay with a paper check, and how many do you simply pay online?

See how this is all progressing along nicely for the governments?

And what is the problem with the governments doing away with physical currency all together? Well, the biggest problem is that people will no longer have the ability to hold currency outside of the electronic system - meaning no one, ever, will be able to hide currency from the government's greedy hands.

Then, all it will take is for the government to sit at a keyboard and it can have complete access to the value of everything you own. Remember how earlier we talked about you exchanging the value of something for that currency? Well, once all currency is electronic and there is no way for you to hold that value in something tangible, then it can all be wiped out, entirely wiped out, with just a keystroke. That’s everything you have worked for your entire life – gone in an instant.

Couple this with a current movement to get everyone on the planet an electronic ID by 2040 and every single person on the planet and their electronic currency will be reachable by governments and global governing bodies like the UN at any moment, anywhere in the world.

Can't wait to see the black markets this creates for alternative currencies! We'll be using commodities as currencies to barter with each other outside the government's ever-watching eye like it was the Dark Ages again. How many chickens for a sword?

Think of what this will do to the price of precious metals. That is, if the governments even allow us to own precious metals any longer once they do away with all physical currency.

While we will have to see where governments and technology take us, unfortunately, there is very little we can do about the tangible real-world value in our paper money, other than exchanging some of it for precious metals while we’re still allowed. The main thing to remember each time you look at those paper notes in your hand is to ensure that your portfolio of assets is as diverse as possible.

Never keep all of your value in eggs, and never keep all of those eggs in one basket.

Photo by The Digital Way via Pexels

Hours 38 to 40: Profit And Your Personal Finances

Once upon a time, when I was working with a consulting company that billed its customers hourly for their time, its CTO offered up an amazing perspective on profitability for its team of consultants during a team meeting. He explained that when it came to generating profit to put back into the business and to fund increases in employee compensation and benefits, the company’s consultants needed to keep in mind that while the company leadership appreciated everyone’s hard work, it was important to ensure that they billed a full 40 hours a week because all of the company’s profit projections were based on a 40-hour billable week.

He went on to explain, approximately of course, that it was hours 1 to 37 for each week that covered the cost of the expenses, but it was hours 38, 39, and 40 that yielded the profits the leadership put back into the business, and for that reason, while consultants might feel that billing close to 40 hours a week was close enough, it was, in fact, actually not.

This lesson in hourly billing and profitability not only resonated with me when I heard it, but still does to this day, because it makes me think of the very same concept as it applies to personal finances as well. While most people would never look at it this way, their personal finances are very similar to the financial models this consulting business and its CTO were addressing that day.

Much like this consulting business, and any business for that matter, each of us as individuals also have expenses that when deducted from our income, yield either a profit or a loss. If you get paid hourly and only work 37 hours per week, but your expenses take up your full amount of pay, which you anticipated being for 40 hours per week, you actually are going to bring in less money than you need to cover your expenses. While this comparison is quite literal, the same holds true for however you are paid, be it hourly, salary, in lump sums as a consultant, or any other way.

The bottom line is that you should always know exactly what your expenses are and should always ensure that your income never falls below the amount of those expenses no matter what you do. In fact, you should always strive to ensure your expenses are as small of a percentage of your income as possible. You should view the difference between your expenses and your income as your profit, and without profit, you cannot reinvest in the things in life that you enjoy and that are important to you and your loved ones.

Your personal profits are the money you use to pay for things like vacations, education, luxuries, or whatever other experiences or items you and your loved ones enjoy. By looking at this money left over after paying your expenses as profit, you can very easily identify and dedicate your efforts in ways that increase that profit.

So, the next time you feel 37 hours is close enough, or spending just a little more than you earn is no big deal, remember that without profits, you will have nothing to reinvest in your life, and what is the point of all of that hard work if all you ever do is just cover your expenses or dig yourself deeper into debt?

Photo by Meditations via Pixabay

My Translation Of Ben Franklin's The Way To Wealth

From 1732 to 1758, Benjamin Franklin published his Poor Richard’s Almanac that contained weather forecasts, practical household hits, puzzles, and other amusing writings. Franklin often filled the empty spaces in his almanac with wordplay and witty phrases, many of which are used to this day. Many of the most memorable phrases deal with being courteous, thrifty and self-sufficient.

In the 1757 version of the almanac, Franklin compiled his proverbs about industry, frugality and self-sufficiency into a prefix that took the form of a wise elderly man imparting the knowledge he gained from Poor Richard to a host of people waiting for an auction to start. This prefix was later published separately in a wildly popular essay called The Way to Wealth.

To this day, Franklin’s The Way to Wealth remains sage financial advice. The problem is that much like many of the old English texts, the essay is becoming less understandable to all of us slang-slingers with each passing day. Fortunately for you, I have taken some of my spare time over the past couple of months to piece together an updated translation that makes The Way to Wealth a much easier read.

Click here to read the eBook.

Photo by Maklay62 via Pixabay

How A Small Change Makes A Big Difference

So, loyal reader, what do you know about me? I work across the street from the Irvine Spectrum, I like to eat on the cheap but never bring my own lunch to work, and I do not like change. These three things recently came together in a perfect storm that got me thinking about how in business, sometimes what we consider to be a small change for the business can make a big difference to our customers. Let me explain:

Once or twice a week now for the past five years, I have patronized a local-to-the-office Rubio’s for their Street Taco Plate. I grew so fond of the meal that it even worked its way into our dinner rotation and some of the employees at the local-to-the-office and local-to-the-home Rubio's locations have come to know my order by heart: Street Taco Plate - All chicken tacos, only meat, with the customary cup of beans and side of chips for $6.43.

Today, however, on my foray out for lunch on cheap at the Irvine Spectrum, I was met with change…a slight menu change and price increase. I still got my same Street Taco Plate, but today, not only did it cost me $7.10 instead of $6.43, it came with a cup of rice instead of my side of chips. Credit goes to the wonderful employee at Rubio’s for informing me of the change before I finalized my order, but caught off-guard, I went ahead with my Street Taco Plate order. Naturally, I was offered the side of chips for an additional cost, but that would have been an even bigger price increase, wouldn't it? You know Old Man Savastano isn't going to go for that.

Trying to remain optimistic about the change while I ate, I sadly soon found myself coming to the realization that the cup of beans was just not the same when eating it with a spoon instead of the side of chips, and while good, that little cup of rice amounted to about five bites. I felt just as full at the end of the meal, yet somehow found something was lacking…and that is not a feeling I should have after I’ve just had an addition 67 cents taken from me by a retail establishment I frequent so often. Let the good times roll that I can be so concerned about such a slight change and my 67 cents, but nonetheless, the conclusion I reached was that between the price increase and rice instead of chips, I was highly disappointed with the change to my Street Taco Plate.

Even though it is a small change and a small price increase, I can tell you that without a doubt, while I will surely still patronize Rubio’s, I will modify my order by looking for something comparable at a slightly lower price (maybe ditch the rice and beans and just get more tacos?), or perhaps not be as apt to go there as often in the near future. I was set in my little routine – Go to Rubio’s and order the same thing – Now, Rubio’s has jarred me from my lull, making me change my order, and charging me more for what I was already getting, thus opening up the window for me to really change the routine and go somewhere else instead.

I am sure there is a whole team of people at Rubio’s somewhere who did a whole bunch of research about this change and price increase (at least I hope there is and this wasn’t done on a whim), and I am sure most people won’t bat an eye at it, but keep in mind that sometimes, just sometimes, a small change is enough to make a big difference with your customers. Ask Bank of America about their $5 a month Debit Card fee, or Verizon about their $5 Paying-Your-Bill fee, and they will tell you that a small change can make a big difference.

Maybe It's Time To Start Learning Chinese

Well, folks, that's it. According to the International Monetary Fund, the era of America will end in just five years when the economy of China becomes the most dominant player on the world stage. American politicians will tell us that we are still #1, economists will tell us where we went wrong, even though we already know what the problem is, and the percentage of Americans who pay no taxes won't care as long as they still get what society owes them.

We can already see cracks forming in the once respected U.S. dollar and U.S. treasuries markets, but when we slide to #2 behind China, the world economy and the world's international security system will have a very different landscape than what we all have known through our lifetime.

According to the IMF, whoever wins the Presidential election in 2012 will be the last U.S. President to preside over the largest economy in the world. How are most Americans handling the news? The way that we always do. Instead of buckling down, making real changes, and addressing the problem, most of us will put our heads in the sand and tell ourselves that it won't make a difference in our lives, and the so-called experts are going to fuel that view by saying that the IMF figures are inaccurate and that we have at least a decade until this is going to happen.

According to a MarketWatch article, "Under PPP, the Chinese economy will expand from $11.2 trillion this year to $19 trillion in 2016. Meanwhile the U.S. economy will rise from $15.2 trillion to $18.8 trillion. That would take America’s share of the world output down to 17.7%, the lowest in modern times. China’s would reach 18%, and is rising."

While this is just a prediction, all signs point to the fact that the U.S. economy will no longer be #1 within our lifetime. America took over as top economic power in the world in the 1890s and unless you're pushing 120 years old right now, you have lived in a time when our nation was the #1 power on the world stage. Imagine what the world will be like when this is not the case. While we may have our ills, we have led the world with the very best of intentions. Do you think that China will do the same?
也許是時候開始學中文

A Return, Even If Partially, To A System Of Checks And Balances

One great reason to look forward to 2011 is that we will see a return, even if partially, to the system of checks and balances in that putrid cesspool of ridiculous spending known as Washington, D.C. that the Founding Fathers (yep, I’m still going to call them that in 2011) put in place for a very good reason. 

2011 will hopefully see a time when we are not voting for bills on Monday that we are going to get around to having a chance to read next Tuesday; a time when there is a small voice that can say, “Hey, wait a minute, why don’t we wait a minute?” instead of cramming and ramming piece after piece of legislation through voting in the 11th hour when everyone is distracted by the flashy lights and Christmas songs and not really watching what is going on over in Crazy Town.

Let’s hope that in 2011, the American Taxpayer actually gets to see the cavalcade of foundational system change for the sake of creating a new world order finally stop, or at least slow to a reasonable pace. Let’s hope that in 2011, the American Taxpayer sees these m-f-ing hot air balloons actually quit with the god damned earmarks like they’ve been promising. When even Tea Party candidates are taking earmarks, it’s not time to change the system, it is time to wipe the damned slate clean and just start over.

Let’s hope that in 2011, the American Taxpayer sees the Congress and the Executive Branch curtail the reckless and fruitless spending and spend what is needed, where and when it is actually needed. Let’s hope that in 2011, the American Taxpayer sees less and less “Change The World” and a whole hell-of-a lot more “Creating Jobs” and “Jump-Starting The Economy.”

I know that you elected him so that you could get your free healthcare and your car note paid without having to actually go out and get a job, or for your papeles, or your mama’s papeles, but it is time for all of us – both those of you who voted for him and those of us who didn’t – to come together to expect this President to deliver on his promises on job creation, boosting the economy, and reducing government spending and the deficit.

I say the two years of playing in the sandbox with your buddies is rightly ended, and now it is time to come in and get to work. He wants Republicans and Democrats to work together? I say we do just that and start holding him accountable to those promises – not the ones where he promised everyone who doesn't pay any income taxes even more free shit, but the ones where he promised to enact actual change on this economy and that damned town he’s been living in for the past two years.

My Take On Illegal Immigration - Part 1

If you type "Barak Obama on illegal immigration" into Bing, the top search result is the Master and Commander's own web site that was created when he was running for office, www.barakobama.com. I decided that I should grab and re-post a part of his plan on how to deal with illegal immigration before it disappears from the site like it was a bad review of General Petraeus on www.moveon.org.

Here is the first part of Obama's web site info (more on the second part later):

The President has made it clear that the only way to truly secure the borders and have an orderly immigration system that honors our traditions as both a nation of laws and a nation of immigrants is through comprehensive reform grounded in the principles of responsibility and accountability:

Responsibility from the federal government to secure our borders: The Obama administration takes this responsibility very seriously and has dedicated unprecedented resources to securing our borders and reducing the flow of illegal traffic in both directions.

Responsibility from unscrupulous businesses that break the law: Employers who exploit undocumented workers undermine American workers, and they have to be held accountable.

Responsibility from people who are living in the United States illegally: Undocumented workers who are in good standing must admit that they broke the law, pay taxes and a penalty, learn English, and get right with the law before they can get in line to earn their citizenship.

Comprehensive immigration reform is essential to continuing the tradition of innovation that immigrants have brought to the American economy and to ensuring a level playing field for American workers. It's also essential to providing lasting and dedicated security for our borders.

I agree that we need to overhaul the current immigration system, and that we need to secure the border. I believe that changing current U.S. policy can effect the tide of illegal immigration to the point at which many of illegal immigration's problems can be solved. I believe there is a diplomatic solution, but until your diplomacy starts working, you put boots on the ground to solve the problems now. You use actions and not words. You don't push policy and wait for it to work so that the extra boots are not needed. I sometimes believe this is what the Master and Commander is hoping for; a way to be involved without actually getting involved.

I believe that we should crack down on the businesses that are hiring and exploiting illegal immigrants. Now, I know not every business that hires illegal immigrants is exploiting them, but realistically, I have to think it is widespread enough that we should be doing something about it. While it may be unpopular, in the mean time, until the law changes, we need to enforce the current laws by citing and heavily fining the business owner and deporting the workers that are working for them illegally. It is the letter of the law, regardless of its popularity.

I laugh at the administration's use of the phrase "undocumented workers who are in good standing". That really shows you how the Master and Commander and his administration view our current U.S. immigration policy. They view it as unjust and they want to change it. They, in my opinion, do not view crossing the border into the U.S. illegally as a crime.

You name the laws that we as citizens can break that will continue to leave us in "good standing". Try getting a traffic ticket and not paying it, then see the "standing" in which you find yourself. It should not be up to us to determine which laws we choose to obey and which laws we choose to ignore, and it should most definitely not be up to an illegal immigrant or a Presidential administration to make that decision either.

Since we are knee-deep in changing decades-old policy while the Master and Commander is in command, how about we make these two minor changes? In order to be citizen of the United States, you can no longer just blindly marry into it. If you are a citizen and want to marry a non-citizen, how about that person become a citizen in the same manner that everyone else has to? Also, how about if neither you, nor your wife or partner are citizens, and you just happen to have a baby while you are "visiting" the United States, you and your partner have to apply for citizenship for you and your baby, again, that same way everyone else has to?

That's no immigration by marriage, and no anchor babies. I'll even meet you in the middle and agree that everyone born here from now on, regardless of their parent's citizenship be required to go through a citizenship process at the age of maturity. I'll take your citizenship test and your English test -- bring it on. Oh, and by the way, just to clarify, if I decided to move to France tomorrow and become a member of their collective society, I would have no problem with the understanding that I would have to learn French and pass a citizenship test over there. That's only fair, right?

I know that so many on the other side of the aisle want to paint this as a race and segregation issue, but for many of us, it is just not the case. We are wanting people to abide by the laws like we do, pay taxes like we do, and be just as loyal to our nation as we are.

We want to see you rooting for America, abiding by its laws (all of them), and helping us to continue to build what many of us believe to be the greatest nation in the history of mankind. I always quote back to Dennis Miller who said that he doesn't mind you joining the party, he just would like you to sign the guest book so we know who is here.

Oh, and don't think I purposely glossed over this part: "Undocumented workers who are in good standing must admit that they broke the law, pay taxes and a penalty, learn English, and get right with the law before they can get in line to earn their citizenship." What this means, is that once the new policy is enacted by the Master and Commander, the policy of the United States of America will no longer be to deport people who have entered the country illegally as long as they meet certain criteria, doing away with our current policy of deporting in all cases except for reasons of political asylum.

I am honestly torn on this issue because I do agree with our current law, but at the same time, we have to be realistic about the cost and probability of deporting literally millions of people. If we see a policy that calls for illegal immigrants to actually admit that they have broken the law, agree to pay fines, back taxes and penalties on those back taxes, learn our language, and then get in line to be reviewed for citizenship, just like everyone else, I fully understand that supporting it might be the best thing for everyone.

I would also like to see, however, the resources in place that are ready to act with the full support of the administration to deport the people who do not come in and register, pay their fines, back taxes and penalties and/or who are denied citizenship in the review process for whatever reason. You will excuse my skepticism about the Master and Commander acting against the largest single pool of potential voters and their families and friends who already have the vote once his new immigration policy is in place.

More on this issue later...

The "Unbanked" Walk Among Us

They are called the "unbanked", and as crazy as it may sound to the rest of us, they are the 25.6% of U.S. households that have no standing bank accounts.

Ever wonder how those horrid payday loans and places like CashCall (R.I.P. Gary Coleman) stay in business? The one out of every four households that does not give themselves an alternative because, for whatever the reason, they would rather, or must, pay high fees and loan costs because they do not have a checking account.

A recent FDIC survey shows that this group now includes over 30 million households.

Imagine...no bank to put your money in...no debit card...no credit card...just cash and some hiding places in your house somewhere.

The survey found that the group is made up mostly of the so-called "minority" groups and 71% of the "unbanked" households earn less than $30,000 per year.

As you can imagine, only 18% of America's banks are making efforts to capture this demographic, as most banks do not seek to open branches in "underbanked" areas.

As part of a 2005 law, however, the FDIC is required to track and report industry efforts to bring banking services to the "unbanked".

How Faux Is Your Faux Fur? Chances Are It's Not 100% Fake...

In 2000, the U.S. Congress passed a law that banned the sale of dog and cat fur in the United States.

This law was designed to stop Chinese manufacturers from a practice of sneaking in cheaper dog and cat fur into garments labeled as "faux fur".

While commendable, the problem is that the U.S. Congress, as it usually does, left a bit of a loophole. Any garment trimmed with $150 or less worth of real fur can be sold without any label, therefore, giving manufacturers in China the ability to substitute faux fur with real dog and cat fur and not have to put a label on the garment stating that they had done so. Without a label stating that a garment was made using real animal fur, American consumers just assume that the garment was made with faux fur.

Both the House and the Senate are currently working on bills that will close this loophole, stating that garments with ANY amount of animal fur must be labeled. Over 75 million animals are killed around the world for their fur each year, with 2 million dogs and cats being killed in China alone.

Hopefully, this legislation will help to reduce those numbers.

The Grandparent Economy

Grandparents.com, a site which is dispelling the myth about grandparents and computers, recently commissioned a study that it coined the Grandparent Economy. Here is what it found:

3 out of 10 adults are grandparents - an all-time high.

Grandparents spend $100 billion a year on entertainment and $77 billion a year on travel-related expenses.

The average net worth of households by 55- to 64-year olds (66% of which are grandparent led) is $254,000. This is the highest of any age group.

Grandparent spending has grown 7.6% per year since 2000 - nearly double the annual rate for other consumers.

Grandparents spend $2 trillion on goods and services each year, roughly 1/3 of all spending.

The grandparent population is larger then either the African-American or Hispanic population segments.

A recent article by Deliver Magazine urged marketers to get away from traditional advertising that showed grandparents sitting docile, staring off into the horizon and appeal more to the active lifestyle of today's early Baby Boomers. "Be authentic and honest," says David Martino, president of Martino and Binzer, a Connecticut-based agency that caters to direct mail clients. "Showcase a product's benefits and try an ageless marketing approach combined with hyper-tartgeting."

"This Things I Believe..."

I do not support raising taxes for the sake of fairness, regardless of the negative impact it is likely to have on the economy. In fact, I support equal taxation by percentage across the board, regardless of income levels.

I believe the federal government has gone too far in bailing out the auto, insurance and finance industries.

I do not support illegal immigration. I also realize that a solution that is completely in line with my principles and ideals is not practical. I support a registration program that includes a fine as penalty and requires the payment of estimated back taxes implemented simultaneously with a new guest worker program.

I believe that English should be the official language of the United States, though we have to give new arrivals a chance to learn the language, even if we help them on the government's dime.

I have not completely agreed with the large expansion in social spending and welfare that we have seen over the past decade and I believe that the time to start cutting back benefits is just around the corner. There should be length of time, education and work requirements for all able-bodied Americans on welfare programs.

I believe that if the effort that recently went into socialized medicine had gone into creating jobs, we would be better off today.

I did not support the creation of a national health insurance program administered by the U.S. Federal Government. While recognizing the need for reform, a completely partisan bill rammed through the congress was not the right solution, especially from a man who said he was going to unite the country. I believe that once the federal government is dictating prices and eligibility to doctors and hospitals, the quality and availability of healthcare will be greatly reduced. Those with no insurance will now have insurance at the cost of the 50% of Americans that actually pay income taxes and those who already had insurance will see the quality of their care decline. I also believe that the development of new medicine and treatments will greatly suffer under the weight of this new federal health insurance program.

I believe that we should eliminate teacher tenure and increase the use of performance standards and accountability.

I believe that our armed forces should remain an all-volunteer force.

I do not believe that federal employees should be allowed to unionize if they serve in positions critical to safety and security. I do believe that union elections and initiatives should have secret ballots.

A Lesson In Capitalism & The Great Depression

It seems that America is undergoing a fundamental change in how we think about money, capitalism, and our economy. While conservatives are often accused of revisionist history and remembering the good ol' days to be better than they actually were, I refuse to believe that things have always been this way. I believe that in the past, when economic woes were at hand, America looked to hard work and ingenuity to get out of the hole, not reckless borrowing, increased spending in social programs, and an abandoning of our capitalist and democratic values.

We cannot afford these magic social programs, yet our government says that we have no choice. A majority of the American people are against undertaking these social reforms right now, yet the federal government says, shut up and support it anyway. These decisions go against the democratic and capitalistic ideals that a good deal of Americans hold dear.

As many of you may know, in my continual efforts to stay on top of what is going on throughout multiple industries, I read a lot of trade magazines. Too many, really, but I'll keep it up as long as I can. One of the magazines I get always puts a smile on my face because while the boats that are in it are way out of my price range (for now at least), I always like to dream and look to the future (as opposed to just sitting back, accepting my station in life and looking to the government to sustain me like it wants me to).

Having said all that, I want to share a story with all of you that puts a great perspective on what we should be doing right now...working hard.

From Showboats Magazine:

There's been a lot of talk from Washington recently about getting the economy moving again. Much of the chatter has been focused on stimulus plans, but there have also been quieter murmurs about redistribution of wealth. It may come as a surprise, but we believe that both are excellent approaches. It's just that the government is going about it all wrong.

Our plan is simple, and rather than put a few hundred dollars into the pockets of thousands of average workers on a continuing basis over a span of years, even decades, it builds real jobs and provides real wages. It doesn't require one red cent of taxpayer money and doesn't add a single dime to the federal debt. Better yet, our plan will work not just in the United States, but around the world to get the economy moving again on a global basis.

What's the secret? Encourage those with adequate assets to start building yachts again, and when they do, don't scorn them. Rather, commend them for their contribution to the common good. Instead of damning these yachtsmen - often epitomies of classic entrepreneurialism - as profligate examples of conspicuous consumption, we should be lauding them as economic heroes, and the reasoning is simple.

The tens of millions of dollars spent building a single superyacht turn into billions and billions when multiplied by the hundreds of yachts built in a typical year. Additional billions are spent annually on the existing world fleet of yachts, which runs into the thousands. Those dollars don't simply trickle down, they rush in raging torrents to workers and suppliers worldwide, and those workers and suppliers pass the money along to local stores, car dealers, movie theaters and restaurants that, in turn, pass them along to their own workers, who buy houses and send their kids to college so their grandchildren might enjoy a better life. What a magnificent system!

Politicians in the present hour of economic trial are fond of pointing back to the Great Depression for comparisons, so let's play along for the moment. Sea Cloud, at 316 feet in length, was the largest private American-owned sailing yacht ever built. She was completed in 1931 for Marjoire Merriweather Post, heiress to the Postum Cereal fortune and herself the founder of General Foods, and [married] to E.F. Hutton. She didn't need the yacht, but she considered it her civic duty to provide work for the unemployed, including desperate shipwrights, at the depths of the Great Depression. It was a private stimulus package of the best sort, and it didn't take an act of Congress and a plundering of the U.S. Treasury to accomplish it.

Amazingly, Sea Cloud continues in service to this day, nearly 80 years later, and for every day of all those years her succession of owners has funneled money into economies around the world for her maintenance, staffing, provisioning and operation. The next time someone mentions 'Tarp funds', think not of tax dollars, but of the money spent just to replace that fabulous clipper's vast spread of canvas every two years. She is no longer a private yacht, but is now a part of a cruise fleet, so who is it that's enjoying sunny days aboard? Perhaps it is that family of an auto machanic who repaired the car of the restaurant worker who was paid by the patronage of a welder from a nearby yacht yard.

Why Walmart Actually Doesn't Suck

I am sick and tired of everyone talking trash on Walmart. Now, don't get me wrong, compared to other stores in every other area besides price, shopping at Walmart sucks. From the time I walk into the store until the time I walk out of the store, every second is overwhelmingly filled with my desire to get out of the store, but once you are outside and the ordeal is done, the amount of money you have just saved is worth while.

Add that savings up over the course of the year, and it is even more worthwhile. See, Walmart and I have an agreement. They are going to suck, but I am going to save a lot of money. The stores are dirty, Lord help you if you need help and have to ask an Associate to help you find something, and the people who shop there (besides us, of course) are a monument to humanity and its constant struggle against itself, but if you can get your head around the fact that this is just how it is inside the walls of Walmart, and you can stomach it, you are going to reap the rewards.

Now, maybe you are principled and say that Walmart doesn't provide the best employment opportunity for its Associates and team members. Well, I have two things to say to you.

The first is...really? If as a shopper I know the bottom line is to save me money, not provide me good service, then every single employee at Walmart must know the same to be the truth. And that drive for the bottom line is why Walmart employees get a paycheck, but not much more. Just how I know what I am getting when I shop there, people who take a job at Walmart also know what they are getting.

The second is...really? How is it that if Walmart is the worst employer in the world, they manage to employ such a large army of people? How is it that a great deal of their senior leadership started decades earlier as Associates on the floor? If it was really, truly, that bad, do you think that would be the case? 

Again, compare Walmart to other employers, and they will probably be found lacking, but it's not like Walmart is telling people they are going to get a full package of benefits during their interview, then telling them on their first day, "Ha ha, you fell for it".

So here is a company that employs a large mass of Americans (and let's face it, a lot of people who would not be able to find work at other places, especially in today's economy); provides the same exact products as all of the other stores out there, yet does it at a discount; continually still manages to churn out a profit, resulting in growth; and is one of the largest companies in America that has not needed the taxpayer to bail them out.

Yet, somehow, in the midst of this, people in this country still find a need to vilify Walmart as bad for America and bad for Americans. I beg to differ.

What would be far worse for America would be for Walmart to close up shop tomorrow, eliminating thousands upon thousands of jobs, and eliminating vital competition in the market place to keep prices low for American families.

Meet Milton Friedman

Milton Friedman (July 31, 1912 – November 16, 2006) was an American economist, statistician and public intellectual, and a recipient of the Nobel Memorial Prize in Economic Sciences.

He is best known among scholars for his theoretical and empirical research, especially consumption analysis, monetary history and theory, and for his demonstration of the complexity of stabilization policy.

A global public followed his restatement of a political philosophy that insisted on minimizing the role of government in favor of the private sector. As a leader of the Chicago School of economics, based at the University of Chicago, he had a widespread influence in shaping the research agenda of the entire profession.

Friedman's many monographs, books, scholarly articles, papers, magazine columns, television programs, videos and lectures cover a broad range of topics in microeconomics, macroeconomics, economic history, and public policy issues.

The Economist hailed him as "the most influential economist of the second half of the 20th century…possibly of all of it".

So, why am I going to frame a picture of Milton Friedman to put on the wall of my home office? This quote: "We have a system that increasingly taxes work and subsidizes nonwork." Nail on the head, sir...nail on the head!

Post-Recession Sales & Marketing

The consumers and businesses we were selling and marketing to before the economic collapse were much different than the people and companies we are selling and marketing to today. Think of them as "post-recession", and know that they are going to be "post-recession" for quite some time.

One in ten Americans who wants to be working is unable to find a job right now. That in itself changes the game when it comes to sales and marketing. One in ten Americans is struggling to pay for food and shelter, so how do you sell them something that is not necessarily an absolute need? Even those of us who are still on the job are being much more discretionary with our discretionary spending.

Despite it all, however, companies that are looking forward are asking today, "How do we market to consumers and businesses once we finally get out of this mess?" The businesses that are going to survive are hunkered down, weathering the storm, but also being proactive and looking to the future.

It is important to keep in mind that while a small percentage of consumers will quickly forget the hardships of the past year, a larger majority will be changing their spending habits for years to come, some of them, even, for the rest of their lives. I bet anyone alive today that lived through the 1930s in America is as spend-thrift today as they were in the 1940s and 1950s.

As businesses, we are not only going to be asked to provide something new and exciting, but today, and well into the future, are going to need to provide value, and lots of it. Consumer relationships with businesses, and business relationships with vendors will be under a microscope for the foreseeable future. Gone are the days of the whimsical purchase, because gone are the days of easy, endless credit lines.

So, what do we do now? We get to work. We need to look at our products and services and ensure that they are providing real, tangible value to our customers. We need to ensure that our customers are having the best experience possible with our businesses, because their post-recession dollars are going to demand it.

We must be aware that there is not going to be a magic day when all of the sudden things are back to how they were before. We may not see that day within our lifetimes, and even if we do, it will probably just be an indicator of another coming collapse. Think back to the opinion page writer for a local newspaper in 1946. The depression was long gone, the war was over, and things were swinging, but it would be over 50 years until we saw a similar pre-depression upswing. That is where we are all at today. Take your age and add 50, and that is how old you may be the next time we can market and sell like it's 2007 again.

Why Cap-And-Tax Is A Horrible Idea

What is Cap-And-Trade, or Cap-And-Tax, as it is more properly called?

It is the Waxman-Markey bill, which has recently passed the house by a razor-thin margin, and would place a cap on the total carbon output that the United States can produce over the course of a year, with that total amount decreasing year over year. Oh, and by “the United States”, I mean every business in the country, and you, the Americans who work for those businesses. Imagine being given an amount of carbon that your business can emit over the course of a year, then having to buy excess carbon permits from people who are not using all of their carbon allotment if you go over, or even worse, having to pay large fines if you cannot scrounge up enough carbon offset permits. When you get down to brass tacks, there are three huge problems with this bill:

#1 - It will raise the price of everything, literally, first energy prices, then the food and other goods that we all purchase as virtually every manufacturer and producer scrambles to pay more and more for their carbon permits, then pass that cost on to the end consumer.

#2 – The cost of operating manufacturing equipment will be rising in the U.S. and falling in every nation that has not implemented a Cap-And-Tax policy. Large, multi-nationals will have even one more reason to ship jobs overseas. While this may, in turn, help in the area of rising prices, many more Americans who rely on manufacturing jobs will be out of work.

#3 - While we are screwing ourselves into higher prices to reduce our carbon emissions, this bill does nothing to address the carbon emissions of other nations in the world. China’s carbon emissions are skyrocketing and they will be doing nothing to stop them while we slow down our already reeling economy with this bad piece of legislation.

While support for this bill does cross some party lines, there is clearly only one party that is supporting this bill as stated in the Wall Street Journal: “Even as Democrats have promised that this cap-and-trade legislation won't pinch wallets, behind the scenes they've acknowledged the energy price tsunami that is coming. During the brief few days in which the bill was debated in the House Energy Committee, Republicans offered three amendments: one to suspend the program if gas hit $5 a gallon; one to suspend the program if electricity prices rose 10% over 2009; and one to suspend the program if unemployment rates hit 15%. Democrats defeated all of them."

You Are Part Of The Rebellion, Like It Or Not...

For my follow-up to Tuesday's piece on the new credit card bill, I am going to bring in another movie reference because while we may be experiencing the beginning of a minor version of the collapse of all of those bank buildings like at the end of Fight Club, it is not actually coming until August 22, 2010, so until then, America is going to be feeling a bit like Lando Calrissian. Remember in Empire when Dick Cheney kept telling Lando to pray that he didn't alter the deal further? If you are carrying any credit card balances between now and when the credit card reform legislation actually forces the credit card empire to lower your interest rates to reasonable levels on August 22, 2010, you are going to feel like going back to finish your Jedi training so that you can better fight the evil credit card empire.

Think of today's credit card times in the context of the six Star Wars movies. Today, we are in the midst of Episode 5 - The Empire Strikes Back. Episodes 1-3 are folklore, bits and pieces of mythological details - times long gone that came before you that witnessed the birth of credit cards, issued with low interest rates by small local banks to consumers who always paid their balances off every month, and then witnessed the early battles between the banks and consumers as the banks grew larger and the consumers were oppressed into submission over time, accepting higher interest rates and not paying off balances anymore, until at the end of Episode 3, when the banks had become a massive multi-national credit card empire in supreme control, bending consumers to their will, those consumers still taking on ever-increasing amounts of credit, feeding the empire's growth, not necessarily against their will, but in a complacent stupor. All of this came before you, but somehow, you are paying the price for it today.

Think of Episode 4 as your own personal New Hope that spanned from the day you were granted your first credit card until May 22, 2009, the day President Obama signed the credit card reform bill into law. It was a coming of age for you, where you learned how credit worked and began to see the evil credit empire for what it really was. People offered you credit card guidance through their own painful stories, but you yourself had to experience the pain first hand before you realized that it was time to do something about this evil empire.

So, at the end of Episode 4, we as consumers all banned together and forced our leadership into doing something to fight the empire. There was a glimmer of hope about the future as Episode 4 ended on May 22, 2009, the cameras fading away from President Obama as he signed the credit card reform bill and the credits began to roll to that famous march.

But just days later, we are realizing that there was a truly fundamental flaw in our attack plan at the end of Episode 4. We didn't actually kill Dick Cheney, but simply sent him reeling into space, where he will recover and come back at us harder than ever. You are currently living in Episode 5, which will span from May 22, 2009 to February 22, 2010 and prove to be nine months of absolute pain if you are currently carrying a credit card balance. While the Credit Card Reform Bill is good and strong, it is weak and inadequate in it's first nine months, giving the credit card empire that nine months to come into compliance with its laws.

So, what do you think the empire is going to do with that nine months? This is the "painful" period that I referred to on Tuesday where if you have a credit card balance, the credit card empire is going to pull a "Capital One" on you. Switch your current record-low rates to sky-high rates for the last nine months before the laws go into effect. Consumer groups are expecting these to be the highest interest rates that we will pay in our lifetime on credit card balances.

From now until February 22, 2010, credit card consumers that are carrying a balance are going to struggle just to keep their X-wing above water and make the sky-rocketing interest payments. Interest rates are going to soar, fees are going to soar, and the evil credit card empire will have full reign to do whatever it wishes. An unbridled Karl Rove giving us all a full, long, nine months to question why in the world the politicians in Washington gave the credit card companies this nine months to comply.

Again, on Tuesday, I praised the lawmakers and President Obama for the bill, praise which was, and is still deserved, but today I join the millions of Americans who are asking why in the world Washington has given the banks nine months to comply and thrown us all to the sharks like this. The banks didn't wait nine months for their taxpayer bailout money, did they? I don't think so.

I will, still, however, give Washington credit, but always question why they agreed to this nine month window where the American consumer with a credit card balance is going to take a hard hit, no matter whether they pay their credit card bills on time or not. I just cannot imagine what would have been so difficult to include legislation that mandated that the credit card empire not be able to raise rates on customers who are paying their bills on-time during this nine month transition period.

I guess we all have nine months to figure that out, right? Much like Episode 5, we will spend this time questioning the decisions that those who came before us made, resulting in the current fight that we are in, cursing them, but knowing that a better day is on the horizon.

On February 22, 2010, the major provisions of the Credit Card Reform Bill will actually take effect. The credit card empire will no longer be able to raise rates on existing balances, charge you over-limit fees, and subject you to universal default. This is the beginning of Episode 6, the final episode, Return of The Sane. The nine months of pain will be behind us, and though some people with credit card balances are going to be paying well over 20% APR, over 30% APR perhaps, the interest rate hikes will be over. The ability for the evil credit card empire to inflict an ever-increasing amount of pain on us will have ended. Episode 6 will run from February 22 through August 22, 2010, but if you pay all of your credit card bills on time and do not default on any debt during that time period, the law (with some help from the Ewoks) will force the credit card companies to lower your interest rate shortly after August 22, 2010, back down closer to where it was on May 22, 2009.

From here until August 22, 2010, the American consumer is going to have a hard fight, but that fight will ultimately lead to a better America, and a stronger American consumer. Credit is going to be nearly impossible to get during this time and the interest rate for credit is going to shoot up into space, and we are all going to pay the price for both what we have done, and sadly, for things that we had absolutely no part in. But, on August 22, 2010, the long fight will end and we can hopefully rejoice in having made it through such a ridiculous fight that we both brought on ourselves, yet at the same time, had so little effect on as a single individual.

We can only hope that things will play out differently, but with the law signed and the dates in place, there is nothing else that we can do but sit back and go for the ride that the credit empire and the politicians have just sent us on.

Time To Start A Fight Club...

If you have not seen the movie Fight Club, I urge you to do so. While there's a lot of crazy things going on in that movie that may not be to your liking or taste, there is one thing about that movie that every American should pay attention to -- the destruction of the modern American banking and credit system that takes place in the last couple minutes of the movie, all to a fitting song.

This is a bit of a long read, but if you have even one credit card, regardless of whether or not you carry a balance, you need to read it...

This past Thursday, I intended to sit and type out an article, praising the current legislature and president for their credit card legislation bill. No, you read that right -- I am praising the current Democratic-controlled House and Senate and President Obama on a fantastic credit card reform bill that was signed into law last Friday. Again, you read that correctly.

It is going to cause some pain upfront, especially if you hold a balance on a credit card right now, but in the long run, it is going to benefit us all. It reigns back in the run-away credit that banks had been dolling out without any sense over the past decade, which is what led to their industry's collapse and subsequent socialist bailout by the American government to try to fix the failing economy.

While I will still tell you about this bill and still praise the lawmakers that wrote it and passed it, there was a surprise in my mailbox Thursday afternoon that turned this article into an attack on America's banks and credit card companies.

First, let's talk about the bill. Bottom line, it makes it illegal for credit card companies to raise the interest rate on a balance that you already owe them, unless it is a promotional interest rate. This means that days of you charging something on a card at a 9.9% interest rate and having them raise the interest rate the next month before you paid it off to 17.9% for no reason are over. The problem is, that if you owed them a balance the day the law went into effect, there is a still a work around the credit card companies have (more on that later), but any debt that you accumulate after the day the bill become law must always remain at the interest rate that you agreed to, as long as it is a standard interest rate and not a promotional interest rate. This is a great thing for the American consumer and is decades overdue.

The bill also gives your more time to pay your monthly bill from the time the credit card company issues it -- You'll now have at least 21 days from the day your statement is generated until you have to make the payment. It also restricts the credit card companies to having the cutoff before your bill is late be during their normal business hours. A lot of times, you'll get a statement and the bill is due on Sunday, when they are not accepting payments, but will consider it late if you pay on Monday. They also have been doing this for holidays as well. That practice is no longer legal. These are also greatly needed improvements to the credit card contracts and a great win for the American consumer.

Another great win, and one that the banks fought tooth and nail to try to leave out of this bill is the fact that any money you pay over the minimum payment must now be applied to the highest interest rate balance that you owe them. Before, the credit card companies would apply that money to the lowest interest rate. So, say you owed for purchases at 15.9% and owed a cash advance at 23%, when you would pay an extra dollar to the credit card company, they would apply it to the 15.9% balance, not the 23% balance, which obviously gave them a clear advantage in making more money off of you. This new legislation forces them to apply that extra dollar to the 23% balance first, and the 15.9% balance once that 23% balance is gone. This is going to cost them billions and billion of dollars in interest rates. No doubt the banks are going to lash out at the American consumer to make up for this gap of billions (again, more on that later).

Another area that is going to cost the banks billions is a change in over-limit fees. You will now have to "opt-in" to an over-limit fee, meaning that you must request that the bank allow you to go over your limit and charge you an over-limit fee for doing so. If you do not "opt-in" the bank will not allow you to charge over your limit, thus completely avoiding over-limit fees.

Another great benefit to the credit card consumer in this bill is the banning of what is known as "universal default". Under universal default, a creditor is allowed to raise your interest rate that you have with them if you default on any of your loans, even if it is not one you have with them. For instance, if you defaulted on a car loan, it would allow the credit card companies to raise your interest rate to their default rate, even if you had never missed a single payment with them. Universal default is now illegal and is going to save American consumers billions of dollars in the first year alone.

An area that is of less prominence in today's credit card war, but will still benefit the consumer, is that the credit card companies must compute your finance charges on the current billing cycle - meaning, charging you an interest rate on the current month's average balance as opposed to last month's average balance. This was designed to hit you one last time when you paid off a credit card balance. Say, in February, you owed $200 and paid that off. In March, when your statement cycled, with a $0 balance for each day that month, you would still be nailed with a finance charge on the $200 that you owed the previous month. The new legislation makes this practice illegal.

And lastly, while not effecting the actual agreement you have with the banks, the bill requires your statement to cite how long it will take you to pay off your balance if you are making just the minimum payments. I know most American consumers do not want to be reminded of that every month, but it will help you make better financial decisions when it comes to credit, I guarantee it. The statement must also show you how much you would need to send in order to pay off the entire balance in 12, 24, or 36 months, adjusted, of course, for additional monthly interest. This will give you a guideline in paying off your balances in a much more timely manner. You can image the grimaces in bank boardrooms all across the country over this one.

And that's the basics of the bill. It is a good piece of legislation and will benefit America in the long run, however, now, on to the "more on that later" part I told you about earlier. This will show you how the banks are going to try to get around this new legislation and legally continue to stick it to the American consumer.

Bottom line, if you owed $0 the day this legislation become law, you are set. You will know the day you charge something at a regular interest rate, that interest rate cannot be changed once you have completed your transaction. However, if you owed anything on a credit card the day this legislation became law, you are still in a fight with that credit card company until the day you pay that balance down to $0. In short, they will still be able to change the interest rate on the balance that you already owe them, and believe me, the credit card companies have known for months that this was coming and they have already gotten the ball rolling on getting around it. This is how...

Let's talk about one of my credit cards. A Capital One card I got in college with an original whopping $500 credit limit in 1993, that has a whopping $1200 credit limit today. This card has not carried a balance in over a decade and is one of the cards that I keep open solely for the purpose of having old credit lines open to benefit my credit report scores. It originally came with a 16.99% variable APR that after about five years was changed to a fixed 12.9% as my credit history and good payment record lengthened. That 12.9% was in turn lowered to an unheard of (for a credit card, at least) 7.9% fixed rate in April of 2008 - the true pinnacle of the banks' "credit for everyone" days.

Last Thursday, I received a notice regarding a change in terms on this credit card, literally the same day that I read the MSN article on the fact that the credit card reform bill was on the President's desk. So, the credit reform bill changes it so that a credit card company can only raise rates on existing balances if it is a promotional rate. The notice from Capital One said that they were changing the standard 7.9% fixed rate on my card, a rate I have had for over a year, and a card I have had for over 16 years, to a new promotional rate of 7.9% fixed. Do you see what that does for them? The new law says they cannot raise rates on existing balances that have a standard interest rate, but they can raise interest rates on a balance that has a promotional interest rate.

So, the bankers at Capital One not only changed my regular rate to a promotional rate which is exactly the same rate I had before anyway, but they have also done it to every Capital One credit card holder. Since all Capital One credit cards now have this promotional interest rate, after a period of time, which in this case is about 12 months (April 2010), they can then raise the interest rates on their customers' existing balances to whatever the hell they'd like. In my case, an increase from a 7.9% fixed rate to a 17.9% variable rate. Thank God I do not owe a balance on this card, or my interest rate on that balance would literally more than double to start with the option for them to increase it even higher than that.

So, while the new laws are fantastic, you can see that the credit card companies took steps to ensure that they had a new agreement with you prior to the new bill being signed into law. You can opt out of the rate increases by closing your account and your interest rate will remain what it was before the change, and you can pay them back in the same monthly installments that you have been paying them back in already, but you lose the benefits to your credit report for that account once it is closed. In my case, with this Capital One card, I would lose a card account that has been open for 16 years and has a perfect payment record.

So, what to do if you do have a credit card balance that the credit card companies are raising the rate on before the law goes into effect, or by skirting the law like Capital One is doing? You really need to weigh the long term benefits of the card being open and having a good payment record on your credit versus the amount of money that it is going to cost you to keep the card open if you are carrying a balance.

Keep in mind that your payment record will continue to be tracked, it just won't benefit your credit score as heavily because the account is closed. The bottom line always remains that if you are carrying balances on your credit cards, you should be paying them off down to $0 as quickly as possible. Be sure that you are paying the most on the credit cards with the highest interest rates. If you pay a card off, take your monthly payment for that card and add it on top of the monthly payment for the next card, this way you are always increasing the amount of credit card debt that you are paying off every month as your finance charges decrease. It is very easy to want to pay the minimum, especially as that minimum amount due shrinks every month.

You may have seen yesterday that I provided you with a list of the banks that received bail out funds. It was so that I could make this point to you today. What really ticks me off about the bankers at Capital One and a lot of these banks is that they are raising these interest rates on taxpayers within months of having received billions (yes, billions, such as $3.5 billion for the bankers at Capital One) in taxpayer dollars from the federal government. In what world, on what planet, in what dimension, is this in any way, shape, or form fair, or right? Well, just keep this in mind every time that you go to put a balance on a credit card...Fair has nothing to do with it, and in fact, once you are in debt to one of these newly socialized banks, they no longer have to be fair with you at all, even with this new credit card reform bill on the books.

If you have been reading my articles regularly in the past nine years, then you know that I have spent a good deal of time fighting to shed light on the mysteries and evils of the credit card industry. I will continue to do so in the future...

Welcome Back, Now Get To Work...

Welcome back to work, America! I hope you enjoyed your day off. I sure did!

But, now it is time to get back to work because your portion of the federal deficit is $35,000! Wait until 2012 -- you're portion doubles to $70,000 by then.

The fed is going to expect you, the taxpayer, to come up with your share. Well, that is unless you're not one of those idiots out there like me, working so you can give away a total of 50% of your income in income taxes, and sales taxes, and car taxes, and gas taxes, and phone taxes, and pretty soon, I am sure, breathing taxes.

Don't worry, though, that $70,000 figure is based on numbers that are completely skewed and inaccurate that were contrived to undersell you on how much your portion really is, so chances are, you're probably into the fed's debt for much more than $70,000 by 2012.

While you're stewing on the fact that 50% of all that you earn, on average, America, goes to some form of tax (research it, keep track when you pay your bills and buy gas, and you're gonna be surprised), here is a list of all of the banks that got your money and are now going to be sticking it to you with higher interest rates on any debt that you have with them because America has not given them enough already:

10/28/2008 Wells Fargo & Co. San Francisco Calif. $25,000,000,000
10/28/2008 State Street Corp. Boston Mass. $2,000,000,000
10/28/2008 Bank of America Corp.1 Charlotte N.C. $15,000,000,000
10/28/2008 JPMorgan Chase & Co. New York N.Y. $25,000,000,000
10/28/2008 Citigroup Inc. New York N.Y. $25,000,000,000
10/28/2008 Morgan Stanley New York N.Y. $10,000,000,000
10/28/2008 Goldman Sachs Group Inc. New York N.Y. $10,000,000,000
10/28/2008 Bank of New York Mellon Corp. New York N.Y. $3,000,000,000
11/17/2008 Regions Financial Corp. Birmingham Ala. $3,500,000,000
11/17/2008 UCBH Holdings Inc. San Francisco Calif. $298,737,000
11/17/2008 Bank of Commerce Holdings Redding Calif. $17,000,000
11/17/2008 Broadway Financial Corp. Los Angeles Calif. $9,000,000
11/17/2008 SunTrust Banks Inc. Atlanta Ga. $3,500,000,000
11/17/2008 Northern Trust Corp. Chicago Ill. $1,576,000,000
11/17/2008 Provident Bancshares Corp. Baltimore Md. $151,500,000
11/17/2008 U.S. Bancorp Minneapolis Minn. $6,599,000,000
11/17/2008 TCF Financial Corp.2 Wayzata Minn. $361,172,000
11/17/2008 BB&T Corp. Winston-Salem N.C. $3,133,640,000
11/17/2008 1st FS Corp. Hendersonville N.C. $16,369,000
11/17/2008 Valley National Bancorp Wayne N.J. $300,000,000
11/17/2008 KeyCorp Cleveland Ohio $2,500,000,000
11/17/2008 Huntington Bancshares Columbus Ohio $1,398,071,000
11/17/2008 Umpqua Holdings Corp. Portland Ore. $214,181,000
11/17/2008 First Horizon National Corp. Memphis Tenn. $866,540,000
11/17/2008 Comerica Inc. Dallas Texas $2,250,000,000
11/17/2008 Zions Bancorporation Salt Lake City Utah $1,400,000,000
11/17/2008 Capital One Financial Corp. McLean Va. $3,555,199,000
11/17/2008 Washington Federal Inc. Seattle Wash. $200,000,000
11/17/2008 Marshall & Ilsley Corp. Milwaukee Wis. $1,715,000,000
11/21/2008 City National Corporation Beverly Hills Calif. $400,000,000
11/21/2008 Pacific Capital Bancorp Santa Barbara Calif. $180,634,000
11/21/2008 Heritage Commerce Corp. San Jose Calif. $40,000,000
11/21/2008 First PacTrust Bancorp, Inc. Chula Vista Calif. $19,300,000
11/21/2008 Nara Bancorp, Inc. Los Angeles Calif. $67,000,000
11/21/2008 Webster Financial Corporation Waterbury Conn. $400,000,000
11/21/2008 Centerstate Banks of Florida Inc. Davenport Fla. $27,875,000
11/21/2008 Ameris Bancorp Moultrie Ga. $52,000,000
11/21/2008 Taylor Capital Group Rosemont Ill. $104,823,000
11/21/2008 Porter Bancorp Inc. Louisville Ky. $35,000,000
11/21/2008 Boston Private Financial Holdings, Inc. Boston Mass. $154,000,000
11/21/2008 Severn Bancorp, Inc. Annapolis Md. $23,393,000
11/21/2008 Trustmark Corporation Jackson Miss. $215,000,000
11/21/2008 First Niagara Financial Group Lockport N.Y. $184,011,000
11/21/2008 Western Alliance Bancorporation Las Vegas Nev. $140,000,000
11/21/2008 First Community Corporation Lexington S.C. $11,350,000
11/21/2008 HF Financial Corp. Sioux Falls S.D. $25,000,000
11/21/2008 First Community Bankshares Inc. Bluefield Va. $41,500,000
11/21/2008 Banner Corporation Walla Walla Wash. $124,000,000
11/21/2008 Cascade Financial Corporation Everett Wash. $38,970,000
11/21/2008 Columbia Banking System, Inc. Tacoma Wash. $76,898,000
11/21/2008 Heritage Financial Corporation Olympia Wash. $24,000,000
11/21/2008 Associated Banc-Corp Green Bay Wis. $525,000,000
12/5/2008 Superior Bancorp Inc. Birmingham Ala. $69,000,000
12/5/2008 Manhattan Bancorp El Segundo Calif. $1,700,000
12/5/2008 East West Bancorp Pasadena Calif. $306,546,000
12/5/2008 Cathay General Bancorp Los Angeles Calif. $258,000,000
12/5/2008 CVB Financial Corp Ontario Calif. $130,000,000
12/5/2008 Bank of Marin Bancorp Novato Calif. $28,000,0002
12/5/2008 Oak Valley Bancorp Oakdale Calif. $13,500,000
12/5/2008 Coastal Banking Company, Inc. Fernandina Beach Fla. $9,950,000
12/5/2008 TIB Financial Corp Naples Fla. $37,000,000
12/5/2008 FPB Bancorp, Inc. Port St. Lucie Fla. $5,800,000
12/5/2008 United Community Banks, Inc. Blairsville Ga. $180,000,000
12/5/2008 MB Financial Inc. Chicago Ill. $196,000,000
12/5/2008 First Midwest Bancorp, Inc. Itasca Ill. $193,000,000
12/5/2008 Old National Bancorp Evansville Ind. $100,000,0002
12/5/2008 Blue Valley Ban Corp Overland Park Kan. $21,750,000
12/5/2008 Iberiabank Corporation Lafayette La. $90,000,0002
12/5/2008 Central Bancorp, Inc. Somerville Mass. $10,000,000
12/5/2008 Eagle Bancorp, Inc. Bethesda Md. $38,235,000
12/5/2008 Sandy Spring Bancorp, Inc. Olney Md. $83,094,000
12/5/2008 Old Line Bancshares, Inc. Bowie Md. $7,000,000
12/5/2008 Great Southern Bancorp Springfield Mo. $58,000,000
12/5/2008 Southern Missouri Bancorp, Inc. Poplar Bluff Mo. $9,550,000
12/5/2008 Southern Community Financial Corp. Winston-Salem N.C. $42,750,000
12/5/2008 Bank of North Carolina Thomasville N.C. $31,260,000
12/5/2008 Unity Bancorp, Inc. Clinton N.J. $20,649,000
12/5/2008 State Bancorp, Inc. Jericho N.Y. $36,842,000
12/5/2008 First Defiance Financial Corp. Defiance Ohio $37,000,000
12/5/2008 Central Federal Corporation Fairlawn Ohio $7,225,000
12/5/2008 Southwest Bancorp, Inc. Stillwater Okla. $70,000,000
12/5/2008 Popular, Inc. San Juan Puerto Rico $935,000,000
12/5/2008 South Financial Group, Inc. Greenville S.C. $347,000,000
12/5/2008 First Financial Holdings Inc. Charleston S.C. $65,000,000
12/5/2008 Encore Bancshares Inc. Houston Texas $34,000,000
12/5/2008 Wesbanco Bank Inc. Wheeling W.Va. $75,000,000
12/5/2008 Sterling Financial Corporation Spokane Wash. $303,000,000
12/12/2008 Bank Of the Ozarks Inc. Little Rock Ariz. $75,000,000
12/12/2008 SVB Financial Group Santa Clara Calif. $235,000,000
12/12/2008 Center Financial Corp. Los Angeles Calif. $55,000,000
12/12/2008 Wilshire Bancorp Inc. Los Angeles Calif. $62,158,000
12/12/2008 First Litchfield Financial Corp. Litchfield Conn. $10,000,000
12/12/2008 Wilmington Trust Corp. Wilmington Del. $330,000,000
12/12/2008 The Bancorp Inc. Wilmington Del. $45,220,000
12/12/2008 Indiana Community Bancorp Columbus Ind. $21,500,000
12/12/2008 HopFed Bancorp Hopkinsville Ky. $18,400,000
12/12/2008 LSB Corp. Andover Mass. $15,000,000
12/12/2008 Northeast Bancorp Lewiston Maine $4,227,000
12/12/2008 Citizens Republic Bancorp Inc. Flint Mich. $300,000,000
12/12/2008 Independent Bank Corp. Ionia Mich. $72,000,000
12/12/2008 Capital Bank Corp. Raliegh N.C. $41,279,000
12/12/2008 NewBridge Bancorp Greensboro N.C. $52,372,000
12/12/2008 Citizens South Banking Corp. Gastonia N.C. $20,500,000
12/12/2008 Signature Bank New York N.Y. $120,000,0002
12/12/2008 LNB Bancorp Inc. Lorain Ohio $25,223,000
12/12/2008 Susquehanna Bancshares Inc. Lititz Pa. $300,000,000
12/12/2008 National Penn Bancshares Inc. Boyertown Pa. $150,000,000
12/12/2008 Fidelity Bancorp Inc. Pittsburgh Pa. $7,000,000
12/12/2008 Pinnacle Financial Partners Inc. Nashville Tenn. $95,000,000
12/12/2008 Sterling Bancshares Inc.3 Houston Texas $125,198,000
12/12/2008 TowneBank Portsmouth Va. $76,458,000
12/12/2008 Valley Financial Corp. Roanoke Va. $16,019,000
12/12/2008 Virginia Commerce Bancorp Arlington Va. $71,000,000
12/12/2008 Pacific International Bancorp Seattle Wash. $6,500,000
12/19/2008 BancTrust Financial Group, Inc. Mobile Ala. $50,000,000
12/19/2008 Community West Bancshares Goleta Calif. $15,600,000
12/19/2008 Summit State Bank Santa Rosa Calif. $8,500,000
12/19/2008 Santa Lucia Bancorp Atascadero Calif. $4,000,000
12/19/2008 First California Financial Group, Inc Westlake Village Calif. $25,000,000
12/19/2008 Pacific City Finacial Corporation Los Angeles Calif. $16,200,000
12/19/2008 Exchange Bank Santa Rosa Calif. $43,000,000
12/19/2008 NCAL Bancorp Los Angeles Calif. $10,000,000
12/19/2008 CoBiz Financial Inc. Denver Colo. $64,450,000
12/19/2008 The Connecticut Bank and Trust Company Hartford Conn. $5,448,000
12/19/2008 Seacoast Banking Corporation of Florida Stuart Fla. $50,000,000
12/19/2008 Synovus Financial Corp. Columbus Ga. $967,870,000
12/19/2008 Fidelity Southern Corporation Atlanta Ga. $48,200,000
12/19/2008 Heartland Financial USA, Inc. Dubuque Iowa $81,698,000
12/19/2008 Intermountain Community Bancorp Sandpoint Idaho $27,000,000
12/19/2008 Wintrust Financial Corporation Lake Forest Ill. $250,000,000
12/19/2008 Marquette National Corporation Chicago Ill. $35,500,000
12/19/2008 Bridgeview Bancorp, Inc. Bridgeview Ill. $38,000,000
12/19/2008 Horizon Bancorp Michigan City Ind. $25,000,000
12/19/2008 FFW Corporation Wabash Ind. $7,289,000
12/19/2008 Fidelity Financial Corporation Wichita Kan. $36,282,000
12/19/2008 Citizens First Corporation Bowling Green Ky. $8,779,000
12/19/2008 FCB Bancorp, Inc. Louisville Ky. $9,294,000
12/19/2008 Whitney Holding Corporation New Orleans La. $300,000,000
12/19/2008 Wainwright Bank & Trust Company Boston Mass. $22,000,000
12/19/2008 Berkshire Hills Bancorp, Inc. Pittsfield Mass. $40,000,000
12/19/2008 OneUnited Bank Boston Mass. $12,063,000
12/19/2008 Tri-County Financial Corporation Waldorf Md. $15,540,000
12/19/2008 Patapsco Bancorp, Inc. Dundalk Md. $6,000,000
12/19/2008 Enterprise Financial Services Corp. St. Louis Mo. $35,000,000
12/19/2008 Hawthorn Bancshares, Inc. Lee's Summit Mo. $30,255,000
12/19/2008 Monadnock Bancorp, Inc. Peterborough N.H. $1,834,000
12/19/2008 Flushing Financial Corporation Lake Success N.Y. $70,000,000
12/19/2008 The Elmira Savings Bank, FSB Elmira N.Y. $9,090,000
12/19/2008 Alliance Financial Corporation Syracuse N.Y. $26,918,000
12/19/2008 Mid Penn Bancorp, Inc. Millersburg Pa. $10,000,000
12/19/2008 VIST Financial Corp. Wyomissing Pa. $25,000,000
12/19/2008 AmeriServ Financial, Inc Johnstown Pa. $21,000,000
12/19/2008 Bancorp Rhode Island, Inc. Providence R.I. $30,000,000
12/19/2008 Security Federal Corporation Aiken S.C. $18,000,000
12/19/2008 Tidelands Bancshares, Inc Mt. Pleasant S.C. $14,448,000
12/19/2008 Tennessee Commerce Bancorp, Inc. Franklin Tenn. $30,000,000
12/19/2008 Plains Capital Corporation Dallas Texas $87,631,000
12/19/2008 Patriot Bancshares, Inc. Houston Texas $26,038,000
12/19/2008 Community Bankers Trust Corporation Glen Allen Va. $17,680,000
12/19/2008 Community Financial Corporation Staunton Va. $12,643,000

Enjoy socialism! It's already here..."Whether you like it or not..."