James L. Paris's Blog, page 150

Are Rewards Credit Cards Really Worth It?

An article over at CNBC.com entitled, ���Saving reward points and miles isn't a sound money strategy��� outlines some of the more notable pitfalls that can come with rewards credit cards. In the case of these particular tools, it���s not so much that the cards prove problematic because of some inherent problem with them, but, rather, because of the way cardholders too often use���or don���t use���them.

Rewards points are real, and can be redeemed for genuine value. Jim Paris, host of Jim Paris Live and the Editor-in-Chief of ChristianMoney.com, was crowing recently about a great experience he just had with the Chase Sapphire credit card, from which he earned $1,000 in travel benefits. Jim was able to apply every bit of his $1,000 of real money to defray the cost of an upcoming trip he will be taking to Los Angeles.

It turns out, however, that Jim is in a distinct minority when it comes to points-earners actually redeeming their booty. The foundation of both the CNBC article and the one you���re reading here is a figure quoted in the ���Saving rewards points������ piece that says only 15 percent of Americans have ever redeemed points to pay for any part of a trip; just 15 percent.

So, what���s going on?

As it happens, the biggest impediment to people tapping their points is their own, self-imposed reasons for hanging on to them. People tend to look at the accumulation of points in two, fundamentally different ways: They are either points ���hoarders,��� where they do not use points for great lengths of time, instead choosing to let them accumulate in order that they may apply them to a particularly astounding, singular reward benefit���or they ���earn and burn��� the points, which means using them regularly such that the point total never reaches a significantly high level.

To look at the ���hoarders��� a little more closely, if they are not saving them with a specific, extra-valuable reward in mind, they are doing so with the idea that they will keep them for a ���rainy day,��� some as-yet undefined purpose that, whatever it is, will surely be superior to what they would get by using them now.

While reasonable people can disagree on this subject, I prefer the ���earn and burn��� approach. By getting in the habit of regularly redeeming the points you accumulate, you will greatly lessen the chance of becoming one of those people who never gets around to using his accumulated benefits, or who loses out on points value because the card issuer decided to change the program terms to your detriment, which does happen.

I���ve heard experts in this field say they tend not to accumulate more points than they can use in a six-month period, and that seems like a good guideline to me.

Another way that people can trip themselves up with rewards cards is by having too many of them. Some people will become so enamored with these rewards programs that they will channel their enthusiasm in ways that ultimately mean fewer benefits. By participating in so many rewards programs, it���s easy to fall into the trap wherein you���re not accumulating enough points in any one program to take advantage of the rewards. According to the statistics, chances are pretty good that you are, or would be, one of the people who underutilizes points, anyway, so you will generally be better served by participating in just a couple of programs, at most, that you like, and be diligent about using the accumulated benefits from those.

These issues aside, rewards cards are certainly viable financial tools, as long as you���re aware of the basics. For example, it���s important to be aware of how they differ from non-rewards cards with respect to financial terms. Everyone is out to earn your business, so it���s not difficult to find rewards cards with 0% APR introductory periods. However, once those introductory periods expire, the rates charged by rewards cards are higher than those charged by their non-rewards counterparts. Also, many rewards cards assess annual fees, and some of those can even be as much as hundreds of dollars per year. This is why you want to do a good job in carefully analyzing prospective cards, to include financial terms as well as rewards program terms, to be sure you���re selecting the card that is most suitable for you.

Something else, and we alluded to it a bit earlier: Rewards cards can change their program terms on you, and this is another reason why the ���earn and burn��� approach is the smart way to use these cards. It���s generally not the case that accumulated points would somehow disappear, but, rather, their value can become cheapened if an issuer decides that it���s in their best interests to be less generous with the corresponding rewards. It���s not at all uncommon, for instance, for an airline to increase the number of miles required to earn a first-class ticket. As a matter of fact, Chase recently raised the number of points required to earn a $1 credit at Amazon, up to 125 points from 100. Issuers can adjust point totals required for particular benefits, and even eliminate a benefit altogether, so be mindful of that if you see yourself as a points ���hoarder.���

If you want to check out rewards cards for yourself, two resources for doing so that I particularly like are Bankrate.com and NerdWallet.com. These are both very popular, very consumer-oriented sites, and the resources you will find at each tend to be the best of what is available in any given area or category of personal finance tools and programs.

One thing: You should know that the credit cards featured at these sites are oftentimes representative products of the advertising partners at each. However, I���ve never found that to be a problem, as the best, most competitive cards tend to be the ones featured at each site. However, you would still do well to review the advertiser disclosures that are prominently located at the top of the credit card sections of both locations, just to be sure you���re OK with their policies in this area.

If you���re interested in taking a look at some other resources on the subject of rewards cards, you might want to visit the website of ���The Points Guy���, whose whole raison d���etre is traveling the world on credit card rewards points. Also, take note of a previously-written article at the ChristianMoney.com blog on this subject that discusses a wonderful course on ���travel hacking��� available at the terrific Udemy online education platform.

In the end, yes, rewards cards can be ���worth it,��� but the biggest part of whether that���s true is going to be up to you. Be mindful of the card terms, stick with just a couple of cards through which you will regularly accumulate points, and redeem the points regularly to be sure you���re benefitting from the having the rewards feature at all.

By Robert G. Yetman, Jr. Editor At Large

 

IRS Reports a Summertime Surge in Robo Calls That Seek to Scam People with False Tax Bills

Earlier this week, the Internal Revenue Service warned taxpayers that IRS impersonation scams in the form of robo calls were on the rise during these summer months.

Tax-based scam phone calls have unfortunately been a part of the fraud landscape for some time now, and they remain popular with thieves for the simple reason that they work so well. Human nature being what it is, honest people tend to believe what others are telling them, so when you start from that point, and then add the compelling feature that the IRS is (supposedly) the entity on the other end of the line, the combination of an assumption of veracity and natural fear of the all-powerful taxing authority seems to incline the average call recipient to believe what he or she is being told.

The ���robo��� aspect is a new twist to this fraud effort. According to the IRS, the automated calls leave ���urgent��� messages for the recipients that they are to call back and resolve their ���tax bill.��� If a prospective victim does return the call, it will be to a live person on the other end, who will typically go through a litany of threats and ultimatums to leverage the caller into paying over the phone.

On the scammers��� move to robo calls, IRS Commissioner John Koskinen said, ���It used to be that most of these bogus calls would come from a live person. Scammers are evolving and using more and more automated calls in an effort to reach the largest number of victims possible. Taxpayers should remain alert for this summer surge of phone scams, and watch for clear warning signs as these scammers change tactics.���

Perhaps the single best defense to this garbage is knowing that the IRS will NOT contact you by phone or email about any tax issue, and particularly not about a sum that they say is owed to them (unless they have already contacted you by mail, and, even at that, unsolicited calls from the IRS are very rare). Additionally, the IRS, in any form of communication, will not threaten to have you arrested, demand you pay a bill without having the opportunity to challenge it, or request payment information, like a credit card number, over the phone.

My advice is that if you receive a call from someone identifying himself as an IRS representative and demanding that you pay a bill, hang up the phone right away; again, unless you have already been contacted in writing about a sum that���s due, there is really no chance the call is legitimate. That said, if you want additional peace of mind, you can call the agency yourself at 800-829-1040 to confirm that there is indeed no outstanding bill.

By Robert G. Yetman, Jr. Editor At Large

 

Sanders Supporter Found Dead After Serving Lawsuit On DNC

ChristianMoney.com Staff Writers

On July 3rd Shawn Lucas served a class action lawsuit on Debbie Wasserman Schultz and The Democratic National Committee. He was just found dead in his home. 

 

ICE Union Chief Says Paul Ryan Shares a Lot of the Blame for Immigration Mess

Chris Crane, the president of the National Immigration and Customs Enforcement Council, the union representing ICE officers nationwide, has written a letter to House Speaker Paul Ryan that calls out the speaker, in no uncertain times, for what the union sees as Ryan���s complicit behavior in the immigration crisis besetting America.

Specifically, Crane maintains in the letter that Ryan���s actions as a legislator, as well as the things he has said on the subject, have given illegals the idea that they can break America���s immigration laws with impunity. Crane, in his letter, said to Ryan, ���I am sorry to say that your rhetoric could be adding to that perception. Children crossing our border are molested and perish. Any political leader who truly cares about these children will stop the rhetoric and begin working with law enforcement to develop sound immigration policy to end the crisis on our nation's border.���

���We are in the middle of a national crisis ��� immigration officers are prohibited from enforcing the laws of the United States, and as a result dangerous criminal aliens are being released into American communities daily.���

In addition, Crane���s letter asks of Ryan that he ���immediately��� craft, in consultation with the National ICE Council and its membership, comprehensive legislation to address the immigration problem, and Crane also requested that the speaker hold a joint press conference with the group in an effort to prioritize genuine solutions to the immigration crisis.

By Robert G. Yetman, Jr. Editor At Large

 

Sen. Tom Cotton: $400 Million in Cash to Iran Handled Like a ���Drug Cartel Transaction���

Sen. Tom Cotton (R-Ark.) isn���t buying the explanation offered up by the White House as to the timing of a $400 million cash payment to Iran back in January. The money���s arrival in Iran came on the same day that both four American prisoners were released and the controversial nuclear deal became official, but the administration vehemently denies that the payment represented any kind of ransom. The administration���s official position is that the money represents the first installment of a near-$2 billion settlement with Iran pertaining to a dispute over a failed arms transaction with the country 37 years ago, when the Shah was still in charge of the country.

However, in an appearance with Greta Van Susteren of Fox News on Wednesday, Cotton referred to the timing as ���highly suspect,��� noting that the arms deal dispute had been lingering for decades, but then ���just miraculously, on the day that hostages were released and the Iran nuclear deal was implemented, they finally resolve that dispute.���

Adding to the climate of suspicion surrounding the payment is the way in which it was handled. The money was transported via an airlift that was planned and executed in complete secrecy, and its configuration was indeed in cash; wooden pallets loaded with several different currencies totaling the payment figure were transported to Iran on an unmarked cargo plane. The central banks of the Netherlands and Switzerland were the actual sources of the cash.

Cotton was particularly unimpressed with the way in which the payment transaction was handled. As he put it to Van Susteren, ���$400 million in small unmarked bills, flying into Iran on an unmarked aircraft, like it was a drug cartel transaction, not a legitimate negotiation between two governments.���

By Robert G. Yetman, Jr. Editor At Large

 

French President Hollande No Fan of Trump

President of France Francois Hollande, who finds himself the reluctant leader of a war against Islamist terrorism in his own country, does not appear to be much of a fan of the U.S. presidential candidate who sees as one of his highest priorities keeping America safe from the same threat plaguing the French.

As a matter of fact, it could be said that Hollande���s recent comments to journalists about Trump were downright disrespectful, particularly considering the latter���s position as the nominee of one of America���s two major political parties.

Hollande on Trump:

���His excesses make you want to retch, even in the United States, especially when ��� as in the case with Donald Trump - he speaks ill of a soldier, of the memory of a soldier.��� In that, Hollande was referring to the open dispute that has ensued between Trump and Mr. and Mrs. Khizr Khan, Muslim parents of a U.S. Army officer killed in Iraq. You may recall the Khans, speaking at the recent Democratic National Convention, were very critical of Trump���s proposed clampdown on Muslim immigration into the U.S.

Trump was quick to defend himself in the wake of the Khans��� criticisms of his planned policy, and Hollande expressed his dismay that trump did so with what the French president termed ���hurtful and humiliating comments.���

That said, Trump may want to consider the source, when it comes to Hollande���s criticisms; a July poll conducted by TNS Sofres, a London-based research group, found that almost 90 percent of the French disapprove of the job their president is doing.

By Robert G. Yetman, Jr. Editor At Large

 

Afterschool ���Satan Clubs��� to Be Available in America���s Public Elementary Schools

It appears that evangelical afterschool programs available in many of the public school systems across the United States are about to get some competition���from Lucifer himself.

Well, sort of.

After much planning, The Satanic Temple is officially moving forward with its effort to place its proprietary ���After School Satan Clubs��� in elementary schools across the U.S. The clubs are already set to begin in a number of states at the start of the upcoming school year, including California, Georgia, Utah and Oregon.

The motivation for beginning this drive is the widespread availability of the evangelical Good News Clubs in public schools, something that, unsurprisingly, rubs the folks of The Satanic Temple in very much the wrong way. A statement at the home page of the After School Satan website (afterschoolsatan.com, of course) summarizes the foundation of the effort as follows:

���It���s important that children be given an opportunity to realize that the evangelical materials now creeping into their schools are representative of but one religious opinion amongst many. While the Good News Clubs focus on indoctrination, instilling them with a fear of Hell and God���s wrath, After School Satan Clubs will focus on free inquiry and rationalism, the scientific basis for which we know what we know about the world around us. We prefer to give children an appreciation of the natural wonders surrounding them, not a fear of everlasting other-worldly horrors.���

Speaking to People, Satanic Temple head Lucien Greaves said, ���If they would get rid of the Good News clubs, there wouldn't be a need for the After School Satan program. They're training these kids to fear hell and go out and indoctrinate other kids, so we feel that our presence is also needed.���

Members of The Satanic Temple will staff the afterschool programs as volunteers. The group says that, despite their name, they don���t actually believe in the Devil, or in any other supernatural being, as they put it. Their interests, they say, is in promoting scientific rationality above all else.

By Robert G. Yetman, Jr. Editor At Large

 

RAND Report Speculates as to How a Shooting War Between the U.S. and China Would Unfold

As reported by The National Interest, a new report from the think tank RAND Corporation declares that should a shooting war break out between the U.S. and China in the foreseeable future, the Western Pacific ocean would serve as the principal battleground, and while both sides would likely avoid the deployment of nuclear weapons, the negative impact of such a conflict would prove highly significant for two of the globe���s most prominent nation-states.

Although the report says that casualty numbers on both sides would be substantial, it also declares about the nature of such a conflict that ���neither side would regard its losses as so serious, its prospects so dire, or the stakes so vital that it would run the risk of devastating nuclear retaliation by using nuclear weapons first.���

As for the prospect of the shooting war actually being fought in the homeland of each country, the report suggests that while the U.S. would engage the Chinese in country, China would not be as likely to do likewise, given their diminished capacity to fight with nonnuclear weapons.

Were a war to break out in the nearer term, the U.S. would be better positioned to prevail, but, as time goes on and the Chinese continue to prioritize a buildup of military resources, a war that breaks a decade from now would be more favorable to the Chinese. The report says that while the U.S. would still likely prevail even at that time, superior Chinese assets would mean a much longer conflict, and make an outright victory less achievable by either side.The report also outlines ideas that might make a shooting war between the U.S. and China less likely, including:
U.S. leaders should develop options to deny China access to war-critical commodities and technologies in the event of war.
The United States should conduct contingency planning with key allies, especially Japan.
The United States should improve its ability to sustain intense military operations.
U.S. leaders should develop options to deny China access to war-critical commodities and technologies in the event of war.

Strategists and policy wonks are finding themselves more heavily scrutinizing the prospect of war between the two nations as the Chinese continue, unabated, their effort at growing and strengthening all elements of their military. While the idea of a shooting war between the countries strikes many as unthinkable, those who make it their business to ponder such a possibility cannot ignore the ever-increasing militaristic stance of the Chinese, who���ve long been jealous of America���s role as the world���s premier superpower.

By Robert G. Yetman, Jr. Editor At Large

Millennials Send One of Their Own to Re-Education Camp for Saying Unprogressive Things

In a move that would make Kim Jong-un, Supreme Leader of North Korea, proud, the vice president of the University of Houston���s Student Government Association has been handed a set of five different punishments���including mandatory attendance at a three-day ���diversity workshop������by her peers, for the ���crime��� of writing���hold on to your chair���the following statement: ���Forget #BlackLivesMatter; more like AllLivesMatter.���

Rohini Sethi made the social media-formatted statement on her Facebook page just after the July 7 shooting in Dallas that killed five police officers. Despite the fact that the expression strikes many in the ���outside��� world���outside of the leftist realm of academia in America today, that is���as perfectly innocuous, the progressive population at the University of Houston sees it as a severe transgression, and worthy of severe punishment.

For the crime of saying, ���Forget Black Lives Matter, more like All Lives Matter,��� Ms. Sethi has been sentenced by the Student Government Association to the following:

A 50-day suspension from her role with the Student Government Association. She also forfeits her pay during that period of suspension (Sethi is paid a stipend of $700 per month).
Attendance at a diversity workshop to be held in the middle of August.
Required attendance at three University of Houston ���cultural events��� between September and next March.
Sethi must write a ���letter of reflection��� that details how her Facebook statement may have caused harm to the Student
Government Association and university, as a whole.
Sethi must make a public presentation on Sept. 28 the details ���the knowledge she has gained about cultural issues facing our society.���

If Sethi does not fully satisfy the terms and requirements of her various punishments, she will be permanently removed from the Student Government Association.

By Robert G. Yetman, Jr. Editor At Large

Astonishing Number of Native-Born Americans are Unemployed

Apparently, not very many people in America are working anymore, for all intents and purposes.

While we keep hearing about lower unemployment from the current administration, there remains a pronounced disconnect between what we are told by the powers that be, and the information on employment in the United States that is gathered by groups not seeking to shill for the government.

The latest prominent study to debunk the myth that your fellow citizens are all back to work is one that was completed by the Center for Immigration Studies (CIS). In a revelation that is startling even to those who suspected it has been the case all along, CIS director of research Steven Camarota announced that the first quarter of 2016 saw almost 48.5 million native-born Americans between ages 16 and 65���working age, in other words���not on the job.

Said another way, nearly 30 percent of native-born Americans between 16 and 65 were out of work during Q1 2016.

The picture is grimmer still for natives without a bachelor���s degree. The first quarter of 2016 saw 35 percent of those folks out of work.

While the results of Camarota���s effort is obviously revealing with respect to the state of the general economy, it also has profound implications for immigration interests. As Camarota rhetorically asks in his report, ���The key policy question facing the country with regard to immigration is: Does it make sense to continue to admit a million new permanent immigrants each year, along with several hundred thousand guest workers, given the enormous pool of working-age people not working?���

By Robert G. Yetman, Jr. Editor At Large