How Climate Change Affects Your Money

“How Climate Change Affects Your Money”
Ty J. Young Editorial

Climate change itself has no impact on your money – zero percent. But the business of climate change has a massive impact on your money and the economy. Ironically, “climate change” is a deceptive characterization. The climate changes all the time. Scientists previously referenced the problem as global warming. Since the data suggested we were no longer warming, the media reference was renamed “climate change.”

Climate change is defined as “the statistical distribution of weather patterns when that change lasts for an extended period of time (i.e., decades to millions of years). Climate change may refer to a change in average weather conditions, or in the time variation of weather around longer-term average conditions (i.e., more or fewer extreme weather events). Climate change is caused by factors such as biotic processes, variations in solar radiation received by Earth, plate tectonics, and volcanic eruptions.” In other words – the definition is broad. Certain human activities have also been identified as significant causes of recent climate change, which was formerly referred to as global warming. Human activities means the use of carbon fuel sources – oil, coal and gas products.

From the scientific definition above, climate change is normal and is always happening. Global warming, however, may affect climate change and may be caused by human activities, but the facts seem to refute that argument:

I) Climate Change Facts:
1) Less than 1/2 degree of warming has been registered since 1979. According to NASA’s data via Remote Sensing Systems (RSS), the world has warmed only 0.36 degrees Fahrenheit over the last 35 years (They started measuring the data in 1979).
2) Polar Ice Caps are not shrinking, but INCREASING in size. NASA satellite imagery shows a 43-63% increase in the polar ice caps over the same time frame – see below.
3) The bulk of the temperature increase of 0.36 degrees occurred between 1979 and 1998. Since that time, the temperatures have actually been falling! We have not seen any official global warming in 17 years, and many scientists are skeptical that any warming would be man-made in the first place. The earth is 1.08 degrees cooler since 1998!
4) Scientists who support the theories of global warming are many of the same scientists who believed we were facing a new Ice Age in the early 1970’s. Many publications, such as Time Magazine and Newsweek, published scientific articles suggesting 30 years’ worth of cooling temperatures was leading the Earth to a new ice age.

NASA’s Remote Sensing System Temperature Variations 1998-2014


II. Climate Change Policy Supporters:
1) Ideological supporters: Those who simply have a religious belief in global warming. They oppose the wrongful use of carbon-based energy, such as fossil fuels – like gasoline, natural gas and coal. Basically, they are opposed to every form of energy that powers your everyday life.
2) Business supporters: From cap and trade to carbon tax credits to government loans and handouts with taxpayer money – to failed companies like Solyndra – there is big business and money to be made in supporting climate change policies. Sadly, the majority of that money to date is funded through the government (tax dollars are being spent instead of private sector investment). One of the primary drivers of this group is former Vice President Al Gore.
3) Government supporters: Government supports advancing the cause of global warming, because it extends the government’s reach and control over our lives. Health care, and now energy usage, are coming under more and more government control.

So how does this impact your money directly? Tax dollars have been spent on climate change research and on failed companies advancing green technology. There are additional costs related to complying with and implementing climate change policies.

III. Costs Related to Climate Change Policies:
1) US Small Business Administration estimates compliance costs for current climate change law is projected to be between $1.75 trillion and $4.8 trillion by 2030. This is the government’s own small business lending agency telling us the costs to comply are skyrocketing for US businesses, from taxes to regulatory compliance to government spending and much more. These costs impact your investment in these companies, since their profits are lowered and, in many cases, they will fold and close up shop.
2) Lost jobs in the energy and manufacturing sector. Job loss taxes the social welfare system, increases crime, and drags on economic growth. Slowing growth leads to job loss elsewhere in the economy as well – this affects your income and your investments.
3) Carbon taxes, other taxes, going up. Energy costs will rise, and taxation will increase as well to enforce lower energy usage or drive you into alternative energy sources. Once again, more money out of your pocket, and out of your portfolio.
4) Negative impact on markets and your portfolio. The stock market is a market of stocks, which may be in your portfolio. Stocks represent companies. These companies may be affected negatively by the climate change regulatory intervention of the government. This means the stock price can be negatively affected. Therefore, this can mean negative consequences for your money.

Your money is being impacted whether there is such a thing as man-made global warming, which is now referenced as the constant and ongoing problem of climate change. Climate change can have a negative impact on your investment portfolio, due to taxes, regulatory compliance, government spending, increased energy costs, or simply lost business opportunities. Finding the right investment strategy protected against these negative impacts on the market is a strategy one should consider today! 877-912-1919.

(Peter Gwynne (April 28, 1975). “The Cooling World”. Newsweek)

Flat Tax … The Rich Will Pay More

“Flat Tax … The Rich Will Pay More”
Ty J. Young Editorial

The Paris attacks have reminded us of how exposed we are to global events. We are living through a dangerous period in history. During this time, we need caution, prayer – but most of all – good ol’ fashioned American vigilance.

We face a multitude of issues, and none is greater than the potential of terrorism. To defeat terror will require more and smarter spending on defense and intelligence, which is money we do not necessarily have. Sadly, our budgets are in shambles, deficits remain constant and debt grows daily. America needs a spark for our fiscal future, and many presidential candidates believe our best bet could be a flat tax system.

I. Flat tax system facts:

  1. Easy to understand and comply with: There are tens of thousands of pages in the Tax Code, a separate court system, audits, and a number of brackets your income could fall into. A flat tax allows you to simply do your taxes on a 3×5 card.
  2. Eliminates the need for the IRS.
  3. Politicians cannot use the tax code to motivate behavior: Whether it is rewarding a donor or mandating the public buy insurance, politicians would no longer be able to coerce the public into doing something it would not normally want to do.
  4. Lowering taxes generates economic growth: Lowering to a single flat rate could spur massive economic growth, business expansion, and wage and job gains. That’s more money in your pocket. Businesses could plan on market fundamentals, not how to shelter income from taxation. Additional profit would be taxed at the low, flat rate. This would be a boon for American business.
  5. A flat tax is FAIR to everyone: Everyone pays the same rate. As an example, if someone makes one million dollars with a 10% flat tax, they are paying $100,000 in taxes. If you make $30,000, you’re paying $3,000. The rich taxpayer is paying $97,000 more in taxes than the working class taxpayer. The rich will pay more.
  6. Government revenue will increase: We have never lowered taxes and not seen an increase in revenue. The problem has always been the government spends more than the extra money we take in. Nonetheless, lowering taxes increases economic growth. This broadens the tax base, increases taxable activity and leads to more government money.

Some may say the flat tax is not progressive and has several negative factors. A couple of those myths are uncovered below:

II. Flat tax system myths:

  1. It could shift the tax burden to the poor: False. Any tax system will have a minimum floor of income which is not taxable.
  2. Government revenue will decline: False. Tax cuts have always increased revenue into the Treasury. The data is not in dispute. John Kennedy’s tax cuts increased revenue. Ronald Reagan’s tax cuts swelled the Treasury. Even George Bush’s cuts – at the end of the collapse, before and after 9/11 – increased tax revenue and collection.

Tax reform has become a big issue that will be facing the next President of the United States. It is not a standalone issue. We have discussed our debt, interest rates, China’s market and many other economic issues, which impact the marketplace and therefore the public finances. But reforming the tax code is a big step toward getting our financial house in order.

III. Why is this important to you?

  1. A simpler, fairer tax code is better for the economy: A “less-stressed” economy – that is growing – naturally puts more money in your pocket and improves your own household finances.
  2. Better for your pocketbook, more money for your retirement fund: Lower taxes mean more money to add to your portfolio.
  3. Makes America an attractive investment option: Money will flow into American businesses and stock accounts, because the taxation of those profits will be lower.

There are many ideas on tax reform: (1) A flat tax of 10%, 12%, or 16% (among others being discussed); (2) Flat taxes with different rates for income and business; (3) Our personal favorite – an actual Fair Tax This eliminates ALL taxes in favor of a broad national consumption tax. The beauty of a Fair Tax is that it is by choice – you have to choose to buy something – and it doesn’t take money from your hard-earned labor.

Tax policy directly impacts you and your money. It is great to see politicians with engaging ideas, which shows hope and promise for the future. ALL of your money is affected by the politicized, confusing nature of our tax code: How much you can save, how much you can deduct and how much the government takes from your gains on your investments. The first step to getting your retirement safe is to keep the money you earned in the first place. A reformed tax system will help us do just that. The second step is to call us at 877-912-1919.


Paris Terror Attacks: Is the U.S. Next?

“Paris Terror Attacks: Is the U.S. Next?”
Ty J. Young Editorial

The horror of the Paris terror attacks on Friday November 13, should remind everyone that this will be a long war. Nothing has changed since the War on Terror started in 2001. The terror caliphate in Syria and Iraq, known as ISIS amongst other names, claimed responsibility.

I. What we know so far:

1) ISIS claimed responsibility.
2) It was a coordinated attack. At least 6 sites were attacked including the national stadium and the Bataclan theatre, all in unison.
3) Scores dead, hundreds injured. The attacks left 129 dead and 350+ injured, at least 99 critically. The death toll will likely rise.
4) At least one terrorist was a Syrian refugee. One terrorist passport showed he arrived in October from Syria amongst the wave of migrants coming to Europe. ISIS TOLD US they were sending jihadists in with the migrants.
5) Four terrorists so far have been identified as French nationals.
6) The alleged mastermind was from Belgium. These attackers were not only from Syria but also home-grown from throughout Europe.

The investigation continues.

II. How could this happen?

1) Strict gun control laws in France. The bad guys had guns. The good guys did not. This is the same circumstance as the Charlie Hebdo massacre.
2) France has open borders. The terrorists have free reign to come over and pretend they are refugees.
3) France has allowed Muslim “no-go” zones in major cities. Unpoliced Muslim communities exist throughout France where Islamic extremists have free reign to impose their jihad. In short, Paris was a soft target with Muslim communities providing cover.

III. Is the US vulnerable to an attack like the Paris terror attacks?

1) WE have open borders under our current government. Current government policy welcomes unvetted Syrians from ISIS territory.
2) WE have soft targets. There are sporting events, theatres and open cafes in every major city in the United States, just like in Paris.
3) Our current government does not identify the enemy. Workplace violence, overseas contingency operations, extremism – As a country, we refuse to call the terrorists what they are – Muslim extremists. They are acting based upon religious beliefs – that is a fact not in dispute.

IV. The US has NOT projected strength:

1) We have withdrawn from Iraq and withdrawn from leadership in the Middle East. When we left, the Middle East was stable, and Iraq was democratic and free. Since our departure, the entire neighborhood has erupted in chaos, bloodshed, and misery. ISIS was formed in the revolutions that followed, first in Syria, then Iraq.
2) Terrorists have taken note. It is no surprise that these terror threats have grown where the US has withdrawn.

V. ISIS says the United States is next:

1) ISIS leadership has declared we are next. They have bombed a Russian airliner and attacked Paris, but the online videos and the twitter-verse had known-ISIS terror websites openly declaring they will “see us in New York soon.”
2) We remain their primary target. We remain the primary target of ISIS and other global terror groups, because we are the biggest dog in the fight. As ISIS has stated on social media: “American blood is the sweetest.”

There are geopolitical and market ramifications to all of this that will impact our markets, and our money

VI. So how does all of this connect to an investor’s money?

1) Terrorists have and will target Western economic interests. While markets continue to rise, defying the bad news in the streets of Paris, what has not changed is the threat to the oil supply chain, shipping, air transport and all forms of Western commerce. The world economy is vulnerable to such attacks.
2) Costs to travel, airlines and insurance all go up. Your individual portfolio could be exposed to industries facing increased costs due to the heightened risk of terrorist attack.
3) Chaos caused by terrorism undermines confidence that governments can control this threat.
4) Your 401K could be next. Markets go up. Markets go down. We’ve been going up since 2009. When will it reverse course? Could terrorism or global chaos impact your own 401K soon? What if a cyberattack damages an online retail website, and your portfolio is invested in their stock? What about the larger market if an oil refinery is attacked?


VII.What are the geo-political and market ramifications?

1) French President Hollande has said this is war. NATO may join them. If NATO is called upon to act with its member France, that will drag the U.S. back into the fight in the Middle East.
2) Russia may be getting off the hook. The Russian invasion of Ukraine has received little media attention now that the world is fixed on the terror threat of ISIS. Russia’s return to Syria has made them a major player in the Middle East. This can have a long-term impact on oil markets, since Russia is a major oil producer, which could have a negative impact on the dollar.
3) US markets remain resilient. Up, up, up – the Dow continues to climb. But you cannot have instability in areas where commerce must be transported. Global money flows are being dumped into US markets, because it appears to be the safest place to put money. Although the terrorists attacked the World Trade Center twice, and it was Bin Laden’s stated goal to bring down the US economy. From soft targets, to cyber attacks, to the debt we accrue, the long-term effect on markets will most likely be negative.

If you said on September 10, 2001 terrorists could possibly hijack planes, fly them into the World Trade Center, and bring down both towers killing over 3,000 people, almost everyone would have said, “You’re crazy.” The reality is it already happened on 9/11. The strategy from 9/11 through 2008 in the Middle East was largely successful. The Iraq War was won, and terror attacks in the US were thwarted. Since 2008, the Middle East has collapsed, Russia is on the move in the Middle East, and terror groups have taken over large swaths of territory and are now carrying out mass murder and chaos on a scale unseen in over a decade. The current strategy is not working.

But there is always a uniquely American silver lining …

VIII. BAD News for terrorists wanting to attack America

1) The 2nd Amendment to the U.S. Constitution. There are over 300 million guns in American hands, and Americans are not afraid to use them.
2) U.S. Citizens have identified the terrorists as a threat, and given the opportunity, that threat will be eliminated. The attack in Garland, Texas, for example, resulted in Americans with guns taking out terrorists. More is coming their way!
3) We are Americans, because we will stand and fight… ISIS you’ve been warned. This won’t look like Charlie Hebdo.

So what can we do? America is the greatest country in the world. We have the greatest markets in the world and the greatest currency in the world. Despite our government, we largely remain free.

1) We CAN protect our borders.
2) We CAN protect our interests.

Thanks to conceal/carry laws, good guys with guns can prevent attacks on soft targets, and the bad guys know it! We have American vigilance – Americans are familiar with doing things without the government’s help. It’s part of the American DNA!

We believe that day is coming when we will return to our historic greatness! We will call the enemy by its name and we will defeat it. That’s what we do. After all, we… are Americans!

While we seek protection from the chaos around the world, we can also find protection for our money. As listed above, all of the world’s events can dramatically impact your portfolio. The best solution may be a product that is safe, simple and provides a reasonable rate of return. 877-912-1919