investmentwatchblog--2020-07-30--Why Everyone Should Have Multiple Streams of Income to Survive What’s Coming

It ’ s among the most dreaded news imaginable : You ’ ve been laid off from your job .
In the last few months , this scenario has played out for untold millions of people .
Suddenly your financial security is gone , and everything you ’ ve worked for has been snatched away .
When most people lose their jobs , they panic .
There are bills to pay , a mortgage to maintain , car payments to make .
How will they survive without their job ?
Frantically they update their résumé and commence the often-disheartening round @ @ @ @ @ @ @ their credentials on the internet , begging someone – anyone – to employ them .
But there are better ways .
We ’ ve experienced that dreaded pink slip , so for nearly three decades my husband and I have taken an alternate view on income .
Rather than putting all our eggs in one basket and pinning our financial strategy on a single income source , we ’ ve developed a number of lower-paying part-time gigs – in other words , multiple income streams .
I call this the “ many irons @ @ @ @ @ @ @ a living .
The idea is if one iron disappears , you have multiple other irons still sizzling in the fire and won ’ t be left destitute .
You can then concentrate on honing those other irons into larger producers , either until such time as you find another “ primary ” job , or decide to permanently shift into having multiple part-time jobs .
For almost 30 years , our primary income source has been a home woodcraft business .
But we ’ ve supplemented that income with endless side gigs @ @ @ @ @ @ @ managing blogs , selling farm products , writing ebooks , etc .
Some of these gigs were temporary .
Others were more hassle than they were worth ( such as managing a business in a nearby town ) and were soon dropped .
Others have been fairly steady and dependable .
Collectively , I call this a “ freelance lifestyle.
” This all sounds great , but the $ 64,000 question remains : What kind of jobs ?
What do you do to earn money ?
Sorry , I can ’ t answer @ @ @ @ @ @ @ idea of your talents , interests , education , skills , or work ethic .
I won ’ t advise you on nebulous money-making opportunities involving stuffing envelopes or pyramid schemes .
But what I can tell you is this : Make money any way you can .
We know one fellow who operates heavy machinery , flies helicopters , and raises bison .
We know a woman who cleans houses , sells crafts , and substitute teaches .
Yet another woman sells produce at farmer ’ s markets , babysits children for @ @ @ @ @ @ @ publishing projects for local businesses .
Daisy has some other suggestions in this article .
Laying multiple income irons in the fire is a matter of harvesting any and all experience , interests , potential , or opportunities you ’ ve ever experienced .
Seize any ( legal , ethical ) means to earn money , since you never know where it might lead .
In our case , we give preference for jobs we can do from home .
The internet has transformed the ability to exploit your skills without ever leaving @ @ @ @ @ @ @ from remote teaching ( foreign languages ?
music ? )
to becoming an online travel agent to blog maintenance to moderating forums to operating ticket sales to freelance writing .
For a more hands-on approach , it ’ s again a matter of exploiting whatever skills or experience you ’ ve cultivated in the past .
Have you waitressed ?
Fixed computers ?
Built crafts ?
Driven a truck ?
Tutored children ?
Babysat ?
Are you clever at organizing , baking , carpentry , welding , or painting ?
Seriously , all @ @ @ @ @ @ @ opportunities .
But here ’ s the kicker : Usually these will not become full-time jobs .
These gigs will usually be part-time work .
Deal with it .
That ’ s the thing about many irons in the fire .
Perhaps not many of these irons can supply a full-time income , but income from numerous irons can get pretty darned close – $ 500 here , $ 1000 there , and pretty soon you ’ re earning a decent collective paycheck .
It ’ s also nice to be your own @ @ @ @ @ @ @ , sure you might have customers to please , but it sure beats working for someone you don ’ t like .
And – very importantly – a freelance lifestyle means you ’ re less vulnerable to the cancel culture .
If your income is not tied with the need to keep your mouth shut and your head low lest you get fired by an intolerant employer , you ’ re freer to speak your mind about whatever concerns you .
A surprising number of people don ’ t bother developing side gigs @ @ @ @ @ @ @ Side gigs not only bring in supplemental income , but you never know what may develop into solid long-term potential .
Some might turn out to be more trouble than they ’ re worth ; others might become extraordinarily lucrative , and all will provide both income and experience .
The side gigs most likely to succeed are those that are reasonably recession-proof .
This means people still need or want the product or service , no matter how tough the economy is .
Some examples of recession-proof businesses include : butchers , @ @ @ @ @ @ @ farming , garden seedlings ) , childcare , beauty care ( hairdressing , etc . )
, repair services ( everything from shoes to engines ) , etc .
If you can develop a side gig providing something people need no matter what , you ’ ve got a toe-hold .
If you ’ re used to the unwavering security of a twice-a-month paycheck , then a gig lifestyle may take some getting used to .
A lot of people don ’ t like the financial insecurity of part-time work or freelancing because @ @ @ @ @ @ @ , dependable job .
Unfortunately , as millions have learned in the last few months , well-paying dependable jobs aren ’ t as secure as we like to think .
They can disappear in a moment .
But there ’ s no question a freelance lifestyle means your income is seldom dependable .
For this reason , it ’ s critical to scale back your spending .
This can range from big ( sell your expensive house with the huge mortgage payments ) to the small ( skip the daily latté ) .
@ @ @ @ @ @ @ s important to plug the leaks to keep your financial boat afloat .
It ’ s also critical to avoid debt whenever possible .
A freelance lifestyle means being flexible in what you ’ re willing to do , and utilizing the broad range of talents you undoubtedly possess .
You ’ d be surprised how far intangible qualities can go when it comes to picking up extra jobs , part-time or otherwise .
A work ethic , showing up on time , honesty , dependability … these are assets everyone values .
@ @ @ @ @ @ @ superb job because he was ( literally ) the only applicant who passed the drug test .
Keep in mind that all part-time income is subject to taxes , but those taxes won ’ t be withheld automatically .
You will have to declare all income on your taxes , and possibly file separate Schedule C forms when April 15 rolls around .
I strongly urge you to always be honest and above-board with all part-time income .
The hassle of filing and paying taxes is far better than the hassle of an @ @ @ @ @ @ @ Very few endeavors become instant financial successes .
Be patient and allow things to come to fruition .
If you still have a full-time ( or even part-time ) outside job , don ’ t give it up on the touching and misplaced hope that your freelance income will be able to replace your steady job .
Instead , just work on cultivating side gigs .
If you ’ ve lost your job in the economic downturn and are unable to find another , then you have nothing to lose .
Throw yourself @ @ @ @ @ @ @ gigs you can find .
Given a choice , opt for side gigs that allow you to work from home .
The more you can bring your income into the house , the more flexible you are to work anywhere , including in a more rural location away from urban chaos What does the future hold ?
Right now there ’ s a lot of uncertainty in the world , and no one knows what the future will bring .
Three tactics – multiple income streams , frugality , and paring down living @ @ @ @ @ @ @ the toughest times .
You can either or .
We opted for the latter .
In the face of what might turn out to be another Great Depression , spending less is also the most logical and sustainable choice .
Our freelance lifestyle wasn ’ t always easy or straightforward .
We made some stupid financial mistakes in our younger days , but we also learned the art of frugality and kept our living expenses low .
Even now , after nearly 30 years of living a freelance lifestyle , we still look @ @ @ @ @ @ @ What we ’ ve learned is this : It ’ s better to have ten income streams each paying $ 400 per month than a single income stream paying $ 4,000 per month .
Losing one iron of the former is an annoyance .
Losing the one single iron of the latter is devastating .
Don ’ t let your ego get in the way of developing income streams .
Don ’ t be too proud to accept humble work .
Remember , DoorDash is always hiring .
Patrice Lewis is pleased to @ @ @ @ @ @ @ of 52 Country Living Series ebooklets , representing over 17 years of homesteading experience .
Subjects include preparedness , gardening , frugality , rural skills , food preservation , and more .

by Patrice Lewis
It’s among the most dreaded news imaginable: You’ve been laid off from your job. In the last few months, this scenario has played out for untold millions of people. Suddenly your financial security is gone, and everything you’ve worked for has been snatched away.
When most people lose their jobs, they panic. There are bills to pay, a mortgage to maintain, car payments to make. How will they survive without their job? Frantically they update their résumé and commence the often-disheartening round of answering want ads or blasting out their credentials on the internet, begging someone – anyone – to employ them.
But there are better ways.
We’ve experienced that dreaded pink slip, so for nearly three decades my husband and I have taken an alternate view on income. Rather than putting all our eggs in one basket and pinning our financial strategy on a single income source, we’ve developed a number of lower-paying part-time gigs – in other words, multiple income streams.
I call this the “many irons in the fire” method of earning a living. The idea is if one iron disappears, you have multiple other irons still sizzling in the fire and won’t be left destitute. You can then concentrate on honing those other irons into larger producers, either until such time as you find another “primary” job, or decide to permanently shift into having multiple part-time jobs.
For almost 30 years, our primary income source has been a home woodcraft business. But we’ve supplemented that income with endless side gigs: freelance writing, news editing, managing blogs, selling farm products, writing ebooks, etc. Some of these gigs were temporary. Others were more hassle than they were worth (such as managing a business in a nearby town) and were soon dropped. Others have been fairly steady and dependable. Collectively, I call this a “freelance lifestyle.”
What kind of jobs?
This all sounds great, but the $64,000 question remains: What kind of jobs? What do you do to earn money?
Sorry, I can’t answer that for you. I have no idea of your talents, interests, education, skills, or work ethic. I won’t advise you on nebulous money-making opportunities involving stuffing envelopes or pyramid schemes.
But what I can tell you is this: Make money any way you can. We know one fellow who operates heavy machinery, flies helicopters, and raises bison. We know a woman who cleans houses, sells crafts, and substitute teaches. Yet another woman sells produce at farmer’s markets, babysits children for a working mother, and does desktop publishing projects for local businesses. Daisy has some other suggestions in this article.
Laying multiple income irons in the fire is a matter of harvesting any and all experience, interests, potential, or opportunities you’ve ever experienced. Seize any (legal, ethical) means to earn money, since you never know where it might lead. In our case, we give preference for jobs we can do from home. The internet has transformed the ability to exploit your skills without ever leaving the house. People have done everything from remote teaching (foreign languages? music?) to becoming an online travel agent to blog maintenance to moderating forums to operating ticket sales to freelance writing.
For a more hands-on approach, it’s again a matter of exploiting whatever skills or experience you’ve cultivated in the past. Have you waitressed? Fixed computers? Built crafts? Driven a truck? Tutored children? Babysat? Are you clever at organizing, baking, carpentry, welding, or painting? Seriously, all of these can be transformed into money-making opportunities.
But here’s the kicker: Usually these will not become full-time jobs. These gigs will usually be part-time work. Deal with it.
That’s the thing about many irons in the fire. Perhaps not many of these irons can supply a full-time income, but income from numerous irons can get pretty darned close – $500 here, $1000 there, and pretty soon you’re earning a decent collective paycheck.
It’s also nice to be your own boss. Sure you might have deadlines, sure you might have customers to please, but it sure beats working for someone you don’t like.
And – very importantly – a freelance lifestyle means you’re less vulnerable to the cancel culture. If your income is not tied with the need to keep your mouth shut and your head low lest you get fired by an intolerant employer, you’re freer to speak your mind about whatever concerns you.
The benefit of side gigs
A surprising number of people don’t bother developing side gigs, which is unfortunate and short-sighted. Side gigs not only bring in supplemental income, but you never know what may develop into solid long-term potential. Some might turn out to be more trouble than they’re worth; others might become extraordinarily lucrative, and all will provide both income and experience.
We are primarily funded by readers. Please subscribe and donate to support us!
The side gigs most likely to succeed are those that are reasonably recession-proof. This means people still need or want the product or service, no matter how tough the economy is.
Some examples of recession-proof businesses include: butchers, seed companies, food production (truck farming, garden seedlings), childcare, beauty care (hairdressing, etc.), repair services (everything from shoes to engines), etc. If you can develop a side gig providing something people need no matter what, you’ve got a toe-hold.
Dealing with financial insecurity
If you’re used to the unwavering security of a twice-a-month paycheck, then a gig lifestyle may take some getting used to. A lot of people don’t like the financial insecurity of part-time work or freelancing because they prefer the security of a well-paying, dependable job. Unfortunately, as millions have learned in the last few months, well-paying dependable jobs aren’t as secure as we like to think. They can disappear in a moment.
But there’s no question a freelance lifestyle means your income is seldom dependable. For this reason, it’s critical to scale back your spending. This can range from big (sell your expensive house with the huge mortgage payments) to the small (skip the daily latté). In a freelance lifestyle, it’s important to plug the leaks to keep your financial boat afloat. It’s also critical to avoid debt whenever possible.
A freelance lifestyle means being flexible in what you’re willing to do, and utilizing the broad range of talents you undoubtedly possess. You’d be surprised how far intangible qualities can go when it comes to picking up extra jobs, part-time or otherwise. A work ethic, showing up on time, honesty, dependability … these are assets everyone values. We have a neighbor who landed a superb job because he was (literally) the only applicant who passed the drug test.
Keep in mind that all part-time income is subject to taxes, but those taxes won’t be withheld automatically. You will have to declare all income on your taxes, and possibly file separate Schedule C forms when April 15 rolls around. I strongly urge you to always be honest and above-board with all part-time income. The hassle of filing and paying taxes is far better than the hassle of an audit and fines from the IRS.
It takes time
Very few endeavors become instant financial successes. Be patient and allow things to come to fruition. If you still have a full-time (or even part-time) outside job, don’t give it up on the touching and misplaced hope that your freelance income will be able to replace your steady job. Instead, just work on cultivating side gigs.
If you’ve lost your job in the economic downturn and are unable to find another, then you have nothing to lose. Throw yourself full-time into developing any and all side gigs you can find.
Given a choice, opt for side gigs that allow you to work from home. The more you can bring your income into the house, the more flexible you are to work anywhere, including in a more rural location away from urban chaos
What does the future hold?
Right now there’s a lot of uncertainty in the world, and no one knows what the future will bring. Three tactics – multiple income streams, frugality, and paring down living expenses – will help carry you through the toughest times.
You can either earn more or spend less . We opted for the latter. In the face of what might turn out to be another Great Depression, spending less is also the most logical and sustainable choice.
Our freelance lifestyle wasn’t always easy or straightforward. We made some stupid financial mistakes in our younger days, but we also learned the art of frugality and kept our living expenses low. Even now, after nearly 30 years of living a freelance lifestyle, we still look for ways to pare down expenses.
What we’ve learned is this: It’s better to have ten income streams each paying $400 per month than a single income stream paying $4,000 per month. Losing one iron of the former is an annoyance. Losing the one single iron of the latter is devastating.
Don’t let your ego get in the way of developing income streams. Don’t be too proud to accept humble work. Remember, DoorDash is always hiring.
About Patrice
Patrice Lewis is pleased to announce the availability of the complete collection of 52 Country Living Series ebooklets, representing over 17 years of homesteading experience. Subjects include preparedness, gardening, frugality, rural skills, food preservation, and more.


investmentwatchblog--2020-07-30--Germany sees quite a plunge in economic output or GDP

After last night ’ s rather damp squib from the US Federal Reserve ( they can expand QE within meetings ) the Euro area takes center stage today .
This is because the leader of its economic pack has brought us up to date on its economy .
So in broad terms we have seen a move double that of the credit crunch which was considered to be severe at the time .
The economy had also contracted in the first quarter of this year which we can pick up via the annual comparison .
So the worst annual comparison @ @ @ @ @ @ @ as large an amount .
We do not get an enormous amount of detail at this preliminary stage but there is some .
Just like in the film Airplane they chose a bad time to do this… Although not a complete disaster as they would have been mostly guessing anyway .
One matter of note is that 2015 was better than previously though and 2017 worse both by 0.3 % .
That is not good news for the ECB and the “ Euro Boom ” in response to its policies .
There has @ @ @ @ @ @ @ the Federal Employment Agency as well this morning .
Now things get a little more awkward as the statistics office has reported this also .
What we are comparing is registered unemployment or if you prefer those receiving unemployment benefits with those officially counted as unemployed .
Whilst we have a difference in timing ( July and then June ) the gap is far wider than the change .
The International Labour Organisation has some work to do I think…..
Regular readers will be aware that this has essentially been the state of @ @ @ @ @ @ @ .
In terms of the benchmark ten-year yield this started in the spring of last year , but the five-year has been negative for nearly the last five years .
That trend has recently been picking up again with the ten-year going below -0.5 % this week .
With the thirty-year at -0.12 % then at whatever maturity Germany is paid to borrow , This represents yet another defeat for the bond vigilantes because even Germany ’ s fiscal position will take a pounding from the economic decline combined with much higher public @ @ @ @ @ @ @ economy tends to lead to even lower bond yields due to expectations of more central bank buying of them .
After the German numbers above we can only say yes to this .
The problem is getting any sort of idea of how quickly things are picking back up .
The ECB seems to be looking for clues .
Meanwhile it continues to pump it all up .
As to the last bit I can only say indeed !
After all who would not want money given to you at -1 % ?
@ @ @ @ @ @ @ an idea about how much the economy of Germany has shrunk .
Also this is not as some are presenting it because the economy changed gear in 2018 and the trade war of last year applied the brakes .
Of course neither were on anything like the scale we have noted today .
Whilst the numbers are only a broad brush they are a similar decline to Austria ( -10.7 % ) which gives things a little more credibility .
Markets were a little caught out with both the Euro and the Dax @ @ @ @ @ @ @ Looking ahead we can expect a bounce back in July but how much ?
The Markit PMI surveys seem to have lost their way as what does this mean ?
I am not sure that anyone backing their views with actual trades are convinced by this .
Of course things will have picked up as the lockdown ended but there will now be worries about this , So the recovery seems set to have ebbs and flows .
Accordingly I have no idea how places can predict such strong bounce backs in economic @ @ @ @ @ @ @ very unsure about 2020 .
I wish anyone ill with this virus a speedy recovery but I suspect that economies will take quite some time .

by Shaun Richards
After last night’s rather damp squib from the US Federal Reserve ( they can expand QE within meetings) the Euro area takes center stage today. This is because the leader of its economic pack has brought us up to date on its economy.
WIESBADEN – The gross domestic product (GDP) in the 2nd quarter 2020 compared to the 1st quarter 2020 – adjusted by price, season and calendar – by 10.1%. This was the sharpest decline since the beginning of quarterly GDP calculations for Germany in 1970. It was even more pronounced than during the financial market and economic crisis (-4.7% in the first quarter of 2009).
So in broad terms we have seen a move double that of the credit crunch which was considered to be severe at the time. The economy had also contracted in the first quarter of this year which we can pick up via the annual comparison.
Economic output also fell year-on-year: GDP in the second quarter of 2020 was 11.7% lower than in the previous year after adjustment for prices (including calendar adjusted). Here, too, there had not been such a sharp decline even in the years of the financial market and economic crisis of 2008/2009: the strongest decline to date was recorded in the second quarter of 2009 at -7.9% compared to the same quarter of the previous year.
So the worst annual comparison of the modern era although by not as large an amount.
We do not get an enormous amount of detail at this preliminary stage but there is some.
As the Federal Statistical Office (Destatis) further reports, both exports and imports of goods and services collapsed massively in the second quarter of 2020, as did private consumer spending and investments in equipment. The state, however, increased its consumer spending during the crisis.
Just like in the film Airplane they chose a bad time to do this…
Beginning with the second quarter of 2020, the Federal Statistical Office published GDP for the first time 30 days after the end of the quarter, around two weeks earlier than before. The fact that the results are more up-to-date requires more estimates than was the case after 45 days.
Although not a complete disaster as they would have been mostly guessing anyway. One matter of note is that 2015 was better than previously though and 2017 worse both by 0.3%. That is not good news for the ECB and the “Euro Boom” in response to its policies.
Unemployment
There has been bad but not unexpected news from the Federal Employment Agency as well this morning.
Unemployment rose by 2.0% compared to the previous month and by 27.9% year-on-year to 2.9 million. Underemployment without short-time work increased by 1.3% compared to the previous month and by 14.6% compared to the previous month. It is 3.7 million The unemployment rate is 6.3%, the underemployment rate is 7.9%.
Now things get a little more awkward as the statistics office has reported this also.
According to the results of the labor force survey, the number of unemployed was 1.97 million in June 2020. That was 39,000 people or 2.1% more than in the previous month of May. Compared to June 2019, the number of unemployed rose by 653,000 (+ 49.2%). The unemployment rate was 4.5% in June 2020.
What we are comparing is registered unemployment or if you prefer those receiving unemployment benefits with those officially counted as unemployed. Whilst we have a difference in timing ( July and then June) the gap is far wider than the change. The International Labour Organisation has some work to do I think…..
Being Paid To Borrow
Regular readers will be aware that this has essentially been the state of play in Germany for some time now. In terms of the benchmark ten-year yield this started in the spring of last year, but the five-year has been negative for nearly the last five years. That trend has recently been picking up again with the ten-year going below -0.5% this week. With the thirty-year at -0.12% then at whatever maturity Germany is paid to borrow,
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This represents yet another defeat for the bond vigilantes because even Germany’s fiscal position will take a pounding from the economic decline combined with much higher public spending. But these days a weaker economy tends to lead to even lower bond yields due to expectations of more central bank buying of them.
ECB Monthly Bulletin
After the German numbers above we can only say yes to this.
While incoming economic data, particularly survey results, show initial signs of a recovery, they still point to a historic contraction in euro area output in the second quarter of 2020.
The problem is getting any sort of idea of how quickly things are picking back up. The ECB seems to be looking for clues.
Both the Economic Sentiment Indicator and the PMI display a broad-based rebound across both countries and economic sectors. This pick-up in economic activity is also confirmed by high-frequency indicators such as electricity consumption.
Meanwhile it continues to pump it all up.
The Governing Council will continue its purchases under the pandemic emergency purchase programme (PEPP) with a total envelope of €1,350 billion…………Net purchases under the asset purchase programme (APP) will continue at a monthly pace of €20 billion, together with the purchases under the additional €120 billion temporary envelope until the end of the year……..The Governing Council will also continue to provide ample liquidity through its
refinancing operations. In particular, the latest operation in the third series of targeted
longer-term refinancing operations (TLTRO III) has registered a very high take-up of
funds, supporting bank lending to firms and households.
As to the last bit I can only say indeed! After all who would not want money given to you at -1%?
Comment
We now begin to have more of an idea about how much the economy of Germany has shrunk. Also this is not as some are presenting it because the economy changed gear in 2018 and the trade war of last year applied the brakes. Of course neither were on anything like the scale we have noted today. Whilst the numbers are only a broad brush they are a similar decline to Austria ( -10.7%) which gives things a little more credibility. Markets were a little caught out with both the Euro and the Dax falling as well as bond yields.
Looking ahead we can expect a bounce back in July but how much? The Markit PMI surveys seem to have lost their way as what does this mean?
The recovery in the German economy remained on
track in July, according to the latest ‘flash’ PMI® data
from IHS Markit
Which track?
“July’s PMI registered firmly in growth territory and
well above expectations, in a clear sign that
business conditions are improving across Germany
as activity and demand recover. Furthermore, for
an economy that is steered so much by exports, it
was encouraging to see manufacturers reporting a
notable upturn in sales abroad.”
I am not sure that anyone backing their views with actual trades are convinced by this. Of course things will have picked up as the lockdown ended but there will now be worries about this,
Germany records the highest number of new coronavirus cases in about six weeks ( Bloomberg)
So the recovery seems set to have ebbs and flows. Accordingly I have no idea how places can predict such strong bounce backs in economic activity in 2021 as we still are very unsure about 2020. I wish anyone ill with this virus a speedy recovery but I suspect that economies will take quite some time.


investmentwatchblog--2020-07-30--More QE will be on the agenda of the US Federal Reserve

Later today the policymakers of what is effectively the world ’ s central bank meet up to deliberate before making their policy announcement tomorrow evening UK time .
Although there is a catch in my description because the US Federal Reserve goes through sustained periods when it effectively ignores the rest of the world and becomes like the US itself can do , rather isolationist .
The Financial Times puts it like this .
As it happens the coronavirus numbers look a little better today .
But there are clearly domestic issues at hand which is a switch on the @ @ @ @ @ @ @ March the US Federal Reserve intervened to help the rest of the world with foreign exchange liquidity swaps .
We were ahead of that game on March 16th .
Anyway , that was then and now we see the US $ 446 billion that they rose to is now US $ 118 billion and falling .
There has been a shift of emphasis with Aloe Blacc mulling a dip in royalties from this .
This was represented back in the spring not only by a Dollar rally that especially hit the Emerging Market @ @ @ @ @ @ @ at above .
Since then we have gone from slip-sliding away to the Fallin ’ of Alicia Keys .
Putting that into numbers the peak of 103.6 for September Dollar Index futures on March 19th has been replaced by 93.9 this morning .
If we look at the Euro it fell to 1.06 versus the Dollar and a warning signal flashed as the parity calls began .
They had their usual impact as it is now at 1.17 .
Actually there were some parity calls for the UK Pound $ too so you @ @ @ @ @ @ @ above US $ 1.28 as I type this .
In terms of economic policy perhaps the most significant is the Japanese Yen at 105.50 because the Bank of Japan has made an enormous effort to weaken it and looks increasingly like King Canute .
There are economic efforts from this as I recall the words of the then Vice-Chair Stanley Fischer from 2015 .
We have seen the reverse of that so a rise in GDP of 1.5 % .
Of course such moves seem smaller right now and they need the move @ @ @ @ @ @ @ none the less .
Whilst the US economy is less affected in terms of inflation than others due to the role of the US Dollar as the reserve currency in which commodities are prices there still is an impact .
Again this impact is the other way so inflation will rise .
For those unaware PCE means Personal Consumption Expenditures and as so familiar for an official choice leads to a lower inflation reading than the more widely known CPI alternative .
This is a troubled area for the US Federal Reserve which @ @ @ @ @ @ @ Little Big Horn .
We we being signposted to a “ normalisation ” where the new interest-rate would be of the order of 3 % + or what was called r* .
I am pleased to report I called it out at the time as the reality was that the underpinnings of this particular Ivory Tower crumbled as the eye of Trump turned on it .
The pandemic in this sense provided cover for the US Federal Reserve to cut to around 0.1 % ( strictly 0 % to 0.25 % ) .
@ @ @ @ @ @ @ and you know my view in official denials .
I also not this from Reuters yesterday , How are they resisting them ?
They could hardly have cut much quicker !
This feels like a PR campaign ahead of applying them at some future date .
This is the new way of explaining that the central bank is funding government policy .
Although not on the scale some are claiming .
That was from Ben Rickert on Twitter and is the number one tweet if you look for the US Federal Reserve .
@ @ @ @ @ @ @ Mentor actual purchases of US government bonds have declined substantially .
That is less in a month than it was buying some days as I recall a period when it was US £125 billion a day .
If Ben had not ramped up his rhetoric he would be on the scent because Yield Curve Control is where the central bank implicitly rather than explicitly finances the government .
Regular readers will have noted my updates on the Bank of Japan doing this and there have been several variations but the sum is that @ @ @ @ @ @ @ in a range between -0.1 % and 0.1 % .
There is an obvious issue with the US ten-year yield being around 0.6 % and we may see tomorrow the beginning of the process of getting it lower .
On the tenth of this month I pointed out that some US bond yields could go negative and if we are to see a Japanese style YCC then the Fed needs to get on with it for the reasons I will note below .
As the battleground for the US Federal Reserve now seems @ @ @ @ @ @ @ problem .
Even in these inflated times that is a lot and the Democrat opposition want treble that .
With an election around the corner we are likely to see more grand spending schemes .
But returning to the Fed that is a lot to fund and $ 80 billion a month looks rather thin in response .
So somewhere on this yellow brick road I am expecting more QE .
Oh and if you look at Japan if it has done any good it is well hidden .
But that seems not @ @ @ @ @ @ @ Also another example of Turning Japanese is provided by giving QE new name .
After all successes do not need one do they ?
Still at least the researchers at the Kansas City Fed have kept their sense of humour .

by Shaun Richards
Later today the policymakers of what is effectively the world’s central bank meet up to deliberate before making their policy announcement tomorrow evening UK time. Although there is a catch in my description because the US Federal Reserve goes through sustained periods when it effectively ignores the rest of the world and becomes like the US itself can do, rather isolationist. The Financial Times puts it like this.
US coronavirus surge to dominate Federal Reserve meeting…..Central bank policymakers face delicate decision on best way to deliver more monetary support.
As it happens the coronavirus numbers look a little better today. But there are clearly domestic issues at hand which is a switch on the initial situation where on the middle of March the US Federal Reserve intervened to help the rest of the world with foreign exchange liquidity swaps. We were ahead of that game on March 16th. Anyway, that was then and now we see the US $446 billion that they rose to is now US $118 billion and falling.
The US Dollar
There has been a shift of emphasis with Aloe Blacc mulling a dip in royalties from this.
I need a dollar dollar, a dollar is what I need
Hey hey
Well I need a dollar dollar, a dollar is what I need
Hey hey
And I said I need dollar dollar, a dollar is what I need
And if I share with you my story would you share your dollar with me
This was represented back in the spring not only by a Dollar rally that especially hit the Emerging Market currencies but the Fed response I looked at above. Since then we have gone from slip-sliding away to the Fallin’ of Alicia Keys. Putting that into numbers the peak of 103.6 for September Dollar Index futures on March 19th has been replaced by 93.9 this morning.
If we look at the Euro it fell to 1.06 versus the Dollar and a warning signal flashed as the parity calls began. They had their usual impact as it is now at 1.17. Actually there were some parity calls for the UK Pound $ too so you will not be surprised to see it above US $1.28 as I type this. In terms of economic policy perhaps the most significant is the Japanese Yen at 105.50 because the Bank of Japan has made an enormous effort to weaken it and looks increasingly like King Canute.
There are economic efforts from this as I recall the words of the then Vice-Chair Stanley Fischer from 2015.
Figure 3 uses these results to gauge how a 10 percent dollar appreciation would reduce U.S. gross domestic product (GDP) through the net export channels we have just discussed. The staff’s model indicates that the direct effects on GDP through net exports are large, with GDP falling over 1-1/2 percent below baseline after three years.
We have seen the reverse of that so a rise in GDP of 1.5%. Of course such moves seem smaller right now and they need the move to be sustained but a welcome development none the less.
Whilst the US economy is less affected in terms of inflation than others due to the role of the US Dollar as the reserve currency in which commodities are prices there still is an impact.
This particular model implies that core PCE inflation dips about 0.5 percent in the two quarters following the appreciation before gradually returning to baseline, which is consistent with a four-quarter decline in core PCE inflation of about 0.3 percent in the first year following the shock.
Again this impact is the other way so inflation will rise. For those unaware PCE means Personal Consumption Expenditures and as so familiar for an official choice leads to a lower inflation reading than the more widely known CPI alternative.
Back Home
Interest-Rates
This is a troubled area for the US Federal Reserve which resembles the shambles of General Custer at Little Big Horn. We we being signposted to a “normalisation” where the new interest-rate would be of the order of 3%+ or what was called r*. I am pleased to report I called it out at the time as the reality was that the underpinnings of this particular Ivory Tower crumbled as the eye of Trump turned on it. The pandemic in this sense provided cover for the US Federal Reserve to cut to around 0.1% ( strictly 0% to 0.25%).
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Back on March 16th I noted this and you know my view in official denials.
#BREAKING Fed’s Powell says negative interest rates not likely to be appropriate ( @AFP )
I also not this from Reuters yesterday,
With U.S. central bank officials resisting negative interest rates,
How are they resisting them? They could hardly have cut much quicker! This feels like a PR campaign ahead of applying them at some future date.
Yield Curve Control
This is the new way of explaining that the central bank is funding government policy. Although not on the scale some are claiming.
Foreigners have levelled off buying US Debt. Federal Reserve buying has gone parabolic. This tells us all this additional debt the govt is issuing by running HUGE budget deficits is being purchased by directly the Fed. That is what they do in “banana republics”. #monetizethedebt
That was from Ben Rickert on Twitter and is the number one tweet if you look for the US Federal Reserve. Sadly for someone who calls himself The Mentor actual purchases of US government bonds have declined substantially.
the Desk plans to continue to increase SOMA holdings of Treasury securities at that pace, which is the equivalent of approximately $80 billion per month. ( New York Fed.)
That is less in a month than it was buying some days as I recall a period when it was US £125 billion a day.
If Ben had not ramped up his rhetoric he would be on the scent because Yield Curve Control is where the central bank implicitly rather than explicitly finances the government. Regular readers will have noted my updates on the Bank of Japan doing this and there have been several variations but the sum is that the benchmark ten-year yield has been kept in a range between -0.1% and 0.1%.
There is an obvious issue with the US ten-year yield being around 0.6% and we may see tomorrow the beginning of the process of getting it lower. On the tenth of this month I pointed out that some US bond yields could go negative and if we are to see a Japanese style YCC then the Fed needs to get on with it for the reasons I will note below.
Comment
As the battleground for the US Federal Reserve now seems to be bond yields it has a problem.
INSKEEP: Senator, our time is short. I’ve got a couple of quick questions here. Is there a limit to how much the United States can borrow? Granting the emergency, its another trillion dollars here. ( NPR)
Even in these inflated times that is a lot and the Democrat opposition want treble that. With an election around the corner we are likely to see more grand spending schemes. But returning to the Fed that is a lot to fund and $80 billion a month looks rather thin in response. So somewhere on this yellow brick road I am expecting more QE.
Oh and if you look at Japan if it has done any good it is well hidden. But that seems not to bother policymakers much these days. Also another example of Turning Japanese is provided by giving QE new name. After all successes do not need one do they?
Still at least the researchers at the Kansas City Fed have kept their sense of humour.
Based on the FOMC’s past use of forward guidance, we argue that date-based forward guidance has the potential to deliver much, though not all, of the accommodation of yield curve control.


investmentwatchblog--2020-07-30--Is the Gold Rally Overdone? Here’s What History Says May Come Next

As you ’ re probably aware by now , spot gold is trading at an all-time high in nominal terms , having recently hit $ 1,977 an ounce .
Futures touched $ 2,000 for the first time ever .
Not only that , but according to the 14-day relative strength index ( RSI ) , gold is extremely overbought at 87.5 , the highest reading since September 1999 .
In fact , by my count , there have been only 16 instances since 1980 when gold exceeded 85 on the 14-day RSI , not including the past three days .
@ @ @ @ @ @ @ time for gold investors to take their profits and walk ?
Not so fast .
There ’ s evidence that the yellow metal could be setting up for even greater gains .
For a lot of investors , it ’ s conventional wisdom that once an asset or security becomes overbought , the time to sell was yesterday .
That rule of thumb worked well for gold between 1980 and 1999 .
Look at the chart below .
It shows gold ’ s average return one month , three months and six months @ @ @ @ @ @ @ 85 .
As a note , this happened only nine times in the approximately 20-year period between 1980 and 1999 .
In all three cases , the price of gold declined on average , with the three-month period giving up the most at 9.78 percent .
In other words , dumping gold as soon as it looked overdone worked in your favor .
Low Yields Have Been a Game-Changer for Gold That strategy hasn ’ t played out as well in the years since .
Once again , look below .
I ’ @ @ @ @ @ @ @ looking ahead at average returns one month , three months and six months after it registered an 85 or higher .
This time , though , I ’ m using data from 2000 and on .
As you can see , things look very different from before .
In all three cases , average gold returns were positive , with the six-month period highest at an average 7.3 percent .
Taking your profits after gold looked overbought , then , has generally not worked in investors ’ favor since 2000 .
A lot @ @ @ @ @ @ @ greatest factor that ’ s helped drive gold prices higher now versus 30 and 40 years ago has been Federal Reserve policy .
In short , low yields have been a game-changer for gold , a noninterest-bearing asset .
Between 1980 and 1999 , the yield on the 10-year Treasury averaged 8.6 percent .
Thanks to former Fed Chair Paul Volcker ’ s bold measures to rein in runaway inflation , investors in 1981 were able to lock in a yield as high as 15.8 percent—which I think most investors would jump at @ @ @ @ @ @ @ had a hard time competing .
Fast forward to today , and the 10-year yield has averaged a much lower 3.3 percent since 2000 , an even lower 2.1 percent since 2015 .
These are just nominal yields .
Adjusted for inflation , they ’ re lower still—so low , in fact , that they ’ re currently negative .
On Tuesday , the real yield on the 10-year Treasury closed below its previous record low , set in December 2012 .
The Start of the Third Great Gold Rally ?
In the @ @ @ @ @ @ @ ’ t factor in the three most recent instances when gold ’ s RSI exceeded 85 because , well , we don ’ t have a month ’ s worth of data yet , let alone three or six months ’ worth .
So the question you may be asking is whether it ’ s too late right now to start participating , if you haven ’ t already .
Obviously no one can say what the price of any asset will do in the future , but I believe the conditions at @ @ @ @ @ @ @ and precious metals .
Besides negative real yields , we also see unprecedented monetary and fiscal stimulus running into the trillions of dollars and counting .
The U.S. economy is in uncharted waters , with GDP estimated to have shrunk a whopping 34.8 percent in the second quarter—the most on record going back to the 1940s .
It ’ s also important to remember that even though gold is trading in record territory right now , it ’ s actually been higher when adjusted for inflation .
Remember what I said earlier about @ @ @ @ @ @ @ That ’ s because inflation was surging at an annual rate of more than 14 percent , which helped push the price of gold to still-unseen levels as investors sought a reliable store of value .
We may not have any inflation to speak of right now , but the drivers I outlined earlier are more than enough to create what I believe will end up being the third great gold rally after the one in the 1970s and 2000s .
Go gold !
What is a “ golden cross , ” and @ @ @ @ @ @ @ the price of gold ?
Watch my YouTube video by clicking here !

by Frank Holmes, CEO, U.S. Global Investors
As you’re probably aware by now, spot gold is trading at an all-time high in nominal terms, having recently hit $1,977 an ounce. Futures touched $2,000 for the first time ever.
Not only that, but according to the 14-day relative strength index (RSI), gold is extremely overbought at 87.5, the highest reading since September 1999. In fact, by my count, there have been only 16 instances since 1980 when gold exceeded 85 on the 14-day RSI, not including the past three days.
So does this mean it’s time for gold investors to take their profits and walk? Not so fast. There’s evidence that the yellow metal could be setting up for even greater gains.
For a lot of investors, it’s conventional wisdom that once an asset or security becomes overbought, the time to sell was yesterday. That rule of thumb worked well for gold between 1980 and 1999.
Look at the chart below. It shows gold’s average return one month, three months and six months after the metal’s RSI exceeded 85. As a note, this happened only nine times in the approximately 20-year period between 1980 and 1999. In all three cases, the price of gold declined on average, with the three-month period giving up the most at 9.78 percent.
In other words, dumping gold as soon as it looked overdone worked in your favor.
click to enlarge
Low Yields Have Been a Game-Changer for Gold
That strategy hasn’t played out as well in the years since.
Once again, look below. I’m using the same 14-day RSI and looking ahead at average returns one month, three months and six months after it registered an 85 or higher. This time, though, I’m using data from 2000 and on.
As you can see, things look very different from before. In all three cases, average gold returns were positive, with the six-month period highest at an average 7.3 percent. Taking your profits after gold looked overbought, then, has generally not worked in investors’ favor since 2000.
click to enlarge
So what’s changed?
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A lot, obviously, but I believe the greatest factor that’s helped drive gold prices higher now versus 30 and 40 years ago has been Federal Reserve policy. In short, low yields have been a game-changer for gold, a noninterest-bearing asset.
Between 1980 and 1999, the yield on the 10-year Treasury averaged 8.6 percent. Thanks to former Fed Chair Paul Volcker’s bold measures to rein in runaway inflation, investors in 1981 were able to lock in a yield as high as 15.8 percent—which I think most investors would jump at today. Gold, by comparison, had a hard time competing.
Fast forward to today, and the 10-year yield has averaged a much lower 3.3 percent since 2000, an even lower 2.1 percent since 2015.
click to enlarge
These are just nominal yields. Adjusted for inflation, they’re lower still—so low, in fact, that they’re currently negative. On Tuesday, the real yield on the 10-year Treasury closed below its previous record low, set in December 2012.
The Start of the Third Great Gold Rally?
In the second RSI chart above, I didn’t factor in the three most recent instances when gold’s RSI exceeded 85 because, well, we don’t have a month’s worth of data yet, let alone three or six months’ worth.
So the question you may be asking is whether it’s too late right now to start participating, if you haven’t already.
Obviously no one can say what the price of any asset will do in the future, but I believe the conditions at the moment are highly supportive of gold and precious metals. Besides negative real yields, we also see unprecedented monetary and fiscal stimulus running into the trillions of dollars and counting. The U.S. economy is in uncharted waters, with GDP estimated to have shrunk a whopping 34.8 percent in the second quarter—the most on record going back to the 1940s.
It’s also important to remember that even though gold is trading in record territory right now, it’s actually been higher when adjusted for inflation. Remember what I said earlier about Volcker having to take bold measures? That’s because inflation was surging at an annual rate of more than 14 percent, which helped push the price of gold to still-unseen levels as investors sought a reliable store of value.
We may not have any inflation to speak of right now, but the drivers I outlined earlier are more than enough to create what I believe will end up being the third great gold rally after the one in the 1970s and 2000s. Go gold!
click to enlarge
What is a “golden cross,” and what does it have to do with the price of gold? Watch my YouTube video by clicking here!


investmentwatchblog--2020-07-30--Ross Beaty discusses the Everything Bubble, precious metals, and a rapidly changing world

We sat down with mining legend Ross Beaty .
After 15 winning companies , why is he still at it ?
The simple reason , because it ’ s fun .
All the financial success , company building , creating opportunities for others and returning billions in profits to investors is okay , but in the end it all boils down to personal satisfaction and just plain fun .
Perhaps Ross ’ s idea of fun is a little more sublime than teens playing video games , obviously the stakes are higher and the rewards greater .
But we came @ @ @ @ @ @ @ has achieved a certain level of personal satisfaction and enjoyment that has kept him going to the office all these years .
Ross says that Equinox Gold will be his last venture .
He started with Equinox and it ’ s fitting to end with it .
He will then dedicate himself to giving away his vast fortune to various causes , centered on ecological and sustainability .
We wonder if it will be more fun giving it away than it was making it in the first place .
Time will tell .
@ @ @ @ @ @ @ businessperson who has been at the helm of 12 different companies and is Chairman for Equinox Gold Corp. , Chairman at Pan American Silver Corp. ( which he founded in 1994 ) and Chairman for Regalito Copper Corp. Ross J. Beaty is also President & Director at Sitka Foundation and on the board of 5 other companies .
He is the founder of 6 different companies , including : Pan American Silver Corp. , Global Copper Corp. and Northern Peru Copper Corp .

Financial Survival Network, Released on 7/29/20
We sat down with mining legend Ross Beaty. After 15 winning companies, why is he still at it? The simple reason, because it’s fun. All the financial success, company building, creating opportunities for others and returning billions in profits to investors is okay, but in the end it all boils down to personal satisfaction and just plain fun. Perhaps Ross’s idea of fun is a little more sublime than teens playing video games, obviously the stakes are higher and the rewards greater. But we came away believing that in the end Ross has achieved a certain level of personal satisfaction and enjoyment that has kept him going to the office all these years. Ross says that Equinox Gold will be his last venture. He started with Equinox and it’s fitting to end with it. He will then dedicate himself to giving away his vast fortune to various causes, centered on ecological and sustainability. We wonder if it will be more fun giving it away than it was making it in the first place. Time will tell.
We are primarily funded by readers. Please subscribe and donate to support us!
Ross J. Beaty is an entrepreneur and businessperson who has been at the helm of 12 different companies and is Chairman for Equinox Gold Corp., Chairman at Pan American Silver Corp. (which he founded in 1994) and Chairman for Regalito Copper Corp. Ross J. Beaty is also President & Director at Sitka Foundation and on the board of 5 other companies. He is the founder of 6 different companies, including: Pan American Silver Corp., Global Copper Corp. and Northern Peru Copper Corp.


investmentwatchblog--2020-07-30--How to buy a property in Spain: outright and on a mortgage

The Spanish property market is on the rise .
According to TINSA , in 2018 , residential property prices grew by 6.49 % , to €1,493/m² .
However , the house price index has not yet reached the pre-crisis peak levels .
The purchase of a house or an apartment in Spain will become a profitable investment vehicle for investors to put their funds in and a worthwhile acquisition for those who want to relocate abroad .
• None The VAT rate amounts to 10 % when buying a newly-built property and ranges from 8 % to 10 % depending @ @ @ @ @ @ @ existing one .
On commercial property a 21 % VAT is levied .
• None The stamp duty is 1–1.5 % depending on the region of purchase .
• None The legal fee amounts to 1 % of the property price , as a rule .
The lawyer will assist in collecting the documents and be able to act in the name of the buyer under a power of attorney .
• None The notary fee is usually about €1,000 .
The exact amount depends on the complexity of work and the property @ @ @ @ @ @ @ about €750 to the Land Registry .
When taking out a mortgage , the buyer pays €250-450 to the bank for assessing the property .
Step 1 — choosing a property .
The first thing the buyer needs to do is to decide on the property type , budget , the region of purchase and after that start choosing suitable options from the catalogue .
Step 2 — preparing the essentials .
To arrange official procedures of any kind in Spain , a NIE ( foreign tax identification ) number , bank account @ @ @ @ @ @ @ be aware that issuing a NIE number can take several days or weeks .
Step 3 — Making an offer to purchase and reserving the property .
Show the property you like to the lawyer to check it .
If there are no legal issues associated with the apartment , make the seller an official offer to purchase .
At this stage the parties sign the sales agreement , and the buyer pays a deposit amounting to 10 % of the total value .
Step 4 — finalising the purchase .
The notary @ @ @ @ @ @ @ parties have fulfilled all the transaction terms , including the payment for the property .
After that , the transaction is registered with the Land Registry , the buyer receives the keys and moves into the new apartment .
To buy a property in Spain , it is necessary to have a NIE number and a power of attorney if the lawyer is going to close the transaction in the buyer ’ s absence .
The buyer can obtain a foreign tax identification number personally while in Spain or at a consulate .
@ @ @ @ @ @ @ will need to submit : an application form , passport , sales agreement or other documentary proof of the NIE number requirement , non-EU nationals will also have to submit proof of legal entry to the country .
Foreign nationals can easily take out a mortgage , but certain terms for non-residents differ from those available to Spanish citizens .
For instance , a Spanish national can borrow up to 80 % of the property value from a bank .
A foreign national can borrow 60–70 % .
Therefore , you should familiarise @ @ @ @ @ @ @ a mortgage .
Most mortgage loans are issued at a variable rate .
It means that the repayment amount changes depending on the ECB base rate .
When the rate declines , the borrowers pay less and vice versa .
The average variable mortgage rate is 1.7–2 % per annum .
The fixed rate is usually higher , starting from 2.2 % , but the buyer is protected from the bank rate increases .
To apply for a loan , the buyer needs to submit the following documents to the bank : • @ @ @ @ @ @ @ bank in the applicant ’ s home country ; The documents must be translated into Spanish and notarised .
The bank will review the application and give a response in 2–5 weeks .
After the mortgage is approved , the borrower closes the transaction with the seller and becomes the owner of the apartment .
When buying a property on a mortgage , the buyer will face extra expenses .
The mortgage arrangement fee equals to 1 % of the loan amount .
Property assessment costs up to €450 .
Insurance costs 0.2 @ @ @ @ @ @ @ .
• None The maximum LTV ratio for Spanish non-residents is 70 % .
• None The fixed mortgage rate starts from 2.2 % per annum , the variable rate — from 1.7 % .
• None The Maximum loan term is 30 years .
The lendee ’ s age at the end of the mortgage term must be below 65 .
• None The loan payment must not exceed 35 % of the average monthly income .
• None When taking out a mortgage , the buyer will face extra expenses .
@ @ @ @ @ @ @ represent the views of IWB .

The Spanish property market is on the rise. According to TINSA , in 2018, residential property prices grew by 6.49%, to €1,493/m². However, the house price index has not yet reached the pre-crisis peak levels. The purchase of a house or an apartment in Spain will become a profitable investment vehicle for investors to put their funds in and a worthwhile acquisition for those who want to relocate abroad.
The buyer’s expenses
Buying expenses exceed 12% of the property price:
The VAT rate amounts to 10% when buying a newly-built property and ranges from 8% to 10% depending on the autonomous community when purchasing an existing one. On commercial property a 21% VAT is levied.
The stamp duty is 1–1.5% depending on the region of purchase.
The legal fee amounts to 1% of the property price, as a rule. The lawyer will assist in collecting the documents and be able to act in the name of the buyer under a power of attorney.
The notary fee is usually about €1,000. The exact amount depends on the complexity of work and the property value.
The buyer pays about €750 to the Land Registry.
When taking out a mortgage, the buyer pays €250-450 to the bank for assessing the property.
4 steps to the purchase
Step 1 — choosing a property. The first thing the buyer needs to do is to decide on the property type, budget, the region of purchase and after that start choosing suitable options from the catalogue.
Step 2 — preparing the essentials. To arrange official procedures of any kind in Spain, a NIE (foreign tax identification) number, bank account or legal assistance is required. Please be aware that issuing a NIE number can take several days or weeks.
Step 3 — Making an offer to purchase and reserving the property. Show the property you like to the lawyer to check it. If there are no legal issues associated with the apartment, make the seller an official offer to purchase.
At this stage the parties sign the sales agreement, and the buyer pays a deposit amounting to 10% of the total value.
Step 4 — finalising the purchase. The notary certifies the documents and verifies that the parties have fulfilled all the transaction terms, including the payment for the property. After that, the transaction is registered with the Land Registry, the buyer receives the keys and moves into the new apartment.
Documents required for the purchase:
To buy a property in Spain, it is necessary to have a NIE number and a power of attorney if the lawyer is going to close the transaction in the buyer’s absence.
We are primarily funded by readers. Please subscribe and donate to support us!
The buyer can obtain a foreign tax identification number personally while in Spain or at a consulate. In the first case, the buyer will need to submit: an application form, passport, sales agreement or other documentary proof of the NIE number requirement, non-EU nationals will also have to submit proof of legal entry to the country.
Mortgage arrangement
Foreign nationals can easily take out a mortgage, but certain terms for non-residents differ from those available to Spanish citizens. For instance, a Spanish national can borrow up to 80% of the property value from a bank. A foreign national can borrow 60–70%. Therefore, you should familiarise yourself with all the nuances of getting a mortgage.
Types of rates.
Most mortgage loans are issued at a variable rate. It means that the repayment amount changes depending on the ECB base rate. When the rate declines, the borrowers pay less and vice versa. The average variable mortgage rate is 1.7–2% per annum.
The fixed rate is usually higher, starting from 2.2%, but the buyer is protected from the bank rate increases.
Documents required for a mortgage loan:
To apply for a loan, the buyer needs to submit the following documents to the bank:
passport;
NIE;
preliminary sales contract copy;
tax return for the previous 12 months;
statement of account surplus with a bank in the applicant’s home country;
extract from a credit bureau.
The documents must be translated into Spanish and notarised.
The bank will review the application and give a response in 2–5 weeks. After the mortgage is approved, the borrower closes the transaction with the seller and becomes the owner of the apartment.
When buying a property on a mortgage, the buyer will face extra expenses. The mortgage arrangement fee equals to 1% of the loan amount. Property assessment costs up to €450. Insurance costs 0.2% of the property price per annum.
Highlights
The maximum LTV ratio for Spanish non-residents is 70%. The fixed mortgage rate starts from 2.2% per annum, the variable rate — from 1.7%. The Maximum loan term is 30 years. The lendee’s age at the end of the mortgage term must be below 65. The loan payment must not exceed 35% of the average monthly income. When taking out a mortgage, the buyer will face extra expenses.
Disclaimer: This content does not necessarily represent the views of IWB.


investmentwatchblog--2020-07-30--Crime Is Skyrocketing All Over America And Police Officers Are Committing Suicide

What did they think was going to happen ?
For weeks , the mainstream media and many politicians on the left have been relentlessly praising the chaos , rioting and violence that has been taking place in major cities all across America .
Meanwhile , the mainstream media and many politicians on the left have also been demonizing the police and have been promoting those that are calling for them to be defunded .
It was inevitable that there would be consequences , and they have been quite dramatic .
Crime rates are skyrocketing all over the nation , and @ @ @ @ @ @ @ And if the mainstream media and many politicians on the left do not end their irresponsible rhetoric , things will get even worse .
Are there bad police officers ?
Of course there are , just like there are bad individuals in any profession .
But to demonize all police officers because of the actions of a few is something that no responsible journalist or politician should ever do .
Without the police , our society would rapidly devolve into complete and utter chaos .
I am so thankful for the men and @ @ @ @ @ @ @ on the line every single day to protect all of us , and I certainly would not want to live in a society that did not have any police .
Over the past couple of months , the entire profession has been relentlessly demonized by the media and by many of our politicians , and this has resulted in a crisis of morale in police departments all over the nation that is absolutely unprecedented .
And as they see the police being publicly trashed on television , many average Americans have decided that @ @ @ @ @ @ @ do the same thing , and this has especially been true in our major cities .
The way that police officers are being treated in many parts of the country has been completely and utterly shameful , and it was inevitable that some officers would be pushed past their breaking points .
On Tuesday , a newly promoted officer in Chicago named Dion Boyd shocked the entire city when he shot himself in the head… And then just one day later , on Wednesday , a police officer in New Jersey named Daniel @ @ @ @ @ @ @ take any more… These men leave behind a lot of people that loved them .
It greatly saddened me to read that Pagnotta was a “ father of two who loved soccer ” … What are those children supposed to do now ?
Their father is gone and he is never coming back again .
Sadly , life for police officers in America is only going to get rougher because crime rates are absolutely skyrocketing .
According to reporter Alex Berenson , murder rates are up dramatically “ in practically every big city @ @ @ @ @ @ @ as if someone suddenly flipped a switch at the beginning of January .
The truth is that crime rates didn ’ t start to explode until the riots came along .
Once everyone saw what the rioters were getting away with and that the media approved , it changed everything .
Criminals all over the country suddenly felt like they had a green light to go absolutely crazy , and that is precisely what we have been witnessing .
The tragic death of George Floyd should have brought us together as a nation @ @ @ @ @ @ @ to value human life more .
Ironically , in the very city where George Floyd died there have already been more murders in 2020 than “ in all of 2019 ” .
The criminals in Minneapolis have become extremely brazen .
Robberies are up 36 percent so far this year , car theft is up 46 percent , and many of these crimes are being committed in broad daylight .
It is not just a coincidence that Democrats run nearly all of the major cities where crime rates are absolutely exploding .
Tolerating @ @ @ @ @ @ @ the protesters have been engaging in has been a huge mistake , because it just invites even more crime .
The mainstream media and many politicians on the left keep referring to the riots as “ peaceful protests ” even though everyone can see the violence that is happening .
It is almost as if they believe that if they just say the phrase “ peaceful protests ” enough that we will all be brainwashed into believing the narrative that they are trying to push .
During a House Judiciary Committee hearing this @ @ @ @ @ @ @ video montage of the violence that is happening during these riots , and that has gotten him a lot of attention .
But even though most of the “ journalists ” in the mainstream media are criticizing him , I greatly applaud him for having the courage to condemn the rioters .
There is no place in a civilized society for such violence , and it needs to end .
Unfortunately , what we have seen so far is just the beginning , because a lot more civil unrest is coming .
In @ @ @ @ @ @ @ become “ wrong ” and “ wrong ” has become “ right ” , and we have raised an entire generation without any moral foundation whatsoever .
Now we are experiencing the consequences for raising our children so poorly , and they are going to be very bitter consequences indeed .

by Michael Snyder
What did they think was going to happen? For weeks, the mainstream media and many politicians on the left have been relentlessly praising the chaos, rioting and violence that has been taking place in major cities all across America. Meanwhile, the mainstream media and many politicians on the left have also been demonizing the police and have been promoting those that are calling for them to be defunded. It was inevitable that there would be consequences, and they have been quite dramatic. Crime rates are skyrocketing all over the nation, and demoralized police officers are committing suicide. And if the mainstream media and many politicians on the left do not end their irresponsible rhetoric, things will get even worse.
Are there bad police officers? Of course there are, just like there are bad individuals in any profession. But to demonize all police officers because of the actions of a few is something that no responsible journalist or politician should ever do.
Without the police, our society would rapidly devolve into complete and utter chaos. I am so thankful for the men and women in blue that put their lives on the line every single day to protect all of us, and I certainly would not want to live in a society that did not have any police.
Over the past couple of months, the entire profession has been relentlessly demonized by the media and by many of our politicians, and this has resulted in a crisis of morale in police departments all over the nation that is absolutely unprecedented.
And as they see the police being publicly trashed on television, many average Americans have decided that it is fair game for them to do the same thing, and this has especially been true in our major cities. The way that police officers are being treated in many parts of the country has been completely and utterly shameful, and it was inevitable that some officers would be pushed past their breaking points.
On Tuesday, a newly promoted officer in Chicago named Dion Boyd shocked the entire city when he shot himself in the head…
A newly promoted Chicago police deputy chief was found dead Tuesday morning of an apparent self-inflicted gunshot wound in the Homan Square police facility on the West Side. The death of Dion Boyd, 57, was announced at Chicago Police Department headquarters Tuesday afternoon by Supt. David Brown.
And then just one day later, on Wednesday, a police officer in New Jersey named Daniel Pagnotta decided that he couldn’t take any more…
A veteran Trenton police officer took his own life in a parking lot Wednesday, officials said. Sgt. Daniel Pagnotta, a 21-year-veteran of the department, died this morning in Plainsboro, according to a city spokesman.
These men leave behind a lot of people that loved them. It greatly saddened me to read that Pagnotta was a “father of two who loved soccer”…
The statement described Pagnotta as a devoted husband and father of two who loved soccer and making people laugh. His father, also named Dan, is a retired Trenton police officer.
What are those children supposed to do now?
Their father is gone and he is never coming back again.
Sadly, life for police officers in America is only going to get rougher because crime rates are absolutely skyrocketing.
According to reporter Alex Berenson, murder rates are up dramatically “in practically every big city”…
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It’s not just a few cities: homicides are up 10-50% year-over-year in practically every big city – Denver, Phoenix, Los Angeles, Boston, Houston, St. Louis, Miami – everywhere. Forget the crack epidemic. Murder rates haven’t gone this bad this fast since the late 1960s.
But it wasn’t as if someone suddenly flipped a switch at the beginning of January. The truth is that crime rates didn’t start to explode until the riots came along.
Once everyone saw what the rioters were getting away with and that the media approved, it changed everything. Criminals all over the country suddenly felt like they had a green light to go absolutely crazy, and that is precisely what we have been witnessing.
The tragic death of George Floyd should have brought us together as a nation and should have caused all of us to value human life more.
Ironically, in the very city where George Floyd died there have already been more murders in 2020 than “in all of 2019”.
The criminals in Minneapolis have become extremely brazen. Robberies are up 36 percent so far this year, car theft is up 46 percent, and many of these crimes are being committed in broad daylight.
It is not just a coincidence that Democrats run nearly all of the major cities where crime rates are absolutely exploding.
Tolerating the rioting, looting and chaos that the protesters have been engaging in has been a huge mistake, because it just invites even more crime.
The mainstream media and many politicians on the left keep referring to the riots as “peaceful protests” even though everyone can see the violence that is happening. It is almost as if they believe that if they just say the phrase “peaceful protests” enough that we will all be brainwashed into believing the narrative that they are trying to push.
During a House Judiciary Committee hearing this week, Representative Jim Jordan played a video montage of the violence that is happening during these riots, and that has gotten him a lot of attention.
But even though most of the “journalists” in the mainstream media are criticizing him, I greatly applaud him for having the courage to condemn the rioters.
There is no place in a civilized society for such violence, and it needs to end.
Unfortunately, what we have seen so far is just the beginning, because a lot more civil unrest is coming.
In America today, “right” has become “wrong” and “wrong” has become “right”, and we have raised an entire generation without any moral foundation whatsoever.
Now we are experiencing the consequences for raising our children so poorly, and they are going to be very bitter consequences indeed.


investmentwatchblog--2020-07-30--Corona Crisis Will Have Lasting Impact on Gold Market

No matter what shape the recovery is , the epidemic will likely have lasting , positive effects on the gold market .
During the most acute phase of the pandemic and the following economic crisis , there was no time to analyze various WGC ’ s reports on the gold market .
Let ’ s make up for it !
I ’ ll start with the report “ Recovery paths and impact on performance ” about the gold mid-year outlook 2020 .
The World Gold Council notes that gold had a really excellent performance in the first half of 2020 @ @ @ @ @ @ @ see the chart below ) , much higher than other major asset classes .
Given gold ’ s impressive gains , adding between 2 and 10 percent in gold to an average investor ’ s portfolio would have resulted in higher risk-adjusted returns over the pandemic and economic crisis ( as well as over the past decade ) .
Similarly , according to a separate WGC ’ s research , higher allocations to gold would have improved the performance of a typical central bank ’ s total reserve portfolio during the coronavirus crisis @ @ @ @ @ @ @ , the WGC points out that expectations for a V-shaped recovery are shifting towards U-shaped or even W-shaped ( a double-dip recession ) .
Such transformation keep uncertainty high , supporting save-haven assets such as gold .
However , the key takeaway from the report is that no matter what shape the recovery is , the epidemic will likely have a long-term , positive effects on the gold market , strengthening the role of gold as a portfolio diversifier .
According to the former WGC ’ s analysis of potential impact of coronavirus @ @ @ @ @ @ @ deep recession would be , of course the best for the gold prices , but even in the scenario of swift recovery , gold would shine this year and maintain positive returns until 2022 , as the Fed would keep its monetary policy loose , while the real interest rates would remain close to zero .
In a former report entitled “ Gold supply chain shows resilience amid disruption , ” the WGC notes that the pandemic has caused unprecedented disruption to various parts of the gold supply chain , but the gold @ @ @ @ @ @ @ However , the epidemic and the resulting supply crisis has hit the retail segment , which is more fragmented , has more complex supply chain , and holds less stocks of small gold bars and bullion coins .
This is why “ the supply and logistical issues caused depletion of some dealer inventories and left many investors facing long wait times and high premiums ” .
So , not necessarily manipulation , but supply disruptions explain the high premium for coins over spot price .
Interestingly , and somewhat similarly , the logistical @ @ @ @ @ @ @ – triggered by the coronavirus and the Great Lockdown caused the widening of the differential between the London spot price and the futures price on Comex , which jumped from $ 2 to $ 75 at one point .
Not surprisingly , the WGC is , as always , bullish on gold .
The organization believes that “ the combination of high risk , low opportunity cost and positive price momentum looks set to support gold investment and offset weakness in consumption from an economic contraction ” .
This time we agree with @ @ @ @ @ @ @ the following economic crisis and the response of the central banks and governments significantly shifted the already bullish fundamental outlook for gold prices into an even more bullish one , also potentially strengthening the role of gold as a strategic asset .
The thing is that the Fed and other central banks have cut interest rates to zero and reintroduced or expanded the quantitative easing .
In consequence , equity and bond prices are elevated , which increases the risk of pullbacks .
Moreover , the soaring fiscal deficits and public debts raise @ @ @ @ @ @ @ a long-term run up of inflation .
All these risks and uncertainties related to the ongoing pandemic and fragile economic recovery could increase the role of gold as a strategic hedge in investor portfolios .
If you enjoyed today ’ s free gold report , we invite you to check out our premium services .
We provide much more detailed fundamental analyses of the gold market in our monthly Gold Market Overview reports and we provide daily Gold & Silver Trading Alerts with clear buy and sell signals .
In order to enjoy @ @ @ @ @ @ @ , we invite you to subscribe today .
If you ’ re not ready to subscribe yet though and are not on our gold mailing list yet , we urge you to sign up .
It ’ s free and if you don ’ t like it , you can easily unsubscribe .
Sign up today !

by Arkadiusz Sieron, PhD, Sunshine Profits
No matter what shape the recovery is, the epidemic will likely have lasting, positive effects on the gold market.
During the most acute phase of the pandemic and the following economic crisis, there was no time to analyze various WGC’s reports on the gold market. Let’s make up for it!
I’ll start with the report “Recovery paths and impact on performance” about the gold mid-year outlook 2020. The World Gold Council notes that gold had a really excellent performance in the first half of 2020, rising almost by 17 percent (see the chart below), much higher than other major asset classes.
Given gold’s impressive gains, adding between 2 and 10 percent in gold to an average investor’s portfolio would have resulted in higher risk-adjusted returns over the pandemic and economic crisis (as well as over the past decade). Similarly, according to a separate WGC’s research, higher allocations to gold would have improved the performance of a typical central bank’s total reserve portfolio during the coronavirus crisis.
When it comes to the future, the WGC points out that expectations for a V-shaped recovery are shifting towards U-shaped or even W-shaped (a double-dip recession). Such transformation keep uncertainty high, supporting save-haven assets such as gold.
However, the key takeaway from the report is that no matter what shape the recovery is, the epidemic will likely have a long-term, positive effects on the gold market, strengthening the role of gold as a portfolio diversifier. According to the former WGC’s analysis of potential impact of coronavirus crisis on the gold market, the deep recession would be, of course the best for the gold prices, but even in the scenario of swift recovery, gold would shine this year and maintain positive returns until 2022, as the Fed would keep its monetary policy loose, while the real interest rates would remain close to zero.
We are primarily funded by readers. Please subscribe and donate to support us!
Supply Disruptions Made Gold Prices Disconnected
In a former report entitled “Gold supply chain shows resilience amid disruption,” the WGC notes that the pandemic has caused unprecedented disruption to various parts of the gold supply chain, but the gold market has remained resilient after all.
However, the epidemic and the resulting supply crisis has hit the retail segment, which is more fragmented, has more complex supply chain, and holds less stocks of small gold bars and bullion coins. This is why “the supply and logistical issues caused depletion of some dealer inventories and left many investors facing long wait times and high premiums”. So, not necessarily manipulation, but supply disruptions explain the high premium for coins over spot price.
Interestingly, and somewhat similarly, the logistical disruptions – and not necessarily malicious conspiracy – triggered by the coronavirus and the Great Lockdown caused the widening of the differential between the London spot price and the futures price on Comex, which jumped from $2 to $75 at one point.
Implications for Gold
Not surprisingly, the WGC is, as always, bullish on gold. The organization believes that “the combination of high risk, low opportunity cost and positive price momentum looks set to support gold investment and offset weakness in consumption from an economic contraction”. This time we agree with the WGC. The coronavirus crisis and the following economic crisis and the response of the central banks and governments significantly shifted the already bullish fundamental outlook for gold prices into an even more bullish one, also potentially strengthening the role of gold as a strategic asset.
The thing is that the Fed and other central banks have cut interest rates to zero and reintroduced or expanded the quantitative easing. In consequence, equity and bond prices are elevated, which increases the risk of pullbacks. Moreover, the soaring fiscal deficits and public debts raise concerns about the sovereign-debt crisis, or a long-term run up of inflation. All these risks and uncertainties related to the ongoing pandemic and fragile economic recovery could increase the role of gold as a strategic hedge in investor portfolios.
If you enjoyed today’s free gold report, we invite you to check out our premium services. We provide much more detailed fundamental analyses of the gold market in our monthly Gold Market Overview reports and we provide daily Gold & Silver Trading Alerts with clear buy and sell signals. In order to enjoy our gold analyses in their full scope, we invite you to subscribe today. If you’re not ready to subscribe yet though and are not on our gold mailing list yet, we urge you to sign up. It’s free and if you don’t like it, you can easily unsubscribe. Sign up today!
Arkadiusz Sieron, PhD
Sunshine Profits: Analysis. Care. Profits.


investmentwatchblog--2020-07-30--Economic Nightmare: Nearly 50 Percent Of All The Jobs Lost During The COVID-19 Pandemic “May Be Gone

Economic Nightmare: Nearly 50 Percent Of All The Jobs Lost During The COVID-19 Pandemic “May Be Gone Permanently”

When millions of Americans were losing their jobs at the beginning of this pandemic , we were told not to worry because the lockdowns were just temporary and virtually all of those workers would be going back to their old jobs once the lockdowns ended .
Well , now we are finding out that was not even close to true .
Over the last 18 weeks , more than 52 million Americans have filed new claims for unemployment benefits , and a very large percentage of them are dealing with a permanent job loss .
In fact , one brand @ @ @ @ @ @ @ all unemployed workers now believe that their “ job loss is likely to be permanent ” .
The following comes from a USA Today article entitled “ Almost half of all jobs lost during pandemic may be gone permanently ” … What that number tells us is that we are facing the worst employment crisis since the Great Depression of the 1930s .
All of those permanently unemployed workers are eventually going to need new jobs , but meanwhile the U.S. economy as a whole is in a free fall that is absolutely @ @ @ @ @ @ @ scheduled to get the GDP number for the second quarter , and everyone is expecting that it will be really bad… This downturn has been particularly hard on small businesses .
Just check out these numbers… • Yelp reported 71,500 businesses that were listed on their site have closed for good since March 1 .
• 80 % of independent restaurants aren ’ t sure they ’ ll survive the COVID-19 pandemic .
• Nearly half of all small-business members of the San Francisco Chamber of Commerce lost 100 % of their sales @ @ @ @ @ @ @ third quarter was when the U.S. economy was supposed to come roaring back to life .
We were told that it would be the greatest economic comeback in our history , but instead the numbers are telling us that the economy is actually starting to slow down once again .
In fact , U.S. consumer confidence in July is much lower than it was in June… In addition , we just witnessed the largest decline in wholesale inventories since the peak of the last financial crisis… So it doesn ’ t look like @ @ @ @ @ @ @ is happening .
Instead , it appears that we are sliding into the next chapter of this new economic depression .
In June , 19 percent of all U.S. small businesses were closed , but now that number is up to 24.5 percent .
With each passing day , more companies are announcing layoffs .
And every worker that gets laid off is another American that doesn ’ t have a paycheck to spend .
During the last recession , millions of Americans slid out of the middle class , and we are @ @ @ @ @ @ @ leaders in Washington are desperate to do something about this , and almost all of them seem to agree that more socialist programs are the answer .
A fifth “ stimulus bill ” is being put together , and the Urban Institute is warning that if Congress does not hurry we could see the poverty rate in this country rise substantially… If the Urban Institute thinks that an 11.9 percent poverty rate is bad , just wait until they see what things will be like in this country a few years from now @ @ @ @ @ @ @ process of melting down , but it will take some time for the drama that we are watching to fully play out .
Our leaders in Washington and the bureaucrats over at the Federal Reserve will keep flooding the system with money in a misguided attempt to fix things , and this will result in exceedingly painful inflation .
The cost of everything ( including essentials such as food ) will be going way up , and that means that your money will increasingly become less and less valuable .
If you could @ @ @ @ @ @ @ and Zimbabwe would be the wealthiest nations on the entire planet today .
At this point , almost everyone in Venezuela is a “ millionaire ” , but almost everyone is also living in extreme poverty .
History has shown that wildly printing money doesn ’ t work , but the U.S. is going down the exact same path , and it isn ’ t going to be pretty .
Even though things are quite crazy out there right now , this is our window of opportunity to get prepared for the troubled @ @ @ @ @ @ @ are not going to be getting any easier from here on out .

by Michael Snyder
When millions of Americans were losing their jobs at the beginning of this pandemic, we were told not to worry because the lockdowns were just temporary and virtually all of those workers would be going back to their old jobs once the lockdowns ended. Well, now we are finding out that was not even close to true. Over the last 18 weeks, more than 52 million Americans have filed new claims for unemployment benefits, and a very large percentage of them are dealing with a permanent job loss. In fact, one brand new survey discovered that 47 percent of all unemployed workers now believe that their “job loss is likely to be permanent”. The following comes from a USA Today article entitled “Almost half of all jobs lost during pandemic may be gone permanently”…
In April, 78% of those in households experiencing job loss felt that that situation would be temporarily. But now, 47% think that job loss is likely to be permanent, according to The Associated Press-NORC Center for Public Affairs Research.
What that number tells us is that we are facing the worst employment crisis since the Great Depression of the 1930s.
All of those permanently unemployed workers are eventually going to need new jobs, but meanwhile the U.S. economy as a whole is in a free fall that is absolutely stunning. On Thursday, we are scheduled to get the GDP number for the second quarter, and everyone is expecting that it will be really bad…
Data due Thursday are forecast to show U.S. gross domestic product plummeted an annualized 34.8% in the second quarter, the most in records dating back to the 1940s, after the spread of Covid-19 prompted Americans to stay home and states to order widespread lockdowns.
This downturn has been particularly hard on small businesses. Just check out these numbers…
• Yelp reported 71,500 businesses that were listed on their site have closed for good since March 1.
• 80% of independent restaurants aren’t sure they’ll survive the COVID-19 pandemic.
• Nearly half of all small-business members of the San Francisco Chamber of Commerce lost 100% of their sales or closed down completely.
What a nightmare.
But the third quarter was when the U.S. economy was supposed to come roaring back to life.
We were told that it would be the greatest economic comeback in our history, but instead the numbers are telling us that the economy is actually starting to slow down once again.
In fact, U.S. consumer confidence in July is much lower than it was in June…
U.S. CONSUMER confidence fell in July to a reading of 92.6 as coronavirus cases surged around the country, shuttering some bars and other businesses and raising concerns about the future of the economy. The Conference Board reported Tuesday that the index fell in July from a reading of 98.3 in June. The drop is more significant than economists predicted, and is due mainly to a decrease in consumers’ economic expectations for the short-term future.
In addition, we just witnessed the largest decline in wholesale inventories since the peak of the last financial crisis…
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June was supposed to be the month of second-derivative beats in economic data, reaffirming the manic bid in stocks. For Wholesale Inventories it was not. Against expectations of a rebound from a 1.2% drop in May to a 0.5% drop in June, wholesale inventories actually tumbled 2.0% MoM, the worst since the peak of the great financial crisis…
So it doesn’t look like any sort of a “recovery” is happening.
Instead, it appears that we are sliding into the next chapter of this new economic depression.
In June, 19 percent of all U.S. small businesses were closed, but now that number is up to 24.5 percent.
That certainly isn’t progress.
With each passing day, more companies are announcing layoffs. And every worker that gets laid off is another American that doesn’t have a paycheck to spend. During the last recession, millions of Americans slid out of the middle class, and we are watching it happen again.
Our elected leaders in Washington are desperate to do something about this, and almost all of them seem to agree that more socialist programs are the answer. A fifth “stimulus bill” is being put together, and the Urban Institute is warning that if Congress does not hurry we could see the poverty rate in this country rise substantially…
Millions more Americans will be thrown into poverty if Congress fails to enact three policies meant to help families get through economic hardships related to the pandemic, according to a new study by the Urban Institute. The report finds that the poverty rate for the last five months of 2020 will rise to 11.9% if expanded unemployment-insurance benefits, a second round of stimulus checks, and increased SNAP allotments are not approved, a significant increase over the projected annual rate of 8.9%.
If the Urban Institute thinks that an 11.9 percent poverty rate is bad, just wait until they see what things will be like in this country a few years from now.
Our entire system is in the process of melting down, but it will take some time for the drama that we are watching to fully play out. Our leaders in Washington and the bureaucrats over at the Federal Reserve will keep flooding the system with money in a misguided attempt to fix things, and this will result in exceedingly painful inflation.
The cost of everything (including essentials such as food) will be going way up, and that means that your money will increasingly become less and less valuable.
If you could print your way to prosperity, Venezuela and Zimbabwe would be the wealthiest nations on the entire planet today.
At this point, almost everyone in Venezuela is a “millionaire”, but almost everyone is also living in extreme poverty.
History has shown that wildly printing money doesn’t work, but the U.S. is going down the exact same path, and it isn’t going to be pretty.
Even though things are quite crazy out there right now, this is our window of opportunity to get prepared for the troubled times that are ahead, because things are not going to be getting any easier from here on out.