Economics Tricks

I live on a small social security check and have to make my dollar buy as much as possible. The big break I got was when the inexpensive made in China products became available. My closet is now stocked with quality clothes, that all have the made in china tag. My closet would be almost empty if I had to buy made in America clothing. The same is true for the rest of the things in my apartment. Without the availability of Chinese products my apartment would be almost empty. The made in china toaster I recently bought cost me six bucks and it works just fine. I saw a beautiful made in China winter coat and bought it for only twenty bucks. It kept me warm through the whole winter. Anybody that says Chinese products are poorly made has not tried them. Every item I have purchased with the made in China tag is still with me. They are great.

People who don't know the truth are always bad mouthing the made in China tag. They say that those goods are produced with slave labor, and are inferior to American products. That sounds like propaganda to me. China has become a humane society and they treat their population as good as, or better than most countries. As I said before their goods are fine, and also affordable. Some say that Chinese products are putting Americans out of work. In some cases that might be true. But why should people be forced to buy an expensive made in America product to keep a person they don't even know working? If traveling was less expensive I would love to spend some time exploring their kind and understanding country.

Now that bargains flow freely from China to The United States I have spare money to wine and dine my lady friends. We order martinis at dinner time and make toasts to China and their affordable products. The owners of the restaurant joins us in our toasts because they too love made in China bargains. If the price or quality of a product is out of line, China will come to our rescue. Those individuals or countries that over price their items will have to find a new business to go into. My lady friends and I love to spend my savings wisely. And we thank China for making it possible.

The White House has recently unveiled a plan to help mitigate the wave of foreclosures that have recently swept the US as reports continue to predict that an even greater number (some estimate as much as 2 million) of Americans are likely to default within the next year.

This plan involves the major US lending companies making an agreement to freeze the relatively low "teaser" interest rates that many Adjustable Rate mortgages are set up with, instead of allowing them to reset at their regular time, usually two years from the loan's issue.

These subprime loans have an artificially low introductory rate of between 7 and 9 or more after the grace period, which many real estate owners have been unable to cope with in recent months, sending shockwaves through global markets as investors in mortgage-backed securities have been spooked. As their loans have defaulted, the bonds that have been repackaged and sold have become basically worthless. Bush's talks with mortgage companies have been concerned with solving both aspects of this problem by extending the introductory rates to a select cross-section of subprime borrowers, thus preserving some of the cashflow supposedly guaranteed to those investors who believed the AAA bond rating for the securities into which these mortgages have been sold off. Since the cost of a foreclosure is often over $50,000, the investors have little choice if they want to salvage any of their investment.

However, the standards used to judge which borrowers qualify for the rate freeze have been left (some say intentionally) vague. They have stated that those who are already in danger of default will be given no assistance, as well as those who can afford to pay their mortgages at the increased rates. What is unclear is how the lenders will determine who is able to pay. Those who fall into the middle bracket, or who are likely to default at some point if rates increase but who are able to make their payments now, are the targeted borrowers for the freeze, which is proported to last from two to five years past the date at which the rate would normally reset. Therefore, some foreclosures are still guaranteed, but the specter of falling property values, which threaten to send the entire US economy into a tailspin, will hopefully be offset somewhat.

Many economists have recognized the mortgage-related woes as a necessary reassessment of the American economy. In combination with the falling dollar, recent developments in this crisis make it clear that the housing market of the US has artificially inflated for years, which would have to be corrected somehow anyway. And, while this scenario is relatively unpleasant, the US has had unsustainably high levels of consumer spending, coupled with the lowest percentage of consumer saving in three decades. These statistics point towards a reckless tendency of many Americans to spend because the economy will always grow. While this assumption has helped industrialize the world through American spending, it may do harm in the long run. With any luck, the real estate landing will be softened and Americans will be more apt to work with their lenders. If not, it may just encourage more recklessness by the government's taking responsibility for the market's woes. Only time will tell.

What is Fair Trade?

Development agencies recognized the important role that consumers could play to improve the situation for producers. By buying direct from farmers at better prices, helping to strengthen their organizations and marketing their produce directly through their own one world shops and catalogs, the charities offered consumers the opportunity to buy products which were bought on the basis of a fair trade.

The FAIRTRADE Mark is an independent consumer label which appears on products as an independent guarantee that disadvantaged producers in the developing world are getting a better deal.

Everything is Fair-trade certified by the Fair-trade Labeling Organization and they adhere to the strictest organic standards, set out by Demeter

More than 2,000 products in the UK from 58 developing countries now carry the FAIRTRADE Mark, including hot drinks, biscuits, fresh fruit and juices.

An example of Fair trade is a children's clothing range produced by a project in Egypt. It is based on biodynamic agriculture (a strict form of organic agriculture, defined by Rhudolf Steiner) and now has seven businesses within it, including a textiles division.

Employees have access to a modern hospital and hot meals. They have a school, a kindergarten, and even a university. Many people learn musical instruments, the architecture is designed with space and light in mind and there is an amphitheater where employees perform music concerts and plays. Employees are involved in decision making.

Buying Fair Trade clothing can really make a difference not only to the local people of third world countries but also to the environment. Do you really want to contribute to the disposable nappy mountain? Or Help sportswear companies exploit vulnerable people in sweat shops?

You can make the difference, look for the Fair Trade mark in supermarkets and clothing stores and when buying online.

The high gas prices, the consequences of the credit crunch on the Real Estate Market, the increased cost of the Health Care and other negative events all, have been affecting the volume of the consumption of the Middle Class segment very negatively.

While the richer segments of the US population, of which financial situation is more stable and do not feel the increased costs so painful, the drop of the current domestic consumption is due to the evident fact, that the majority of the US population which lives from paycheck to paycheck is trying to save money on its daily shopping. A current survey, which some economists and financial experts executed in the Restaurant Business shows that there was an 23% drop on average in the volume of some big restaurant chain. Well, the average US consumers spend less at this time thinking twice or even three times on what products they are willing to spend their money. Those companies and entrepreneurs can remain competitive, and enjoy further increase in their sales volume who either offer unique products which cannot be substituted by others or offer their products on very competitive prices which they harmonize to the weakened purchasing power of the average consumer.

Well, one of the main objectives of the next coming US government and the President of the United States has to be to stimulate the domestic consumption and strengthen the Middle Class. There are several solutions as reduction of taxes, providing financial help for mortgage owners, providing more financial benefits for those families which raise two or more children or single mom with children etc.

One thing is sure: if the US economy wants to keep its role in the future development World Economy beside the EU, Far-East, than first the actual and serious problems of the US Economy have to be solved or at least considerably moderated.

A new dawning has occurred, bringing with it an epidemic of truly false euphemisms. Our techno-gadget society has fallen prey to a vector so shrewd and unassuming that when the completely ridiculous is displayed, new millennium, politically correct terminology illuminates with little resistance. This misrepresented peril in particular has become a major erosion to our country, faith and justice system. Pacification as well as profit has replaced justice.

To begin with, when is it proper to attend a birthday celebration without acknowledgment of the birthday recipient? Maybe this is a petulant squabble. Christmas celebrates the birth of Jesus. Using the content of your wallet and maxing out your credit/debit card has little to do with the celebratory act but as not to offend--further, you are often greeted with 'Happy holidays; Season's Greetings but not the expected salutation, 'Merry Christmas!' The entire atmosphere created nowadays is an inept bombardment of high expectations of savings on items you don't really need, for family and associates that you feel compelled to spend for -all the while hearing, listening and even participating in the traditional Christmas music overhead. Spending is the celebration.

It is especially apparent when daily news reports are focused on the pitiful condition reflected in our economy, the grim forecast of a company's future, massive layoffs and the actual value of a 'green back.' Christmas is no longer the season of giving and wishing well of others; instead it has become the elongation of 'Black Friday.'

Consumerism! This is the holiday solely geared towards getting many retailers into the black before January 1st. Advertisements have become elaborately whorish in the displays of projected wares to be sold.

Thanksgiving has triangulated with Christmas and the illusionary finances used for buying. However, January will reconnect the dots, as the refinancing paranoia will be in demand but unavailable for many sobering consumers.

Another more rooted and penetrating reality focuses on the largest organ of our bodies. It's an amazingly resilient member that has an abrasive historical past. Because of its massive coverage, rules, even laws, past and current, have quietly and furiously articulated attitudes and judging patterns forcing legal and non-legal entities to expose antiquated stereotypes which continue to contaminate the masses, striking a chord with various supporters, even if a burgeoning interest.

A more muted performance has increased on a municipal scale. Racial profiling has become a bit more prolific through tactics used that disproportionately fine, condemn and imprison persons of color at a higher rate for the same offenses wronged by whites.

Stereotyping and acceptance of these attitudes accelerates a more aggressive action. Fundamentally, the impacts for these injustices are fines. Pay up in order to continue to receive the benefit or loose the privilege. These callous acts define anyone with a hew of melanin egregiously. Without the finances to withstand the tremendous paperwork and know how in dealing with the chicanery involved, a first time offender would do almost anything to keep their threatened independence. Most, if not all, succumb to sanctions. In doing so, a non-verbal guilty plea is entered. How's that for a write down for freedom?

Profit has unfortunately found its way into the medical arena too. Sure, everyone needs financial gain but as whose risk? There are a few approaches that could be taken. This is the one, which maims or even kills.

Potential patients want a specific treatment (cosmetic and non health/life threatening surgeries). They fail to learn all that needs to be known about all potential health risks involved. The focus for both doctor and patient is that as long as there is no cap to the financial abilities, the needless surgeries may be performed and even repeated. This is true to plastic surgery junkies. Patient cannot stop requesting surgery for this tuck and that implant. The doctor looses complete sense of the Hippocratic oath taken and becomes saturated in greed.

Just when you thought all the bases were covered, our state government now has the ability to abuse its power by infringing on the dream that many Americans hope to experience. Eminent Domain, a legal principal used to take property from a landowner in order to use the land for a public use, is becoming a more familiar term in our daily vernacular. The owner is offered a 'so called fair price' and the new owner replaces the old property with a highway, municipal or school building however, eminent domain is being denoted for the benefit of developers and commercial interests and profiting at 10 times the cost. Sadly, rapacity has taken over a great many things. It does not seem to be a wanton action but in quite a few cases, a stealthy economic one.

In the 19th century, Arabs depended on barter and trade of gold and pearls for survival. With the discovery of oil and gas in the sixties, the scenario changed. Oil and gas are the nerves of UAE since 1962 and it is the 4th largest producer in the world. The country was not under developed back then. Today, it is the backbone of the economy. In the year 1962, petroleum was first exported. Petroleum dominates the economic power of the city. In the 20th century, the trade was upgraded to the rich oil resources. Oil trading became the primary source of trade and revenue in the Emirate. With the transformation of the trading materials, the city moved on with a fast pace. In 1985, it reached the highest per capita income in the world with US $19,120. This brought all round development in the region. Various job opportunities also attracted professionals and unskilled labour from Asian countries. Unlike oil production the region did not have much infrastructure for agriculture, fishing, sheep rearing, herding or poultry. Although Abu Dhabi is the richest in terms of oil production, it is Dubai which is more recognised as the industry leader in other sectors. At one point smuggling activities dominated the port areas of Dubai, all that has now changed. It has become a flourishing business centre amongst the GCC.

The oil industry is still controlled by the government. They know that it is this produce that brings them on the forefront of development in other sectors. They also know that the oil reserves are likely to dry up in the coming 20 years. They are producing 240, 000 barrels a day and good quality of gas from offshore fields. The main offshore fields are Fateh, Southwest Fateh, Falah and Rashid. The Margham onshore deposit field is in isolation. The Dubai Petroleum Company is the main facilitator in this part. The UAE has helped to stabilise the oil industry in the region and the world. Its rulers have positive and a very balanced way of handling the price structure. It participated in two major petroleum cuts in 1998 and 2000. This was critical to survival of the economy and OPEC also. In 1998 they reduced production by 1.7mbd. In 2000 they also were agreeable to holding the OPEC summit in Venezuela to strengthen world oil supply. They also joined the mega-project of Dolphin initiative where the DSA (Dubai Supply Authority) agreed to buy off Qatari gas. This move consolidates the UAE's policies on oil trade in the region. Dubai contributes 2% of gas reserves of UAE. The state's Dubai Natural Gas Company produces natural gas in the offshore fields and a gas piped from Sharjah. The rulers are being taken seriously by the world community in other sectors.

The natural oil gas industry is still worth its weight in gold, the rulers have become more practical by diversifying in sectors which are proving to be an asset to the economy.

THE U.S. DOLLAR

As we predicted, the drumbeat of PR for the dollar has begun in earnest, and this was and is to be expected.

No governmental financial authority anywhere wants the dollar to fall in a straight line without any rallies and without any slowdown. Now an effort has begun to give the dollar a rally; and it has been successful so far. The battle to slow down the dollar decline will include:

intervention by central banks to protect their dollar holdings jawboning by central bankers and finance ministers in every country to try and give the dollar a further rally

Long-term, we remain bearish on the U.S. dollar. We should however, remember that even the dollar can rally, and it occasionally does. It rallied for eleven months beginning in December 2004. Then it had a spectacular decline from late 2005 until quite recently.

THE CREDIT CRISIS - A BAIL OUT IS UNDERWAY

In the last two weeks there have been several capital injections into the weak banks and brokers.

Abu Dhabi has injected money into Citicorp. Ping An, the Chinese insurance company, has injected money into Fortis Bank, Citadel into E-Trade, Bear Stearns has traded investment positions with CITIC, the U.K. Government and the German Government have injected funds into U.K. and German banks. The Chinese Sovereign Wealth Fund announced that some of their money would go to capital infusions in Chinese banks. Today, UBS is getting a capital injection from Singapore and an unnamed mid eastern source.

Many investors, including sovereign wealth funds and major hedge funds are looking at the possibility of buying up assets on the cheap from banks, brokers and funds who are stuck with illiquid paper. To some, buying subprime debt at 20 cents on the dollar may qualify as cheap.

ECONOMICS

Certainly, the U.S. economy is just beginning its profits recession. U.S. corporate profits will be down for at least two quarters, and for even longer in the housing and finance sectors.

Companies will also have to deal with CPA's being much more vigilant about making their clients write off submerged bad debts and accounting for unpriced, or mark to model investments. Therefore, it is an easy call to say that the recession in U.S. profits and U.S. GDP growth is just beginning. We can expect the news media in coming months to be full of negative news about corporate profits.

THE EASIEST SOLUTION TO SOLVING THE CURRENT PROBLEMS IN THE NEWS IS TO...CREATE MORE INFLATION

Most of the problems have to do with the bad debt clogging the U.S. financial system and contributing to a situation where credit is not available to some borrowers. This can have long-term economic consequences and should be cured as quickly as possible. The recent government intervention will not be a major part of the clean up.

For this reason, we are happy to see the sovereign wealth funds and hedge funds step up and buy heavily discounted assets at what they think are bargain prices. Will they be followed by other opportunistic investors?

The markets have been trying to determine the following:
What is the clearing price for the bad paper clogging up the financial system?
Have we reached a clearing price?
Are their buyers at this price?

When a clearing price for the hundreds of billions of unpriceable assets is found and when a liquid market has developed, then the blockages in the world financial system will unblock and the world economy will have the wherewithal to begin repairing itself. The recent purchases seem to be the first step in this process and we should have no doubt that the first step is the hardest and requires the most courage.

THE MAJOR EVENT IN OUR FUTURE IS MORE INFLATION

For the major economies of Europe and U.S. with credit problems, the short term question remains, "has a clearing price been found?" If it has, then the markets after a few months of volatility will move higher. If the price has not been found, we will likely see stock market declines until such a clearing price is found and the system can become unblocked.

Bigger economies with more problems have a longer process until the problem is cleared up and they can attract investors in large quantity. It is obvious that the current rally in the U.S. and European markets is a short covering rally. It can become a long-term rally when market participants become convinced that a clearing price for problem assets is found and transactions begin to take place.

Outside of Europe and the U.S., in countries with no big damage to their banking system, this repair can begin sooner rather than later.

The question for the fast growing, non impaired economies is how much will growth slow, and how long will it be before growth accelerates? These markets are probably good buys on the 30 to 40% declines they often get, and some of them are already close to a buy point.

We are not yet ready to buy aggressively, but we believe that the best and first opportunity will develop in Hong Kong, India, Brazil and Russia.

WE ARE CHANGING OUR VIEW OF RUSSIA

We have been negative on Russia while President Putin has been consolidating power.

Now he has the power. The country is awash in cash, and the consumer is spending. The market is cheap, and we are embracing Russia now. One big reason is that inflation is going to return to the world and return in an ugly way. Russia has gold, oil and base metals in large amounts.

SOLUTIONS TO THE CREDIT CRISIS ARE SOWING THE SEEDS FOR FUTURE COMMODITY PRICE INCREASES

In the last letter we outlined the four approaches which will probably be used to end the credit crisis. These actions will eventually create inflation and debase the U.S. dollar further, creating a very friendly environment for gold, oil and base metals. If you are a long-term investor, it is a matter of remaining patient while the normal correction takes place.

There will be more in the next memo on the inflationary consequences of the actions taken to stop the credit crisis. Long-term, all of this is very bullish for base metals, gold and energy prices, Brazil, Canada, Russia and other countries which produce precious metals, base metals and oil. Also, it is bullish for those countries which are growing faster than inflation such as China and India after correction; those two countries are currently overpriced

Thanks for listening, and we hope you have a wonderful holiday season

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Treasury securities are one of the safest ways to invest your money and get a stable return. There are some trade-offs to be expected with such a safe return, but the rewards can offset them. Let's take a look at some of the types of treasury securities available and what you can expect from them in terms of safety and return.

The primary treasury security available is the Treasury bill or T-bill, for short. They are issued by the US Department of the Treasury and are sold at a discount from face value. These are generally short term investments that mature in less than one year, and do not pay interest until the maturity date.

Another type of treasury obligation is known as a treasury note. It differs from the Treasury bill in that it matures in two to ten years, and issue interest payments (known as coupon payments) every six months. They are issued with two, five, or ten year maturity dates and have par values of $1,000 to $10,000.

A third type of Treasury security is known as the Treasury bond, and has the longest maturity of all the Treasury securities. The maturity period for these is usually 30 years, and like the Treasury notes, have coupon payments every six months. These are no longer available directly from the Treasury department, as issuance of this type of bond was discontinued in 2001. They are, however, still traded widely on the secondary market and will continue to be until the last one matures in 2031.

A fourth and final type of Treasury security is known as the Treasury Inflation Protected Security or TIPS, for short. This security differs from the other securities in that the principal or par value of the security is adjusted for inflation over the period of maturity. The amount of adjustment is coupled with the Consumer Price Index. As a result, the coupon payments on a TIPS will differ by the amount the principal has been adjusted. This has the end result of protecting the investor against the degrading effects of inflation on the principal value of the investment.

Treasury securities are widely considered to be a very safe investment because they are backed by the US government, the largest economic power in the world. Because of the relative safety of these investments, however, the yield on these securities is low in comparison to other municipal bonds or corporate bonds. The primary goal for someone interested in investing in these securities should be capital preservation rather than growth.

According to economist Eric D. Beinhocker, who published The Origin of Wealth (Harvard Business School Press, 2006), explained "Evolution and economics are both examples of a larger mysterious phenomenon" to be found in complexity theory.

Evolution and economics are not just analogous to each other, but they are actually two forms of a larger phenomenon called complex adaptive systems, in which individual elements, parts or agents interact, then process information and adapt their behavior to changing conditions.

...Immune systems, ecosystems, language, the law and the Internet are all examples of complex adaptive systems.

Evonomics also explains "...in biological evolution, nature selects from the variation produced by random genetic mutations and the mixing of parental genes. Out of that process of cumulative selection emerges complexity and diversity. In economic evolution, our material economy proceeds through the production and selection of numerous permutations of countless products. "

So, economics do evolve from one form to another...naturally! This is the inevitable force of "nature". How to adapt and adopt in order to maximize personal income by applying the principle of "Evonomics"?

Try to shrink down the theory into micro-form...to individual. Studies show some of the rich man has (quite) similar characters :-

• They always carry out "risk accessment" and prefer opportunity rather than. They are adventurous and dare to venture into "any ideas" that can make money even though they have to lose their job!
• They take action instead of just a plain talk.
• They are a good listener. Rich man accept suggestions and opinions. They often look for ideas and turn it into business opportunity!
• They never complaint and will never give reasons when they fail, but learn from mistakes.

So, the ability to adapt yourself and step out of the comfort zone is relatively crucial for an individual to be more competitive. You may choose to stay in a place with the reason that you like a more peaceful environment, but we can't deny the facts of globalization and the ever-changing world of economy...and the first step of upgrading your life (either to become wealthier or more freedom)Begin to think differently, probably opposite the way you used to think!

Remember, "only the stronger survive"!

Oh the simplicity of AWA's; stripping-out those ridiculous award conditions for a common sense approach, beneficial to both parties. "What ridiculous award conditions?" I hear you ask. Where shall I start? How about the employers obligation to pay an extra $6.45 per week if the employee collects butchers bones, or paying an extra $16.19 per week if the employee drives more than one horse, or how about the extra $0.94 per tonne for carrying salt. Can you imagine the administration involved with these stupid rules. When paying staff under award conditions employers must determine normal hours worked, hours worked at time and a half, hours worked at double time, hours worked at double time and a half. Do they get the extra $0.42 per day for handling diapers ? Did they work in the forest this week? In that case under the award they receive an additional $20.32 per week. Did Fred collect some money from Mrs Jones? In that case he receives an extra $20.32 per week for collecting monies (but only if that money was over $600). What idiot sits down and determines these laws? An AWA simply trades off these silly little extras for an increase in the basic wage and sensible overtime rates.

Refining award conditions is not unique to AWA's. Provisions for increased productivity and flexibility in the workplace were introduced by the Labor state government in 1996 when the Enterprise Agreements were introduced. The only significant difference between an AWA and an Enterprise Agreement is the Enterprise Agreements encompass the whole organisation; furthermore, Enterprise Agreements were not attacked by that slick, well managed union scare campaign.

Yes, the award system was designed as a safety net, and there should always be a safety net, but please, keep it simple. Employers have better things to do than spend hours determining silly little allowances when it is beneficial for all concerned to just pay an extra one or two dollars per hour in lieu.

As well as the administrative burden, the current award system makes it very difficult for employers to operate a business out-side 'normal hours' . The Transport industry award stipulates paying time and a half for the first two hours then double time thereafter for any work on a Saturday. For employees to work on a Sunday the employer is forced to pay double time and a half. On top of that the company is forced to pay 9% superannuation, 9% Workers Compensation and 6% payroll tax. Because of this, very few transport companies can operate legitimately on a weekend. I am sorry if that extra Saturday income needed to pay the mortgage is lost by the worker, but what is the point of the company operating at a loss.

Unemployment is a thing of the past. These days, employers must look after good workers more than ever. Pay rates are increasing at a rapid rate as employers struggle to keep good workers. Why penalise employers further with the return to Awards and unfair dismissal laws. If the situation deteriorates any further then small and medium business owners with accumulated superannuation will begin to ask "What is the point?"

The question asked during the Manpower Interview of 1Q2008 employment trends was:

"How do you anticipate total employment at your location to change in the three months to the end of March 2008 as compared to the current quarter?"

Festive food is to be the most popular purchase this Christmas, according to a new set of figures.

In research carried out by PayPal, just under three-quarters (71 per cent) of consumers are set to get a food-related item as a gift to give to someone. Meanwhile, 65 per cent of people are due to buy either wine or spirits. Research from the firm also showed that 70 per cent will pick up CDs or DVDs for present purposes, with 64 per cent getting clothes. Books and sports equipment are to account for 63 and 11 per cent of consumers' expenditure respectively. Some 40 per cent, meanwhile, are to buy electrical goods, the purchase of which could be funded via a cheap secured loan.

The study also indicated that the amount of money spent on Christmas presents this year is to be approximately half of that splashed out in 2005. According to PayPal, consumers are due to spend an average of 154 pounds on gifts during the upcoming festive period. Two years ago, this figure stood at 310 pounds. Findings from the company also showed that men are set to have the highest expenditure out of the two sexes this year, as they will spend 169 pounds. In comparison, women are to splash out 142 pounds. For both males and females, applying for a personal loan could be a helpful way in which to fund festive expenditure.

Commenting on the figures, Cristina Hoole, shopping expert for PayPal, said: "The majority of us really look forward to Christmas because of the unexpected presents we're all keen to receive. Shopping is part and parcel of Christmas and putting a smile on someone's face with a fab present, usually the pick-me-up we all need and like at the end of a tough year. However, from the PayPal findings, this year will be a booze-filled, stomach-satisfying affair.

"There are plenty of bargains to be had by shopping online compared to the high street. If you're prepared to do some digging around on the internet you'll find fantastic and original ideas to ensure you deliver the most creative presents without breaking the bank this Christmas."

While shopping over the internet to purchase Christmas presents, those looking for a competitive way in which to manage their money may also wish to take the time to apply for an online loan. And taking out a personal loan via the web could be advisable for a rising number of consumers after a recent study by Mintel showed that about one in ten Britons will shop over the internet to get the majority of their gifts, with 38 per cent buying some presents online. Overall, it was suggested that retail sales in the run-up to the yuletide period are between two and three per cent higher than this time last year. Meanwhile, a third of consumers state that although their finances will be strained over the course of Christmas, they will still splash the cash. In turn, taking out a quick loan could be one way in which to reduce spending pressures.

Recently I've read a lot of comments from business owners and customers alike complaining about the high cost of gas and how it affects people buying goods ranging from electronics all the way up to furniture.

The truth about high energy costs is that it is the blood of our US economy that keeps us running. And the ironic part it is also the blood of all other developing economies in the world. With such high demand and manipulated oil supply (heard of OPEC?) oil is reaching $100 a barrel, and people will start seeing $4 to $5 a gallon of gas very soon. And it won't just be at the pumps where you are going to be affected.

Electronics that are manufactured in Asia will be affected, as the basic plastic (made from oil) that encases most electronics will be more expensive as a raw material. Delivery costs for large items, such as furniture (sofas, bedroom sets, living room sets, etc.) will cost much more to be delivered from the manufacturer to the wholesaler to the retailer and to you, the customer.

I think the basic psychology of people when they see that gassing up a full tank of their car will cost $100+. Wow! My first reaction will be to just stay home. If I need to buy something I will just have it ordered over the phone/online and delivered.

Making purchases online is a great alternative, because then you don't have to drive from store to store and inquire about the same item over and over again, when you can just sit down with a few catalogs and do some price comparison shopping online.

The state of the US economy with high interest rates, weakening dollar, rising energy costs, war, inflation, and the drastic housing slump makes for a very bleak future. Aside from shopping for your iPod or furniture online, what about groceries? What about visiting family and friends?

Will this mean a matrix of a community all hiding at home because it is just too costly to go out? It will be only a matter of time when businesses will have to raise prices of their products and services to be able to absorb rising energy costs.

Due to positive policy factors such as the national "11th Five-Year Plan" to develop the logistics industry, government support for key areas and weak links in service industries, and emerging industries, China's logistics industry has now entered into a rapid growth period. According to statistics, China's overall logistics turnover value has amounted to US $7 trillion in the first 3 quarters, with a 25.5% growth pcp. Modern logistical demand from socio-economic developments keeps surging, with the ratio between GDP and total logistics value up from 2.9 in HY06 to 3.2 HY07, implying per GDP output unit in China needs to be supported by 3,2 units of logistical turnover.

However, behind this rapid development of China's logistics industry, many practical problems have been hidden, among which the high cost of logistics is an obvious one. According to China's Third Party Logistics Market Research co-produced by Mercer Consulting and China Federation of Logistics and Purchasing in 2001, China's logistics costs amounted to 20% of GDP. Even in 2006, the logistics portion still remained 18.3% of GDP, almost doubled the 9.5%-10% level in developed countries.

Down to the detailed application level, such high logistical cost issue could be attributed to the following aspects:

First is the low value adding nature of logistics business in China. In 2005, China's logistical unit (per ton cargo) income yielded less than $20, only 26% of their counterparts in US market. China's logistics industry is still at a low and fragmented level, with few value adding services and few value adding businesses. It is yet to develop a multi-variety, high-frequency and low volume transportation pattern.

Second is the low level of logistical socialization. Legacies from the planned economy, such as "fragmentation", "regional blockade," and "industry monopoly" are still omnipresent. In such circumstance, relevant industries, departments and systems are still operating on their own, lacking cooperation between each other, and hindering the overall improvement of logistical efficiency.

Thirdly, the organization and management of logistics remain to be improved, and this is the main gap between China and countries like US and Japan. Low organisation and management expertise has led to high warehousing costs and management costs. At present, China's logistical management cost to GDP ratio is high at 2.5%, compared to 0.4% in US. This is mainly due to constraints in the system and mechanism, as internal divisions, monopolies and blockades are still present. A competitive logistical market that is fair, just and open has yet been established, and there hasn't been a controllable and freely operating logistical mechanism. But there have been some improvements, with management cost growth in the first half year, down 3% on the pcp and down 1.1% from the first quarter.

The fourth is the high stock keeping cost, which is mainly due to the high inventory level in Chinese industries. The ratio between social inventory level and GDP in US is about 3%, while it is as high as 20% in China. According to statistics, working capital turnover in large industrial companies in China is currently 2.1 times, and 2.8 times in key capital goods companies, far lower than the 10-20 times in developed countries. This means capital tied-up, low income and reduced in corporate competitiveness.

Stagflation is a term that strikes fear into the hearts of economists worldwide because it can have a devastating impact on an economy and the people living in it. To understand what it is, and why it is so dangerous, you have understand how money controls production in an economy, and you have to understand how stagnation can lead to far more uncomfortable things down the road.

What You Need to Know About Money

We tend to think of money as a kind of "fixed" object. There is only so much of it in the world, and it moves from person to person when people buy things. Both of those obvious truths are dangerously inaccurate.

Money is actually a "place holder". The dollars in your bank account and in your pocket represent goods. A baker cooks a loaf of bread, gets five bucks, and he can buy flour or an hour of baby sitting from the kid next door. Dollars are how we trade things in this nation, and they are how we decide the relative value of things. A Jaguar costs more dollars than a Honda Accord, perhaps because more time and materials went into the Jaguar or perhaps because there are just fewer of them.

Now, if there were only a fixed number of dollars in an economy, we'd have a huge problem. Because we actually make more stuff every year. If we had a fixed number of objects and the same number of dollars, the "price" of every object in dollars would go down. For example: If there are only ten dollars and ten apples in the world, you might pay a dollar per apple. But what if there are suddenly twenty apples? The price of an apple might fall to $0.50 (half a dollar). The guy growing apples would think his apples weren't as valuable as they used to be, and he would probably decide to produce less. The same "falling price" rule applies to almost everything. What if you found out tomorrow that your job suddenly paid half what it currently does? Would you quit and find something else to do?

How Much Things Cost Determines How Many Of Them Get Made

Now that you understand why we need more money circulating every year, you'll be happy to know that the United States has a way to increase the amount of money to keep up with the production of things. Actually it has several. First, the government can just print money. It uses all kind of complicated tools (like buying bonds or making loans to banks) to release more money into the economy. It often does that when it wants to fund things like wars.

The Federal Reserve actively manages money all the time. It sets the rate at which banks can borrow money from the Fed to loan to others. In the months after 9/11, the Federal Reserve set the reserve rate very, very low to stimulate the economy. They had to do that because businesses and consumers were not spending money and many costs (like airline security) had suddenly skyrocketed. Without the infusion of cash, nobody would have bought anything and businesses would have stopped producing the stuff people weren't buying. Businesses would have laid people off, thus further reducing the ability of people to buy things.

That downward spiral is called "deflation" and many folks blame it for the Great Depression. The stock market crash of 1929 sucked a huge amount of money out of the economy, and failure to put it back in made businesses stop production and fire workers, who subsequently wandered the streets looking for something to do. Some guy called Keynes said we'd fallen into a "liquidity trap" and convinced the government to spend money on stuff like building Hoover Dam. The economy got a little better. We had a big World War, the Government printed a bunch of money, and it got better still. That was the economic boom of the 50's.

By this time you understand that money is not a passive thing. Changing the amount of money circulating in an economy, shocks that dramatically impact spending habits, dramatic increases in the real cost of things (like oil) relative to other objects (like food) can have a massive impact on the lives and well being of people who have to live in that economy.

Which Brings Us Back to Stagflation and the Credit Crunch of 2007

Having read all this, its easy to imagine the Government should just print money all the time. Obviously its good for production. The problem is, the more money you have circulating, the less any given dollar can purchase. If you are an investor with a lot of cash, a person living on a pension, or a country that has a lot of its wealth in dollars, you don't like having the dollars you hold become worth less every single day. So you use those dollars to buy something like Euro's that hold their value a little longer. If you are selling things to people with dollars, you charge them more dollars every day. The result is no one wants dollars and prices in dollars go up very fast.

Over the last seven years, the price of oil has gone from $30 a barrel to over $100 a barrel, resulting in $1.29 gallon of gas going up to over $3.50. The cost of health insurance has gone up by more than 400%. The average price of a house in some areas has almost doubled. The cost of food has risen more than 10% this year alone. Five years ago the Dow was at 8000, and earlier this year it was at 14000. That increase far outstripped the growth the nation saw in real production during that time.

Very low interest rates implemented by the Federal Reserve after 9/11, and the increased government deficit spending occasioned by the War on Terror, have created much inflation in the price of things. Wages, have not kept pace with with inflation. An employer who gets twice as much for his bread may not instantly decide to pay his bakers twice as much.

In order to maintain our standard of living, most of us have resorted to the use of credit. Some of us charged up our credit cards. Some of us borrowed against our homes. In effect we've created a new source of revenue based on the increasing value of our homes and the liberality of banks in lending money.

What Went Badly Wrong

People borrowed against their homes, or purchased new homes, with help from Banks. Wages aren't keeping pace with inflation, so folks can't make the payments on all those variable interest rate loans. They are losing their home. Perhaps more important many, many folks are spending far less because they are borrowing less. Partially its because folks have gotten scared. Partially its because banks are less likely to make loans.

People are spending less. That means that producers are getting the signal to produce less. So they are not giving out wage increases. They may be firing people soon. If some way isn't found to make credit available to people and businesses so the amount spent can continue to increase, we will slide into recession.

Now, here is the really ugly thing. It is possible to have massive inflation and massive recession at the same time. If you have a massive number of dollars circulating, and no one trusts they will hold their value for very long, folks will stop producing new goods and selling them for those dollars. Its too risky to invest much in enterprises that might receive a bunch of worthless dollars. That's the kind of ugly thing that happened to Germany in the 1930's where the world saw wheel barrows of cash chasing loaves of bread.

What You Can Do

The truth is, this is a tough situation. The tried and true suggestions in years past are not the ones that will work in times like these. You may actually have to borrow money to avoid being beggared by this national financial crisis. Here are some suggestions

• Continue to get credit at really favorable rates. Banks are making some kinds of loans in great numbers because their balance sheets look so bad. For the most part, Banks only make money when they make loans. Use cheap credit to buy things that do produce money. If you can get government secured fixed loans through the Small Business Administration to start a solid small business, you probably should. Check out SBA Express loans for small businesses and Veterans.
• If you can get a student loan, do it. Get yourself a better, more high paying job now because if we head into recession you may have a hard time finding one later. Prepare yourself for a more competitive labor market.
• Ask for a raise or aggressively search for a higher paying more secure job. You really do need more money to survive.
• If you're situation is dire, contact a credit counselor and get out from under those unsecured credit cards. They are unsecured for a reason. They can't take your house, and you need a place to live. Negotiate with banks to get your interest rates on your mortgage fixed, or to prevent them from going up. A quick tip on home foreclosure. Always demand that a bank prove it holds the note on your home. In many cases they can't because your loan was sold as a package of mortgage backed securities. That means you don't owe the bank anything You own whoever bought the package something and they have to be the one who sues you.

There is no guarantee that any given person will survive and prosper in an economy that is taking a dive, but understanding the forces driving our economy can certainly make it easier to do the right thing. What you cannot do is pretend that its business as usual here in the United States. Like our parents and grand parents before us, we will have to work hard to survive serious financial storms or be devastated by them.

The unprecented intervention of the world's central banks yesterday, must have given hope to home owners and borrowers who were set to see the cost of credit rise. The Bank Of England, The Fereral Reserve, and the Central Banks of Canada, Europe and Switzerland are set to pump billions into the international money markets in a desperate bid to stave off the credit crisis.

This is the first time the world's major central banks have taken co-ordinated action to pump extra money into the financial markets and it highlights the depth of concern over the global economy.

To have these banks club together so openly underlines that it is a global credit crisis we are all facing. It also may herald a move towards an international framework for markets and financial controls, a 'New World Order' as it were.

However, will this injection of cash actually rescue us from recession? Despite recent interest rate cuts, and this latest intervention, America still looks poised to return to dark days, as the reach of sub prime mortgage scandal still cannot be accurately predicted.

Banks are suffering a loss of confidence in the market and in each other, and as they stop lending money to each other, they all suffer a shortage of credit, and the higher cost of borrowing is then passed down to ordinary consumers. Many have yet to pass interest rate cuts onto their customers, a sure sign they're hoarding their stash.

The massive cash injection may ease the markets short term, but it will also have another, less attractive side effect. Huge liquidity injections like this floods the market with cash, thus devaluing the currency, and so we get inflation. Prices already feeling the pressure because of high oil and food costs may soon start rising.

So what can we do? The first thing is to reduce your credit holdings as much as you can as quickly as you can. Take control of your money and be careful where you invest. If you can, teach yourself how money works, open your eyes to the credit economy and true venal nature of the banks.

Special Report : The Bush Plan 12/09/07

(Or how politicians can scare us and the markets.)

Here is the first (hopefully of many) Special Report from the EconomyGuy. The topic this time is President Bush's Plan to maintain current interest rates on sub-prime mortgages. There is so much to say about this topic that this report could be too long. I will keep it shorter by making some simplifying assumptions, and drawing conclusions on what the plan means. One thing is way too obvious. It is very hard to find DETAILS on how this plan will be implemented. That omission in the news tells me that either people don't want to talk about it, or it hasn't been fully worked out yet.

The plan is very simple to understand. Some sub-prime mortgages (partial definition below) that adjust upwards after 1/1/08 will maintain its current interest rate instead.

The Bush Plan was voluntarily agreed between the banks and the government. Wow. This is a whole topic in itself.

The anticipated end result of the Bush Plan is to create a stable financial industry sector, and end the liquidity crisis for real.

Where is the Self Interest ????

First and foremost, please understand that the Bush Plan is political. Its thrust and its timing are political. This is a 5 year initiative. Why start in 2008? Well, 2008 is a presidential election year and the beneficial, social image of this initiative is meant to help the President's party. Why 5 years? In 4 years there will be another presidential election year, and the program will be continuing.

Not to be missed, there is the Bush legacy to be considered. There is undoubtedly a true desire to help some poor schmuck that got sold a lousy sub-prime mortgage.

Lastly and on the surface only, it appears that the banks are being saved from having to foreclose on these bum loans. So, on a shallow thinking economic basis, it could be concluded that Bush is trying to help his big business friends. I personally don't believe this last assertion.

Who is getting helped ????

The headlines say that 1,200,000 mortgages will be able to take advantage of the Bush Plan. The Center for Responsible Lending counters that only 145,000 mortgages will take advantage of it. Big numbers make better headlines.

To qualify you must have one of the rate adjusting sub-prime mortgages, have obtained you loan from 2005 through July 2007, have made all (or all but one) of your payments on time, be adjusting after the first of the year, not have a "no doc loan", and the mortgage can't be held by a speculator (non-home owner), have a credit score of less than 660, have the increased interest rate be at least 10%. That eliminates a lot of people, and can be viewed as "unfair." You will probably see a lot of news and TV stores coming out over the next month on the lack of fairness in the plan. Those pieces will be politically motivated and should be ignored. Think about it awhile. Any plan that any human could create to try to help the folks holding sub-prime mortgages would be "unfair" to someone. Taxes are unfair. Life is unfair. Get over it.

I believe that a large part of the sub-prime mortgage problem is held by speculators - big and small. During the big real estate run up, lots of people were caught up in the greater fool theory (a greater fool will come along and buy it from you), and were left holding the bag. To speculators, I say: "Pay the piper."

Equally, a large number of people bought a more expensive home because they could afford the monthly payments using the "teaser" interest rates. Most of these people knew their rates would go up in the future. Some of these people were "sold" a pig in a poke, and didn't fully understand the ramifications of the "teaser" rate. I have a lot of compassion for this latter group - and my classic answer would be to find a good lawyer (and there should be some big class action suits coming out of this.)

The REAL problem for all of these people - especially if their homes are in the quickly depreciating states (FL, CA, AZ, NV, MI and others) - is that they maximized the amount of their loan (like 100% Loan to Value), and their house is now worth less than they owe. Lots of these people are just walking away from their houses and loans. The Bush Plan won't fix the problem that someone owes more than the property is worth. That's another reason for the 5 years. The White House is HOPING that the real estate market will turn around by then, and make these loans whole again. The plan is also HOPING that people won't walk away as fast. (My years of experience tells me that HOPE is not a good basis for any plan.)

The financial industry estimates that half of those who qualify for the Bush Plan will "freeze" their interest rate, and half will refinance into a fixed rate mortgage. The latter half aren't being saved by the plan because they could refinance anyway.

Who would someone approach to keep their interest rate from rising? The only place they can go is the "collection agency, aka loan servicers" that takes their mortgage payment. I wonder how motivated those folks will be when the phone starts ringing. Herein lies the beginning of some bureaucracy. For an entrepreneur, there has got to be a big potential to make money in this service industry. For con artists, there is a windfall coming up.

Who are the winners ????

That's easy. The lawyers. There will be many different types of lawsuits coming out of this plan. Also, those people who actually take advantage of the frozen interest rates may become a winner, but that has yet to be seen. The details of their renegotiated, frozen mortgage have yet to be seen.

What about the Banks and Financial Institutions ????

This is where some of the real story resides. The headlines state that the government got the banks to volunteer to take this action. What banks? Yes, there are some banks (like Bank of America) that make and hold their own mortgages - and those banks have the business authority to negotiate a change in the terms of their loans.

However, many, many, many sub-prime loans were purposely funded and bundled and sliced/diced and sold on as bonds by our glorious Wall St. financial institutions. Who owns those mortgages? Does the bond holder own the mortgage? Who can agree for the owner (whoever the owner is) that the terms of the notes/mortgages they own can be changed? That is a fundamental question that lawyers will ponder and litigate. Lawsuits have the potential of stopping this initiative.

What is the impact on the markets ????

Well, the stock market loves it --- so far.

The bond market hates it --- period and forever. You see, the bond market only loves certainty. The bond market started a meltdown of its own last Wednesday, and accelerated on Thursday and Friday. All caused by the Bush Plan. Here is how the bond market thinks. A bond - any and all bonds - have a face value, interest rate, and period of payment. These "terms" are known. They are constant. The value of the bond is easily calculated (using some complicated equations) and taking into account prevailing interest rates (think US Treasuries) and the rating of the bond (think risk associated with paying back the principle and interest). Yes, there is a market for all these bonds, and the prices fluctuate around this calculated value - but the bond market doesn't have the "irrational exuberance" (overvaluation or undervaluation) of the stock market. That is fundamentally why bonds are considered boring.

So, the government comes along and convinces someone (who????) that the "terms" of these sub-prime mortgage bundles can change without the approval of the true owners. That introduces a LOT of uncertainty into an otherwise certain bond market.

The bond market is made up of people - from ordinary people like you and me all the way up to Central Bankers. Would you like to make an investment in the bond market only to find out that someone decided to change the game? No, of course not. That "uncertainty" has spooked the bond market, and fewer people are currently willing to purchase bonds, and some bond owners are selling.

Let's look at a foreign Central Bank US Treasury purchaser. You definitely would be saying to yourself: "If the US Government can change the terms of sub-prime mortgage securities, they could change the terms of US Treasuries." And you know, she's right in thinking that terribly negative thought. Governments are sovereign and can do whatever they want.

It's too early to understand the impact on the currency markets. Why would there be any impact? Well, if there is a meltdown (think higher interest rates leading to a certain recession) in bonds, the dollar would initially get stronger. Higher interest rates traditionally attracts money. However, these higher interest rates would also come with some "uncertainty", so that should lessen the dollar's attractiveness, but it would still increase in value. If there is no meltdown (the probable scenario), but just a little higher long-term interest rates, there should not be much of an impact. In an extreme lack of faith in US Treasuries, Central Banks would dump their US Treasuries and the dollar would collapse (also an unlikely scenario). Aren't currency exchange rates interesting --- pun intended??

The commodities market would be driven more by fundamentals. If we're driven into a recession, commodity prices will fall (demand falling). If the dollar falls, non-US produced commodities like oil would increase in price to maintain their value.

What can you conclude from all this ????

The Bush Plan is a bureaucratic mess in the making. A few people will take advantage of it (if they can find someone to talk to about it).

A bunch of people will walk away from their loan because their home is worth less than the mortgage.

The financial industry is praying that the securitized asset market stabilizes. If that happens, the lousy investments they made using sub-prime mortgages would stop going down, and they could create a real balance sheet. That would have positive ramifications for the financial industry as a whole, and more confidence would translate into greater availability of money for loans. This would be the beginning of an upward spiral for that industry. Meltdown would transform into a phoenix rising from the ashes.

Ownership of the sub-prime mortgages in question has yet to be determined, and lawyers will get rich answering it.

A lot of foreclosures will continue to happen. People will walk from their loans. Many people are excluded from the Bush Plan, and will be unable to make their payments. If only 200,000 people take up the offer, that will not make a dent in the foreclosure wave that is coming. The housing market will continue to crash in selected areas, and values will continue to decrease. Buying foreclosures will be a great way to make money in about a year or so.

What happens after 5 years. Let's assume the old loan terms come back into effect. The payments will ratchet up, and the foreclosures will happen then. So, under those circumstances, the Bush Plan only delays the inevitable. And for only a small number of houses.

I'm predicting that the "uncertainty" in the bond market will go away as more of the unknowns are known. This could take another month or two to play out. In the meantime, interest rates could get pushed up, and that would make the US economic slowdown worse. The Fed will be pushed into dropping the Fed Funds rate next week as they are trying to avoid that slowdown. You see, if a plan could have been pulled off without the "uncertainty" introduced by this initiative, the Fed might have had a reason to NOT lower the Fed Funds rate --- as a real plan to solve the liquidity crisis was in place. As it is, they're stuck. (Remember that only fools make predictions. Caveat Emptor.)

The real market to get hit will be the mortgage market. It is now a given that the terms of a mortgage can be overturned by the government. Why would anyone make a loan? Well, they would to the right person for the right house. Loan conditions will be strengthened, and many currently qualified folks will lose out. I wouldn't be surprised to see ARMs disappear, but I don't believe that will happen. The conservative inside me says that tightening up on loan qualifications is a good thing. After all, look what happened when anyone or their dog could get a mortgage --- assuming the dog has a social security number. Not as many people will "own their own home" - and the American dream will be slightly smaller.

Maybe in the end, all of this is a good thing. Only time will tell.

My last conclusion is that the Bush Plan will create a mess; could have the positive side benefit of better lending practices; and is dangerous because it introduced "uncertainty" in the securities market. This is like opening Pandora's Box - you really can't predict the true end result. Let's hope it's all a lot of hot air to the majority of Americans.

Now you can watch this news story on TV or in the newspapers, and have an inside understanding behind the various machinations as they occur.

Homeowners are coming under increased financial pressure, new figures indicate.

According to a study released by the Council of Mortgage Lenders (CML), payments made on mortgage interest over the course of October reached the highest peak recorded for more than 15 years. During the month, first-time buyers contributed just over a fifth (20.6 per cent) of their income towards mortgages, a slight increase from the 20.4 per cent noted in September and the uppermost point since 1991. Meanwhile, consumers who are already on the housing ladder are paying 17.6 per cent of their salary, the largest proportion paid since 1992. As a result of making premium payments into mortgages, it could be possible that homeowners are experiencing problems in meeting other demands on their finances, such as utility bills, personal loans and credit card invoices.

The CML also pointed out that lending "remained strong" during the course of October, accounting for ?33.5 billion - a rise from ?30.6 billion during the same month in 2006. Further research from the firm indicated that those looking to take their first steps on to the housing ladder borrowed an average of 3.36 times their income in October, a fall from the 3.38 in September. Existing homeowners, meanwhile, borrowed 3.02 times their salary - a figure unchanged for two months now. However, with the council stating that the majority of this lending was approved before the Northern Rock crisis and global credit crunch took full effect, it was suggested that borrowing via loans is set to be "more subdued".

Commenting on the data, Michael Coogan, director general for the CML, said: "October is the last month we expect lending volumes to be higher than a year ago as lenders and borrowers will behave more cautiously in an uncertain and slowing market environment. Lenders have already responded to the credit squeeze by tightening lending criteria and increasing some loan costs. And looking ahead, any uncertainty in the housing market may mean that borrowers are less willing to stretch themselves financially. However, overall, in the coming months we expect the lending figures to be driven more by supply factors rather than lower consumer demand."

He added that those consumers coming to the end of their fixed-rate mortgage deals during the early stages of 2008 may well see an increase in their monthly repayments. However, Mr Coogan advised that the "potential impact" that this may have could be offset by the Bank of England's decision to lower the base rate earlier this month and predictions of future cuts. In turn, this may see homeowners manage to make loan payments and service other financial demands with greater ease than was originally anticipated.

Homeowners concerned about pressure on their ability to make mortgage repayments may wish to consider applying for a cheap debt consolidation loan. In taking out a consolidation loan, borrowers may be able to pay off numerous debts quickly and so free up more disposable income each month. A debt consolidation loan may be especially advisable for residents from Suffolk. Figures from the Ministry of Justice indicated that the level of bankruptcies in the county increased by 13 per cent during the three months between July and September, in comparison to the preceding quarter. However, those who are wishing to reduce pressure on their spending but are looking to avoid the damage to credit files that bankruptcy can bring may find that a consolidation loan is for them.

A Trojan horse - There is a cause and effect related to illegal immigration that needs to be told. Free Trade is the Trojan horse for illegal immigration. The first question to ask is, why did these immigrants come to the United States?

They came to seek jobs. Then what happened to the Free Trade that was supposed to provide jobs in Mexico?

The massive migration of workers demonstrates that Free Trade has failed. The United States has moved more than 4,000 factories to Mexico to save the Mexican economy since 1956 including more than 2,000 that were moved since the NAFTA trade agreement was passed in 1993. Obviously, the exporting of our factories to Mexico did not work, and after getting NAFTA passed, President Clinton had to rush billions of dollars to Mexico to save the peso.

In the end, an impoverished, destitute working class was created in Mexico, and a working poor class was created in the United States, NAFTA, proved to be the Trojan horse behind it. Illegal immigration speeds up the race to the bottom for workers, and workers' dignity is crushed in both countries - while the Globalist Free Traders call for more of the same. Why would they claim an era of protectionism while hundreds of U.S. factories were being moved to Mexico. Apparently, definitions of Free Trade did not include making factories portable ready to be moved from place to place for the sake of cheaper labor.

Franklin Roosevelt said economic diseases are highly communicable. Today, they are an epidemic in more ways than one. President Bush has branded the term " Terrorism" to fit many different categories. Perhaps, he should include America in Terror right here in the USA as the de-industrialization of the USA goes on and on. The low unemployment rates are an insult to our intelligence especially when compared to the past when most jobs in the USA were full-time with full benefits.

The latest Wall Street Journal - NBC News poll is confirming this all now with nearly a two-to-one margin, Republican voters believe Free Trade is bad for the U.S. economy - the same should apply to Mexico as their workers come to America seeking economic survival even though they too report a low unemployment rate.

Many of the presidential candidates say we can not go back to protectionism. Apparently, they include the 4,000 factories moved to Mexico as protectionism and the fact that Trade Deficit has broken records for many years now. How can they talk about selling things abroad when the Trade Deficit has lasted for so many years. The real commodities of Free Trade are workers. Illegal immigration proves it.

See Tapsearch Com Tapart News and Art that Talks mobile user friendly summary version at http://tapsearchnewsmobile.filetap.com/

It seems that there is a bit of backlash in China these days as bloggers bad mouth the United States of America online. How can this be, the United States has taken a severe economic hit due to our free-trade stance on China.

China in fact, has not reciprocated fair trade with the US, often making it very tough for US companies to sell stuff made here. Worse still, there are 6,000 Chinese Technology spies in the US, stealing our proprietary information. Why are Chinese bloggers so ungrateful of the US, Indeed, I have something to say about this. I want to say to these anti-America, Chinese Bloggers:

If you really feel that way, what if ALL US Citizens boycotted ALL Chinese Products for 6-months? Can you imagine the implosion heard round the world? Your nation is so lucky to be on the US preferred nation trade list, you do not even realize, especially after the toxic toys, poison toothpaste, fake protein food and killing US pets. Any other country would have been completely banned. Don't get too big for your britches just yet young man.

You need us as much as we need you right now. Your nation needs infrastructure, income, energy, water, environmental fixes, etc. Don't kid yourself when talking about America, learn some economics, we are friends not enemies, treat us as such, you do not want our reciprocation of such mean-spirited comments, thru a massive consumer backlash reality check, just trust me on that.