economy

Tool for Battling Coming Inflation

If you've been following my blog, you know that I take great interest in understanding money. Why every single human who uses money on a regular basis doesn't also share this interest is beyond me. With trillions of dollars created by actions of Congress, the Federal Reserve, and the Treasury … [Read more...] about Tool for Battling Coming Inflation

How to profit from real estate investments in a soft and declining real estate market

Three years ago real estate investing was hot. Today, many people act as if the opportunity has passed. I contend that the opposite is true. In the past, as a mortgage banker focused on originating mortgages for investment properties, I started listening to and learning from my real estate investor … [Read more...] about How to profit from real estate investments in a soft and declining real estate market

I.O.U.S.A viewing this weekend on CNN

CNN to Broadcast I.O.U.S.A. | Obama Foresees Trillion-Dollar Deficits | A Bipartisan Plea for Fiscal Responsibility | The Government We Deserve CNN to Broadcast I.O.U.S.A. The public has spoken, and we've listened. In response to demand for information about our country's financial challenges, … [Read more...] about I.O.U.S.A viewing this weekend on CNN

When the economy attacks: Fed fights back with toy gun

Today the Federal Reserve lowered their key rate to 0%. Huh? How does our economy work when money is lent for no interest? Well, they technically lowered the key rate to a range of 0% to 0.25%. This is the first time the Fed's key rate has been this low ever. Without getting into a long, complex … [Read more...] about When the economy attacks: Fed fights back with toy gun

I am thankful for…

...our current circumstances. Rather than ignore the current economic problems, I choose to acknowledge this elephant in the living room during our Thanksgiving holiday. We are bombarded with headlines like "What will fix our economic problems?" It is absolutely silly. The recession is the solution … [Read more...] about I am thankful for…

CPI Explained – Part 2 – Substitution

This picks up where a previous post left off. You may want to read that post first in order for this one make sense. Looking at the picture above, I can only imagine that this is the way that the following idea was made into government policy. The second major way BLS's CPI calculation policies … [Read more...] about CPI Explained – Part 2 – Substitution

CPI Explained – Part 1 – Hedonics

While the measurement of inflation varies wildly depending on which economist you talk to, here we will examine the official figures published by the Bureau of Labor Statistics (BLS): CPI or Consumer Price Index. The purpose of publishing CPI is to measure inflation and/or deflation, the decreased … [Read more...] about CPI Explained – Part 1 – Hedonics