When I look at our smoothly doctored unemployment numbers I see, especially pertaining foreigners working in the US who have no intention of becoming American citizens and are working in the US as adding insult to injury and ignorance.
They will generally send home between 10 and 25% of their paycheck. This amounts to billions of dollars every year.
This is foreign aid by any other name.
Something our President said he would not do is give foreign aid to Mexico. I won't call him a liar here but I would to his face because then I could explain my reasoning to him.
When a person sends American dollars to a foreign country this takes it out of our economic rotation.
When you and I spend $10.00 in a local store that ten dollars gets rotated through at least seven different businesses or peoples hands before it stops the rotation at the US Treasury.
The local store owner might use it as wages, or to buy replenishment stock, to pay any number of fees or local taxes, buy gasoline or food at a local store, pay a bank loan. You name it. The $10.00 then will be loaned out again for someone to locally buy a car or home, or to a local road or home contractor, and on the cycle goes.
When the $10.00 goes to Mexico or India, it does not rotate in our economy, it does in Mexico's or India's though. That builds Mexico's or India's economy NOT ours.
The amount of money that is rotating in the daily cycle is what controls our interest rates. With Mexico alone, the illegals are sending home 12 billion dollars annually.
Take the 12 billion dollars and assume it only passes through corporate hands being taxed at 15% not the 35% personal rate that you and I pay.
The loss to our economy in taxes alone from a single 12B gain is 18 million dollars. When that 12B passes thru seven different corporations the loss to America would be multiplied by the average gain of each corp.
There is no proper way that I know of to calculate the loss of business profits due to that cash NOT flowing through their accounts. (I'm sure someone does) I would estimate overall average business profits should be somewhere between 4% and 10% so there's another 48 to 120 million lost by the wayside in unearned income.
Our economy is not in a recovery contrary to what the announcers on TV are saying. We are still in a freefall.
The non-mortgage debt growth rate is extraordinarily high. Consumer debt is rising faster than incomes are growing. This is an unsustainable trend that the Presidents advisors seem not to want to watch.
We borrow as a nation about $500 billion each year to finance our foreign purchases over what we export. The trade deficit contiues to climb with no visible plans to arrest it.
The dollar is down 15-20% from its high. Foreign goods are that much more costly. If foreign countries start to dump the dollar and demand payment in Canadian dollars we will be sunk into depression quickly.
This jobless recovery or lower paying job recovery is a dangerous trend. It will lead to a deep recession and a continuation of deflation of the dollar.
Lowering long term interest rates will allow the world to see just how shaky our financial situation is. I do not see this administration willing to consider protectionism. Europe will have to step in to help us or their economy will sink also.
The day of reckoning is not too far down the road.
Investments:
I see the rise in gold as being severely diminished because of the lowered value of the dollar. I much prefer to invest in the Canadian dollar. This is a handy site to watch the value of the dollar as it changes.
"Caution: I am not a financial expert in any field, just your everyday investor. These are only my personal opinions."
You may not be an "expert" financial advisor, but your advice is the truth, and that is exactly what we are not hearing anything of. Wonder why?
But you are a patriot, a concerned citizen, and have sense enough to kow when you're being "slow-rolled." You are not alone, and every day now many are coming to understand the same things you do.
And you are a man doing his best to help others understand how our national sovergnty is being abandoned like some disfigured baby who survived an abortion attempt.
The political machines working day and night to import tens of millions of illegal immigrants (to weaken our economy) while at the same time painting Americans as lazy bombastic ba$tard$ not wanting to work and exporting more millions of jobs (further weakening our economy) is a recipe for national destruction - mainly that of the United States of America.
Stay safe - and please keep on giving us your expert advice. We don't seem to be getting it from Washington.