What is the Real Inflation Rate So Far in 2010?

If we believe what the Fed and our government tells us is our inflation rate is below expectation.  Thank again.  Here's the real data based on real products/services.  You see the CPI (Core Purchasing Index) which the government uses to gauge our inflation and determine the social security checks cost basis, then they don't include energy cost or food cost.  It's only based on durable goods and housing cost which as we all know, has been steady if not declining due to unemployment.  Check out the following table:

Give me a break! Anyone with half a brain can see that prices are going up all around them.
Plus, it's bound to get worse. Consider a few examples of what's happened with prices so far this year, in merely nine weeks:

Oil is up 17.3% ...
Heating oil is up 27.3% ...
A pound of coffee is up 13.6% ...
Cocoa is up 21.5% ...
Corn is up 16.8% ...
Cotton is up 55.1% ...
Again, only in nine weeks!
Now, you tell me, does that look like annualized inflation of 3%? Or even 9%?!
I don't think so! The average price appreciation of the above, pretty much staple items, is almost 20%.

What to do in the real world when you can't trust government data?  Do you own due diligent and invest in real asset or at least manage your budget to live within your means.  I normally like to have investment portfolio of real assets such as energy stocks, food ETFs. silver, gold, and even the NASDAQ components.  At least the NASDAQ components are made up of "real companies" with real assets.
For those who are looking for extra income to add to the fixed income, take a look at home based business with little or no inventories with unlimited income potential.  I also like to look at home based business as a way for me to offset tax liabilities of my investment income.
Click here for more information 

Good luck everyone and may God bless us all.
Lan Shafer

The New Social Security Reform -- What It Means To You

This is from a well respected investment newsletter I received.  They speak about the new social security reform/provision for 2011 and what it means.  I think we are all going to have to face the fact that we need to look at other income generator to help bridge the gap:

Meanwhile, I Also See the Potential for
Big Social Security Reforms Coming
"I believe 2011 will be the year that lawmakers get serious about "fixing" Social Security again.
As I reported here last month, the Social Security Administration just did away with one of the little-known provisions that actually gave savvy folks the chance to increase their payments ... largely because professionals like me were touting it.
In addition, I would like to point out something that most folks have not noticed about the new tax deal ... it will actually mean LESS money going into the Social Security system in 2011!
Reason: One of the tax deal's provisions reduces the amount that workers will pay into Social Security by two full percentage points.
In other words, rather than paying in a full 6.2 percent of their pay — up to a cap of $106,800 — U.S. workers will only contribute 4.2 percent this year. (For their part, employers and the self-employed will continue to contribute another full 6.2 percent.)
Now, lawmakers have said they'll make up for this by taking more money out of the general fund. But that's like simply transferring a credit card balance from MasterCard to Visa!
Meanwhile, even if we assume that this reduction will only last one year ... it comes at a time when Social Security is already facing massive shortfalls!
So there are no two ways about it ... an unavoidable day of reckoning is near.
The system's last major overhaul came in 1983, and this time I think we'll see a big impact on both "wealthier" recipients and anyone farther away from collecting — especially through higher taxation of benefit checks.
The upshot is that we will all need to work even harder at building up our private income portfolios in 2011 and beyond. But given the possibility for richer dividends, I also think we'll have plenty of opportunities to do so throughout this year."  Nilus Nattive.

Safeguarding Your IRA's for the Next Market Corrections

What is the Market telling us for the next 1-5 years?


If you have 401K then try to emulate the investment strategy that is close to the following. It's tough because most companies 401K do not have true internationals -- they tend to mimic the US + Europe and possibly Asia with Japan. That is like sailing in a metal boat with 1 sail instead of a fiber glass boat with 2-3 sails.

The US and European markets are sinking in high unemployment, out of control govt debt and high tax burden that slows down capitalism. Asia and South America are brimming with natural resources they are willing to mine and sell. They are more energy independent than Europe or US because we are importing many of our oil from Venezuela and the Arab countries. That is just the type of economic anchor that weigh us down because many of the resources we have here in the US is not being used or explored due to political pressure from the "green" initiatives.


Poor efficiencies and higher cost of energy will cause American co's and European big corp to move their operations in more dangerous territories and to buy from China, Brazil, Chile, Australia, and other South east Asia. The growth is not in the 1st world country any more. China just surpass Japan as the 2nd largest economy this month. US is slowing down to a crawl in GDP growth and exponential Debt.


Don't be fooled by what's going on here in the US. In the next few months or in the beginning of 2011, there will be a market correction. All stocks and ETF's will go down but the bounce back for Emerging Markets are faster and higher than the US.

What I am doing now is looking into ETF's of other countries. They have many available now for any countries you want to search. But I am also doing a home base business so I can take advantage of the tax credits for business expenses. My husband and I are living off IRA distributions and Social Security. But the current tax rate hike in 2011 will cripple us because the IRS treats IRA distributions as regular income; therefore, we loose in the market and also get tax at a higher rate for the money we pulled out. Our CPA recommended us to increase our deductions with the use of home base business to write off some of the expenses in our home in the use of the home business and carry that over into our own personal income deductions. Speak to your CPA and find the facts about tax advantages of home based business.