The money trap:
There is no Middle Class and folks seem to be comfortable with this fact. Can there ever be a Middle Class again? The short answer is , “Yes”, if ” we the People” become involved in controlling our destiny?
What do I mean? There is no way for the ” Powers in Place”, our legislatures to know the extent of your misery unless you and I, let them know , we are ” Mad as Hell” and we’re not going to take it anymore. Until we take our vacation, rest and organize into one Political group, we will have no choice and Politics will continue to affect us negatively.
Do you know the following facts about Money? You should because it effects us directly:
- Money Markets rates to investors are the same rate as the Fed Funds Rate? 0.25%. ” We the People” can’t make money by investing in Money Markets? Worse, some money markets are not guaranteed and you may lose your principle investment.
- Mortgages cost 2-5% depending on your credit rating. And we all know, thanks to the three credit unions, no one, not even the ex head of the Federal Reserve , has a “good” credit rating.
- Student loan rates are 6% on average and 99% guaranteed by parental credit. Ditto, we all understand the unfairness of this system, no need to articulate, now.
- Lastly, credit card rates are 9-35% depending on your credit rating, but since the ratings are rigged, too many folks are paying the maximum rates. These are the facts.
Why do these facts rankle me? The short answer, I want to make a decent return on my investment. Years ago, I learned that a 15% return on your money was a Benchmark to be achieved when investing your hard earned Capital. It still is , for those still invested in the market or some hedge funds. However; after the financial crisis of 2008, when many lost their life savings in the market , or lost their homes, the Middle Class became unable to take advantage of “MR. Market” or other financial opportunities. It is also impossible for those of us with money saved for retirement to invest our hard earned cash in a Market that is risky and controlled. Retirees are now urged to lock in their money in Bank or Insurance Annuities, it’s an option, though a “poor” one. For those still working and living “hand to mouth” there is no investment option: living “hand to mouth”, means you’ve got nothing more from one 24 hr period to the next. Your options become limited to paying for food, clothing, rent or utilities. The ” new paradigm ” makes it impossible to accumulate any money, there are no options when you are living “hand to mouth”. The Middle Class has become a class without options. They are now the working “poor”.
What is the ” working Poor” profile? Look at today’s Middle Class. The Middle Class is hampered by lower wages and the same or higher expenses . The Middle Class can’t save since they are forced to live ” hand to mouth”. So, who is contributing to Bank deposits? The retired folks are purchasing long term annuities at various percentages below 5%. Locking in their money for security. That gives the Bank the deposits they need to have an ” asset cushion”, but gives savers little return on investment . Worse, since these are the only safe vehicles for investment and the money must be locked in from 4-7 yrs minimum, the Middle Class is locked out of decent returns . The Middle Class can never climb out of this impoverished position on our own. That’s the new Paradigm?: It is not possible for the Middle Class to get out of debt and stay out of debt or make a decent investment for future living.
We are living in an altered reality of expectations for those retired and the once Middle Class. The Ultra Wealthy and the Banks still make 15-30% on their investment , but you and I can’t. I’ll tell you why? Since the Market has been rigged and pension funds are invested in the Market through Hedge Funds, the Market will continue to rise and benefit the few. Only when a Black Swan moment occurs ( so called by Economist Taleb, an unpredictable event), which forces the Market to correct, consolidate and approach more realistic values, will those of us, still able to save, be able to take advantage of more realistic Market pricing and return on investments. This singular event has to happen for” inequality” to be noticed by everyone, not just the Middle Class.
What can we do? We must assign ourselves the task to right the wrongs and reinstate the laws that were “upended” over the last 40 yrs..
” We “, the Middle Class have choices: we can do nothing and hope that our ” state of inequality” will disappear. I call this “The denial and ostrich syndrome”, when we cease to think about our plight and hope everything will be OK?
Or, we can take a vacation in November and force the “Powers that be ” to recognize our demands for the creation of several monetary stabilizing bills plus the overturn of Citizens United and / or you can proclaim your choice for The Head of a New Party , whether it’s DEMOCRAT, REPUBLICAN OR INDEPENDENT , the Middle Class has my voice.
We the People know what’s wrong with our system and through education , all the People will understand , as well. Therefore, as soon as ” we the People, stand together as one body, with one Leader, the Market and the Legislatures will not notice us. As I’ve told my friends, since ” we the people ” are quiet, the status quo can flourish. The once powerful Middle Class ceases to exist . There was no burial, no memorial service, we died quietly, as expected. But, “Our Resurrection” is assured when we take the Power into our own hands. Once we Recognize, that “we the People”, The Middle Class has Power , we can dictate our terms.
Think about it. We’ve had 7 years of Recession and the job market can get worse, how long do “we the people ” want to wait before we create positive change which encourages Regulated Banking and Savings because the Middle Class finally has a toe hold in the American Economy. If you want to help yourself and the rest of the world. Seize the opportunity for change, support me as your spokes person and I will be relentless on our behalf.
We have choices, when Politics effects US! The same holds true for all those following me from 93 Countries. Dear readers, what works for US in America, works for you, too! There is strength in numbers! Don’t forget, there are a limited number of Politicians, there is a limited number of Corporations, but there are Billions of lives at risk. All we want is the ability to earn our “daily bread”, to provide for our families and to save something for retirement. Most of us, don’t want much, but , here, in America, we do want our Middle Class status back. I don’t like this non-stratified society. This is not a paradigm I wish to leave to my children or my grandchildren. We have too many issues to resolve before any of us in my generation, can contemplate going quietly, “into that good night”. Too much to do before we sleep! The status quo is not an option.