Lieberman Votes In Favor of 41% Credit Card Rates

While Dodd Disagreed, calling the predatory practice Usury Lieberman disagreed. The big credit card companies had their most powerful guns at the Senate Banking Committee chaired by Chris Dodd. These malevolent bankers, intent of preserving their profits cited a record 8.8% delinquency rate as reason to keep interest rates high.

Other members of the Senate Banking Committee argued that a person paying 30%-41% interest (not including late fees and over limit fees) was in fact loan sharking and a self defeating counterproductive loan. I personally agree that under such circumstances these terms and conditions are predatory and a mitigating factor, if not the reason defaults spiked to 8.8%.

The bank lobbyists warned that if such a measure passed, and banks had to limit their credit card rates to 15% like the credit unions that the financial markets would retaliate with negative action at the market opening. Sadly the bill was defeated with almost all Republicans (and Lieberman) voting with the Banks.

SEE NY TIMES LINK CLICK HERE

To See The Entire Vote Click Here

If you are thinking about giving Chris Dodd a "pat on the back" don't because Dodd is a supporter of the much more predatory "Pay Day Loans" or those loans aimed at the poor. Those interest rates are virtually unlimited. Suzy Orman represented that Pay Day loans can exceed a whopping 5,000 percent interest. In my opinion, Dodd has a dying career and is playing the game to get his numbers up. Do not think for a second that he somehow cares about your financial problems because he does not.

See the LINK

Dollar Plunging Faster Than Thought Possible

The U.S. Dollar is plunging faster than I imagined. The downward spiral has got even Mexican migrant workers upset as they send their money home only to find out it is worth less and less.

Experts are indicating today on the GCN network, or the "Freedom Radio" link on the main page of this site, that anyone with large deposits of dollar based assets need to begin their diversification of their assets into hard assets, such as Gold, Silver, Real Estate, or things of value that the Federal Reserve cannot create out of thin air.

Some time ago I have written that Real Estate is one of the best safeguards a person can have at the moment, anyone with large debt should consider refinancing at lower interest rates and fixing those rates for as long as possible. If you are able to pay your debt my position has been to not worry so much about fixed interest debt in lieu of accelerated inflation. As the dollar becomes worth less it is my bet that debt will become cheaper and more devalued. On the other hand, fixed assets in real estate will eventually grow as construction costs skyrocket. This scenario, in my opinion will come back to benefit everyone who avoids foreclosure. It may take several years for the market to equalize and get the economy back on track but when it does you hopefully will be happy you held on to your home.

One major concern at the moment for me is energy and food inflation, both of which are married. As energy goes up so does food prices, money may not keep up with inflation. As an American Italian one thing I learned is the importance of storing food during hard times. Should the U.S. Dollar drop another 20% it may be a good idea to get a jump on food prices and pack a pantry for yourself and family.

On a final note, I am not a financial advisor, always consult your personal expert when making major financial decisions. My situation may be unique and may not directly apply to you. This is my opinion only.

David Walker Quits GAO 5 Years Early!

Recently I learned that David Walker of the GAO has quit. This is significant since he was and still is the head of the GAO making him America's chief accountant. While Walker has not left under a flare of protest, he did mention that he attained all of his goals except for one.

The goal he has not attained, was one aimed at Congress to limit spending and take its accounting seriously. He was so frustrated with Congress and their avoidance of the spending issue that he took his message to the public. In his own words, and after many speaking engagements Walker has said that Americans are hungry for "two things, the truth and leadership."

One point worth mentioning here is that Walkers economic calculations show a dismal economic future for America some 20 years from now. They do not specifically take into consideration the market malaise of today. With these factors added it is my belief, that grossly irresponsible monetary policy, wars, and a brutal business climate, sadly could hasten Walkers reality 5 to 10 years early. Jobs, Gold and the value of the Dollar all need to be watched in addition to deficit spending if we are to get a true thumbnail picture of what lies ahead.

One other point to add is that Walkers debt figures are Federal only, these do not include our state debt mired at 14.7 Billion and local debt in our towns and municipalities. When these figures are added together the picture of America's economic future crosses the line into an insurmountable problem that can only be solved through courageous leadership and drastic reform. It will take a special breed of politician, and a very informed public who must be willing to accept that only hard choices will be available. Some doubt that Americans will make the financial concessions, and consequentially will only elect politicians that have no way of delivering on their public spending promises.

While I am very disappointed by Walkers exodus into a public venture, Walker has said he will fight to get Congress, and our next President, to get serious about Americas financial future. The below video was shot over six months ago and it encapsulates his message most eloquently. Although the video is old the message is still new and the same. Enjoy it, and share it freely.

Credit Card Debt Soars to One Trillion!

Some time ago I warned that the faltering subprime credit mess would put pressure on consumers to turn to their credit cards for money. The start of 2008 is showing just that, many American's have now "balooned" their credit card debt to a record one trillion dollars.

This is an enormous problem as our entire economy is built on a system of credit. Debt is what makes it possible to own a home, buy a car, build a business and believe it or not retire. But why does a person need credit to retire? The answer is that inflation, low Social Security payments, and stock market madness has led to a revolution in "Reverse Mortgage" retirement. This allows an elderly person to sell their home to the bank before they pass on.

Identity theft has compounded this debt problem, and resulted in a decrease in FICO Scores. The signs of contracting credit is placing a burden on all areas of the American Economy. Banks afraid of more defaults are eliminating subprime lending, creating superfunds to absorb losses and even borrowing from overseas investors.

Today Gold hit $900.00 per ounce, this is an indication that world markets are becoming increasingly pessimistic about the U.S., and possibly the Global Economy. The real challenge will emerge when the new bankruptcy law is imposed against Americans who believe that going broke is an option as if like it was for our parents. This may not be the case anymore, because the level of difficulty in having your debt pardoned, and being granted a fresh start is not what it used to be.

Bailing on your debt has more in common with trying to bail on child support today. Although there is no "official" debtors prison we do have "contempt of court" of which is the same thing. For now America's future economic fate is no longer in Americas hands. We have something called a "Dollar Peg" that is in the hands of foreign nations who are mired with troubled dollars they no longer want.

Many nations are already distancing themselves from the U.S. currency, while Americas leaders continue to ignore all the warning signs even those from Americas chief accountant David Walker who has gone public on the debt and credit fiasco undermining our national sovereignty.

David's message, recently was again on Glenn Beck.

A Bad Economy Can Land You In CT's Debtors Prison

While the founders of our great nation abhorred the notion of a debtors prison, special interests from several areas of society pushed legislators hard to draft laws that force you to pay up or go to jail.

While no court in this great state would ever dare to use the term "debtors prison" they instead speak the legalese equivalent of "contempt of court." When it comes to paying up "Contempt of Court" and "Debtors Prison" is essentially the same thing. Both represent an individual going to jail for owing money.

This is particularly of grave concern in a bad economic period, because your loss of a job, decline in business, or failure to sell your home could very easily translate to a criminal act.

At the federal level the top jailers are the IRS and the contemptible failure to pay your income tax, file on time, or not report to the agencies satisfaction. However do not be too concerned about the law, because there is no law even requiring a person to pay an income tax but the IRS is all about collecting. According to several experts on the IRS and Tom Cryer a constitutional attorney "there is no law even requiring a person to pay." However do not tell that to Ed and former CT Citizen Elaine Brown a dentist in NH now in Federal Prison on tax charges. No one is exempt from the tax mafia not even U.S. Congressman James Trafficante who is in prison for not paying the tax.

At the state level we have similar but different circumstances. There is the constant flood of divorced people who get regularly incarcerated for not paying, or not paying enough child support, alimony, or what ever the judge orders in court. The process of having a court threaten you with debtors prison will last as long as your contentious other decides to subjugate you to the draconian logic of the judicial officer brandishing his gavel. Our legislators in Hartford drafted the debtors prison legislation under the belief that this is the only way to get people to pay up.

The harsh choice of having a judicial gavel pointed at you demanding your "money or your freedom" has also got the attention of the credit card companies who want to get in on the collection process. With millions of Americans having negative savings for the first time in history, the risk and exposure to the big banks is growing exponentially. Foreclosures, are the first hardship for homeowners, the next is bank Levy's and liens on anything remaining of value, and the IRS also jumps in to tax you on loan money you saved due to the bank selling your home at a loss. In many cases a bank will try to insulate against these losses by going to court and getting a court order against your bank account/s resulting in you bouncing checks, and missing other payments.

These court orders take no mercy on those who receive them, courts will allow banks to take Veterans checks, Social Security checks, and force the elderly, sick, and poor to lose the only access to the few dollars they have. The Federal poverty level of $14,000 per year has been routinely confiscated to the point where the sick and elderly have been dumped on the street for the benefit of collecting a debt. The panic to collect is spreading to all aspects of society, including our hospitals, who ask us about every asset we own upon signing in, and the brazen new generation of attorneys so eager to represent these big establishments to quell their own financial woes.

The need to collect a debt is something I respect as a business man, as I have several customer debts of my own that I try to collect, but under no circumstance is the money I am owed so important that I could stand to ruin a persons life over a few bucks.

The very nature of a debtors prison is abhorrent to me, and what is most alarming is when people who owe money are not even afforded the protections of living at the Federal poverty level. When a court of law would go so far as to confiscate a persons Social security check, or veterans check to satisfy a corporation I take issue with the lack of protections afforded society.

It is my opinion that the entire idea of "debtors prison" has no place in America, CT, or anywhere where freedom rings. Nor do I believe that a person should be stripped of their ability to afford the basics of food and minimal shelter, because of a bad debt situation. People and corporations should be accountable to their own lending mistakes, and courts ought not be used as collection agencies for special interests and big corporations.