The Money Tree

Why minimum wage is wrong

2008-08-01T15:00:00.000-07:00

First off, how many people actually work for minimum wage? Not many. If you do, you are probably unskilled or just started your job.

Minimum wage is for high school students, college kids, and those people just entering the work force.

If the minimum wage were required to force employers to pay employees enough money, why aren't we all working for minimum wage? I'll tell you why, COMPETITION. As workers we have to compete for jobs and if you are willing to work for less, than you will probably get the job over me. But if I wanted to work for less than minimum wage in order to get a job, the law wouldn't allow me to. That is a violation of my rights. But, our employers also have to compete. If one company is offering me more money than another, I will get a job with the company offering more money.

Second, no one said you are supposed to work for minimum wage for 40 hours a week for the rest of your life. Get experience, move up, make more money.

Minimum wage only serves to raise the bar for everyone. Those who were making for more than minimum wage will now ask their employers for an equal raise to what the minimum wage workers got. Anyone making only minimum wage might actually have the bar raised over their heads if their employer cannot afford to pay them anymore.

So two things happen when minimum wage rates are raised, people lose their jobs when employers can't afford the rate hike, and everyone else wants a raise too thus canceling out any benefit to making more money since prices will be raised in turn to pay for the higher wages.

Let's not forget that as long as the Federal Government keeps borrowing and the Federal Reserve keeps printing money for them, the value of the dollar will continue to decline until it is totally worthless.

So lets not worry so much about minimum wages and focus instead on fiscally responsible government. That way you can have your minimum wage if you want it and it will never have to raised.

So next time you hear that they want to raise the minimum wage why don't you ask them, "Why do you want to lay people off and raise prices?"

Thanks for the Rewards Citi!

2006-05-10T17:13:00.000-07:00

So I received my $100 JCPenny gift card that I purchased with the thank you points from my Citi Diamond prefered Rewards AmEx card. It felt good buying clothes and only having to pay 45 cents. So now that I've got my free $100 in clothes I've swithced my rewards card over to the Dividend card so I can start earning cash. There is only one thing left to do... Get a balance transfer check from my Citi MasterCard and start playing the balance transfer game. I love Citi bank!

Mass Health?

2006-05-05T09:13:00.000-07:00

I ran across this editorial on The Wallstreet Journal online. In it Betsy McCaughey covers some of the finer points of the new Massachusetts Health Care bill. I for one won't be starting a business in Mass. anytime soon.

My Observations

2006-04-25T09:30:00.000-07:00

Wow, I haven't posted in a long time. I guess I'm not much of a "blogger." I do, however, like to observe the world and try to tie everything together. So I've had plenty of time to gather information over the past month and with that I would like to make some predictions. Let me know what you think.

High commodity prices will lead tax payers to question our government's policies and lawmakers will demand retribution in the form of taxing corporations that actually make money. They will get re-elected because they "care." Prices will not go down, employer won't pay people more because their taxes will be too high.

In the meantime we will be fighting Iran, not because we are afraid of them militarily, but because all Ahmadinejad has to do is open his mouth and the price of oil goes up. The war will be expensive, so it's a good thing taxes went up on companies that actually produce results.

So in turn with oil prices the price of everything will go up. Inflation will be steadily increasing and the fed will continue to raise interest rates. It will be a great time to buy foreclosed property. Gold and commodities will be the only way to keep up with inflation. Gold will hit $2000 an oz, not because it is valuable, but because the dollar is worthless. The economy will collapse under the weight of war and tax burdens, but military recruiting will not be a problem because people will need to find work somewhere.

While the rest of the world is busy with Iran, China will make deals around the world to buy up resources before their dollars become worthless, driving the dollar down further. Within 50 years they will have the most powerful country in the world and will beginning showing their force by destroying anything that is anti-communist like democracy.

I hope you all like fried rice.

The 411 on 411

2006-04-08T23:04:00.000-07:00

I was at a friends house tonight and before I got over there he had called for some pizza. He didn't know the number of the pizza place so he called 411 to get it. When he told me that, I became very disappointed in myself. I had known about free411 for a while now and I hadn't told him. When he found that out he told me that he calls 411 all the time.

So, since I feel so guilty I have to tell all of you, DON'T EVER DIAL 411. It's a waste of money. There is a free 411 service with the ingenious phone number of 1-800-FREE-411. Brilliant. So it real does cost nothing. To pay for it they will play you an add before they give you the number you want, but sometimes they don't and they just give you the number anyway. So please, please, please, never dial 411 again in your life, call 1-800-FREE-411 instead. It will make me feel better, thanks.

Massachusetts to provide health care for all

2006-04-05T22:29:00.000-07:00

It sounds like a great idea, but is it really? The state of Massachusetts has passed a bill requiring all citizens who can afford it to have health insurance. Anyone who can't afford it will get help from the state. All they need now is the gov's signature to make it law.

I'm worried that the state will make it too easy for people to claim that they don't make enough money to afford insurance, forking the costs over to tax payers. Apparently the state isn't worried about that, "Political leaders in the state's capital, Boston, claim the law will have only a minimal impact on the state budget, with a large chunk of the needed cash coming from the federal government." I don't think that that is right. The state essentially will have no consequences if the plan doesn't work and the rest of us will have to pay for it.

I see two major problems with this plan. Individuals who don't carry health insurance may be required to pay a $1000 fine for not having health insurance, but most of those people who don't have insurance don't have it for the simple reason of affordability. So how does this help other than to spend more tax money. They are not going to be collecting very many fines. And how will they determine if you have insurance in the first place? I can understand requiring car insurance. If you want a license plate you must prove you have insurance, that makes sense. Apparently Massachusetts is saying that if you want a LIFE you must prove you have insurance. I really don't see how this can be constitutional. If I don't want car insurance I don't have to have a car, but what if I don't want health insurance?

The second problem I see is the fines that they are going to put on employers with over 10 employees. "At the same time the bill envisages levying fees from private businesses with more than 10 workers that fail to provide health insurance for their payrolls. The fee would be $295 per worker per year." Maybe I'm wrong, but doesn't it already cost employers much more than that to provide healthcare? Heck, I pay more than that myself for my share of my healthcare plan at work. So if you own a business it might be cheaper just to pay the fine. Now we are talking about all kinds of employers dumping their employee healthcare plans. That is not good, but perhaps it might kickstart a change in the health insurance business and end up with lower fees for individuals, but I doubt it since they will pay whatever it takes to get insurance before paying the fines. Or maybe they won't since a $1000 fine is cheaper than actually getting the insurance anyway. And what does that mean provide health insurance? Does that mean pay the full cost or provide the option to the employee without the business paying anything?

This whole thing wreaks of poor planning, but I am still anxious to see what happens when the government intervenes in the free market. The government doesn't belong in the insurance business. That can be witnessed by social security and medicare/medicaid.

Cashed in bonus points, Now cashing out credit card

2006-04-02T17:03:00.000-07:00

I cashed in my bonus points from making a purchase with my Citi AMEX rewards cards. I used the 10,000 points for a $100 JCPenny gift card.

Now I'm thinking of converting the card over to a dividend card (I hate rewards, but I love cash). So if they let me I will stop using my Citi MC Dividends card and switch to the AMEX. That way I can use the higher credit limit on the Master Card and take a 0% balance transfer and put it in the bank. Sounds like a plan to me, I just hope I don't get burned somehow. If anyone has any advcie on balance transfers let me know, I could use it.

Free After Rebate (May take up to one year)

2006-04-02T16:56:00.000-07:00

So I finally received my rebate from PCUSA. In an earlier post I mentioned that I had applied for this rebate over a year ago. After not hearing anything after 4 months or so I tried to contact PCUSA and got nowhere. I completely forgot about the rebate until I was cleaning my room a couple months back and found copies of the request, so I decided to try again. This time I actually got a response. They still told me that there was no record of me requesting the rebate, but I made some noise and now I am $15 richer today. I know it's only $15 but it didn't take that much time to write the emails, it just took alot of waiting to get my check. So all of you out there waiting for rebates, don't give up, make some noise, and let them know that your not going away.

The Rates They Keep a Risin'

2006-03-28T11:32:00.000-08:00

The Fed raised rates another quarter of a percent today. Like anyone had any doubt. Congratulations to all you savers out there and better luck next fed meeting to all you borrowers.

Now the question is what will happen next time the Fed gets together. My bet is on more raises and I'd think there are going to be a few more, at least 3. Don't ask me why because I don't know, I just feel these things.

Woot Goes Cockeyed

2006-03-24T03:56:00.000-08:00

Today at Woot.com they are selling a crosscut paper shredder for 19.99. And guess what they say in their story. They mentioned the torn up credit card application of Rob Cockerham at Cockeyed.com. That's awesome Rob, congratulations! If I were you I'd ask for a cut of the sales (no pun intended).

Why do you read finance blogs?

2006-03-15T08:35:00.000-08:00

I'm curious to find out why everyone is reading all these finance blogs that are out there. Leave a comment and tell us all why it is that you (and the rest of us) are so fascinated by finance blogging. I know that there is no reason to read my blog so just tell me why you read all of the others. If you have some favorites talk about those too.

Get every last drop

2006-03-12T20:32:00.000-08:00

Here's some tips from GMAC Bank courtesy of SavingAdvice.com.

After you have finished filling up, turn the gas pump nozzle around 180 degrees. This will drain about a half cup of gasoline into your tank which you would otherwise spill or give to the next customer.

Consider bartering or trading goods and services with others instead of paying cash.

If you don't mind doing your banking from home, try a virtual bank. They tend to have lower fees and pay higher interest rates.

Those are some great tips. I especially like the last one.

If you don't already have a GMAC Bank Money Market account I would suggest that you get one. It is my favorite of all the accounts I have (ING, Emigrant, and HSBC). It has a nice website, unlimited linked accounts (which require no verification time, so you can link a new account and move money in the same day), the ability to write checks, and of course they give you those great money saving tips from SavingAdvice.com. I feel like I'm pushing GMAC Bank, but in my opinion they are the best and yet all of the finance bloggers out there seem to pass them up, give them the cold shoulder, diss them for no good reason. I just can't stand for that. When I see injustice I can not stand for it. So I ask, Why do you hate GMAC Bank?

NetBank offers 7.51% 1-year CD

2006-03-11T15:26:00.000-08:00

I opened a NetBank account back in December to get the $75 bonus that they were offering for their checking accounts. I have since pulled my initial $1500 required to open the account and placed it in higher yield savings account sans $1. So I was just curious today and decided to go to the web site and see if I had missed any hidden fees (I didn't, but their are some closing and inactivity fees, the reason for the $1) and I noticed the "Your special offers" link on the side bar. "My special offer" is a $50 visa gift card for opening a 1-year CD with $2000 or more at an APY of 5.01%.

After a year the APY will pay you $100.20 if you add in the $50 Visa gift card that totals $150.20, for a total annual yield of 7.51%. I like that myself, so I'm going with it. If you have NetBank you may want to consider this if it's offered to you and if you don't have NetBank you might want to sign up for the checking account for a $75 bonus and see if the CD bonus is offered to you as well.

Here I've listed the disclosure from NetBank

*Annual Percentage Yield. The stated APY is accurate as of 03/07/2006 and may change before your account is funded. The rate and yield you receive are determined by the date we receive your deposit. Get a $50 Visa® Gift Card when you open and fund a 1-year (or longer) term Certificate of Deposit (CD) with a minimum balance of $2,000 for 30 consecutive days and a minimum term of 12 months. Funding must be money not currently on deposit with NetBank®. Service fees or penalties charged against the account may reduce earnings. Penalty fee for any early withdrawal of funds. CD must be funded within 120 days after opening the account or it will be closed. Offer good until March 31, 2006.

Customers who meet the qualifying criteria will be paid a $50 Visa® Gift Card, which will be mailed to the address provided by the account holder within 4 weeks of meeting the promotional requirements of opening the CD.

All offers are subject to all applicable laws and regulations and NetBank's Terms and Conditions. See the Fee Schedule and Truth-in-Savings disclosure for more information.

Worth its Weight in Gold

2006-03-01T15:58:00.000-08:00

I've reprinted this from Stop the ACLU. It is a brilliant document and I believe it reflects the true meaning of freedom in a world that hates it.

MANIFESTO: Together facing the new totalitarianism

After having overcome fascism, Nazism, and Stalinism, the world now faces a new totalitarian global threat: Islamism.

We, writers, journalists, intellectuals, call for resistance to religious totalitarianism and for the promotion of freedom, equal opportunity and secular values for all.

The recent events, which occurred after the publication of drawings of Muhammed in European newspapers, have revealed the necessity of the struggle for these universal values. This struggle will not be won by arms, but in the ideological field. It is not a clash of civilisations nor an antagonism of West and East that we are witnessing, but a global struggle that confronts democrats and theocrats.

Like all totalitarianisms, Islamism is nurtured by fears and frustrations. The hate preachers bet on these feelings in order to form battalions destined to impose a liberticidal and unegalitarian world. But we clearly and firmly state: nothing, not even despair, justifies the choice of obscurantism, totalitarianism and hatred. Islamism is a reactionary ideology which kills equality, freedom and secularism wherever it is present. Its success can only lead to a world of domination: man's domination of woman, the Islamists' domination of all the others. To counter this, we must assure universal rights to oppressed or discriminated people.

We reject cultural relativism, which consists in accepting that men and women of Muslim culture should be deprived of the right to equality, freedom and secular values in the name of respect for cultures and traditions. We refuse to renounce our critical spirit out of fear of being accused of "Islamophobia", an unfortunate concept which confuses criticism of Islam as a religion with stigmatisation of its believers.

We plead for the universality of freedom of expression, so that a critical spirit may be exercised on all continents, against all abuses and all dogmas.

We appeal to democrats and free spirits of all countries that our century should be one of Enlightenment, not of obscurantism.

12 signatures

Ayaan Hirsi Ali
Chahla Chafiq
Caroline Fourest
Bernard-Henri LÃ©vy
Irshad Manji
Mehdi Mozaffari
Maryam Namazie
Taslima Nasreen
Salman Rushdie
Antoine Sfeir
Philippe Val
Ibn Warraq

Too much saving?

2006-02-27T20:20:00.000-08:00

I signed up for the HSBC online savings account the other day to get the $25 bonus. I didn't really want to since I have enough savings accounts already, but 25 bucks is 25 bucks. I signed over a week ago, but it seems like it's taking for ever to get access to my account. I did get my user number, but have yet to receive my password. I remember GMAC being faster with all of that, I think they actually let me pick all that stuff so I got to sign-in and look at my account the same day I signed up. So I got the HSBC account for the free money for than the rate (4.8%), and I've heard a lot about HSBC being slow.

Now, if your not like me, and most people aren't and you only want to have one Savings account I would recommend GMAC Bank. Why? Well, I know from experience. I have accounts with INGDirect, EmigrantDirect, GMAC Bank, and now HSBC Direct. Far and away GMAC is the quickest setup, and the easiest to transfer money with. To be fair I haven't even seen the inside of my HSBC account but I've heard plenty of people describe it. With GMAC to add a linked account all you have to do is enter the name on the account, the account number and the routing number. That's it. Then move some money. ING requires sending in checks and Emigrant doesn't even have instructions on their website, at least not where I could find them. Plus GMAC is consistently in the high rates(4.6% right now). Of the above accounts GMAC is the highest regular rate (ING has a promo rate until 4/15, and HSBC as well until 4/30) I'm willing to bet that after the promo rates are done GMAC will be the highest, but we'll see.

I've heard a lot of people say that GMAC requires a minimum balance while the others do not. That balance is only $500 dollars and if you can't keep that much then your not really saving, are you? So go with GMAC if you want the best all around account. GMAC is not paying me for this, it is my honest opinion, in fact HSBC and ING did pay me, too bad for them.

Extra Bonus

2006-02-27T20:05:00.000-08:00

So, I haven't posted in a while. I'm more of a slacker than a blogger, but I figured I owe it to my fans (the whole two of you.) Anyway, I got my Citi Diamond preferred Rewards American Express card the other day and I've already made my first purchase. So by the time I get my bill in a month I should have my free 10,000 bonus points to cash in for a $100 gift card. Plus I got an extra bonus that I didn't know about. Apparently with the Citi Amex cards all of the special offers that Amex has in the American Express Offer Zone are available to you. I new I could get these offers with my Amex Blue Cash card but I had no idea I could use my Citi Card to get them. So an extra bonus for me, since my Citi card has a better points/cash back award and I still get the Amex offers.

So what did I buy you ask, well, the same thing any red blooded American would buy, STEAK. Amex offers a deal on Omaha Steaks for 6 sirloins at over 50% off plus 12 quarter pound burgers for free. To be honest I'm really buying it for the burgers. I've had them before and they are awesome. Yes they are expensive but I deserve it. So all in all Citibank and Amex paid me $50.02(minus the beef), six 6 oz. sirloin steaks, and 12 quarter-pound burgers all for giving them the privilege of floating me money whenever I chose. God bless America.

Gold

2006-02-22T20:11:00.000-08:00

So I bought my first stock every today. Well, not really today, it won't be purchased until Tuesday, and its not really a stock, it's an exchange traded fund. I'm purchasing $46 dollars + $4 commission of GLD, STREETTRACKS GOLD TR, with my Share Builder account. I've heard a lot about gold lately so I though t I'd give it a try. Since I've been hearing about it it's probably too late. Oh, well, I'm still getting $50 free from Share Builder for opening my account. I would really like to purchase some actually gold bullion as well, but I'm still looking into that. I've read some interesting articles that say gold is about to enter phase 2 of a 10 year bullish cycle. Whether they are right or not is to be determined, but for my purposes it doesn't much matter. I would like to own gold simply as a hedge against inflation. If something were to happen to the dollar, which looks likely with world markets switching to the Euro, gold is a universally accepted currency and it will never really lose much purchasing power, sure it will have its ups and downs. Unless of course they discover a huge gold vein and flood the market. Who knows, after all, what will happen. I guess I'd rather have my money split between real commodities, assets, and cash. Everyone says diversify so I say diverse stocks are not diversified enough. So DON'T BUY GOLD, stay away, let the price drop out so that I can get a good deal, thanks.

Share Builder $50 bonus still good!

2006-02-21T12:18:00.000-08:00

I opened my ShareBuilder account today using the promo code IPLANGIFT. Thanks to flexo at Consumerism Commentary. I wasn't sure if the code was still good since the website has a 2004 copyright on it and I called ShareBuilder to ask and no one could confirm that it was active. So I took my chances and went to the link for the IPLANGIFT promo code. I signed up and deposited $50 to start. Just a few minutes ago I received an email stating that my promotional code had been accepted. So if you want 50 bucks do it while you still can.

Selling America

2006-02-20T16:37:00.000-08:00

I woke up this morning and realized something, America is in debt. No foolin'. I didn't just realize that but I was thinking about the debt reduction act. I don't know all the specifics but what it boils down to, for me anyway, is Americas yard sale, literally.

Our country and it's people have a debt problem. When a family goes through debt they sell whatever they can to stay afloat. Well that's exactly what the US is doing right now. We are going to sell thousands of acres of national lands to help pay down the debt. We're also trying to sell a number of seaports to Dubai Ports World Wide. The President has taken a lot of heat over this, and I don't like the idea myself. But really, what are we going to do? The only way to keep America in the hands of Americans is to stop spending other people's money. It's a hard lesson for an individual to learn and an even harder lesson for a nation.

We can keep spending and selling, keep the cycle going, and remain blissfully ignorant, or we can snap out of it and take responsibility for our country, our lives, and our finances. We need to end this entitlement mentality. America didn't become what it is today because it was given to us, it became the greatest nation in the history of the earth because we earned it by working hard. We need to get the point across to congress and to the rest of the people in the country that we can't do it anymore. There are no free rides in America.

I for one don't want to wake up tomorrow and see that my city, my state, or any part of my country was sold to foreign investors because the people here couldn't make it work.

Money Saving Tip from GMAC Bank

2006-02-16T17:14:00.000-08:00

Be sure to cover liquids and wrap foods you store in the refrigerator. Uncovered foods release moisture which makes the compressor work harder costing you money. -Courtesy of GMAC Bank

I wish I had $10,000

2006-02-14T21:10:00.000-08:00

EverBank is offering 3 month Icelandic Krona CD accounts at an interest rate of 8.24%. Holy expletive Batman! The catch is there is a $10,000 minimum to open the account. As you know I'm opening a Roth IRA and dumping the vast majority of my savings into that to cover my 2005 and a $1,000 of my 2006 contribution. The CD is FDIC insured but not against currency fluctuations. I checked the chart of dollar to Krona and it appears as though it is pretty stable in recent history. I'm no expert but it looks like a sure bet to me. If I had an extra 10k I'd go fishing in Iceland.

Persistence Pays Off

2006-02-13T20:32:00.000-08:00

About a year ago I bought some DVD-R's because they had a full rebate. I did everything I had to do, sent in the forms and then nothing. I waited a few months and then emailed the company asking what happened to my rebate. No reply. So I gave up, so much for persistence. I completely forgot about the rebate until just a few days ago. So I sent another email asking where my rebate was, 'It's been a whole year!' Alas, a response. A lovely young woman (at least I like to think that she was) asked me to send all the information about the product, my name, etc. and she would see what she could do. So I did, and then she told me that she couldn't find my info. Well I suspected as much. (I hate rebates) So I went to the website I ordered from and got my original order confirmation and sent it to her along with a copy of the rebate form I used and the original unanswered email I had sent way back when. To my disbelief she replied that she would forward my information to the accounting department to have my rebate sent out and apologized for the delay. Before today I had given up, but it just goes to show you that to actually get a rebate you must be persistent. (well, to some extent anyway)

Becoming a Bank

2006-02-11T21:23:00.000-08:00

I've always said that I wanted to start my own bank. Who wouldn't want to, you loan out money at exorbitant rates and other people just give you their money for nothing in return. Except that I've never been able to since I don't have millions laying around to lend.

Well, in my blog surfing I found a unique site that can make all of us our own bank. The site is called Prosper. It is amazing. The site matches up lenders and borrowers. Borrowers enter their information and how much they want to borrow and the max rate they will pay. Then lenders place bids for the amount they will loan and the rate they will charge. Amazing. I was actually thinking about something like this earlier today before I stumbled onto the site.

If you've ever wanted to start a bank check this site out, or if you need a cheap loan. It is not free from risks, of course, but what is. Who knows perhaps tomorrow I will have my very own First National Bank of Easy E.

Citi Thank You Network

2006-02-10T22:16:00.000-08:00

So I told you that I was thinking about getting the Citibank Dividend Rewards Amex card. I went over to the thank you network to check out the rewards and they offer quit a variety of gift cards. I don't think I'd be interested in much else and I'll probably go with a JCPenny $100 gift card. I shop there sometimes and I do need some new clothes. The only thing is, I don't really want to have to get gift cards all the time, I'd much rather just get cash. So I wrote Citi a letter asking if I could switch my type of card to something else. If they say yes I will get the rewards card, pocket the $100 gift card and then switch it over to a dividend card. I might try getting an extra 10,000 points out of them first though.

American Express CitiCards

2006-02-09T06:50:00.000-08:00

So Citicards came out with their Amex branded cards not too long ago, and I was thinking of getting one. I already have a Citi Dividend MasterCard, which is awesome. I get 5% cash back at gas stations, drug stores, and grocery, and 1% everywhere else.

So why get a new Amex card? Well I've heard alot of good things about the Amex benefits that Mastercard doesn't have, like price protection, trip cancelation insurance, and world wide travel assistance. I was hoping to do some traveling in the future so this could come in handy. The new Amex cards come in all the same flavors as the Mastercards do. But I was thinking of getting the Rewards card instead of the Dividend card. Why? Because with the first purchase they give you 10,000 points that can be redeemed for a $100. One point per dollar spent equates to 1% so I can still use the card for my everything else purchases, and feel secure that within 60 days if I see a cheaper price I can get refunded by Amex.

So I say yea to $100.

The Mathematically Perfected Economy

2006-02-08T16:46:00.000-08:00

A comment to my last post suggested that I visit www.perfecteconomy.com, People for Mathematically Perfected Economy. So I did. It is a very interesting topic and I agree with the premise that the Federal Reserve is not completely constitutional and that our monetary system has some flaws. But the system that is suggests doesn't seem to me to be any more sustainable than or current system. I'm not an economics major or anything, but I did minor in mathematics, so I do know a thing or two about numbers.

In section 4 of the site, WHAT IS MATHEMATICALLY PERFECTED ECONOMY?, the rules of the system are outlined. The key to it is the elimination of interest. Interest is simply the profit that a lending institution receives from it debtors. They then give an example of the system for purchasing a house.

For example, we might purchase a $100,000 home with a hundred-year lifespan — the price of which includes a one time credit worthiness certification fee of $50, and transaction processing fees of $0.25 per month for 100 years, or $300.

In mathematically perfected economy, the $100,000 is loaned into circulation, and the $99,650 cost of the home is paid to the producers of the home, who therefore receive immediately for their doings. Out of the $100,000 debt, the certification and processing fees are paid to the entities performing these services, as the services are rendered.

To maintain a related circulation equal to the current value of this production, we pay for this home at the rate of $1,000 per year, or $83.33 per month — which is the rate at which we consume it. Everyone pays for exactly what they get from the system, and no more. There is no inflation or deflation. The value of money is not corrupted. A constant relationship between the circulation and remaining value of financed assets is maintained. There is no multiplication of debt by interest. There is no depression or recession. The system is perpetually sustainable. We can prosper perpetually to our full capabilities, without obstruction or impediment. Moreover, we have far more to spend, to support far greater prosperity.

Now it seems to me that sure the processor gets his processing fee and the builder gets his money, the owner gets his house, but what does the lender get for parting with his money for A HUNDRED YEARS?!?

This system is not sustainable, no lender would loan money without the promise of a profit.

I also disagree that it is the Fed that causes this whole interest/inflation problem in the first place. Private banks have been lending money for centuries. These loans come from the money that we as depositors place with the institutions. We didn't make the loan the bank did. If I have $1,000 in the bank and the bank then loans that money to my neighbor he now has $1,000. Now there is $2,000. I still have my $1,000 and now he has $1,000. When he pays off the loan, plus interest, that new $1,000 is effectively wiped out and the bank gets a profit. The bank isn't going to loan money just for fun; they need a profit, so they charge interest. In any event even if my neighbor wanted a $1,000 from me I'd charge him for the use of it(depends on the neighbor).

The whole even trade system doesn't work. I have money today, he needs money today, I loan it, I no longer have use of it, I must charge for the use of it. After all I could use it if I didn't loan it out.

Perhaps I'm missing the point or something, I don't know. I didn't read the entire thing it is quite lengthy and confusing (in my opinion unnecessarily almost purposefully), but I do suggest that you look it over and post your comments. Thanks to phi50 for giving me something to write about.

Roth IRA

2006-02-07T20:37:00.000-08:00

I've been researching Roth IRA accounts lately. I think I've found the best deal with Vangaurd. They have the lowest expense ratios of all the mutual fund companies that I've checked out. You can open a Roth through many sources, but mutual fund companies seem to be the best choice since they aren't actively trying to sell you on something and they don't charge sales loads.

A couple things about Vangaurd to watch out for:
They have a minimum fund balance for any fund you have in your account, and for most it is $3,000. Plus they charge a $10 per year fee for all funds with a balance below $5,000. (By the way, these are still cheaper than the fees you'll get at most other places, like banks.) To get around this I've decided to make an initial deposit of $5,000 by contributing $4,000 for tax year 2005 and $1,000 for tax year 2006. This will save me the ten bucks. YES!

Tax day, April 17th, is the last day you can make a contribution towards 2005, and since contribution limits are currently $4,000 per year contributing now is the only way to get the $5,000 balance needed to avoid the $10 fee.

I'm always looking for a better deal so let me know if I've missed something out there.

Happy Birthday Money Tree

2006-02-07T19:25:00.000-08:00

Welcome to The Money Tree! The tree has just been planted and over the course of this blog I will be watering it often to make it grow.

This is my first blog of any kind, and I suppose that my goal is to use this blog to learn more about personal finance and grow my knowledge of money, and hopefully to teach someone else at the same time.

I've been inspired by a number of other blogs about personal finance. Some great places to get started learning are Bankrate.com and TheMoneyBlogNetwork.

I'll be sharing my own personal finance experiences, questions, goals, successes, and insights. Feel free to share your own as well, and thanks for helping to grow The Money Tree.