James L. Paris's Blog, page 186

The Failure Of Obamcare

On this episode Jim discusses the plight of thousands of Americans that can not afford medical services due to Obamacare, the media targets Donald Trump again disputing his claim that he saw people in New Jersey celebrating after the September 11th attacks, was George W. Bush right with his doctrine of preemptive strikes? The IRS to begin revoking the passports of individuals with unpaid tax debts, and this year's biggest Black Friday deal.

Assassinations, Threats, And The American Presidency

From the assassination of Abraham Lincoln to John F. Kennedy, Dr. Ronald Feinman discusses the dark history of threats and assassinations against U.S. presidents. Feinman also discusses little known assassination plots such as the almost successful attempt on the life of Richard Nixon. Also discussed are threats that were not successfully carried out, including threats against President Obama. He also comments on popular conspiracy theories related to the JFK and RFK assassinations, and the attempt on the life of Ronald Reagan.

 

Financial Guru Says That Saving Is For Losers

By Robert G. Yetman, Jr. Editor At Large

More money advice from Robert Kiyosaki.

Robert Kiyosaki, the author of the bestselling Rich Dad Poor Dad, has a message for Millennials in his new book, Second Chance: For Your Money, Your Life and Our World. Namely, that instead of following the historically ���tried and true��� rules like going to school, getting a job, working hard all of your life and saving as much as you can, that younger people should do it all differently now. Now, those who want to get ahead should embrace the reality of low interest rates and use those to leverage themselves into income-producing assets, notably real estate.

It is interesting advice, to be sure, and there is certainly some wisdom to finding a way to position historically-low rates in one���s favor as a means to create wealth. However, is it necessary to discard the baby with the bathwater, so to speak? Does the fact that low rates exist, such that they might create investment opportunities on income-producing properties, mean that working hard and saving, in the traditional sense, is now a bad idea?

Part of what is misleading about the idea of saving nothing and going whole-hog into leveraging oneself to buy income-producing assets is that accumulating wealth that way���should wealth even come to you���is generally a longer-term process. When you buy your first few properties, unless lightning strikes for you and you���re able to quickly convert those into quick and substantial profits (something I would not count on), you see only the monthly income from those properties. The problem with that is that when you own rental properties, you need to regularly spend money to maintain them. Ask anyone who has ever owned rental properties about the sudden expenses that can arise from plumbing leaks, roof repairs, heating and cooling systems failures, and on and on. Will the positive cash flow you���re (hopefully) realizing from your properties be enough to cover those expenses? If not, will you leverage yourself even further to pay them? Or, would you be better off actually having some savings set aside���the savings Kiyosaki says you should not bother accumulating���to meet them?

In other words, in order for the Kiyosaki plan to work, you have to realize a large amount of positive cash flow from your income-producing assets, an amount that not only covers the expenses associated with the properties, but, presumably, your family���s living and discretionary expenses, as well as meets your wealth accumulation goals. Are your investment properties, particularly if you just have a few in the beginning, going to do all that for you?

There���s more. For example, how do you plan to buy the investment property, to begin with? Clever financing arrangements have gone the way of the wind, which means that you will typically need a significant down payment for each one you want to buy. Where will that money come from, if not savings? Also, lenders generally want to see that you have six months of reserves (principal, interest, taxes, and insurance) for each property you buy; if that does not come from savings, where does it come from?

Remember, too, that Kiyosaki is speaking to Millennials here. Can Millennials, with their enormous student debt burdens and relative inexperience, professionally, effectively navigate through all of the challenges associated with building a substantial portfolio of income-producing properties?

There are additional problematic issues that can be raised here, but I���ll leave it at that. Yes, the world has changed, as far as money and investing goes, from where it was decades in the past. That said, while making adjustments in the face of prevailing financial winds is always in order, using the current economic climate to tell people to forget about working hard and saving, and borrow to buy property, instead, is a little much for me.

By and large, I like the old rules, even now. Work hard, and save your money. Actually, if I were to suggest any radical change to Millennials (and to the rest of us, for that matter), it would be this: live as cheaply as you can. Rather than assume the risk that goes with a mountain of leverage in order to seek great wealth, keep your financial house solid by living well within your means, and save. If you happen to come across an opportunity to purchase an income-producing property for a great deal, and you can buy it buy borrowing at a great rate, and you have built up a large safety cushion through a combination of living cheaply, maintaining a good income from your job, and through your regular savings efforts���then maybe it is for you.

 

Pope Francis Hauls Two Reporters Into Court

by James Warren Published Nov. 24, 2015 9:27 am Updated Nov. 24, 2015 9:29 am

Two journalists went on trial at the Vatican today in an unusual proceeding in which they���re accused of illegally publishing claims of Vatican mismanagement based on confidential documents.

Reporters Gianluigi Nuzzi and Emiliano Fittipaldi both showed up before the Vatican court and, in theory, could face up to eight years in prison. The Vatican operates a different legal system than Italy and, though there is an extradition agreement between the two entities, it���s unclear if the two journalists could actually wind up in prison if convicted.

via www.poynter.org

Jim Paris Comments -

The Vatican's finances should be 100% transparent. The notion that there should be any confidentiality here is ridiculous. The idea that two reporters could end up in prison for eight years is a travesty. This shows the true nature of what is going on at the Vatican under Pope Francis - a web of secrets... After all of the moral failings of the Catholic church in recent decades, keeping secrets from the press should be very low on their list of priorities.

CA Broke Pension System Pays Out Billions In Bonuses

In a much-anticipated disclosure, the California Public Employees��� Retirement System said it paid $3.4 billion in performance fees to its private equity managers since 1990 while the controversial sector generated $24.2 billion in profits for retirees.

The nation's largest public pension system said the portfolio's profit-generating performance justifies the sector's risks and complexity.

"Private equity has the highest net returns in our portfolio," said Ted Eliopoulos, CalPERS' chief investment officer. "As a long-term investor, it is an important piece of our investment strategy and our mission to provide pension benefits for generations to come."

via www.latimes.com

Jim Paris Comments -

Despite being considered one of the most insolvent pension systems in the country, they still have the money to pay out billions in bonuses. Granted, these bonuses are based on investment performance, but that has issue of its own. Many argue (and I would agree) that this may be placing the fund at a higher risk as fund managers can ostensibly go to the casino with other people's money. In any case, this pension system is an absolute mess and reality will start setting in in the next 3 to 5 years as benefits will have to be cut.

Turkey May Have Just Started World War III

 

 

Russian President Vladimir Putin said the plane had been attacked when it was 1 km (0.62 mile) inside Syria and warned of "serious consequences" for what he termed a stab in the back administered by "the accomplices of terrorists".

"We will never tolerate such crimes like the one committed today," Putin said, as Russian and Turkish shares fell on fears of an escalation between the former Cold War enemies.

Each country summoned a diplomatic representative of the other and NATO called a meeting of its ambassadors for Tuesday afternoon. Russia's Foreign Minister Sergei Lavrov cancelled a visit to Turkey due on Wednesday and the defence ministry said it was preparing measures to respond to such incidents.

via in.reuters.com

Jim Paris Comments -

This could start World War III. There is no way Putin is going to sit back and not retaliate. Turkey is a member of NATO,  and as such we are obligated to consider any attack on them as an attack on the U.S.  Russia is fighting ISIS, and even if there was a small incursion on their border, there was no real military threat against Turkey. Put your seat belts on, this does not look good to me...

Ohio Teachers Carrying Guns In Classroom

By Robert G. Yetman, Jr. Editor At Large

If you���re one who agrees that gun-free school zones actually put kids in greater peril, you might want to think about moving to Ohio. There are now at least 40 districts in the state that allow teachers who have concealed-carry permits to carry firearms while on the job.

In many instances, the boards of education that have approved this policy have done so at the insistence of parents who���ve not bought into the idea that their children will be safer at schools where the lawful carry of firearms by appropriately-licensed and trained authority figures is prohibited.

Teachers who are permitted to carry at school must complete something called the FASTER program, sponsored by the Buckeye Firearms Foundation, which provides comprehensive training in ���armed response, crisis management, and emergency medical aid.���

The biggest threat to the safety of students and staff in a gun-free zone���beyond the obvious absence of any defensive firepower��� is the amount of time a shooter has to engage his targets. By allowing staff ready access to guns on premises, the amount of time a hostile shooter has to do damage with impunity is greatly diminished.

Will ISIS Hack The Power Grid?

By Robert G. Yetman, Jr. Editor At Large

Earlier this year, USA TODAY published their findings of a review they conducted of federal energy records, wherein they learned that the nation���s power grid is struck by either a cyber or physical attack every four days. As they reported, a significant outage that lasted even just a handful of days could disable a wide variety of devices, and lives would be placed in jeopardy for a variety of reasons, to include a compromise of the systems used to facilitate heating, air conditioning, and health care needs.

As a matter of fact, in a recent meeting of electric-power providers, it was revealed that ISIS has, in fact, attempted to hack into the U.S. power grid. The group has been unsuccessful so far, but as Karl Stephan, PhD, of the Engineering Ethics Blog recently wrote, ������the mere fact that they're trying has some grim implications.��� Stephan goes on to pointedly state that ���the danger that foreign and domestic terrorist organizations could cause massive power blackouts in the U.S. is real.���

Jim Paris is recommending the book, Darkest Days. It is a 177 page spiral bound, fully illustrated manual (8 1/2 x 11 page size), that goes through the A to Z of how to survive an electromagnetic pulse attack. Click Here To Get Your Copy

"I have this book sitting on my desk right now. I have to tell you that the recent events with ISIS have really got my attention." Jim Paris 

New App Turning People Into Internet Celebrities

On this episode ��� What is Periscope and how is this new app helping people to build a following online? Are disagreements on the rise over inheritances? What you can do to leave an estate without a family fight. Obamacare enrollment is open, but many have sticker shock when considering the new premiums ��� what are your options?

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Houston-Area Chick-Fil-A Leaves No Doubt That ���Police Lives Matter���

By Robert G. Yetman, Jr. Editor At Large

Leave it to a Chick-Fil-A to try to counteract the efforts of high-profile incidents committed at other, popular fast-food franchises to marginalize police officers. Recent photos taken at a Chick-Fil-A in The Woodlands, Texas, a suburb of Houston, shows both employees and patrons wearing t-shirts that read ���Go Blue or Go Home,��� as well as ���Back the Blue.���

While restaurant manager Eli Advincula admits that the messages are partly an expression of support for the local high school football team, he declares that they are also meant show support for law enforcement. Reportedly, the response to the t-shirts has been very positive, and, as welcome as that is to hear, it should be of little surprise; the ���Black Lives Matter��� movement that has largely served as the fuel for recent anti-police rhetoric is an extremist effort that does not represent the majority of citizens. However, the traction it has gained is a testament to the power that can be wielded by grass roots efforts in this day and age of social media, and it���s a good lesson about the tactics that are available to those who hold viewpoints that are more traditional and mainstream.