Roger DeChristopher“The Stuff You Won’t Hear Anywhere Else”

The Truth About The State of Our Economy

Can you ever believe a politician?       Especially in an election year.

Can anyone fix the state of our economy?…….Good question.

The two major political parties in our country have a night and day difference on how to fix our economy. Are they seeing what we the people see? Or are they so disconnected from the real world ? Or is it they just don’t care. the problem is the few have so much power over the many!

That being said i wonder can this economy even be fixed? Lets start with the facts from the beginning, according to the Federal Government the unemployment rate is approximately 5.5%, or is it ? those statistics are for individuals who are currently collecting unemployment benefits. But what about those individuals whose benefits have run out. They are no longer counted in the unemployment calculation. Or the Engineer or the Steel Worker who were making a good living in their trades that have been laid off due to companies relocating to another country, who now may be working as a waiter or waitress, or a bartender or maybe working at Walmart. Those people took any job just to be able to pay their bills for a lot less money. They are the UNDER-EMPLOYED.

The true number for those who benefits have run out and the under-employed is about 93 million Americans, that’s almost a third of the population of the United States. Those are the hard facts…not the fictitious numbers published by the Fed.

Why did this happen? Where are all the jobs?

The majority of the job losses are due to manufacturing and car companies moving their operations out of the country, especially to Mexico and overseas, and customer service jobs moving to India and Southeast Asia. These companies are mostly publicly traded companies and it’s all about profits for their shareholders. But isn’t that what big business is all about? Labor costs in those countries are about on tenth of our costs which add to their profit margins. Big business doesn’t car where or how it makes money, as long as it makes money! Its called Greed!

And don’t fell bad for Mexico! Do you know that Mexico is the eleventh largest economy in the world, not many people do. You will never hear that in the lame street media, you will only hear those facts here!

Yesterday the United States crossed the 20 Trillion dollar debt threshold. Can you imaging 20 TRILLION dollars in debt. that is a staggering number, we are only 2 trillion dollars away from being Greece. If that’s not bad enough what really scares the hell out of me is something you never hear about anywhere which is the un-funded debt.

Ok check this out baby boomers are starting to retire and retiring at a rate of ten thousand individuals a day and that will continue for the next thirteen to fourteen years. They have all paid into the Social Security System and the U.S. Government is obligated to pay them the Social Security Benefits they earned. Congress has been raiding Social Security for over 60 years using that money for other projects so how is the Government going to pay those individuals to the tune of 210 trillion dollars. That makes the 20 trillion debt seem like pocket change. How did they let that happen? We are the largest economy in the world and we are heading to become a third world nation because of the incompetence of our leaders who are either clueless or are doing this on purpose, which i can’t decide.

With the market correction and mortgage debacle of 2008 home ownership is at the levels of 1965, not good. we have gone backwards instead of forward. But the stock market is close to all time highs, is it a bubble? Well you tell me here are the facts, the stock market on an up-trend usually has a lot of volume to support its climb, but the volume in the markets have slowly decreased now to about half of what it was before the 2008 correction, the upward trend has been due to buying stock on margin. What is a margin account? It is a leveraged account here’s an example: if you buy 100 shares of Microsoft at 50 dollars a share it generally costs five thousand dollars, but if you buy it on margin you are only putting up half the money so you are controlling one hundred shares for two thousand five hundred dollars. not bad in a bull market. But what happens if the market starts to correct? If the stock drops to a certain level you get what is called a “Margin Call” which means you have to come up with additional money to keep the stock or you are forced to sell the stock at the lower current market price which can send the stock and the market into a free fall for those who have to cover their losses. buying stock on margin are a historic levels which I have never before seen if something triggers a sell off its game over, in my opinion.

And what do we hear from the Federal Reserve? They said they may raise interest rates in September. What planet are they on! Their statement was and I quote “Near-term risks to the economic outlook have diminished” ….What? 52% of Americans cannot meet their monthly obligations you know like paying rent, electricity, car insurance oh and putting food on the table and clothes on their kids backs and what about their credit card debt and student loans, it will extend their debt. See this is what we are dealing with the incompetence of highly educated people with huge salaries and huge positions who haven’t got a clue.

Am I Angry? you think! So what do we do ?

In my opinion we have to adopt a conservative outlook on money and investments. money markets, Cd’s fixed annuities, safe investments. If the market corrects inflation will increase and our money will lose a lot of buying power, precious metals will then be a safe haven either in bullion or in mutual funds and exchange traded funds which should be a hedge to inflation.

It can get complicated, you know the Government can learn a lot about itself if it compared itself to successful businesses, and used say Apple or Microsoft as its mentors instead of Greece, no further explanation needed.





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