Gold Hits New Record on 1st March 2011

Gold hits new record

WASHINGTON (AFP) - – Gold struck a new record high at $1,434.50 an ounce Tuesday as worries spread that the surging price of oil could fuel inflation and dampen economic growth.
The price on the London Bullion Market jumped more than $14 an ounce from Monday to top last December's record of $1,431.25, before falling off to below $1,434 after 2200 GMT.
On the New York Comex exchange, the price topped out at $1,434.40, a record for that market, before pulling back slightly.
The jump came after oil prices rose again on Libyan unrest and US Federal Reserve chief Ben Bernanke warned that a sustained rise in oil prices could potentially threaten US economic growth and spark dangerous broader price rises.
"Sustained rises in the prices of oil and other commodities would represent a threat both to economic growth and to overall price stability," the US central bank chief said in testimony to Congress Tuesday.
"As we're coming into the first day of the month, we see (asset) reallocation into gold and silver markets," said Rich Ilczyszyn of Lind-Waldock.
"Ultimately this is part of the contagion issue in the Middle East."

Federal Trade Commission Ptrotecting America's Consumers Guide

http://www.ftc.gov/bcp/guides/guides.shtm

The Wall Street Journal reports that the US Commerce Department is predicting corporate profits will be up 26.5 percent from a year earlier, which comes off of a second quarter year-over-year rise of 38 percent.

Yet, unemployment is still at an all-time high and some companies are even laying off workers despite these record profits. Why?

The answer is that's how they're getting those record profits. The record profits aren't a product of record sales. Sales are still stagnant. They're a product of record cuts in expenses, primarily driven by layoffs.

The Cash Hoard

Not only are companies experiencing record profits, they're also holding onto record cash reserves. Marketwatch reports that non-financial companies in the S&P 500 are holding onto over $1 trillion in cash reserves and assets as of the end of the second quarter. And many experts are predicting those reserves could rise to $2 trillion by the end of the year.

Yet, companies aren't increasing dividends. And they aren't hiring new people. Those are the two things that traditionally happen when profits and cash are so high. Why the disconnect?

Companies still remember the cash crunch they just came through, and because sales are stagnant, they don't want to make aggressive moves without assurances that they'll be able to sell product.

The problem, of course, is that people won't buy product and spend money when unemployment is so high and the economy so uncertain. So, both sides are in a holding pattern, waiting to see who moves first.

The Rich Get Richer

The unfortunate truth of this downturn is that the rich are getting richer. That's because they have control. Entrepreneurs and business owners are able to experience record profits because they can control their bottom line. This time they've done so through cuts and layoffs. It's unfortunate that they are choosing to hoard cash and cut jobs while experiencing so much prosperity. But that is their right, regardless if it's the right thing for the country and economy.

The gap between the rich and the poor is widening, and the middle-class is shrinking. If anything, this downturn has proved the importance of having control. As an employee you have no control. You are at the mercy of your boss and your company. During the financial crisis, many employees found out that even a high salary doesn't mean security.

If anything, the lesson from this downturn should be that the more control you have over money and business, the better position you're in to profit even when others are struggling.

Take Control

Eventually the dam will break. Money will start flowing—both from consumers and from companies. When it does, expect to see inflation take off. There is a lot of cash out there, and when it hits the market, an already weak dollar will become weaker.

The good news is that in the meantime, great deals are out there ready for the right investors. For instance, if you're interested in investing in real estate, there are many opportunities to find cash-flowing properties at rock-bottom pricing. And for those that want to start businesses, now is the time to take control and put your financial intelligence to work. By understanding how money works and by having control over your future, you can prosper even while others don't.

As I've said before, this is the biggest wealth transfer in history. You have the choice today to be on the winning end or the losing end. You have the opportunity to profit from this downturn. But you have to be financially intelligent. Continue to learn. Find great mentors. Make the right moves.

This is an important week for many investors. This week scores of corporations release their earnings reports. As you may have heard, most companies are posting near-record high profits.

Money Welcome You !

Money Talks.

What's Yours Saying?

Regardless, whether we are rich or poor, educated or uneducated, child or adult, retired or working, we all use money. Like it or not, money has a tremendous impact on our lives in today's world.

The Root of All Evil
Is the love of money the root of all evil? Or, is it the ignorance of money?

What did you learn about money in school?

Why our school systems do not teach us much—if anything—about money?

Is the lack of financial education in our schools simply an oversight by our educational leaders? Or is it part of a larger conspiracy of the Rich or Government?

Changing the Rules of Money
In 1971, President Richard Nixon changed the rules of money: Without the approval of Congress, he severed the U.S. dollar's relationship with gold. He made this unilateral decision during a quietly held two-day meeting on Minot Island in Maine, without consulting his State Department or the international monetary system.President Nixon changed the rules because foreign countries being paid in U.S. dollars grew skeptical because the U.S. Treasury was printing more and more money to cover our debts, and they began exchanging their dollars directly for gold in earnest, depleting most of the U.S. gold reserves. The vault was being emptied because the government was importing more than it was exporting and because of the costly Vietnam War.
As our economy grew, we were also importing more and more oil.

The old saying, "Money talks," is a true one. Unfortunately for most people money is simply saying, "Bye-bye."

That is including you and me.
But, if you are willing to learn the knowledge and skill

how to make money as your employee

then you may not be one of them.

"The more the economy worsens, the more money I make. If the economy gets better, I will make even more money. This may sound confusing, but justifies the need for financial education. It doesn’t matter - bad news or good news – it’s all good news if you know what to do." - Courtesy of Robert's Conspiracy of the Rich bulletin.
The rich get richer and the poor get poorer. So, the powerful and smart money continuously go into the hands of the Rich and Smart people!
But you can choose to be Rich too.
Without Financial Education, your money flows to those who profit most for your financial ignorance.
Now is the time for financial education!
Take Action Now!
Ready Go and Do It!

Money Is My Employee

Opt-In-Form