How A Movie From 1939 Could Save You From Financial Ruin

It's a Twister Dorothy!

That's what they said towards the beginning of the classic movie, " The Wizard of Oz". Then, of course, all of the family ran for cover in the storm cellar, after they released the livestock and horses. Dorothy, didn't make it to the shelter that afternoon, and Auntie Em was really worried.

Well, I am right there with Auntie Em. The only difference is that the "twister" I am worried about is the effect baby boomers are going to have on the two pillars of security that we call Medicare and Social Security.

Now, that particular twister is going to do a lot more damage than the one in the movie. In the movie, little Dorothy's house was pulled off it's foundation, and dropped on the wicked witch all in one piece. The damage was minimal. At the end of the movie, Dorothy had a small lump on her head, but was otherwise un-harmed. All in all, there was a happy ending.

The Baby Boom "twister" is real, and it is coming, and we had better start to get prepared. Especially since we are being forewarned once again.

The Social Security program, along with Medicare have, once again, been "reviewed" by their respective "Trustees" to determine how soon they will be insolvent. It would appear that Medicare will become insolvent around 2019, and Social Security will be broke sometime around 2041.

As a "card carrying member" of the Baby Boom generation, Medicare will be toast about seven years before I would be eligible for benefits. I can't tell you how thrilled I am to keep paying in to it knowing all of this.

The Social Security Program, however; appears to have a little longer life span than Medicare. It wasn't too long ago the date was predicted to be sometime in 2032. So, I guess I should be happy about that tidbit of good news, given the way Medicare is working out for me.

No matter how you look at it though, the message is pretty clear if you simply read between the lines. For those of you who don't, please allow me to decipher for you:

The message is: Don't Count On Us.

Just like Dorthy discovered, the Great Wizard (the government) cannot really magically provide a heart for the Tin Man, or a brain for the Scarecrow, nor can he provide whatever actually puts the "hot" in Hottentot, otherwise known as Courage.

In fact, the Wizard pretty much told Dorothy and her companions that the very things they sought to obtain were already in their possession. They needed only to realize it and to believe it.
Our government is, once again, telling us that we need to fend for ourselves because there is a storm coming, and we would be wise to get prepared if we hope to make it through. Not in so many words of course, but that's about it in a nutshell.

For me, that means we need to save our own money, become debt free as fast as possible, and be self sufficient. You know, all the things your Auntie Em ( your parents and Grandparents)probably told you were smart things to do with your money.

So, pay no attention to that man behind the curtain!

It is only me. But, if there really was a "wizard" , I suppose we would learn what we really already know; that the average American family can be come debt free without hurting their budget.

Furthermore and henceforth, from this day forward, they shall have the power to do so, if they realize that they cannot plan for their future while they are so busy paying for their past.

How much money you make is not as important as; how much of what you make will you actually keep? Getting out of debt is, without question, the single most important financial decision you must make in today's world.

Maybe, we should listen to Auntie Em and not depend on Uncle Sam, especially if we want our story to have a happy ending?

Does Uncle Sam Need You?

Does Uncle Sam need you? I sure think so. Now more than ever.

Yesterday, the Federal Reserve lowered the Federal Funds rate by another .75% which is being hailed as a great thing by many newspaper columnist and market watchers. While the benefits of this action will be noticeable for the players on Wall Street, they will be short lived at best. This is a short term solution to a long term problem, and it will actually serve to make the REAL problem worse.

So, oh wise one, "What IS the real problem?" you ask. Well grasshopper, the REAL problem is a dollar that is falling at a speed that would make Dale Jr. nervous. If Dale is nervous, we should be too.

If you are realizing that prices on the things you buy seem to be a lot higher these days, you are absolutely correct! I am not just talking about the cost of gas at the pump. I am talking about milk, cereals, meats etc. You know, the basics. Good grief, a gallon of milk costs more than a gallon of gas!

I don't think I can get out of the grocery store these days for less than about $160 a week. Although, if you read the newspapers and believe what they are saying, inflation hasn't actually shown up at the economic party yet. You had better brace yourself, because if it isn't here, it is on the way. BIG TIME.

The only reason it hasn't reared it's head yet is that our government has removed the cost of oil, food and how much currency that is in circulation from the calculation. The result is low numbers and a false sense of security. This new formula makes the math on Global Warming look like Einstein himself did it.

I don't know about you, but I kind of think those things are a little important to our economy. We are being given only a part of the truth when it comes to our real economic state. So, is a half truth really a lie?

When the Fed lowers the federal funds rate; banks and consumers ultimately, have more ready access to cash, which can be borrowed. This puts more currency into circulation, which serves to deflate the "value" of a dollar. If a dollar is worth LESS, then it will take MORE dollars to fulfill the true costs of a particular good or service. Thus, INFLATING the price.

THIS is exactly why a barrel of oil goes for $110 these days, and why families are now having to pony up $400 to $500 a month for gasoline to get back and forth to work. It now costs as much every month to actually RUN your car as it does to buy it! That's what is going on here in OUR country.

On the international scene, nations like Iran and Venezuela, two oil producing countries, (who are not exactly our pals) are now selling their oil on the open market for other currencies and they will not take the U.S. Dollar. At the same time, China is currently booming economically, and they are buying oil like it is going out of style. Purportedly, to increase their strategic petroleum reserves, which is driving the price even higher.

When the United States came off the the gold standard, the "dollar" replaced gold as the standard for many economies around the world. Our country has benefited from this enormously, and in order to remain an economic super power we need it to remain that way.

The falling value of the dollar is causing many countries to rethink their strategy of using the US Dollar as a standard. In fact, several countries have already begun to transition to a different currency. This is not good for the home team.

Converting to a different currency requires them to sell or unload their dollars in the currency market. This selling off will ultimately lead to substantially higher inflation, similar or worse than what the United States experienced in the mid to late 1970's. For those of you who remember, we had gas lines and 16% mortgage rates for people with good credit, and polyester leisure suits too. None of it was good.

So, what does all of this have to do with becoming debt free, which is the main topic here? The ONLY way to stop the bleeding of the the U.S. Dollar is to have our government reduce spending (good luck with that), decrease our dependence on foreign oil (stop laughing!) and for the average American family to get themselves out of debt. You may not be able to do much about the first two, but you can sure control the last item. You need to save yourself or you will go down with the ship.

By getting your family out of debt, you will have more disposable cash and you will save thousands of dollars in interest expenses, and have choices about your future. Choices, that is what freedom is all about. Freedom to choose where you live, who will represent YOU in our government, what you do for a living, etc. Quite frankly, I believe this is the single most important financial step you you can take for yourself. It has never been more important than it is now.

If most American families did the same, the banks would have increased liquidity and not need the Federal Reserve to help them. This will help to prop up the dollar and most importantly, it is our duty as freedom loving Americans to do what we can to protect our economy and our country.

I believe that the best America has to offer is yet to come, but we face a world unlike anything we have known before. Our enemies know we have the worlds most powerful military, and they cannot win on the battlefield. The only way we can be defeated is economically. The first step is to devalue our currency, and it is happening NOW.

So, in case you haven't noticed, there is a war going on, and it is not just being fought in Iraq and Afghanistan. The fight is on, and I hope you join me in becoming debt free. Your country and your future needs you. Will you answer the call?

Email me at jimsetters@debtmastersllc.com to learn more on how you can become debt free faster than you ever thought possible. God bless you and May God continue to Bless America.