What do the Patriots and the Dollar have in Common?

Both are a fraud.

In stunning fashion, the Patriots (or the Cheatriots as John calls them) beat the Falcons on Sunday in what will most likely be considered the greatest Super Bowl of all time. The Patriots were losing 28-3 with 8:30 left to go in the third quarter, which would normally be an insurmountable lead.

I wasn’t rooting for either team, but I thought it would be nice if the NFL’s perennial cheaters from New England would be served a humiliating loss on America’s biggest athletic stage.

“The devil’s own children have the devil’s own luck.” This was one of Grandma Kennedy’s favorite sayings, and it ran through my mind as I watched the Cheatriots mount the greatest comeback win in Super Bowl history.

Like the dollar, the Cheatriots, are the “Teflon Don” of the NFL. Spygate, Deflategate, and a murderer (Aaron Hernandez) have not stopped Cheatriots quarterback Tom Brady from becoming the winningest in Super Bowl history.

But there will come a day. Like Lance Armstrong, Pete Rose, Barry Bonds, Mark McGwire, Tiger Woods, Tonya Harding and countless other athletes have learned, reality always catches up with you. One day both the dollar and the Cheatriots will be unmasked, and the fraud will leave a whole bunch of people angry, frustrated and disappointed.

Rob Kirby is on Fire!

 

Phil interviews Rob Kirby to discuss precious metals suppression, the evils of central banking, the perversions of John Maynard Keyenes and way more!

While you’re listening to Rob’s intelligent presentation, make sure to check out Liberty Classroom and Goldmoney!  Also be sure to subscribe to the podcast and get your free copy of Financial Judo.

The (Un)Affordable Care Act

 

In episode 65, Phil interviewed Dr. Gerard Gianoli to discuss the failure of Obamacare, Health Sharing Ministries (HSMs) and more.

According to his blog site, “Dr. Gerard J. Gianoli specializes in Neuro-otology and Skull Base Surgery.  He is in private practice at The Ear and Balance Institute, located in Covington, but is also a Clinical Associate Professor in the Departments of Otolaryngology and Pediatrics at Tulane University School of Medicine.  He pioneered treatments for Superior Semicircular Canal Dehiscence and other vestibular disorders.  His private practice has a worldwide reach, with patient referrals coming from all over the United States and from around the world. Dr. Gianoli opted out of Medicare in 2001 and has had a 100% third-party-free practice since 2005.  He’s lectured and written extensively (as well as had numerous media interviews) on third party free medical practices and free market medicine.”

 

 

 

Don’t Forget Emergency Insurance!

Famed financial expert Dave Ramsey often says that disability insurance is one of the most overlooked components in any financial plan.  I disagree. Most Americans only have three days of groceries at any given time.  We take for granted the idea that we can just pop into the grocery store any time, and the shelves are fully stocked with life’s essentials.  What most people don’t realize is that those shelves would be wiped out in less than 24 hours if the just in time inventory system was disrupted.

In episode 53, Phil and John sat down with emergency preparedness legend James Wesley, Rawels to discuss why and how Americans should get ready for uncertain times ahead.  The brothers also covered a survey revealing the negative opinion millennials hold toward capitalism!  If that’s not enough, Phil also released a video documenting his experience with a Craistlist con artist!  Enjoy!

Kennedy Financial Episode 50!

In episode 50, Phil and John discuss their appearance on GoldSilver.com and the deaths of Chyna (the 9th wonder of the world) and Prince. The brothers also cover Obama’s effective tax rate and the new $20 bill. The topic of the $20 bill stirred controversy last week, but most of the talking heads failed to understand the real significance of the White House and Treasury announcement.

When the Federal Reserve was first created in 1913, a $20 gold certificate could be traded for an ounce of gold to the bearer on demand. Through endless wars and social welfare programs, the Fed has caused the dollar to lose approximately 98% of its purchasing power in just over 100 years. An ounce of gold now costs over $1,200, and the president who opposed all this central banking nonsense is finally being unshackled from the worthless fiat paper he opposed.

If you know someone who is struggling with personal finance in the phony U.S. economy, then please have them contact us for FREE financial counseling.

Fraud and the Seven Stages of Grief

grief1

During my careers as a fraud investigator and financial counselor, I’ve made an observation.  Whether it’s a victim of a financial fraud or a client with massive debt, both individuals go through the Seven Stages of Grief. These stages are typically felt when losing a loved one to a terminal illness, but I also have seen people go through them when victimized by a con-man or battling bankruptcy.  The feelings of shock and denial are most pronounced, and these feelings typically contribute to the fraud’s progression.  Let’s take a look at a few historic examples to illustrate my point:

  1. In 2000, a man named Harry Markopolous warned the Securities and Exchange Commission (SEC) that well-respected money manager Bernie Madoff was running a Ponzi scheme.  He made several more warnings, but the SEC ignored him. Madoff’s scheme finally collapsed in 2008.
  2. David Walsh, an Irish journalist, made countless claims over a decade that Lance Armstrong used performance enhancing drugs to win the Tour De France seven times.  Armstrong went on the offensive, ridiculing Walsh and anyone else who opposed his narrative. Armstrong eventually admitted to Oprah and the world that he cheated during all of his races.
  3. Retired FBI Agent John O’Neil fought a ten year battle with the bureau over Usama Bin Ladin, but he couldn’t convince his superiors to take the terrorist threat seriously.  He left the FBI to become head of security at the World Trade Center and ultimately lost his life on 9/11. O’Neil’s story still teaches us the ultimate consequence of shock and denial.

As bad as these events were, they pale in comparison to the one that’s coming.  The biggest fraud taking place right now is being conducted by the Federal Reserve. Just like Markopolos, Walsh and O’Neil, several brave heroes are trying to warn the American public of an impending economic collapse. It should come as no surprise that they’re usually confronted with shock and denial.  The most outspoken hero is a man named Peter Schiff, and as you can expect, he receives the most ridicule and disdain by the mainstream news media.

Even an armchair student of history can see that humanity repeats the same mistakes over and over, and it is largely due to the first two steps in the Stages of Grief. America’s Greater Depression ahead is eventually going to leave many citizens angry and depressed, but we will all eventually reach acceptance. My hope is that we can help people reach that final stage before it’s too late.

Super Bowl 50: A Consumer Case Study

One of the worst commercials of Super Bowl 50 had nothing to do with beer, cars or shaving. It was a commercial from Quicken Loans touting their new “Rocket Mortgages.” For a financial counselor, this commercial instantly made me nauseous. The ad suggested that getting a mortgage should be as easy as ordering a pizza. After you have that brand new overpriced house, it needs to be filled with brand new expensive artifacts. Those artifacts are made by low wage hourly workers who will in turn also buy an overpriced house an attempt to fill it with credit card purchases. The whole disgusting cycle repeats itself until one day someone realizes that their brand new house is falling in value. Instead of mailing in a check, they send their keys instead, and the whole house of cards comes crashing down.

This was the playbook that brought about the 2008 financial crisis, and it’s happening all over again.  Memories are short in the United States, and no one wants to ever focus on the lessons of austere times.  That is why the exact same mistakes are being made all over again.  Fortunately, for most parts of the country, housing prices seemed to have topped and are even falling in some metropolitan areas. Here in Northern Virginia, some homes have been sitting on the market for months without an offer.  Many other homes have been reduced, but not by an amount that will lure renters back into the “dream of home ownership.”

My family has been renting for the last two years since we sold are starter home for a handsome profit.  We just signed another 18 month extension, and locked in our original monthly rent of $2,750 a month.  Why does this matter? Well, our neighbor just listed his similar home for $639,000.  Assuming he gets his asking price (which I highly doubt), the new owner will have a mortgage of almost $3,100 a month (includes $120 HOA dues).  That’s after a 20% down payment of $128,000!

I don’t know about you, but I don’t know that many people who have that much cash lying around right now.  Even if you do have it, why would you want to put it into an illiquid investment like a house?  Let’s say you’re smart and you only make the minimum down payment of 3%.  Your down payment will only be $19,200, but thanks to PMI your monthly mortgage payment skyrockets to $4,081 A MONTH!  That means that I would have to pay $1,350 more per month for the “privilege” of owning in my neighborhood.  Sure, I’ve ignored the “tax benefits” of home ownership, but those are usually wiped out by the maintenance costs.

As I have said before, there’s a reason that home ownership is at a 50 year low.  They cost too much!  I know that the figures I’ve shared are much higher than the median home price and income, but the principles can be applied to your own financial situation.  Do not succumb to the temptation to purchase a house at these prices, even if someone tries to lure you with a cool “Rocket Mortgage” app!