NONCONFORMING-CONFORMIST

8 Sales Personality Traits of Highly Successful Selling Don't sell your soul-sell your heart! " In the modern world of business, it is useless to be a creative original thinker unless you can also sell what you create. Management cannot be expected to recognize a good idea unless it is presented to them by a good salesman." "The salesman knows nothing of what he is selling save that he is charging a great deal too much for it." What Is Our Life. By Sir Walter Raleigh WHAT is our life? The play of passion. Our mirth? The music of division: Our mothers’ wombs the tiring-houses be, Where we are dressed for life’s short comedy. The earth the stage; Heaven the spectator is, Who sits and views whosoe’er doth act amiss. The graves which hide us from the scorching sun Are like drawn curtains when the play is done. Thus playing post we to our latest rest, And then we die in earnest, not in jest. Be Creative and kind! Connect on: Instagram: https://www.instagram.com/themcclonebrothers/ Twitter: https://twitter.com/themcclonebrot1 LinkedIn: https://www.linkedin.com/in/themcclonebrothers/ @Tim McClone ​

Update housing, Inflation, and Consumer spending Almost one year ago, Redfin CEO Glenn Kelman spoke with Bloomberg Radio about the state of the US housing market and said that the ongoing surge in home prices could subside. Kelman said the housing market was in a frenzy, with most houses selling above the asking prices, which has never happened before, although he warned that "after record gains in the first quarter, some home prices are likely to stall." That statement illustrated vividly that even the people who are supposed to know their industry the best, are often just as clueless as the rest of us, and in the subsequent month US home prices continued to rise dramatically, hitting an all-time high by late 2021 at which point they plateaued around a 20% Y/Y clip. In a blog published this week, Redfin analyst Tim Ellis shares more evidence that the housing market has indeed topped, and that early indicators of homebuyer activity have faltered further as mortgage rates shoot up above 5%, pushing demand lower - a predictable outcome which we previewed a month ago in "Housing Affordability Is About To Crash The Most On Record" - and which means that sellers have no choice but to follow with more price cuts. Below we excerpt from Redfin's latest observations on the slowing housing market. Housing Market Update: Demand Slips, Pushing More Sellers to Drop Asking Prices Early-stage homebuying demand continues to falter this spring as new listings fell 7% from a year earlier, the average 30-year fixed mortgage rate shot up to 5% and the median asking price climbed to $397,747, sending the typical homebuyer’s monthly payment up 35% year over year to an all-time high of $2,288. Here are the key early indicators that tell us demand is softening at a time of year it typically springs up: Fewer people searched for “homes for sale” on Google—searches during the week ending April 9 were down 3% from a year earlier. The seasonally-adjusted Redfin Homebuyer Demand Index—a measure of requests for home tours and other home-buying services from Redfin agents—has declined 3% in the past four weeks, compared to a 5% increase during the same period last year. The index was up 2% from a year earlier. Touring activity from the first week of January through April 10 was 23 percentage points behind the same period in 2021, according to home tour technology company ShowingTime. Mortgage purchase applications were down 6% from a year earlier, while the seasonally-adjusted index increased 1% week over a week during the week ending April 8. For the week ending April 14, 30-year mortgage rates rose to 5%—the highest level since February 2011. This was up from 4.72% the prior week, and the fastest three-month rise since May 1994. We’re also closely watching the accelerating share of home listings with price drops, which is climbing at its fastest spring pace since at least 2015, another sign that demand is not meeting sellers’ expectations. “There really is a limit to homebuyer demand, even though the market over the past few years has made it seem endless,” said Redfin Chief Economist Daryl Fairweather. “The sharp increase in mortgage rates is pushing more homebuyers out of the market, but it also appears to be discouraging some homeowners from selling. With demand and supply both slipping, the market isn’t likely to flip from a seller’s market to a buyer’s market anytime soon.” Despite these early signs that the market is slowing, it still feels as hot as ever for homebuyers, with new records set for home-selling speeds and price escalations, based on data going back to 2015. Forty-five percent of homes that went under contract found a buyer within one week, and the average home that sold went for 2.4% above its asking price. “If a home is on the market for more than a week, people start to wonder why or assume something is wrong with it,” said Redfin Boston real estate agent James Gulden. “Every offer I’ve written recently has faced multiple offers, but some people have finally had enough of all the competition and are pulling out. They’re becoming less willing to make a risky offer in a high-stress bidding war situation.” Key housing market takeaways for 400+ U.S. metro areas: Unless otherwise noted, the data in this report covers the four-week period ending April 10. Redfin’s housing market data goes back through 2012. Data based on homes listed and/or sold during the period: The median home sale price was up 17% year over year to a record high of $389,178. Be Creative and kind! Connect on: Instagram: https://www.instagram.com/themcclonebrothers/ Twitter: https://twitter.com/themcclonebrot1 LinkedIn: https://www.linkedin.com/in/themcclonebrothers/ @Tim McClone ​

Federal Reserve Chairman Jerome Powell promised last month that a “soft landing,” one with neither a recession nor high unemployment, is in the works. He cited three historic tightening cycles, 1965, 1984, and 1994, when soft landings occurred. The trucking industry is being decimated! Diesel Gas is over $6.50 per gallon! Causing more supply chain issues. Truckers are quiting. Americans can't put food on the table right now. Larry Summers has the opposite view: With the labor market this tight, businesses will have to keep increasing wages to attract workers. If the Fed had started hiking rates while more people were unemployed, businesses would have been able to cut wages more easily, but now it will have crater the economy to kill inflation. A recent working paper co-authored by Summers looks to historical examples. When wage inflation has averaged above 5% and the unemployment rate has averaged below 4% in the same quarter, as it did in the first quarter of 2022, there is a 100% chance of a recession in the next two years. It all comes down to what’s causing inflation Summers has argued that the primary cause of excessive inflation is government spending, and the money it has put into consumers' hands. That’s why Russia’s invasion of Ukraine and chaos in global commodities markets are such a threat to the Fed right now The US Federal Reserve has fully pivoted to fighting inflation and reducing demand in the economy. The central bank’s open market committee is expected to further tighten interest rates and end purchases of financial assets at meetings starting tomorrow. That sounds right after prices have increased 8.5% in the last year for the average US consumer, far above the Fed’s target of 2%. Few economists think the Fed shouldn’t tighten monetary policy. But the Fed is still playing a dangerous game: Its officials want to take enough demand out of the economy to maintain price stability, but if it goes too far, it could send the economy into a recession. Some analysts think that result is inevitable—in the history of central banking, many attempts to slow the inflation ended in a crash. A recent paper by Harvard economist and current Fed critic Larry Summers suggests that probability could be 100%. Other analysts, at the rating agency Moody’s or megabank Goldman Sachs, put the chance of a near-term recession at around one in three. Yet, even inside the Fed itself, there’s a hope this time might be different, that our weird semi-post-pandemic economy might provide the right conditions for something we haven’t seen in decades: A soft landing. Imagine the economy as a hot air balloon. Pump too much energy in, and the balloon goes quite high. To return to the Earth, you need to let some of the hot air cool so you can descend, but if you move down too fast, the results could be catastrophic. Now, with chair Jay Powell’s hand on the regulator, it’s time to figure out what may keep our balloon from plummeting. Has there been a soft landing before? The prototypical tightening cycle is what happened with Fed chair Paul Volcker in the 1980s: To fight rising inflation, he hiked interest rates dramatically, throwing the country into a two-year recession. Farmers famously surrounded the central bank with their tractors in protest. Has there been a soft landing before? The prototypical tightening cycle is what happened with Fed chair Paul Volcker in the 1980s: To fight rising inflation, he hiked interest rates dramatically, throwing the country into a two-year recession. Farmers famously surrounded the central bank with their tractors in protest. But that severe reaction is not a guarantee. Alan Blinder, the Princeton economist, argues that since 1965✎ EditSign, there have been 11 episodes of the Fed tightening interest rates, and seven have been fairly mild, with economic production falling less than 1%. Of the rest, three episodes—notably, the Volcker tightening—were intended as drastic responses to economic conditions. Two other episodes, the most recent, saw recessions following tightening episodes, but arguably from external causes: The 2008 financial crisis and the 2020 pandemic. Powell is looking to three specific examples, in 1965, 1984, and 1994, when the Fed tightened monetary policy, lowered inflation, and saw no reduction in growth. “It is worth noting that today the economy is very strong and is well-positioned to handle tighter monetary policy,” he said in a March speech. Perhaps most of all, a soft landing will require luck. The Fed’s monetary policy committee is making its decisions off of imperfect, often month-old data, in a time of rapid global change. The US central bank has faced a brutal recession and an unprecedented recovery, even as trade norms and technology reshape the dynamics of the economy. Maybe it’s due for a break.

I think this is great news! Fidelity Investments said on Tuesday it will allow individuals to allocate part of their retirement savings in bitcoin through their 401(k) investment plans, becoming the first major retirement plan provider to do so. Fidelity Investments Inc., commonly referred to as Fidelity, earlier as Fidelity Management & Research or FMR, is an American multinational financial services corporation based in Boston, Massachusetts. The company was established in 1946 and is one of the largest asset managers in the world with $4.5 trillion in assets under management, now as of December 2021 their assets under administration amount to $11.8 trillion.[5][6] Fidelity Investments operates a brokerage firm, manages a large family of mutual funds, provides fund distribution and investment advice, retirement services, index funds, wealth management, cryptocurrency, securities execution and clearance, asset custody, and life insurance A private venture capital firm, F-Prime Capital Partners, managed on behalf of owners and other key leaders of Fidelity Investments, has been described as directly competing with Fidelity Investments public funds. A 2016 Reuters investigation identified multiple cases where F-Prime Capital Partners was able to make investments at a fraction of the price of Fidelity Investments. Because of SEC regulations, investments by F-Prime Capital Partners preclude Fidelity from making the same early investments. The investigation describes that this competition forces Fidelity to delay investing until later and at much higher prices than F-Prime Capital Partners, resulting in lower returns for Fidelity fund shareholders. Corporate governance experts have stated that the practice is not illegal, but that it poses a clear corporate conflict of interest.[46] Fidelity spokesmen have stated that they are following all laws and regulations. The same Reuters investigation documents six cases (out of 10) where Fidelity Investments became one of the largest investors of F-Prime Capital companies after the start-up companies became publicly traded. Legal and academic experts said that major investments by Fidelity mutual funds - with their market-moving buying power - could be seen as propping up the values of the F-Prime Capital investments, to the benefit of Fidelity insiders. Fidelity declined to comment on this aspect of the investigation Be Creative and kind! Connect on: Instagram: https://www.instagram.com/themcclonebrothers/ Twitter: https://twitter.com/themcclonebrot1 LinkedIn: https://www.linkedin.com/in/themcclonebrothers/ @Tim McClone ​

It is a great time to sell your home or buy an investment property! YOUR 20 MILLION DOLLAR BROKER It's Fine Today: By Douglas Malloch Sure, this world is full of trouble I ain't said it ain't. Lord, I've had enough and double Reason for complaint; Rain and storm have come to fret me, Skies are often gray; Thorns and brambles have beset me On the road — but say, Ain't it fine today? What's the use of always weepin', Making trouble last? What's the use of always keepin' Thinkin' of the past? Each must have his tribulation — Water with his wine; Life, it ain't no celebration, Trouble? — I've had mine — But today is fine! It's today that I am livin', Not a month ago. Havin'; losin'; takin'; givin'; As time wills it so. Yesterday a cloud of sorrow Fell across the way, It may rain again tomorrow, It may rain — but say, Ain't it fine today? WE ARE LICENSED REAL ESTATE BROKERS IN CALIFORNIA AND NEVADA! WE ALSO ARE INVESTORS IN 7 STATES AND 5 COUNTRIES AND RUN A PROPERTY MANAGEMENT COMPANY IN THE US AND ABROAD. WE CAN HELP YOU WITH YOUR "GLOBAL" NEEDS The McClone brothers is a professional real estate group serving sellers, buyers, and investors. We have been buying/selling Real Estate since 2003. In today’s real estate market, there’s absolutely no substitute for professional representation. We are committed to providing our clients with the expert knowledge, professionalism, and personal integrity necessary to complete one of the most significant financial decisions you are likely to ever make. We put that empathetic holistic environment at the core of our service experience for every client. We are not just listing agents--we are global investors, property managers, notary publics, and Landlords. We have fixed & flipped 127 properties since 2003 and we run a global real estate rental business consisting of single-family & multi-unit buildings. We are Property Managers for vacation homes in Mexico, Flordia, Wisconsin, Ibiza Spain, Bermuda, France, and Costa Rica! Please use this website as a valuable resource to guide you through all your Southern California real estate needs, our communities, local news, and relevant social content. We have focus communities, however, our reach is global. I welcome you to contact me if you have any questions or need my expertise in selling your home, buying your dream home, or looking for a great investment property. We are always looking for investment opportunities in multi-family and single-family homes. If you need to sell quickly, we are cash buyers that can close quickly. We appreciate your trust and look forward to serving you. Customer service is our 1st priority! Be Creative and kind! Connect on: Instagram: https://www.instagram.com/themcclonebrothers/ Twitter: https://twitter.com/themcclonebrot1 LinkedIn: https://www.linkedin.com/in/themcclonebrothers/

The POWER OF PRICING POWER AND 2 FREE STOCK PICKS....... What Is Pricing Power? Pricing power is an economic term that describes the effect of a change in a firm's product price on the quantity demanded of that product. Pricing power is linked to the price elasticity of demand. Price elasticity is a measure of the degree to which individuals, consumers, or producers change their demand or the amount supplied in response to price changes. For example, if the price of a good goes up, the tendency is that the demand for that goodwill go down as people will look for cheaper alternatives. In economics, market power refers to the ability of a firm to influence the price at which it sells a product or service to increase economic profit. In other words, market power occurs if a firm does not face a perfectly elastic demand curve and can set its price (P) above marginal cost (MC) without losing sales. This indicates that the magnitude of market power is associated with the gap between P and MC at a firm's profit-maximizing level of output. Such propensities contradict perfectly competitive markets, where market participants have no market power, P = MC, and firms earn zero economic profit.[3] Market participants in perfectly competitive markets are consequently referred to as 'price takers', whereas market participants that exhibit market power are referred to as 'price makers' or 'price setters'. A firm with market power has the ability to individually affect either the total quantity or price in the market. This said market power has been seen to exert more upward pressure on prices due to effects relating to Nash equilibria and profitable deviations that can be made by raising prices.[4] Price makers face a downward-sloping demand curve and as a result, price increases lead to a lower quantity demanded. The decrease in supply creates an economic deadweight loss (DWL) and a decline in consumer surplus. This is viewed as socially undesirable and has implications for welfare and resource allocation as larger firms with high markups negatively affect labor markets by providing lower wages. Perfectly competitive markets do not exhibit such issues as firms set prices that reflect costs, which is to the benefit of the customer. As a result, many countries have antitrust or other legislation intended to limit the ability of firms to accrue market power. Such legislation often regulates mergers and sometimes introduces a judicial power to compel divestiture. Market power provides firms with the ability to engage in unilateral anti-competitive behavior. As a result, the legislation recognizes that firms with market power can, in some circumstances, damage the competitive process. In particular, firms with market power are accused of limit pricing, predatory pricing, holding excess capacity, and strategic bundling. A firm usually has market power by having a high market share although this alone is not sufficient to establish the possession of significant market power. This is because highly concentrated markets may be contestable if there are no barriers to entry or exit. Invariably, this limits the incumbent firm's ability to raise its price above competitive levels. If no individual participant in the market has significant market power, anti-competitive conduct can only take place through collusion, or the exercise of a group of participants' collective market power. An example of this was seen in 2007, when British Airways was found to have colluded with Virgin Atlantic between 2004 and 2006, increasing their surcharges per ticket from £5 to £60.[8] Regulators are able to assess the level of market power and dominance a firm has and measure competition through the use of several tools and indicators. Although market power is extremely difficult to measure, through the use of widely used analytical techniques such as concentration ratios, the Herfindahl-Hirschman index, and the Lerner index, regulators are able to oversee and attempt to restore market competitiveness Be Creative and kind! Connect on: Instagram: https://www.instagram.com/themcclonebrothers/ Twitter: https://twitter.com/themcclonebrot1 LinkedIn: https://www.linkedin.com/in/themcclonebrothers/ @Tim McClone ​

YOUR 20 MILLION DOLLAR BROKER! 40-Year Mortgages: What They Are, And Why They Might Not Be Worth It For Borrowers: 30 Vs. 40-Year Mortgage The term of a 40-year mortgage is 10 years longer. This falls under the “duh” category, but you’ll spend longer paying it off, so it’s worth reiterating. The payment on a 40-year mortgage should be cheaper. Because you have 10 years longer to pay it off, it would take a dramatically higher interest rate for the payment to be the same or higher than it would on a 30-year mortgage. You’ll pay more in interest. We’ll show our math in a minute, but a 40-year mortgage will cost you more over the life of the loan than a 30-year mortgage. These could come with higher interest rates and other fees. Because 40-year mortgages aren’t bought by major mortgage investors, they could charge extra fees and have other clauses that aren’t allowed by the major investors. The Downsides Of 40-Year Mortgages You’ll Pay More In Interest With a 40-year mortgage, you’ll end up paying more interest on the loan. This happens in a couple of ways. First, because there’s a longer payoff, lenders and investors who are interested in these loans will often charge a higher interest rate to give you one. However, you’ll likely end up paying more in interest even if the interest rate is the same or even lower. The reasoning for this has to do with the way loan amortization works. At the beginning of your loan, more of your payment goes toward interest than principal. Over time, this balance flips, but the longer your loan, the longer it takes for that to happen. As a quick example, let’s do the math. Let’s assume a $225,000 loan amount on a house with a $250,000 purchase price at 4% interest. With a 40-year mortgage, your monthly payment is $940.36. The total interest paid is $226,373.55. On a 30-year term, the monthly payment is $1,074.18, but the total interest paid over the life of the loan is $161,706.39 – a significant difference. The Federal Housing Administration (FHA) is moving to expand its COVID-19 loss mitigation “waterfall” by introducing a 40-year loan modification option and is asking the mortgage industry for input. The proposed rule, published by the Department of Housing and Urban Development late last week, would change repayment provisions for FHA borrowers, allowing lenders to recast a borrower’s total unpaid loan for an additional 120 months. HUD said that this option could prevent “several thousand borrowers a year from foreclosure.” By prolonging the length of the recast mortgage from 360 months to 480 months, borrowers will have more sustainable monthly payments, the department said. The proposed rule noted that a lower monthly payment will help bring a borrower’s mortgage current, prevent imminent re-default, and of course, help borrowers retain their home. The proposed rule will specifically be beneficial for FHA borrowers who recently exited government-mandated forbearance but are struggling to make their mortgage payments because of COVID-19 related financial hardships. Alongside benefitting borrowers, the rule would also reduce losses to FHA’s Mutual Mortgage Insurance Fund as fewer properties would be sold at a loss in foreclosure or out of FHA’s real estate-owned inventory, HUD said. A recent report published by the FHA revealed that as of December 2021, 7.28% of FHA loans were seriously delinquent, down from a seasonally adjusted high of 12.04% in March 2021. However, the rate is still elevated compared to pre-pandemic times. HUD added that borrowers who opt for a 40-year loan modification would be subject to slower equity accumulation and additional interest payments, but that the positive outcome of a borrower being able to retain their home should outweigh any negatives. If implemented, the rule will align the FHA with other government entities, such as Fannie Mae, Freddie Mac, and the United States Department of Agriculture, which already provide a 40-year loan modification term option. In June 2021, Ginnie Mae announced that it was set to introduce a 40-year mortgage term for its issuers, but that the terms and extent of use of the new pool type would be ultimately determined by the FHA. Three months later, the FHA posted a draft mortgage letter proposing a 40-year loan modification combined with a partial claim. However, industry stakeholders, including the Housing Policy Council and the Mortgage Bankers Association, sought more time to adjust to the change. HPC and the MBA asked the FHA to delay the implementation of the new term until the first quarter of 2022. They also asked the government agency for a 90-day window to start offering the loan modification. “The demand on servicers to implement a wide array of policy changes over the last several months has been challenging and we expect this to continue well into the first quarter of 2022,” they said in a letter to FHA.

The housing shortage has forced many potential buyers to move into rental properties as they look for their next home (and often find themselves on the wrong side of a bidding war). That option, however, is becoming increasingly expensive. “When the pandemic hit, a lot of people left major cities which increased prices in the suburbs and exurbs. But as rents fell in the core metros, people returned, including those who couldn’t previously afford to live in core metros,” Leckie told Nexstar. This caused demand and prices to increase to levels “at or beyond what we saw before the pandemic.” The pandemic’s impact on housing prices also pushed up rent prices. As would-be first-time homebuyers found themselves priced out of the market and stuck in rental properties, Leckie says demand for rentals rose even higher. When looking at rent price trends throughout the U.S., Leckie found cities like Long Beach, California; Austin; and New York City have experienced some of the greatest year-over-year increases in the average rent prices. He said he believes people tend to seek out cities with a growing economy and jobs, as well as cultural amenities. Moving forward, those cities that can offer each of these will likely be home to rising rent. Rent prices jumped 12% last year for a median one-bedroom apartment, hitting an all-time high, according to Zumper, the nation’s third-largest real estate platform. A median two-bedroom apartment saw rent prices jump more than 14%. The median price for a one-bedroom rent reached $1,374 in January. The median price of a two-bedroom apartment reached $1,698. The news comes as the latest S&P CoreLogic Case-Shiller National Home Price Index shows home prices for buyers in November jumped 18.8%✎ EditSign year-over-year. And experts are predicting a brutal spring housing market. The rental escalations come after two years of essentially flat rent rates. Year-over-year growth in January 2021 was 0.6%, and in January 2020 it was 0.3%. And the skyrocketing rent prices are expected to continue. “For the National Index to move by double digits takes incredible rent growth everywhere, and that’s exactly what occurred,” the Zumper report read. “The sudden increase in housing demand since the pandemic began in March 2020 exacerbated what was already a national housing shortage that dates back to the financial crisis in 2008, after which annual housing production dropped substantially. While some of the post-pandemic demand might fade as the pandemic becomes endemic, the housing shortage is a long-term issue that will likely continue to push rent up in 2022.” New York, to little surprise, remains the most expensive place to rent, with the price of a one-bedroom jumping over 25% in the past year, while a two-bedrooms costs 27% more. San Francisco is second. The real surprise, though, is the fast-rising cost of rentals in Boston, which could surpass San Francisco in the coming months. The median one-bedroom now costs $2,720, just $100 less than the California city (a 26.5% jump in one year), while a two-bedroom is $3,150, up 26%. “It’s hard to overstate how astounding that is,” says the report. “In the winter of 2019, San Francisco’s median one-bedroom rent was $1,300 higher than Boston’s.” Other cities that saw increases of more than 20% for two-bedroom units include Miami; San Diego; Scottsdale, Ariz.; Fort Lauderdale, Fla.; Seattle; Orlando, and Tampa. “That’s for both major metros and smaller markets that meet those criteria,” Leckie explained. “Those that will decrease are cities that may have had a pandemic boom due to their natural amenities, but don’t have the infrastructure to support job creation and economic growth.” Are you looking to move and want to avoid rising rent? You might want to avoid secondary markets and try for the Midwest. “We’ve seen a lot of increases in areas surrounding Phoenix and other areas around Los Angeles, also in Orlando, Florida, and Portland, Oregon,” Leckie said. “We’re seeing decreases in a lot of Rust Belt cities like Toledo, Ohio; Indianapolis; and Pittsburgh, and in some Midwestern markets like Kansas City, Missouri, and Lincoln, Nebraska.” While Leckie predicted rent prices will continue to rise through 2022, the rate of growth will likely be slower. The year-over-year percent change appears so high because of a dip in rent prices through 2020. Rent growth is expected to reach about 7.1% in 2022, slightly lower than what we saw in 2021, according to Realtor.com’s analysis.

The middle Class makes the USA unique from other countries. During Coivd 19 and the rise of inflation caused by money printing is threatening the very existence of the middle class The middle-class squeeze refers to negative trends in the standard of living and other conditions of the middle class of the population. Increases in wages fail to keep up with inflation for middle-income earners, leading to a relative decline in real wages, while at the same time, the phenomenon fails to have a similar effect on the top wage earners. People belonging to the middle class find that inflation in consumer goods and the housing market prevent them from maintaining a middle-class lifestyle, undermining aspirations of upward mobility. The term "squeeze" in this instance refers to rising costs of key products and services coupled with stagnant or declining real (inflation-adjusted) wages. The CAP defines the term "middle class" as referring to the middle three quintiles in the income distribution, or households earning between the 20th to 80th percentiles. CAP reported in 2014: "The reality is that the middle class is being squeezed. As this report will show, for a married couple with two children, the costs of key elements of middle-class security—child care, higher education, health care, housing, and retirement—rose by more than $10,000 in the 12 years from 2000 to 2012, at a time when this family’s income was stagnant." Further, CAP argued that when the middle class is struggling financially, the economy struggles from a shortfall in overall demand, which reduces economic growth (GDP) relative to its potential. The goal of addressing the middle-class squeeze includes: "Having more workers in good jobs—who have access to good education; affordable child care, health care, and housing; and the ability to retire with dignity." Charles Weston[5] summarizes the middle-class squeeze in this way: "Being middle class used to mean having a reliable job with fair pay; access to health care; a safe and stable home; the opportunity to provide a good education for one’s children, including a college education; time off work for vacations and major life events; and the security of looking forward to a dignified retirement. But today this standard of living is increasingly precarious. The existing middle class is squeezed and many of those striving to attain the middle-class standard find it persistently out of reach." This squeeze is also characterized by the fact that, since the early 1980s, when European integration got into full swing, Belgium, France, Germany, Italy, and the United Kingdom have experienced strong real wage growth, while real wage growth in the United States has remained sluggish for the most part Causes include factors related to income as well as costs. The costs of imported goods and services such as healthcare, college tuition, child care, and housing (utilities, rent, or mortgages) have increased considerably faster than the rate of inflation.[1] This does not consider that all incomes were increasing, but only that higher incomes were increasing faster. Income is not a zero-sum game. Increasing demand for labor (lower income or skills) would increase incomes. The Center for American Progress reported in September 2014 that the real (inflation-adjusted) cost of healthcare for middle-class families had risen by 21% between 2000 and 2012, versus an 8% decline in real median household income.[1] Insurance and health care is an important factor regarding the middle-class squeeze because increases in these prices can put an added strain on middle-income families. This situation is exactly what the House of Representatives survey shows regarding health care prices. In 2000, workers paid an average of $153 per month for health insurance coverage for their families, however, by 2005 these numbers had increased to $226 per month.[3] The effects of the price change in health care can be seen in many ways regarding the middle class. The number of people who are uninsured has also increased since 2000, with 45.7 million Americans now without health insurance, compared to 38.7 million at the start of the millennium. Also, 18% of middle-income Americans, making between 40,000 and 59,999 dollars were without health insurance during 2007 and more than 40% of the 2.4 million newly uninsured Americans were middle class in 2003.[15] Another narrative described by Paul Krugman is that a resurgence of movement conservatism sin Either way, the shift is visible when comparing productivity and wages. From 1950 to 1970, improvement in real compensation per hour tracked improvement in productivity. This was part of the implied contract between workers and owners

Today's video will delve into mortgage rates and homebuilding. What does the future hold? Where is the market headed? To a CRISIS? Meltdown? Interest rates are a primary concern when buying a home. A low-interest rate means an affordable mortgage payment, and a high rate makes it difficult to afford or even get approved for a loan. But how are mortgage rates determined, and what can you do to make sure you have a low rate? Here’s an explanation of how mortgage rates are determined. An Overview Of How Mortgage Interest Rates Are Determined Several factors affect how mortgage rates are determined today, but you can only control one aspect: personal factors. Lenders look at your qualifying factors to determine your risk level. The better your qualifying factors, the better the interest rate they’ll offer. But it all starts with the current market rates, so you may wonder how the market affects interest rates. Mortgage rates are affected by the overall economy. When the economic outlook is good, rates tend to increase, and rates fall when they’re not so great. It seems somewhat backward, but here’s the reasoning. When the economy is doing well, borrowers can afford more. Without increased rates, the demand for mortgages could exceed the bandwidth of most lenders. Slightly rising rates keep everyone on the same level. Conversely, when the economy declines and unemployment rates increase, interest rates fall to make it more affordable for borrowers to take out loans. Frequency Of Interest Rate Changes Every day, banks receive rate sheets. This doesn’t mean rates change daily, but they can. In fact, they can change multiple times a day. If you have your eye on an interest rate, it’s best to talk to your lender about locking the rate in quickly before it changes. 15-Year Vs. 30-Year Mortgage Rates If you can afford a 15-year mortgage with its higher payment, you’ll get a lower interest rate. That’s because it costs banks more money to lend money for 30 years versus 15. If they can receive their money back in half the time (15 years), they’ll reward borrowers for it with lower interest rates. Which Market Factors Affect Mortgage Rates? Market factors are some of the largest driving forces behind mortgage rates. The Federal Reserve, bond market, Secured Overnight Finance Rates, Constant Maturity Treasury, the health of the economy, and inflation all affect mortgage rates. Federal Reserve Many people assume the Federal Reserve sets mortgage rates. They don’t, but the Federal Reserve does affect rates. The Fed controls short-term interest rates by increasing them or decreasing them based on the state of the economy. While mortgage rates aren’t directly tied to the Fed rates, when the Fed rate changes, the prime rate for mortgages usually follows suit shortly afterward. The Federal Reserve controls short-term interest rates to control the money supply. When the economy is struggling, as has been the case during COVID-19, the Fed lowers rates, which is why you’ve likely heard rates are close to 0%. These are not the rates given to consumers, but the rates at which banks can borrow money to lend to consumers. When the Fed decides they need to tighten up the money supply, they raise the Fed rate. While this doesn’t directly increase mortgage rates, eventually, banks and lenders must follow suit to keep up with their costs to borrow money from the Fed. Bond Market Mortgage rates have a reputation of being tied to the 10-year Treasury note when they’re tied to the bond market. Mortgage-backed securities, or mortgage bonds, are bundles of mortgages sold in the bond market. Bonds affect mortgage rates depending on their demand. When the demand for mortgage bonds is high (usually when the stock market performs poorly), mortgage rates increase, and when the demand is low, mortgage rates decrease. Secured Overnight Finance Rate Secured Overnight Finance Rate (SOFR) is an interest rate set based on the cost of overnight borrowing for banks. It’s often used by lenders to determine a mortgage’s base interest rate, depending on the type of home loan. It’s grown in popularity to serve as the replacement for the London Interbank Offer Rate (LIBOR), which is being phased out at the end of 2021. Constant Maturity Treasury Rates Constant Maturity Treasury rates, or CMT rates, refer to a yield that’s calculated by taking the average yield of different types of Treasury securities with varying maturity periods and using it to adjust for a number of time periods. Inflation Mortgage rates and inflation go hand-in-hand. When inflation increases, interest rates increase too so they can keep up with the value of the dollar. If inflation decreases, mortgage rates drop. During periods of low inflation, mortgage rates tend to stay the same or slightly fluctuate

Governor Newsom Proposes $11 Billion Relief Package for Californians Facing Higher Gas Prices! Facing reelection, Newsom touts the 'California way' and teases gas tax rebate!!!! Registered vehicle owners in California will be eligible for at least $400 per vehicle, totaling $9 billion in direct payments to millions of Californians $2 billion in relief for free public transportation for three months, pausing a portion of the sales tax rate on diesel, and suspending the inflationary adjustment on gas and diesel excise tax $500 million to support active transportation programs, like walking and biking projects Fast-tracking $1.75 billion of the Governor’s historic $10 billion ZEV package to get more Californians into clean vehicles faster, build charging stations SACRAMENTO – Today, as oil and gas companies continue to rake in record profits, Governor Gavin Newsom unveiled the details of his proposal to deliver $11 billion in relief to Californians facing record-high gas prices. “We’re taking immediate action to get money directly into the pockets of Californians who are facing higher gas prices as a direct result of Putin’s invasion of Ukraine,” said Governor Newsom. “But this package is also focused on protecting people from volatile gas prices, and advancing clean transportation – providing three months of free public transportation, fast-tracking electric vehicle incentives and charging stations, and new funding for local biking and walking projects.” The Governor’s proposal calls for $9 billion in tax refunds to Californians in the form of $400 direct payments per vehicle, capped at two vehicles. This package also provides $2 billion in broader relief including: * $750 million in incentive grants to transit and rail agencies to provide free transit for Californians for 3 months. As a result, roughly 3 million Californians per day who take the bus, subway, or light rail won’t have to pay a fare every time they ride. * Up to $600 million to pause a part of the sales tax rate on diesel for one year. * $523 million to pause the inflationary adjustment to gas and diesel excise tax rates. The package also calls for $500 million in active transportation for projects that promote biking and walking throughout the state. Additionally, this proposal fast-tracks a $1.75 billion portion of the Governor’s historic $10 billion ZEV package to further reduce the state’s dependence on oil and save Californians money, including the investments in more ZEV passenger vehicles and building more charging infrastructure throughout the state – especially in low-income communities. The tax refund will take the form of $400 debit cards for registered vehicle owners, and individuals will be eligible to receive up to two payments. An average California driver spends approximately $300 in gasoline excise tax over a year. The proposal provides up to two $400 rebates per vehicle, for owners to support families with more than one vehicle in use. Eligibility will be based on vehicle registration, not tax records, in order to include seniors who receive Social Security Disability income and low-income non-tax filers. The Governor’s proposal does not have an income cap in order to include all Californians who are facing higher prices due to the cost of oil. The Newsom administration will meet with the Legislature to negotiate the details of the proposal in the coming days. Once approved through the Legislature, the first payments could begin as soon as July. Governor Newsom has allocated billions of dollars in direct relief to Californians over the past two years, including $12 billion in direct checks through the Golden State Stimulus, $5.2 billion in rent relief, and $2 billion in utility relief. Since 2019, the Administration and Legislature have added significant expansions of the Earned Income Tax Credit, including expanding the credit to taxpayers with ITINs, expanding the credit to every Californian working full time at minimum wage, and adding the Young Child Tax Credit. Additionally, the Governor’s historic $37.6 billion climate package provides the resources needed to forge an oil-free future and bolster the state’s clean energy economy. Be Creative and kind! Connect on: Instagram: https://www.instagram.com/themcclonebrothers/ Twitter: https://twitter.com/themcclonebrot1 LinkedIn: https://www.linkedin.com/in/themcclonebrothers/

Petrocurrency (or petrodollar) is a word used with three distinct meanings, often confused: Dollars paid to oil-producing nations (petrodollar recycling)—a term invented in the 1970s meaning trading surpluses of oil-producing nations. *GET READY FOR DIGITAL CURRENCY!!!!! Petrocurrency (or petrodollar) is a word used with three distinct meanings, often confused: 1. Dollars paid to oil-producing nations (petrodollar recycling)—a term invented in the 1970s meaning trading surpluses of oil-producing nations. 2. Currencies of oil-producing nations which tend to rise in value against other currencies when the price of oil rises (and fall when it falls).[2] 3. Pricing of oil in US dollars: currencies used as a unit of account to price oil in the international market. "Petrocurrency" or (more commonly) "petrodollars" are popular shorthand for revenues from petroleum exports, mainly from the OPEC members plus Russia and Norway. Especially during periods of historically expensive oil, the associated financial flows can reach a scale of hundreds of billions of US dollar-equivalents per year – including a wide range of transactions in a variety of currencies, some pegged to the US dollar and some not. The pound sterling has sometimes been regarded as a Petro currency as a result of North Sea oil exports.[6] The Dutch guilder was once regarded as a petrocurrency due to its large quantities of natural gas and North Sea oil exports. The Dutch Guilder strengthened greatly in the 1970s after OPEC began a series of price hikes throughout the decade that consequently increased the value of all oil-producing nations' currencies. However, as a result of the appreciation of the Guilder, industrial manufacturing and services in the Netherlands during the 1970s and into the 1980s were crowded out of the larger national economy, and the country became increasingly non-competitive on world markets due to the high cost of Dutch industrial and service exports. This phenomenon is often referred to in economics literature as Dutch disease. The Canadian dollar is increasingly viewed as a petrocurrency in the 21st Century.[citation needed] Generally speaking, as the price of oil rises, oil-related export revenues rise for an oil-exporting nation and thus constitute a larger monetary component of exports. Thus it has been for Canada. As their oil sands deposits have been increasingly exploited and sold on the international market, movements of the Canadian dollar have become increasingly correlated with the price of oil. For example, the exchange rate of Canadian dollars for the Japanese yen (99% of Japan's oil is imported) is 85% correlated with crude prices. As long as oil exports remain a strong component of Canada’s exports, oil prices will influence the value of the Canadian dollar.[according to whom?] If the share of oil and gas exports increases further, the link between oil prices and the exchange rate may become even stronger As the world's dominant reserve currency the United States dollar has been a major currency for trading oil (sometimes the term 'Petrodollar' is mistakenly used to refer to this concept). In August 2018, Venezuela joined the group of countries that allow their oil to be purchased in currencies other than US Dollars, thus allowing purchases in Euros, Yuan, and other directly convertible currencies. Other nations that permit this include Iran After WWII, international oil prices were for some time based on discounts or premiums relative to that for oil in the Gulf of Mexico. After the Bretton Woods conference in the year 1944, the UK and its allies discontinued linking their currencies with gold; however, the US dollar continued to be pegged to gold, at $35 per ounce -- from 1941 to 1971 President Nixon canceled the fixed-rate convertibility of US dollars to gold in 1971. In the absence of fixed value convertibility to gold, compared to other currencies, the US dollar subsequently deteriorated in value for several years, making fixed USD to local currency exchange rates unsustainable for most countries. Since the agreements of 1971 and 1973, OPEC oil is generally quoted in US dollars, sometimes referred to as petrodollars. In October 1973, OPEC declared an oil embargo in response to the United States and Western Europe's support of Israel in the Yom Kippur War. Since the beginning of 2003, Iran has required payment in euros for exports to Asia and Europe. The government opened an Iranian Oil Bourse on the free trade zone on the island of Kish, for the express purpose of trading oil priced in other currencies, including euros. Be Creative and kind! Connect on: Instagram: https://www.instagram.com/themcclonebrothers/ Twitter: https://twitter.com/themcclonebrot1 LinkedIn: https://www.linkedin.com/in/themcclonebrothers/

Some things to consider when working with tenants. *If you are using a property management firm for all or some of your properties you need to be actively involved to make sure you are maximizing your ROI Dreams Langston Hughes - 1901-1967 Hold fast to dreams For if dreams die Life is a broken-winged bird That cannot fly. Hold fast to dreams For when dreams go Life is a barren field Frozen with snow. Be Creative and kind! Connect on: Instagram: https://www.instagram.com/themcclonebrothers/ Twitter: https://twitter.com/themcclonebrot1 LinkedIn: https://www.linkedin.com/in/themcclonebrothers/

Another interesting week in the headlines....... lets review: William Ernest Henley - 1849-1903 Out of the night that covers me, Black as the Pit from pole to pole, I thank whatever gods may be For my unconquerable soul. In the fell clutch of circumstance I have not winced nor cried aloud. Under the bludgeonings of chance My head is bloody but unbowed. Beyond this place of wrath and tears Looms but the Horror of the shade, And yet the menace of the years Finds, and shall find, me unafraid. It matters not how strait the gate, How charged with punishments the scroll, I am the master of my fate: I am the captain of my soul. Be Creative and kind! Connect on: Instagram: https://www.instagram.com/themcclonebrothers/ Twitter: https://twitter.com/themcclonebrot1 LinkedIn: https://www.linkedin.com/in/themcclonebrothers/

A bill that would massively tax house flippers and speculators who buy and sell a house within three years was moved to the Assembly Committee on Revenue and Taxation earlier this week. Remember BILL SB 1070 FORECLOSER BILL THAT PASSED LAST YEAR: Tenants, affordable housing groups, and local governments will soon get their first crack at buying foreclosed homes in California. A bill approved Monday, Sept. 28, 2020, by Gov. Gavin Newsom is designed to keep corporations from snapping up homes and letting some fall into disrepair as they did during the Great Recession. SB1079 gives the state of California the first right of refusal to purchase foreclosed homes at the trustee sales! HOW DO YOU THINK THAT IS GOING TO WORK OUT? Why THIS IS A BAD IDEA: * California has a 35 billion dollar surplus! SO NOW WE ARE GOING AFTER MORE TAXES! 1. The bill may ease pressure on buyers, it would limit options for sellers. He said most institutional investors target mid- price housing rather than luxury homes, so the sellers most impacted would be middle-income homeowners rather than the wealthy. 2. it’s effectively an attack on the property rights of sellers, 3. bill could inadvertently reduce geographic and economic mobility by restricting people from selling a home because of a job change or other economic necessity. this will constrain supply and constrain people’s choices about what job they take and where they locate,” 4. Lowering fees and reducing regulatory barriers to housing construction would be more effective at curbing prices. Regulations are killing us in California. Set us free! 5. The real issue is a supply issue! We don’t have enough homes for sale, inventory is low and anyone thinking of selling their home just won’t sell their home; they’ll figure out how to hold onto it. Botton line-more homes need to be built. 6. This is just another way to stifle entrepreneurship and give the state more money! Seems like California is trying to take over real estate. 7. It gets rid of mom-and-pop house flipping companies that renovate for generally smaller profits and allows only the large firms to come in and sit on the properties. 8. Many cash buyers are not investors, that many house flippers renovate properties that would have otherwise made them unmarketable, and that local investors would be pushed out for larger investing firms who could easily take the 25% tax if passed, decreasing the housing supply even further......BLACKROCK!!!!!!! 9.. Kills tens of thousands of construction jobs A bill that would massively tax house flippers and speculators who buy and sell a house within three years was moved to the Assembly Committee on Revenue and Taxation earlier this week. Assembly Bill 1771, authored by Assemblyman Chris Ward (D-San Diego), would impose a 25% tax on all net capital gain from the sale or exchange of homes or properties. While the tax may be reduced if significant time has passed, those qualified taxpayers who buy and sell a house within 3 years would need to pay the tax. All revenue from the tax would go to the Speculation Recapture Community Reinvestment Fund. The bill, also known as the California Housing Speculation Act, would also take effect immediately as a tax levy for all taxable years beginning in 2023. As AB 1771 would result in a tax change, 2/3rds of each house would need to approve for passage. Assemblyman Ward wrote the bill to specifically target short-term investors who buy homes and other properties, keep them for some time, then sell them at a profit a short time later. This includes house flippers, who renovate properties to sell back, speculators, who often outbid other buyers in the hopes that home prices rise significantly, and cash-only buyers. “Speculators are taking gobs of tens of millions of dollars out of our community through the cumulative effect of all these transactions. That’s not fair either because the people that are left struggling are people who get outbid 30 times trying to get into their home,” said Assemblyman Ward this week. “It would be an additional income tax on the profit gain from a sale that occurred within three years of the previous sale. But we’ve also seen this influx of short-term investors trying to get into the market, outbid San Diegans and Californians with all-cash offers, and drive the prices up for everyone. So, if somebody’s trying to go in there, fix up a fixer-upper and then sell it for record profits, that is distorting the market because somebody else could have gone in there, done the same, and kept the home.” Ward also cites the California Association of Realtors’ quarterly index, who found that California’s median price for a single-family home increased 17 percent to $814,580 in the third quarter of 2021, while near-record lows of 42 percent of Californians could meet home-buying qualification standards. If passed, AB 1771 would come into effect next year.

UN Chief Guterres: 'Ukraine on Fire,' Nuclear Conflict Again Possible. United Nations Secretary-General Antonio Guterres on Monday sounded the alarm over Russia raising the alert level for its nuclear forces after invading Ukraine, describing it a "bone-chilling development" for Ukraine, which is already "on fire." "The prospect of nuclear conflict, once unthinkable, is now back within the realm of possibility," Guterres told reporters and repeated his call for an immediate cessation of hostilities Russia's invasion of Ukraine that began on Feb. 24 has so far sent more than 2.8 million people fleeing across Ukraine's borders and trapped hundreds of thousands in besieged cities while triggering broad Western sanctions on Russia. This is what the early chapters of an inflationary meltdown look like. Last week, we were informed that “consumer prices were 7.9% higher in February than a year ago”, and that was being touted as the highest figure “in 40 years”. If the inflation rate was still calculated the way that it was back in 1980, it would be over 15 percent right now. We are already experiencing the sort of painful inflation that Americans were forced to endure during the Jimmy Carter era of the 1970s, and now the war in Ukraine is going to completely change the game moving forward. Last week, the average price of a gallon of gasoline in the United States rose 13 percent, and since this time last year, it is up 38 percent. And now that the war in Ukraine is shifting the global energy crisis into overdrive, Americans are going to be feeling the pain of higher energy prices in a whole host of different ways… Americans are facing sticker shock at gas stations across the country, but surging global energy costs are rippling through the economy in other ways, too: Airlines are scaling back on flights. Truckers are adding fuel surcharges. And lawn care companies and mobile dog groomers are upping their service fees. One trucking company executive that was asked about this said that he has “never seen prices jump this high, this fast”… “Customers really don’t want to hear it, but fuel prices are going through the roof so we’re having to charge more,” said John Migliorini, vice president of Lakeville Trucking in Rochester, N.Y., where diesel costs have nearly doubled to about $400,000 a month. “What choice do we have? I’ve never seen prices jump this high, this fast.” 1.5 trillion loaded with pork spending. Loaded with earmarks and special favors. It fact, this bill was passed in the dead of night. In fact, senators did not even have 24 hours to read it. We the public don’t even have 24 hours to read a 2,741-page bill. The reason why you pass in the dead of night is that if some senators and the public see what is in the bill they will be disgusted. It is a giveaway, giveaway after giveaway. What is in it? Get ready: 1. 1. 100 billion into the green new deal 2. 2. Substances for solar, wind turbines, and electric vehicles 3. 3. Welfare money 4. 4. Welfare for illegal immigrants 5. 5. More public housing for illegal immigrants 6. 6. More section 8 housing 7. 7. More foods stamps for illegal immigrants 8. 8. Funds border security for 8 countries around the world including Ukraine. Includes fencing and a wall for 8 countries, but nothing for our borders. And on and on…. In economics, stagflation or recession-inflation is a situation in which the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high. It presents a dilemma for economic policy, since actions intended to lower inflation may exacerbate unemployment. The term, a portmanteau of stagnation and inflation, is generally attributed to Iain Macleod, a British Conservative Party politician who became Chancellor of the Exchequer in 1970. Macleod used the word in a 1965 speech to Parliament during a period of simultaneously high inflation and unemployment in the United Kingdom. Warning the House of Commons of the gravity of the situation, he said: "We now have the worst of both worlds—not just inflation on the one side or stagnation on the other, but both of them together. We have a sort of 'stagflation' situation. And history, in modern terms, is indeed being made."[ Macleod used the term again on 7 July 1970, and the media began also to use it, for example in The Economist on 15 August 1970, and Newsweek on 19 March 1973. John Maynard Keynes did not use the term, but some of his work refers to the conditions that most would recognize as stagflation. In the version of Keynesian macroeconomic theory that was dominant between the end of World War II and the late 1970s, inflation and recession were regarded as mutually exclusive, the relationship between the two being described by the Phillips curve. Stagflation is very costly and difficult to eradicate once it starts, both in social terms and in budget deficits.

STATEMENTS AND RELEASES WHITEHOUSE: Outlines First Whole-of-Government Strategy to Protect Consumers, Financial Stability, National Security, and Address Climate Risks. Digital assets, including cryptocurrencies, have seen explosive growth in recent years, surpassing a $3 trillion market cap last November and up from $14 billion just five years prior. Surveys suggest that around 16 percent of adult Americans – approximately 40 million people – have invested in, traded, or used cryptocurrencies. Over 100 countries are exploring or piloting Central Bank Digital Currencies (CBDCs), a digital form of a country’s sovereign currency.The rise in digital assets creates an opportunity to reinforce American leadership in the global financial system and at the technological frontier but also has substantial implications for consumer protection, financial stability, national security, and climate risk. The United States must maintain technological leadership in this rapidly growing space, supporting innovation while mitigating the risks for consumers, businesses, the broader financial system, and the climate. And, it must play a leading role in international engagement and the global governance of digital assets consistent with democratic values and U.S. global competitiveness. That is why today, President Biden will sign an Executive Order outlining the first-ever, whole-of-government approach to addressing the risks and harnessing the potential benefits of digital assets and their underlying technology. The Order lays out a national policy for digital assets across six key priorities: consumer and investor protection; financial stability; illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation. Specifically, the Executive Order calls for measures to: * Protect U.S. Consumers, Investors, and Businesses by directing the Department of the Treasury and other agency partners to assess and develop policy recommendations to address the implications of the growing digital asset sector and changes in financial markets for consumers, investors, businesses, and equitable economic growth. The Order also encourages regulators to ensure sufficient oversight and safeguard against any systemic financial risks posed by digital assets. * Protect U.S. and Global Financial Stability and Mitigate Systemic Risk by encouraging the Financial Stability Oversight Council to identify and mitigate economy-wide (i.e., systemic) financial risks posed by digital assets and to develop appropriate policy recommendations to address any regulatory gaps. * Mitigate the Illicit Finance and National Security Risks Posed by the Illicit Use of Digital Assets by directing an unprecedented focus of coordinated action across all relevant U.S. Government agencies to mitigate these risks. It also directs agencies to work with our allies and partners to ensure international frameworks, capabilities, and partnerships are aligned and responsive to risks. * Promote U.S. Leadership in Technology and Economic Competitiveness to Reinforce U.S. Leadership in the Global Financial System by directing the Department of Commerce to work across the U.S. Government in establishing a framework to drive U.S. competitiveness and leadership in, and leveraging of digital asset technologies. This framework will serve as a foundation for agencies and integrate this as a priority into their policy, research and development, and operational approaches to digital assets. * Promote Equitable Access to Safe and Affordable Financial Services by affirming the critical need for safe, affordable, and accessible financial services as a U.S. national interest that must inform our approach to digital asset innovation, including disparate impact risk. Such safe access is especially important for communities that have long had insufficient access to financial services. The Secretary of the Treasury, working with all relevant agencies, will produce a report on the future of money and payment systems, to include implications for economic growth, financial growth and inclusion, national security, and the extent to which technological innovation may influence that future. * Support Technological Advances and Ensure Responsible Development and Use of Digital Assets by directing the U.S. Government to take concrete steps to study and support technological advances in the responsible development, design, and implementation of digital asset systems while prioritizing privacy, security, combating illicit exploitation, and reducing negative climate impacts. The Administration will continue work across agencies and with Congress to establish policies that guard against risks and guide responsible innovation, with our allies and partners to develop aligned international capabilities that respond to national security risks, and with the private sector to study and support technological advances in digital assets.

2022: The outlook for China's developers appears bleak amid looming debt maturities, falling home sales, and uncertainty over the proposed property tax Home sales are likely to drop between 5 and 10 percent this year, according to forecasts by analysts, rating companies China Evergrande, which has the dubious distinction of being the world's most indebted real estate developer, is gripped by a solvency crisis that began more than a year ago. And the crisis affects not just Evergrande. A growing number of Chinese property developers are facing financial strain, while property sales and home prices in China are falling sharply. The Chinese government, worried that an engine of growth is losing steam, is struggling to keep the property sector afloat. Yet China's rescue measures are mostly short-term solutions to a larger long-term problem. In fact, Evergrande is a leading indicator that China's model of property-led growth is unsustainable and needs to change. A government working group and a risk committee, made up of mostly senior executives from Chinese state-owned enterprises, have been set up recently to deal with the crisis at Evergrande. It remains unclear how the government will sort out the Evergrande problem, but it could follow the model of HNA Group, another heavily indebted private conglomerate that the government eventually took over. If that happens, debt restructuring will inflict losses on investors as the company splits into several smaller independent entities. Evergrande is hardly the only real estate problem facing China. If, as expected, property sales and home prices keep dropping this year, China's economic growth will be imperiled. Property and related industries account for 25 to 30 percent of China's GDP. Banks will be saddled with significantly more nonperforming loans on their books, since 27 percent of all loans Chinese banks hold are related to property, including mortgages. The shadow banking sector, which includes trust companies and is an important funding source for Chinese developers, will be hurt as well. The problems extend to local governments, which on average receive nearly 40 percent of their total fiscal revenue from land sale proceeds. With land sales more difficult, coupled with the impending decline in revenues related to those sales, local governments may have to cut public services. Worsening fiscal conditions of local governments can in turn lead to more defaults by local government financing vehicles whose debt is usually collateralized by land parcels. Equally worrying would be the potential political fallout. Nearly 60 percent of the total assets owned by urban Chinese households is property. That share is even higher for lower-income households. As a result, a sharp property price decline could trigger social unrest, something the Chinese government would want to avoid at all costs. Beijing faces a classic dilemma between the need to rescue the debt-loaded property sector while avoiding a moral hazard, the belief among property developers that the government will hold them harmless despite their reckless behavior. China's leadership has signaled its goal of stabilizing the property market in 2022. The central bank has cut the reserve requirement ratio and the benchmark one-year loan prime rate. Many believe these cuts are just the first steps. Greater fiscal stimulus, including a renewed focus on infrastructure investment, is also on the horizon. LOCAL GOVERNMENTS RELY TOO HEAVILY ON CHINA'S PROPERTY BUBBLE The Chinese housing boom is fueled by financing from local governments, whose budgets rely on proceeds from land sales and taxes related to property development. Skyrocketing real estate-related loans, including mortgages, are weighing on the economy, squeezing the financial resources allocated to more productive sectors other than property. From the end of 2011 to the end of September 2021, the share of property-related loans, including mortgages, in the total loan balance has increased from less than 20 percent to more than 27 percent, according to the People's Bank of China. At the same time, the total mortgage balance as a share of property-related loan balance increased from two-thirds to more than 70 percent. All these factors make it clear that China must change its property-led growth model. Local governments addicted to land sales for income have to look for alternative sources of fiscal revenue. One source could be a nationwide property tax on homeownership, a solution that China is now in the process of introducing. But whether such taxes can wean local governments off of land transfer fees is uncertain.

WHAT ARE THE RAMIFICATIONS OF ALL THIS MONEY PRINTING! FAKE ECONOMY? *BUY BITCOIN EVERY WEEK AND REAL ESTATE! Like an unwanted dinner guest, inflation has become impossible to ignore. And it’s likely to be even harder to get rid of. It’s going to cost consumers more to put together a traditional Christmas dinner than at any time in recent memory. In November, the Consumer Price Index showed a 6.2% increase in inflation for October. It hadn’t made a jump like that in three decades. However, if you put gas in your car or buy groceries you’ve known that inflation has been here for some time. And with more than $1 trillion in government spending about to hit the economy, inflation is only going to increase. That’s not just our opinion. Even economists who are favorable to the current administration acknowledge that more government spending will only cause inflation to increase. That means now is the perfect time to take a prudent step to protect your portfolio from the effects of inflation. And that means investing in precious metals. Throughout history, precious metals have been a safe haven asset and a hedge against inflation. Precious metals have lost a little of their luster in the age of cryptocurrency. And if you’re a crypto investor, you should continue to do so. Fighting inflation doesn’t have to require an either/or approach. This is one time where “both/and” may be the perfect strategy. A growing cryptocurrency market doesn’t change the value of precious metals. If you prefer to buy physical metal, that’s not a bad strategy. But many investors prefer to get exposure to precious metals that doesn’t require taking possession of, or having to sell, the physical metal. In economics, a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock, the bursting of an economic bubble, or a large-scale anthropogenic or natural disaster (e.g. a pandemic). In the United States, it is defined as "a significant decline in economic activity spread across the market, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales".[3] In the United Kingdom, it is defined as negative economic growth for two consecutive quarters. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply or increasing government spending and decreasing taxation. In a 1974 The New York Times article, Commissioner of the Bureau of Labor Statistics Julius Shiskin suggested several rules of thumb for defining a recession, one of which was two consecutive quarters of negative GDP growth.[6] In time, the other rules of thumb were forgotten. Some economists prefer a definition of a 1.5-2 percentage points rise in unemployment within 12 months. In the United States, the Business Cycle Dating Committee of the National Bureau of Economic Research (NBER) is generally seen as the authority for dating US recessions. The NBER, a private economic research organization, defines an economic recession as: "a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales".[8] Almost universally, academics, economists, policymakers, and businesses refer to the determination by the NBER for the precise dating of a recession's onset and end. In the United Kingdom, recessions are generally defined as two consecutive quarters of negative economic growth, as measured by the seasonal adjusted quarter-on-quarter figures for real GDP.[4][5] The European Union does not use this definition, instead of using a range of other criteria such as employment rate and the depth of decline in economic activity. A recession has many attributes that can occur simultaneously and includes declines in component measures of economic activity (GDP) such as consumption, investment, government spending, and net export activity. These summary measures reflect underlying drivers such as employment levels and skills, household savings rates, corporate investment decisions, interest rates, demographics, and government policies. Economist Richard C. Koo wrote that under ideal conditions, a country's economy should have the household sector as net savers and the corporate sector as net borrowers, with the government budget nearly balanced and net exports near zero. A severe (GDP down by 10%) or prolonged (three or four years) recession is referred to as an economic depression, although some argue that their causes and cures can be different.

Drill baby Drill! 1. Worst energy crisis since 1973! 80% of our energy comes from oil and gas 2. Renewables are the energy of surfs and slaves. Here are some facts: 1. Wind/Solar cannot power a modern economy right now. 2. It sounds all warm and fuzzy, but the technology is not there 3. Even Germany just apologized for being too dependent on RUSSIA for oil (national news). Germany is now going to spend 2% or more on their defense budget as the last administration told them to do. 4. It would have been nice during the state of the union if Joe Biden said hey “we made some mistakes with Afghanistan, Covid19 and we were energy independent under the last admonition and we need to go back to that. That kind of talk would have won some points with the American people. 5. When your enemies (China, Russia) say they are going to use fossil fuels—You have to use them as well! You can’t be dependent on your enemies for resources and destroy The US economy because you want to be warm and fussy. I am all for green. The US has done more for climate change than any country in the world. We put 1 billion into the climate fund when everyone else put nothing-its voluntary. We have clean coal, unlike china. Our smoke stakes omit vapor! We have scrubbers on our smoke stakes. So you should not get so upset about coal! Forget solar and wind it's a pipe dream! Why are we spending 70M a day on Russian oil? That is right folks 70M a day from an enemy. Think about the craziness of this… Joe Biden is running around trying to look like a tough guy, the big guy is hitting Russia with sanctions over Vladimir Putin’s obscene invasion of Ukraine. But at the same time, we pay Russia in the vicinity of $70 million per day for oil imports. during these seven days of Putin’s criminal war against Ukraine, we’ve sent this same Putin during those same seven days close to a half-billion dollars! What the hell is going on? U.S. imports of crude oil averaged 6.1 million barrels per day in 2021 and accounted for about 40% of crude processed by U.S. refineries. 61% of imports were from Canada; 10% from Mexico; 6% from Saudi Arabia; and 3% from Russia. 2021 crude imports from Russia averaged 0.2 million barrels per day, the highest level in many years, but still a small share of total imports and total crude oil processed by U.S. refineries (~1%). U.S. refineries processed 15.1 million barrels per day of crude oil in 2021. Crude oil from Russia is imported into the Northeast (PADD 1), the Gulf Coast (PADD 3), and the West Coast (PADD 5). Imports of Russian crude oil into the West and Gulf Coasts increased from 2019 to 2021, while imports to the East Coast decreased because of changes in the global market. conditions, as well as disruptions and shifts in supply patterns of U.S., produced crude oil, and changes in U.S. refinery operations. Crude oil imported from Russia varies in quality, although most of the crude oil imported from Russia in 2021 was light. On the West Coast, Russian crude is imported to supply refineries in Hawaii, California, Washington, and Alaska. In 2021 supply of Russian crude oil to refineries in California and Washington state increased substantially versus 2019, helping to offset lower volumes of light sweet crude imports into California from other countries, notably Nigeria, and lower volumes of U.S. produced crude oil shipped by rail to Washington. Imports of crude oil from Nigeria to the West Coast averaged 61,000 barrels per day in 2019 but dropped to zero by mid-2021 and averaged only 16,000 barrels per day for all of 2021. The decline reflects the challenges Nigeria has faced in returning crude production to pre-pandemic levels. Most of the crude oil imported from Nigeria into the West Coast has been light sweet crude oil and the Russian crude oil supplied to the West Coast is lightly sweet as well. The increase in 2021 imports from Russia reflects the increased availability of Russian crude oil for Pacific loadings and the economics for that crude. The Eastern Siberia-Pacific Ocean (ESPO) pipeline moves Russian crude oil to the Pacific port of Kozmino, which allows Russian crude to be cost-effectively supplied to U.S. refineries in Hawaii and on the West Coast. The ESPO pipeline was years in planning and construction – see map below – and was undertaken to allow Russian crude oil to reach a larger global market – prior to the pipeline most Russian crude exports were through the Black Sea or by pipeline to Eastern Europe. The ESPO pipeline can move 1 million barrels per day of crude oil to the port of Kozmino and an additional 0.6 million barrels per day to China. U.S. West Coast (USWC) refineries rely on imports of light sweet crude oil because access to the U.S. produced light sweet crude oil is challenged by geography and transportation/logistics. Flows of U.S.-produced crude oil by rail from the Midwest to the West Coast (Washington) have declined steadily since 2020.

*Regime change is too risky in Russia! *OIL IS CURRENTLY AT 139 A BARREL AND IS EXPECTED TO GO TO 185 A BARREL! THIS WILL KILL THE US ECONOMY! *ELON MUSK CALLS FOR US TO INCREASE OIL/GAS IMMEDIATELY! DRILL BABY DRILL! *NO-FLY ZONE WILL START WORLD WAR 3? THE MEDIA WANTS A NO-FLY ZONE! WILL IT LEAD TO WORLD WAR 3..... *WE ARE SITTING ON OCEANS OF "BLACK OIL". GAS WOULD BE $1.60 A GALLON! *SPEAK SOFTLY WITH A BIG STICK! STOP PUTIN 2 WAYS" 1. Cut off all Putin's Gas/Oil imports into the United States and Europe. Starve Russia of the funds to finance their war machine! THE WAR WILL END! 2. Arm Ukraine's just like we did in Afghanistan to stop the Russians. Let the Ukraine Man/Women defend their borders. We don't need to endanger the lives of American Men and Women Marco Rubio warns in no uncertain terms why a no-fly zone over Ukraine is a bad idea: 'It means World War III' Rubio explained that imposing a no-fly zone over Ukraine would trigger another world war because enforcing an NFZ requires willingness "to shoot down the aircraft of the Russian Federation." "Look, a no-fly zone has become a catchphrase. I’m not sure a lot of people fully understand what that means," Rubio began. That means flying [Airborne Warning and Control Systems] 24 hours a day. That means the willingness to shoot down and engage Russian airplanes in the sky. That means, frankly, you can’t put those planes up there unless you’re willing to knock out the anti-aircraft systems that the Russians have deployed — and not just in Ukraine, but in Russia and also in Belarus," he explained. "So basically a no-fly zone, if people understood what it means, it means World War III. It means starting World War III," Rubio warned. Senator Rand Paul has labeled Lindsey Graham’s call for Vladimir Putin to be assassinated as “reckless,” warning that such rhetoric “inflames the situation.” Appearing on a podcast Friday, Paul was asked about Graham’s comments last week when he questioned if there is “a Brutus in Russia?” who can “do the world a great service” by killing Putin. I think if you’re worried about your adversary being irrational, saying things like you’re going to assassinate him would actually make things worse,” Paul urged. “It’s actually against the U.S. law,” to make such calls, Paul continued. “U.S. law for a long time has been that we don’t assassinate civilian leaders of other governments,” the Senator added. House of Representatives passed a resolution that gives Biden a blank check in Ukraine, by a vote of 426 to 3. House passed HR 956. HR gives Biden anything he wants in Ukraine. It commits us to fight Russia as long as Ukraine's sovereignty is being threatened (violated). NOW WE COULD BE THER FOR DECADES. That is right folks decades. John Bolten just said in an interview that CHINA is a greater threat to national security than RUSSIA. Russia is an economy the size of Texas! THE GLOBALIST "SABER RATTLING" IS GETTING FRIGHTENING! THIS IS HOW WARS START!

THIS WILL IMPACT EVERYBODY! NOT JUST THE BILLIONAIRE CLASS! This has been tried in other countries (Sweden, France-not even to this extent, and guess what -the wealth tax failed in these countries) Taxing Unrealized Capital GAINS to fund Infrastructure Bill! Wall Street Journal and FT and have stated this is unprecedented in western society and could have negative effects on the economy Tesla CEO Elon Musk calls out Dems for proposing to tax unrealized capital gains “Eventually, they run out of other people’s money and then they come for you.” Tesla CEO Elon Musk has called out Democrats for putting forward a proposal to tax unrealized capital gains. The proposal to tax unrealized capital gains surfaced after President Joe Biden introduced his multi-trillion dollar social spending bill, which is estimated to cost upwards of $3.5 trillion. Biden claims that the plan will cost nothing, but Democrat Sen. Ron Wyden has detailed a plan to collect taxes from the wealthiest Americans that currently go untaxed until assets are sold. “I wouldn't call that a wealth tax,” Janet Yellen, the Secretary of the Treasury, said in an interview on CNN. “But it would help get at capital gains, which are an extraordinarily large part of the incomes of the wealthiest individuals, and right now escape taxation, until they're realized, and often they're unrealized in the death benefit from a so-called step up of basis.” The proposal has gained traction in the wake of Democrat Senator Kyrsten Sinema’s opposition to raising corporate and individual tax rates to pay for Biden’s plan. The New York Times reports: Billionaires could be taxed on unrealized capital gains on their liquid assets, Democratic officials said yesterday. It would affect people with $1 billion in assets or those who have reported at least $100 million in income for three consecutive years, according to news reports. That would ensnare perhaps 700 taxpayers — or the wealthiest 0.0002 percent — but Democrats hope it would generate at least $200 billion in revenue over a decade. It would cover not only stocks but also other assets like real estate. Posting on Twitter, Musk criticized the plan in a response to a sample letter that one of his followers posted, which offered a template for what Americans should say to their representatives in opposition to the tax plan. The letter reads as follows: Dear (Senator of Congress Member’s name), I expect you to oppose the Wyden proposal to tax unrealized capital gains. Although the proposal targets billionaires and not myself, the government of elected representatives have a track record of scope creep when writing new taxes. I anticipate that any new unrealized capital gains taxes will slowly make their way down to middle-class retirement investments over the next several years. It will start with billionaires, then eventually millionaires, then the modest investments will get hit possibly within a decade. Although principle residences and holdings in 401K plans apparently will be excluded, the Wyden proposal takes new tax hikes a step closer to imposing unrealized capital gains tax on the average investor. Thank you for your support. “Exactly,” wrote Musk. “Eventually, they run out of other people’s money and then they come for you.” Musk is not the only high-profile business owner to speak out against the tax plan. Tilman Fertitta, who owns the Houston Rockets, warned that should the plan pass, it will destroy capitalism in the United States. Asked for his opinion in a Fox News interview, Fertitta said that it “makes me not build as much because I won’t have the ability that creates so many more jobs.” “And then you’re paying so many different taxes,” he added. “Every employee pays payroll taxes, all your sales taxes, all the taxes they pay. It’s truly a mistake. It’s a social way of not doing things in this country. It’s the European way. Our great capitalism will slowly come to an end. And do I believe in taxes to make our country great? Absolutely. I don’t think a balance sheet billionaires tax is the way to do it. Do it on income. You can’t do it on balance sheets. It’ll never be right.” Connect on: Instagram: https://www.instagram.com/themcclonebrothers/ Twitter: https://twitter.com/themcclonebrot1 LinkedIn: https://www.linkedin.com/in/themcclonebrothers/

EVICTION MORATORIUM HAS A NEW NAME AND TIMELINE! WHAT IS THE COUNTY’S COVID-19 TENANT PROTECTIONS RESOLUTION? The County’s COVID-19 Tenant Protections Resolution (formerly the LA County Eviction Moratorium), which went into effect March 4, 2020, extends certain protections to residential and commercial Tenants affected by the COVID-19 pandemic in Los Angeles County. On January 25, 2022, the Los Angeles County Board of Supervisors voted to extend the COVID-19 Tenant Protections Resolution through December 31, 2022, unless repealed or further extended by the Board. WHAT SHOULD RESIDENTIAL AND COMMERCIAL TENANTS KNOW ABOUT THE UPDATED PROTECTIONS? The updated COVID-19 Tenant Protections Resolution includes two phases which incorporate both extensions and lifting of some existing eviction protections, as well as reinstating/adding eviction protections for residential non-payment of rent due to COVID-19 financial hardship, as shown below: FOR COMMERCIAL TENANTS As of February 1, 2022, Commercial Tenants are no longer protected from eviction due to nonpayment of rent. Commercial Tenants will have the following time to repay past due rent from March 2020-January 2022: Twelve (12) months for those with 0-9 employees; Six (6) months for those with 10-100 employees in equal installments. While eviction protections for nonpayment of rent are expiring, anti-harassment and retaliation protections will continue during the protection period, as well as personal guarantee protection for smaller (0-9 employees) commercial tenants. FOR RESIDENTIAL TENANTS Some eviction protections (listed above) for residential tenants and mobilehome space renters will continue through December 31, 2022. One major addition to note under the updated Resolution is that on April 1, 2022, eviction protections for nonpayment of rent, including self-certification to establish an affirmative defense, are added for all residential tenants and mobile home space renters due to COVID-19 financial hardship for rent incurred on or after April 1, 2022. This protection will be amended on June 1, 2022 (Phase II) to apply ONLY to households with incomes at or below 80% Area Median Income (AMI) due to COVID-19 financial hardship for rent incurred on or after April 1, 2022. Residential Tenants will have twelve (12) months following the expiration of the COVID-19 Tenant Protections Resolution to repay past rent due on or after April 1, 2022. The County’s COVID-19 Tenant Protections Resolution does not cancel or stop the rent from being owed, or stop the accumulation of rent that is owed during the protections period. Tenants should pay if they can and are encouraged to work out a payment plan with their landlord during and after the termination of the COVID-19 Tenant Protection Resolution. UNDER WHAT CIRCUMSTANCES CAN A LANDLORD EVICT A TENANT TO MOVE INTO A PROPERTY UNDER THE COUNTY’S COVID-19 TENANT PROTECTIONS RESOLUTION? Under Phase I (February 1, 2022 – May 31, 2022) of the COVID-19 Tenants Protection Resolution, a landlord or a qualifying family member can move into a single-family home, mobilehome space, condominium unit, duplex, or triplex (collectively “units”) if the property was purchased on or before June 30, 2021, and if they meet the following criteria: The Landlord or Landlords qualifying family member must physically reside at the property for at least thirty-six (36) consecutive months; The Tenants of the unit must be current on rent payments and not have been impacted by COVID-19; The Landlord or Landlords qualifying family member must be similarly situated to the Tenant currently occupying home; The Landlord must provide at least sixty (60) days’ notice to Tenant The Landlord must pay tenant relocation assistance as required by the County’s Rent Stabilization Ordinance or the incorporated city’s applicable ordinance or regulation. Please note that effective June 1, 2022, the property purchase date (June 30, 2021) and the requirement for tenants impacted by COVID-19 for Owner Move-Ins are lifted under Phase II (June 1, 2022- December 31, 2022) of the COVID-19 Tenant Protection Resolution. Landlords will need to use the following forms as part of the process to evict the tenant(s) and provide notice to the Department of Consumer and Business Affairs: https://dcba.lacounty.gov/wp-content/uploads/2021/10/LA-County-COVID-19-Tennat-Protections-Landlord-Move-In-Disclosure-10.4.21.pdf https://dcba.lacounty.gov/wp-content/uploads/2021/10/LA-County-COVID-19-Tennat-Protections-Landlord-Move-In-POS-10.4.21.pdf https://dcba.lacounty.gov/wp-content/uploads/2021/10/LA-County-COVID-19-Tennat-Protections-Landlord-Move-In-FAQs-10.4.21.pdf

EXAMPLE: CONSIDERS GOOD RATE OF RETURN For a high-income earner, a traditional could be the better option. In the United States, a 401(k) plan is an employer-sponsored defined-contribution pension account defined in subsection 401(k) of the Internal Revenue Code.[1] Employee funding comes directly off their paycheck and may be matched by the employer. There are two types: traditional and Roth 401(k). For Roth accounts, contributions and withdrawals have no impact on income tax. For traditional accounts, contributions may be deducted from taxable income, and withdrawals are added to taxable income. There are limits to contributions,[2] rules governing withdrawals, and possible penalties. The benefit of the Roth account is from tax-free capital gains. The net benefit of the traditional account is the sum of a possible bonus (or penalty) from withdrawals at tax rates lower (or higher) than at contribution, and the impact on qualification for other income-tested programs from contributions and withdrawals reducing and adding to taxable income, minus the consequences of capital gains being taxed at regular income rates. Before 1974, a few U.S. employers had been giving their staff the option of receiving cash in lieu of an employer-paid contribution to their tax-qualified retirement plan accounts. The U.S. Congress banned new plans of this type in 1974, pending further study. After that study was completed, Congress reauthorized such plans, provided they satisfied certain special requirements. Congress did this by enacting Internal Revenue Code Section 401(k) as part of the Revenue Act. This occurred on November 6, 1978. Traditional Income taxes on pre-tax contributions and investment earnings in the form of interest and dividends are tax-deferred. The ability to defer income taxes to a period where one's tax rates may be lower is a potential benefit of the 401(k) plan. The ability to defer income taxes has no benefit when the participant is subject to the same tax rates in retirement as when the original contributions were made or interest and dividends earned. Earnings from investments in a 401(k) account in the form of capital gains are not subject to capital gains taxes. This ability to avoid this second level of tax is a primary benefit of the 401(k) plan. Relative to investing outside of 401(k) plans, more income tax is paid but less taxes are paid overall with the 401(k) due to the ability to avoid taxes on capital gains. For pre-tax contributions, the employee does not pay federal income tax on the amount of current income he or she defers to a 401(k) account but does still pay the total 7.65% payroll taxes (social security and medicare). For example, a worker who otherwise earns $50,000 in a particular year and defers $3,000 into a 401(k) account that year only reports $47,000 in income on that year's tax return. Currently, this would represent a near-term $660 saving in taxes for a single worker, assuming the worker remained in the 22% marginal tax bracket and there were no other adjustments (like deductions). The employee ultimately pays taxes on the money as he or she withdraws the funds, generally during retirement. The character of any gains (including tax-favored capital gains) is transformed into "ordinary income" at the time the money is withdrawn. If the employee made after-tax contributions to the 401(k) account, these amounts are commingled with the pre-tax funds and simply add to the 401(k) basis. When distributions are made the taxable portion of the distribution will be calculated as the ratio of the after-tax contributions to the total 401(k) basis. The remainder of the distribution is tax-free and not included in gross income for the year. Roth For accumulated after-tax contributions and earnings in a designated Roth account (Roth 401(k)), "qualified distributions" can be made tax-free. To qualify, distributions must be made more than 5 years after the first designated Roth contributions and not before the year in which the account owner turns age 59+1⁄2, unless an exception applies as detailed in IRS code section 72(t). In the case of designated Roth contributions, the contributions being made on an after-tax basis means that the taxable income in the year of contribution is not decreased as it is with pre-tax contributions. Roth contributions are irrevocable and cannot be converted to pre-tax contributions at a later date. (In contrast to Roth individual retirement accounts (IRAs), where Roth contributions may be recharacterized as pre-tax contributions.) Administratively, Roth contributions must be made to a separate account, and records must be kept that distinguish the amount of contribution and the corresponding earnings that are to receive Roth treatment. Unlike the Roth IRA, there is no upper-income limit capping eligibility for Roth 401(k) contributions. Individuals who find themselves disqualified from a Roth IRA may contribute to their Roth 401(k).

6 Steps to buying property in LONDON UK. We are actively involved in Real Estate London, UK. for 14 1/2 years. We personally have a property in the UK! Please Reach out to THEMCCLONEBROTHERS group for more information for your London UK Real Estate needs. Homelessness is something that I am passionate about and I am going to use this platform to raise monies as well as bring in investors to help fight the issue! I am in the early stage of my business plan. I am currently working on meeting with leaders in Venice Beach and Downtown Los Angeles. More to come. Be Creative! Connect on: Instagram: https://www.instagram.com/themcclonebrothers/ Twitter: https://twitter.com/themcclonebrot1 LinkedIn: https://www.linkedin.com/in/themcclonebrothers/ http://themcclonebrothers.com