Newsletters - Past Issues

Money Matters update-October 18, 2016 PLEASE READ

Its is important each of us who are fortunate enough to have food on our table make sure others have food on theirs. Can I ask your support in feeding the homeless and those in need this Thanksgiving?

Consider giving a buck or two and I will match a portion of the funds to the food bank of your choice

Here are some photos of what we are doing at the Food Bank of Nevada County

Food bank staff and board of directors (Some of us anyway)

From our garden we provide fresh homegrown vegetables - These we grew ourselves!

We serve an incredible 12,000 HEALTHY snacks a week to Nevada County Schools beside feeding thousands a month with complete meals

Help me help our community

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TURKEY MATTERS IN FULL SWING

Can I count on you? Can our hungry count on you? Let’s do it!

Its time again for our Turkey Matters food drive for the food banks of our counties.

Help me feed the poor with our annual turkey drive where we buy turkeys for the poor. I do this every year and now ask for community support. The program is easy. Just make a check out to the food bank of your choice. Do not make the check out to KVMR or me. Make it out to the food bank of your choice.

Mail: KVMR FM 120 Bridge Street, Nevada City, Ca 95959. Attention Turkey Matters.

I will match a portion of the funds with my own money to that food bank and KVMR will forward my check and yours to that food bank. That’s all there is too it! Please consider helping.

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Money Matters airs this Thursday October 20, 2016 at NOON PST

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Diatribe Fall 2016

Years ago a nation repressed. Over taxation by the monarchs, too much in your face meddling by the so called rulers and just basically having had enough, a group decided to flee their homeland in search of a new one.

Across the treacherous Pacific they came, here to America. Boat after boat arrived, not without peril of course. Some drowned, others eaten by natives because they landed somewhere else I suppose. Disease took some more and those that did arrive had to survive harsh winters, unknown perils and hostile inhabitants in some cases. But came they did, traversing farther west, until the whole nation was conquered, or inhabited as some might say.

They established new rules, even fought off the rulers from their old stomping grounds as they tried an across the ocean tax grab. Since no army can really inhabit another’s land for long, the ruler in Britain gave up and said the hell with ‘em.

So the newly found nation penned its Constitution and Articles and set off to live a life on based on the concept of liberty. Some say Democracy but that has its flaws.

Preposterous some say, how could Democracy be flawed? After all what is better than the will of majority? Well, it can also be called mob rule right? If my mob has more people than your mob, we rule. That’s called strength in numbers and that is the epitome of democracy- the great numbers get their way

But Democracy flawed? Maybe. Think of two wolves and lamb, deciding what to have for dinner.

The majority of course, the two wolves, would have lamb chops for dinner under the rule of democracy, after all they will win the vote. But the poor lamb, being a minority, will forfeit his liberty and life to satisfy the mob, aka the democratic decision.

Ah, but others might say liberty is where the vote is taken but the lamb in this case is well armed and has the means to defend itself from the ruling mob, in this case the two wolves.

The lamb’s liberty and therefore his rights are now defended by his right to bear arms you could say. That it is his right and it works out pretty well for the lamb. The wolves will have to consider another alternative and one that doesn’t trample another ones rights

We can conclude that Democracy might not work for you so well if it’s your rights, and your liberties being violated by the majority.

Liberty then could be thought of as, you have the right to do what you want, as long as it doesn’t infringe on the rights of another. Now that sounds like a better deal. The wolves have the right to WANT to eat the lamb, but if the lamb objects, his rights would be infringed upon because basically he would die. Not so good. So the wolves, under liberty, cannot exercise their right to a lamb stew despite having the majority as that would infringe on the lambs right to life.

Lamb insuring his rights are not trampled by the Mob

One could draw it out a bit further and say, you have the right to want to help out someone, but you don’t have the right to force another to do so, even if it might appear to be the right thing to do. The same could be said for taxes. You have the right to vote on a tax you would pay, but you don’t have the right to vote on a tax another would pay, especially if you won’t pay it yourself.

Want a tax to help the homeless? Go ahead and pay it, it’s your right, but you can’t force another to pay it, THAT infringes on his right to keep his money.

In any case, you can bet it wasn’t the lamb who said give me democracy or give me death, in fact nobody said that. But there was a wise man who insisted “give me liberty or give me death”.

There is a big difference between Democracy and Liberty. They are not the same, just ask the lamb. One tramples rights in the long run, the other insures them forever.

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Is this what we now call a thriving economy? Accumulating astronomical amounts of debt to fund some sort of so called "growth"?

So the nation thrived for the first few hundred years, some could argue by stripping the land of its resources, like locusts. Others would argue they thrived by doing what men do-evolving, working, inventing, innovating and growing in numbers. Yes, we always seem to grow in numbers.

In the early years, those ruling this country kept true to the founding fathers ideals which was exercising liberty and keeping the ruling class under wraps.

We don’t want a repeat of the Britain monarchy, the initial reason those so long ago fled here under extreme hardship and sacrifice.

Not all societies in the world are democratic of course, nor do few practice real liberty.

Man’s propensity to want power sees to that. Get more power. After all give a man power and all he wants is more of it.

People like to meddle, especially in others peoples business, thinking they know best what’s good for the world.

Once upon a time, a man, a rather evil man, who didn’t believe in either democracy or liberty said, quite intelligently and with incredible foresight and understanding of the human condition- “A democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess out of the public treasury. ... until politicians realize they can bribe the people with their own money”

Simple yet never truer, these words hold the key to movement and change in the human condition and not a change for the better. The founders left Britain because of this simple fact and established rules to prevent it from happening, yet the nation was well on its way to becoming again like Britain. The do-gooders, world improvers and the meddlers slowly worked their way into the fabric of government in the new land, well not so new now of course, we have been around for 200 plus years.

A founding father knew this tendency of man to ruin the best laid plans of man when uttering shortly after being asked “what have we got sir a republic or a monarchy? He replied- “A republic, if you can keep it.”

Keep it indeed. As this nation progressed through the 1700’s and 1800’s, progressed we did. The most prosperous time ever for this country most would say. Even the start of the 1900’s were pretty damn good, with the invention of the assembly line and other innovations. Truly the United States ruled the planet in progress and freedom.

Ah but those naysayers again, you’re raping the countryside, walking on human rights, with some men getting rich, and that is not fair. Everyone should be equal. Well, that’s not quite what was said. What was said was that all men were BORN equal, but didn’t necessarily end up that way.

So the meddlers had to do something about it again. Insisting they make rules that others have to follow.

Now think back to our liberty discussion. Remember, The meddlers do have the right to think what they want, and act on what they want to act on, yet under the rule of liberty have no cause to make others act.

True, some may be infringing on the rights of others, but it is infringing, that is the issue. We don’t infringe on others because they are infringing on us. That just makes the problem worse. What we do is stop the original infringement, not make more of them.

In any case, democracy took hold in the US over liberty somewhere in the early 1900’s replacing the idea of liberty ever so slowly. The meddlers saw things they wanted to change by forcing their ideas down the gullets of others. They viewed the world through their utopian glasses where everyone gets a new car, a new home and chicken in every pot, or something like that. Now its “everyone deserves a cell phone”. My, how times change.

Never mind who works and who doesn’t. Those not working must WANT TO WORK right? No, not everyone. Some don’t want to work, and some just don’t want to work as hard as another. Its human nature, not inequality.

But the original need to work stemmed from hunger. If thou shall not work, thou shall not eat. The law of nature, not of man.

Nature knew something simple. Nothing motivates like hunger. Some don’t want to work, but give them an empty stomach and they WILL WANT TO WORK, trust me on this one.

But ah, those people with better ideas than me, decide on things like, lets tax them and everybody will vote on the tax, although only a few (think the lamb) will actually pay the tax.

It’s easy to pass a tax especially if you won’t pay it, that the most painless tax of all, just ask the mob. They will gladly vote on a tax they don’t have to pay. That’s democracy for you. Tt works out very well except if you are an unarmed lamb.

Remember, liberty is the right to pay your money to help someone if you want but you can’t force another to do so.

Liberty doesn’t sound so good anymore does it?

Especially if you are a meddler.

Well, it actually does still sound good to me, but your world improving DNA is showing there Agnus.

Yes, let’s make someone ELSE pay their fair share because WE think and know what’s fair don’t we?

After all, two million a year is too much. It’s not fair.

And who decides what another man needs? Not that other man of course. That’s too simplistic.

Let the mob decide what’s fair. It’s better for the wolves that way, never mind the lamb. There aren’t many of those anyway.

Uh, that ain’t liberty missy, that’s mob rule, and that didn’t work out so well for six million Jews a few decades ago.

So let’s do an exercise and vote on the issue, shall we?

How many think that group over THERE should pay more tax?

Most of you? Yep thought so

Well there you have it then, its lamb for dinner.

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So with more people on food stamps then ever and more poor people than ever and more money being spent of food stamps then ever and more money being spent on poor people than ever, why do we have so many people on food stamps than ever before and more poor people than ever before?

Well, you could argue pay a man to stay home and he will stay home. That what welfare does. Pay a woman to have children and some will have children? Maybe.

Have a lot of people vote on taxes they won’t pay themselves and you will have a lot of taxes, and that’s what we have, a lot of taxes. Have a lot of taxes and some people will go broke, end up poor and needing welfare and assistance, and that’s what we have, more poor people, more people on welfare and more people needing assistance.

Tax people who make more and they will make less to avoid the taxes. And that’s what we have, more people working less.

Our tax base says the more you make, the more taxes you pay. So I will make less and work less. How is that for incentive?

If I make more you will take more so I won’t work more. And that’s what we have right?

Less people working, more assistance programs, more people needing assistance and more people asking for assistance. The models call for it, the results prove it, yet few see it.

Oh yes, we do have another main cause which is the Federal Reserve printing up money and causing inflation which drives more people into the poor house but that is a story for another day now isn’t it.

So once again class. Having a tax structure that punishes you for working more and making more money and rewards you for working less and making less. Yes, no one would argue that is how the tax system works in today’s world because it does.

How about doing the opposite? How about a graduated tax that gives people incentive to work more rather than work less?

The more you make the LESS you pay. Yea yea, we cap it somehow and tweak the fine printt, but the incentive is geared in the RIGHT direction.

Cut more lawns, you pay less tax. Flip more burgers you pay less tax.

On the flip side, do you want to stay home and not work much? You pay through the teeth and go hungry. More reason to get off your butt and get a job, any job.

Want to work a few extra hours to contribute to your great economy? GREAT, you pay less tax.

Take a second job to make more, you pay even less. Now that’s a plan I could get behind? While they run me out of town that is.

It’s a basic Pavlovian response tax plan however. So simple and logical it boggles the mind who fail to see its benefits.

WORK MORE PAY LESS. So people would WORK MORE. Its’s that simple folks, it’s that simple.

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So now we choose between a reality star accused of molesting woman and the power crazed wife of an ex-president supposedly accused of murder (think Vince Foster folks)

Yea yea, no proof I know, but come on, anyone out there think Hillary or the Don are saints here?

Shall vote on it? Well yes, we eventually will.

After all what’s so bad about murder and womanizing. Presidents have done both since the beginning. Look at JFK and his philandering. How about FDR, Thomas Jefferson, Lyndon Johnson, Dwight Eisenhower, the list goes on.

Talking about presidential flings, did you know Vincent Foster's connection to the Clinton's was primarily via Hillary, rather than Bill. Vincent and Hillary had been partners together at the Rose Law firm, and allegations of an ongoing affair had persisted from the Little Rock days to the White House itself. Was Hillary involved with Vince? So say the rumors but they are just rumors of course!

Killed to bury an affair? Or killed because of a shady land transaction. Both pretty lurid and definitely illegal if forced death was a factor eh folks? Especially if the rumors are true and Hillary had a hand in it, or pulled the trigger herself. No proof of course. People see to things of that sort when the things are big enough.

And how about not so direct murder?

What do you call a drone?

Mass bombing?

Condoned assassinations?

C’mon folks, all in a day’s work in the oval office so why act so aghast!
What’s sad is we act like it’s a transgression when it happens then forgive and forget after a while.

Such is the forgiveness and memory of the electorate. Think the Nixon pardon, the banksters with no jail time, Clinton’s perjury and Bushes so called weapons of mass destruction hidden in Iraq. We forgive and forget, but not in four weeks’ time. Don’t try this at home though. Only the elite get free get out jail cards. The average Joe gets no such gratuity.

Trump's problem is the news just came out and not enough time has passed. Hillary’s good fortune is that many voting for her weren’t even out of diapers when Vince Foster committed suicide somehow with his arms neatly folded, so I read somewhere.

Hell, we even pardoned perjury from Hillary’s husband as well as his defaming the oval office with his hot august night fiascos. Is it possible he did it on the oval rug on the presidential seal so often seen in the oval office photos?

Yech… Too much information for sure.

So a reality TV star billionaire versus an “over one hundred millionaire”, power mad, political lifer, this is what we’ve come to. No wonder some people don’t vote.

Well no matter who you do vote for, the adage “you get the government you deserve” comes to mind. You will, trust me on this one too.

I, an overfed short-haired leaping gnome, college educated and life skilled in many things (woodworking not one of them) I predict, and likely rather accurately if I get lucky, that at the end of four more years, there will be no improvement in welfare, food stamps, the poor, the super-rich and the mega banks.

The names and titles of those blamed for our ills may change but the blame finger (that’s not the middle one by the way but the index one) will still be pointed away from the person pointing it, the one sitting in oval office.

After all, it is always somebody else’s fault now right?

Certainly seems that way where Presidents are involved.

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Can anyone tell the future in markets?

Where the markets go after the election we do not know.

Common belief is a Hillary win would be same old, same old for the banks and Wall Street. More money printing encouragement from her to juice the economy and pay for her lavish spending plans will jerk the stock market out of its funk and scream it higher so say some.

Others say Hillary will doom us to higher inflation through the very same spending and allow the banks through her ignorance to bring us to the brink of another world disaster which will crash everything money. No one knows for sure.

On the other hand a Donald victory is the utmost in uncertainty. Trumps knows more in his pinky about Wall Street then Hillary could ever hope to know in her lifetime but Trump is vague in his plans. What he says he will do is not everything he wants to do and public spending may be both so he will likely be right behind Hillary with the national credit card a blazing. Wall Street might like a fellow billionaire in control but they too know not what this wild card will do. It scares many just what he might do. Nuff said…..

Will Trump build more weapons? Not that he could out do the current administration in military spending but it is I suppose possible. Will he use one? Who knows? I don’t think Trump himself knows until the moment arrives, if it ever does.

Will Trump build a wall so the price at Taco Bell goes up? Or will my Ford Fiesta cost more not being able to jump a 30 foot wall? Will Putin go head to head with the Donald?

Will he actually jail Hillary? A million questions of which I have no concrete answers.

Who knows and that is the point. No one knows. We will just have to see what the markets do when whoever gets in there gets in there. Jack be nimble and jack be quick. Stay awake ladies and gentlemen.

My advice?

Consult a qualified financial professional for your investing needs and remember, no one can predict market movements anytime, anywhere. They are that difficult to discern. Keep up with your duck and cover drills and pray a lot. God might have to take care of us on this one.

This nor any part of Money Matters is a recommendation to buy, sell or hold any securities and should absolutely not be construed as investment advice nor any indication that I have any idea what I am talking about.

All for now,

Marc

Money Update October 4, 2016

Marc's Notes:

Kyle after working hard AND smart. 13 big ones= $1,300.00. That is a lot of money for anyone let alone a 16 year old kid. This job took him about 20 hours worth of labor and its all profit! When is the last time you held this amount of cold hard cash?

It’s all good. I love people. I love interacting. I love working and I love what I do. I strive to do the best job I can for my clients, my family, my friends and people who need help. I love helping people and I love doing something different every day and hanging with someone different every day. I am far from perfect but I know what works for me. What works for you? Don't know? Figure it out. Stop, look, listen, evaluate, plan, do.

What floats my boat? Working hard, studying hard, moving forward, staying healthy, playing a bit, making a few waves and riding a few. Make people laugh (a lot!) and help someone every day. I know it’s not all about me nor is it all about you. I also know if it feels right it may or may not be. I don’t mind being bored every once in a while as it means I am comfortable with the only person in the room at the moment and that’s me. I stir the pot on occasion because if someone like me doesn’t do it, a bunch of crap settles to the bottom.

Thanks to everyone for being there, for being you and for contributing to the big round ball we live on and the people on it.

Now like NIKE says, just go do it.

Jambo!

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TURKEY MATTERS IN FULL SWING

Can I count on you? Can our hungry count on you? Let’s do it!

Its time again for our Turkey Matters food drive for the food banks of our counties.

Mail: KVMR FM 120 Bridge Street, Nevada City, Ca 95959. Attention Turkey Matters.

I will match a portion of the funds with my own money to that food bank and KVMR will forward my check and yours to that food bank. That’s all there is too it.Turkey Matters is now in full gobble gear so ladies and gentlemen, start your envelopes!

Money Matters airs this Thursday October 6, 2016 at NOON PST.

Tune in.

Need investment advice or guidance? Email me at mcuniberti@cambridgesecure.com

We can set up a no cost, no obligation free review of your investments.

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Will we once again see a big bank implode?

The Trouble at Deutsche.

The German banking conglomerate Deutsche has seen better days. Its stock cut in thirds in the last 2 years, investors have hammered the shares under swirling rumors and concerns about its financial health and long term viability.

This bank is no small potatoes. It has more than 100,000 employees in over 70 countries, and has a large presence in Europe, the Americas, Asia-Pacific and the emerging markets. In 2009, Deutsche Bank was the largest foreign exchange dealer in the world with a market share of 21 percent.

The trouble started during the banking blow up and housing crash says Wikipedia.

Deutsche Bank was one of the major drivers of the collateralized debt obligation (CDO) market during the housing credit bubble from 2004 to 2008, creating ~$32,000,000,000 worth. The 2011 US Senate Permanent Select Committee on Investigations report on Wall Street and the Financial Crisis analyzed Deutsche Bank as a 'case study' of investment banking involvement in the mortgage bubble. Then when the majority of large banks were retrenching and shoring up capital, Deutsche bet the markets would loosen and increased its leverage. The bet apparently failed as markets remained anemic and bank regulations tightened.

Just because it’s a German bank however, don’t think your tax payer dollars weren’t used to shore up Deutsche. In 2008 Deutsche Bank reported its first annual loss in five decade and received somewhere in the neighborhood of US$11.8 billion from funds provided by US taxpayers when they bailed out AIG, the American insurance company it had dealings with.

Fast forward 7 years later and Deutsche is still in trouble and it appears to be getting worse. Its troubles are not its own however.

With a reported 70 trillion in derivatives on its books (large unregulated bets of which the content and trigger points are known only to Deutsche), it’s collapse, if it indeed happens, would have much greater impact on financial markets then the Lehman Brothers fiasco that many argue was the first domino in the banking blowup that almost melted global financial markets in 2008/09. Jim Willie in his Silver Doctors September 17 essay said:

“The important thing to keep in mind about Deutsche Bank is that it won’t go down alone if it goes down at all. If it fails, it will take along with it 3,4,5,6 or 10, or 15 other banks with it”.

The Street.com added to the specter of a Deutsche failure when it wrote on August 25: “The 2008-2009 global financial crisis, is nothing compared to what would happen if Deutsche Bank, a keystone of the global financial system, collapsed”.

Is a failure of this magnitude plausible?

It’s hard to imagine, given the recent history of central bank intervention when it comes to “too big to fail” bailouts that the global monetary authorities would let Deutsche go under given the possible ramifications of such a failure.

My money is on another bailout should Deutsche be forced to ask for a life preserver. The ironic part here is that this bank, the people who run it and the authorities that regulate it apparently didn’t learn much from the 2008/09 crisis that occurred just a few years ago.

Once again the taxpayers of the world will likely pay the price resulting from the actions of others who were looking to line their pockets with obscene amounts of dough.

Money Matters update September 28, 2016

DECK COATING AND PAINTING BY KYLE. Check out the flyer above!

Halloween Market Goblins

Jambo and good day!

Money Matters airs Thursday October 6^th, noon PST on KVMR FM and worldwide on KVMR.ORG and MONEYMANAGEMENTRADIO.COM. “Halloween Markets and what to expect”.

Yesterday was my first article in the Auburn Journal. From now on look for me bi-monthly. Also look for Money Matters articles in Auburn, Rocklin, Lincoln, Roseville and beyond soon. The option to appear in more of their papers is open. I look forward to spreading the message even further. If anyone finds a Money Matters article in a paper down the hill besides the Union, Territorial or Auburn Journal, let me know. I will send you a free T shirt!

As a result of a trip I took so Southern California in the spring, a Los Angeles station and I have reached a tentative agreement to air Money Matters in that area. Moving along nicely.

Another financial service should be available soon from my office in Auburn. I am in the midst of establishing a new certification. Stay tuned for more on that in the weeks to come.

Wish to meet and discuss your portfolio? Email me for a no cost- no obligation one on one sit down. mcuniberti@cambridgesecure.com

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TURKEY MATTERS IN FULL SWING

Can I count on you? Can our hungry count on you? Let’s do it!

Its time again for our Turkey Matters food drive for the food banks of our counties.

Mail: KVMR FM 120 Bridge Street, Nevada City, Ca 95959. Attention Turkey Matters.

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Reliance

Do you rely on something or someone?

All things interact with all things in some way or another. But just how dependent in degree is subject to will, desire, necessity, symbiosis, nature herself and other factors. Knowing the things we cannot change is one element of successful outcomes in one’s personal and business life. Outcome dependency can be more mechanical when it comes to things like keeping a roof in good repair to stay dry, not smoking to stay healthier and not driving too fast to stay alive. But other dependencies are not so easy to identify, and even when identified, not so easy to alter.

“There are healthy and unhealthy dependencies, good and bad outcomes, many of which happen by the personal choices we make”

There are healthy and unhealthy dependencies, good and bad outcomes, many of which happen by the personal choices we make. Even in investing, our outcome may or may not be in direct correlation with the decisions we made. If an unexpected news item is negative, the price of a stock may be hit with no fault on the part of the investor. It was a previously unexpected news item. However if we failed to look at the books of a company we bought stock in and the company eventually fails due to those books, that was an outcome we SHOULD have seen.

In a general attempt to improve your situation whether in business or in life, identify the outcomes you have control over and the ones you do not.

Are your prejudices getting in the way? Preconceived notions or just plain stubbornness? Are you dependent on people or things you should not be? Is there too much dependency? Can you switch a dependency from one thing or person to another to improve the odds of a successful outcome?

“Remember, you came into this world alone and alone you shall go out of it”

Remember, you came into this world alone and alone you shall go out of it. What that means is your interaction with the world is just that, your interaction with it, but it is your sole interaction with it the point being made here.

You are an individual and will always be solely alone on the most basic of levels. Realize you can only enhance the world and the people in it. You cannot become one with it. You cannot merge with it. You only interact with it. This realization puts in perspective what you value, who you value and the true nature of what it is you are doing and what it is you are trying to accomplish.

How you interact with people or the world around you should always be regarded as YOU interacting with THEM and not a merging of the two. Two people cannot merge into one just as two physical things cannot merge into one. An outcome desired is not an outcome that may happen just because you will it. Dependency on external forces and other things will always effect what happens because of cause and effect, because of dependency.

To better comprehend what happens to you as you interact with the world around you, be aware of your dependencies. In other words, who are you dependent on and are you too dependent. What are you dependent on and is that the wisest of choices. What shouldn’t you be dependent on and what makes no difference.

And above all, are the things and people you are dependent on right now the best of choices. It is never possible to enhance one’s dependencies to perfection but knowing what you can and cannot change and just how outside people and things effect what happens to you starts with a subjective look inside and seeing what and who is really around you.

Life, as in business, is a constant reevaluation and altering of paths as you go, not just a stumbling forward.

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Last week’s long awaited meeting of the Federal Reserve yielded what the majority of economists expected. No increase in the federal funds rate yet again. The last increase, in fact the only increase since 2006, took place in December of 2015 which may have sparked the massive sell off in equity markets in January 2016.

Many theorized that with the upcoming election the Fed would not increase the rate during last week so not spark a market sell off right before the election. Fed Chief Janet Yellen is a Democrat and although politics are not supposed to play a part in monetary policy from the Fed, one could draw another conclusion.

No matter what the conspiracy buffs may think about the Feds playing political football, the Fed statement allayed that suspicion by saying:

“Near-term risks to the economic outlook appear roughly balanced. The Committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of continued progress toward its objectives. Our decision does not reflect a lack of confidence in the economy”.

In plain English one could decipher the Fed speak as “things look to be getting better but we are still being cautious”.

Of the members voting, three members dissented and voted for an increase. This was the largest split vote in years.

For an indication of future direction in the rates, experts also reviewed the so called “dot plot”, which is published after each Fed meeting. This graph shows the projections of the 16 members (some of which do not vote at each meeting) of the Federal Open Market Committee as to where interest rates may be in the future. Market participants look at this graph to arrive at some sort of opinion as to what the Feds may do at subsequent upcoming policy meetings.

Currently, the members' average expectation is for rates to hit 1.27% at the end of 2015, 2.68% in 2016, 3.54% in 2017, and 3.79% in the long run. The current target for the fed funds rate is 0 - 0.25% which is a long ways from the dot plot viewed after last week’s meeting.

Keep in mind the Fed is data dependent and they can and have changed their view repeatedly as economic measurements trickle in.

No matter what the Feds do at their next rate setting meeting in December, fixed income investors and retirees living on savings no doubt were not thrilled with no increase yet again. If the Feds decide to start a consistent pattern of rate increases in accordance with the dot plot, investors counting on interest income to pay their bills could finally start to see some hope in an otherwise dismal environment.

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Bonds are IOU’s. You loan someone their money and in return you get the IOU (the bond).

They have infinite possibilities as to the terms which states what you get back, when you get it back, what collateral (if any) you may have, any interest rate you may get and just about anything else one might see fit to include. The most common bonds are issued by sovereign governments, states, municipalities and corporations. They can be insured or otherwise.

Unlike stocks, bonds are what I call linear investments.

Where stocks can rise or fall as they have no “face” value and investors can lose money based on that movement, bonds have a definite face value.

A $100 bond always states $100 as its face value. If an investor sells a bond before its maturity date (the date it is paid), the actual price one can sell it for can rise or fall. If an investor keeps the bond until it matures, the face value is what is paid. A $100 bond will pay $100. Any interest one might make (known as it coupon rate) can be paid throughout the bonds life (like yearly or otherwise) or it can be paid all at once when the bond is paid.

I call them linear investments because the face value of the bond remains the same, and if the bond is held to maturity, this value does not change unlike a stock price which can change daily. Stocks have no face value printed on them unlike a bond which does.

The end result from owning a bond is you either get paid or you don’t which is why I call them linear. Its value is a straight line. $100 in equals $100 out assuming you get paid of course. An issuer of a bond that can’t pay is said to be in default and the investor can lose his money. The reason for default would likely be lack of funds. They borrower simply does not have the money to pay. If the bond goes into default, many things can happen, most of them bad.

The issuer can offer to renegotiate the bond and partially pay what it owes whereby the investor gets only some of his money back or the bond can be rolled over which means the maturity date is redrawn to a later date by issuing a new bond with a new maturity date and perhaps new terms and conditions. A flat out total default means the investor gets nothing. If the bond is insured the insurer would be on the hook for the payment. If not, the investor might seek relief by way of the judicial system or wait in line if the borrow declares bankruptcy which on a defaulted issuer is highly likely if it can’t renegotiate with its bond holders.

Bonds are commonly referred to as fixed income investments which means their yield can be somewhat predictable unless the bond terms are broken by the issuer. Bonds can be a way to diversify a portfolio and provide a source of predictable income.

As in most investments bonds have inherent risks. Investors should read the prospectus and financial sheets of the issuing entity, understand completely the terms and conditions of any debt instruments they are considering and consult an investment professional before investing.

Money Matters update September 14, 2016 PLEASE READ

Marc's notes:

Jambo and hello again from money central!

Well the weeks of complacency in the markets seem to have ended. The Dow is bouncing like a proverbial ball, up one day and down the next. At least the summer doldrums have ended. Whether that is a good thing or not remains to be seen. With renewed volatility the markets will likely reveal their plans for a new direction, whether up or down. As a side note on volatility: for the first time on record, the iPath S&P 500 VIX Short-Term Futures ETN recorded more volume on Tuesday than any company in the S&P 500 Index, with a record 110 million shares changing hands.

This is a measure of volatility and some regard it as the fear index. (Figures from Bloomberg). A new level of activity may be upon us.

We will see. Heavier cash positions will reduce volatility in accounts as cash neither gains nor loses nominal (face) value. We continue to watch the markets and the events that affect them and will communicate that to you in Money Matters newsletters, shows, newscasts and articles.

Money Matters airs tomorrow Thursday Sept 15, 2016 noon PST on KVMR. Listen to it on the web at KVMR.ORG or moneymanagementradio.com.

Look for Money Matters articles in Auburn, Rocklin, Lincoln, Roseville and beyond. Gold Country Media has selected yours truly as a financial columnist for one of their seven newspapers in the valley and my articles start next week. The option to appear in more of their papers is open. I look forward to spreading the message even further.

As a result of a trip I took to Southern California in the spring, a Los Angeles station and I have reached a tentative agreement to air Money Matters in that area. Moving along nicely.

Another financial service should be available soon from my office in Auburn. I am in the midst of establishing a new certification. Stay tuned for more on that in the weeks to come.

Wish to meet and discuss your portfolio? Email me for a no cost- no obligation one on one sit down. mcuniberti@cambridgesecure.com

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Its time again for our Turkey Matters food drive for the food banks of our counties.

Help me feed the poor with our annual turkey drive where we buy turkeys for the poor.

I do this every year and now ask for community support. The program is easy. Just make a check out to the food bank of your choice. Do not make the check out to KVMR or me. Make it out to the food bank of your choice.

Mail: KVMR FM 120 Bridge Street, Nevada City, Ca 95959.

Attention Turkey Matters.

I will match a portion of the funds with my own money to that food bank and KVMR will forward my check and yours to that food bank. That’s all there is too it.

Turkey Matters is now in full gobble gear so ladies and gentlemen, start your envelopes!

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Autonomy: independence or freedom, as of the will or one's actions.

All things are autonomous to one degree or another. Markets, events, people and any other thing or event.

Does on event cause another?

Sometimes.

Does one thing affect another? Sometimes.

Do people operate separately or together? They do both.

Not enough autonomy merges one event to another, merges one person to another or in the existence of a tangible object, go hand in hand in that existence. I tore out some grass and failed to replace it. Weeds grew. The blank spot of grass gave the weed opportunity. Did the digging cause the weeds? Did one event cause the other? One could look at it a variety of ways.

If one asset class falls, does it drag another with it?

If a world event takes place, does it cause something else to happen?

All things operate in some degree of dependence, symbiosis and autonomy.

How much effect one object, person or event has on another is either desired or not, to some degree or another.

The point being made is that one action causing another can be an avoidable event or unavoidable event. It’s the undesirable reactions and outcomes we strive to avoid if possible. We do this by our actions which take rise from our decisions.

No one always makes the right decision and no one person always selects incorrectly but the way to constantly improve is to learn from the incorrect decisions. After all the definition of insanity is trying the same thing over and over again even if the result is always the same.

Sometimes it easy to see a bad decision and sometimes it veils itself in prejudice, timing (takes too long in order to make a correlation) or the inability or unwillingness to change. In any of these cases, the outcome will be a negative one once again. The serenity prayer addresses this human challenge most poignantly:

God, grant me the serenity to accept the things I cannot change,

Courage to change the things I can,

And wisdom to know the difference.

This jewel of wisdom comes from American theologian Reinhold Niebuhr.

Investors would be well to memorize this prayer and apply it to their strategies, whether it be in your selection of your investment professional or in one’s own selections in the portfolio.

In other words: “If it aint working, try something else and if it aint broke, don’t fix it”

This advice also holds true in life in general.

Do your actions always result in the same outcome whether immediately or eventually?

Do you find yourself feeling the same feeling throughout life and if it is a negative or unfulfilled feeling, have you taken the time to really analyze what those decisions are that you are making that are causing the undesired outcome?

Few people really analyze a reoccurring negative outcome. They just keep doing the same thing, often because it “felt right at the time”. We called this flying by the seat of your pants in my father’s day but it is still obviously applicable today.

Consider this: Taking heroin might feel good at the time but in the long run, is it the right thing to do?

In the longer run, decisions, whether it be in investing, or in life in general, will let you know whether they were right decisions eventually. Pride, ignorance or just a failure to analyze in retrospect those decisions will cause you to repeat them.

In conclusion, if the results, in whatever area they may be, continually disappoint and disillusion you, it’s time to step back and review your actions. In investing it means analyzing what we did wrong, what information did we miss and realizing what events we thought we could control but could not. In life, it means stopping, looking back and doing the same observation.

Did we have the courage to change the things we could change or did we take the easy path?

Did we accept the conditions and realities we could not change or fail to recognize that fact?

Did we take the time gain the wisdom or introspective through whatever means available to us to acquire the wisdom to know the difference?

Gaining in years means gaining experience but it is not only that. Gaining in years means also learning, observing, acknowledging our successes and failures and moving forward, constantly altering ones path to reflect past events and outcomes.

Life is a never-ending journey. If you missed a turn off somewhere, find it, retrace your steps and make the right decision next time around. And above all, don’t go in circles. That only insures that you will go nowhere and end up the same spot you started at. And remember, a journey is an event that is meant to put you in a different place than you are now. Hopefully a better one.

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The Mysterious FOMC and the Federal Reserve

Many American do not fully comprehend exactly what it is the Federal Reserve actually does (commonly referred to as the Fed).

From their own website, their function can be summed up as:

Conducting the nation's monetary policy
Supervising and regulating banks and other important financial institutions
Maintaining the stability of the financial system
Providing certain financial services to the U.S. government, U.S. financial institutions, and foreign official institutions

The Fed has three key entities, the 12 Regional Banks (12 districts that cover the U.S. and are the operating arms of the Fed) the Federal Reserve Governors (the governing body of the Fed that reports to Congress) and the Federal Open Market Committee (FOMC) which is responsible for what is called Open Market Operations (OMO).

OMO refers to the buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system. It all sounds a bit technical but think of it as a gas pedal for the economy, or at least one of the gas pedals possessed by the Fed. Press on the gas pedal and away you go, lift off the pedal and things slow down.

So how does OMO act like a throttle on an economy, allowing it to speed up (improve economic conditions) or slow down (cool off an overheating economy from inflation)?

It all has to do with how inflation works. Simply put, increase the amount of money in an economy, conditions generally improve and prices tend to rise. Withdraw (reduce) the amount of money, the economy slows and prices tend to fall. OMO plays to this mechanism.

In one instance, the Feds print up some money and buy debt that large U.S. banks are required to hold which are called “bank reserves”. This debt may include U.S. Treasuries (Government IOU’s) or debt from Fannie Mae or Freddie Mac, which is basically government backed mortgages. Large banks always hold vast amounts of both of these types of IOU’s and agree to let the Feds buy or sell these IOU’s at any time as a part of the OMO program.

When buying, the Feds give the banks money in exchange for their IOU’s. The Feds can also order the banks to do the reverse and buy IOU’s from the Fed.

This back and forth selling or buying between the banks and the Fed either funnels more cash into the banking system (when the Feds buy the debt) or take money out of the system (when the Feds order the bank to buy the IOU’s from the Fed). Incidentally the banks make a profit every time a transaction takes place because the Fed pays them a little bit extra when they are on the buy side of the equation.

A buy and a sell of the same IOU can happen overnight, meaning the Feds sell the IOU one day then buy it back the next. These are called repurchase agreements or “overnight repos” for short. The repurchase agreements can also be much longer in duration.

When the Feds buy IOU’s, more money goes into the banking system and the gas pedal is pressed down. When the Feds order the banks to buy IOU’s from the Fed, money is taken out of the system and the pedal is lifted.

By adding or subtracting money from the banking system, the Feds hope to control how much money is lent out to consumers and businesses thereby stimulating or slowing the economy.

Money is the fuel which drives the economy and by simply adding or subtracting vast amounts of it, the belief is it will act like an accelerator pedal and the economy will respond accordingly. Coupled with a variety of other tools at the Feds disposal, they hope to control the economy in the direction they want it to go and at the instant they want it to go there.

Given the history of market crashes, economic blow ups and the severity of such events since the Feds inception in 1913, I will leave it the reader to decide whether they actually accomplish this task.

All for now,

Marc

Money Update September 6, 2016 Summer ends, Fall begins. READ! Important Market News

Reality starts with a dream

Marc’s notes:

Hi folks and Jambo! (Swahili for hello).

Well summer is finally drawing to a close and what a busy one it was as you all know from reading these updates. I got a lot of stuff done and made a few trips with the family as our time with all three kids at home is growing shorter by the day.

We went to a super party at a client’s house with a lake a few weeks back and about 150-200 people attended. I met a whole bunch of influential folks and just regular folks and swam in their private lake most of the day. Thank you to my friends Vicki and Larry for the invite. A camping trip with the family followed. Then it was off to San Diego where I went to school to bodysurf, work on my tan and see captured man-eating killer whales perform for the last time. (SeaWorld is phasing out the shows thank goodness). Saw the show but was glad I turned down whale sushi during my June Japan trip!

I ran and did yoga every morning starting at about 6.00 am on the beach across the street. A sand smoother was hard at work. I could not resist waiting until the tractor turned around and headed straight for me. I then tiptoed out on the smooth sand, defiantly turned towards him and stomped the crap out of pristine sand. LOL. Yes, yes, it was a defining and hilarious moment, even though I was the only one laughing and only one of two people to see it.

Classic moment, simple yet I will not forget it for a long time. I had a wonderful morning and smiled for hours!

Here also is my proverbial “stupid seagull on beach” mandatory shot that I hate to post, it’s so COMMON! Anywhere here are all the photos:

Amazing grounds as friends party!

Camping by the water

Pristine sand before the "dance"

All too common stupid shot of beach and lone seagull

Here is Belmont amusement park, a sick bowl of ice cream and a surf shop that still stirs my soul and reminds me of years of body surfing with my old pal Kent. I can still pound waves with the best of them and spent about 6 hours in surf getting beat to hell but getting some way cool rides!

Belmont Park

Too huge of a bowl of ice cream at Belmont

The chaff of bathing suit and salt water on my skin, the smell of hamburgers and the buzz of a coastal boardwalk all add to the wonder........

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The fall is shaping up to be one busy season. First off markets may rock and roll if history is any indication. We will cover it all in our upcoming shows starting the third Thursday of this month, September 15, 2016 at noon PST. Some news on the show and Money Matters in general. I have given up the South of the Border show on Mondays for a while. A great sub by the name of Karl will be standing in for me. I have so much on the plate I need the extra time.

Pacifica Radio picked up the show and is spreading it through their network. As they told me a few weeks back: “Alternative money news with humor and easy to understand explanations. What’s not to like”?

Greta of PR was very helpful in revamping the news pieces to better fit their formats. Thank you to PR and Greta, a delightful and very helpful lady. Never be hestitant to take advice from people who have been there and know something about their particular field.

"Arrogance leads to ignorance and visa versa"

For years I have been diligently sending in my articles to Gold Country Media who handles seven newspapers. After about 4 years of doing this, they finally called me last week. They selected yours truly as their new financial columnist to write bi-monthly to start the third week of this month. Readership in the first paper I run in is 12,000, about doubling my current readership. The other six of their papers include Roseville, Rocklin and others in the lower valley area with readership close to a quarter of a million! If you live off the hill prepare to see my mug in your local paper.

I have to thank all of you for your support over the years! We are making great inroads and the last two months things have really popped.

I also went to the State Capitol for a hook up with Senator Ted Gaines with my son Kyle. A private tour and talk, one on one with great networking took place. I also met the head of the California Dem/ Rep parties at a function a few weeks back along with many elected officials of Nevada County and the State. Many knew of the show and some more networking took place. All these folks were do'ers and their job titles, wealth and status reflected this. They were also very nice people. Funny about do'ers. They usually are happy and belittle no one. They don't discrminate (from my experience) and are not mean or spiteful as many others I know. They don't waste time talking about pie in the sky pipe dreams nor spend their day whittling away the hours on social networks or in front of computers visiting garbage websites. They simply aim at a target and go get it.

What are we to make from all of this?

“Where you go in life depends a lot on who you hook your cart to”

Hook up to successful people and weed out the talkers. Talkers make good friends but lousy business associates. Don't dream it, do it. Above all, learn from those who have been there.

Who has been there?

How do you know?

Look at what they have, who they associate with and if they have actually accomplished something. Get out of your meetings and stop talking about what you are going to do and instead, get in your car and go do it! It is as simple as that.

One more time with feeling: AVOID THE TALKERS.

A new class and license is in the making for yours truly. More on that later as well but I will be expanding the financial side of the business to better serve our clients which means you!

Want to meet to discuss your portfolio or plans? Email me.

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My son Kyle is still doing great deck work for low cost. Here are some more before and after photos. Email me for a bid. He is saving for a car and college and has some great references and past shots of decks he has done.

Before After Total cost this deck $200

All for now. Read on for what I think will be a hot topic in the months to come.

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This is the first in our three part series on inflation

Inflation causes downward class mobility in almost every income strata except the super-rich. Inflation actually enhances their position very nicely.

The majority of people do not comprehend this fact nor do they understand just how inflation does this. In fact, inflation is called the “stealth tax” as its symptoms lull to sleep the very people it damages the most.

Inflation has different official descriptions but for simplicity sakes let’s just says it is rising prices, a definition most people would give if asked what it is.

Inflation is a general price increase over time in most all things such as food, energy, service and just about everything people spend their money on. Inflation also causes your income to rise. One could safely say the U.S. and indeed most of the planet has seen steadily increasing prices of most everything only interrupted by an occasional fall in certain items (such as gas prices recently) caused by temporary supply gluts or for other reasons, but the general direction over many years is up.

Most have accepted inflation as a fact of life but there have been prolonged periods of time where inflation was nonexistent for decades in just about every country one might look at. Many argue during these times a country is the most prosperous.

Just how inflation does its dirty work yet masks this deed in a feel good sort of way to the people it affects is truly an economic marvel. Inflation feels good as it increases your wages, your house and stock values, and even brings more people into your place of business. It all sounds wonderful doesn’t it? After all, if you make more, sell more and your assets go up in value, what’s not to like?

Keep reading.

The economic truth is inflation slowly erodes your net worth, your paycheck (by decreasing what you can buy with it) and most importantly, persistently drops consumers into lower and lower income classes.

It accomplishes this task by adhering to one economic truth. Although everything does go up in price including your income, that one truth is wages always lag behind the general increase of prices in everything else. That is the one fact that causes this otherwise feel good phenomenon to stealthily destroy all who live within its grasp. It appears you are getting ahead but in actuality the exact opposite is happening.

An example would be to imagine a two percent inflation rate where everything you buy goes up two percent a year. Your house also goes up by that amount as does everything you own and even your business sells two percent more. But because wages (income) lag behind everything else, you are slowly falling behind. True, you do make more, and sell more, (hence the feel good part) but the wage increase does not match the increase in the things you buy. It’s like running a race where you run five mph (your wages) but your opponent runs ten (general price levels).

Although you think you’re getting somewhere, the longer you run the race, the further behind you get.

That the Federal Reserve (hence the government) supports such a policy and has stated such in their minutes begs the question: why would they support such a class destroying policy?

We will discuss that and how inflation actually helps the super-rich in our next Money Matters. Stay tuned for our three part series on Inflation in our newsletter, newscasts and shows.

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The Federal Reserve could potentially raise interest rates as soon as the next two weeks, New York Fed President William Dudley said, warning investors that they are underestimating the likelihood of increases in borrowing costs.

“We’re edging closer towards the point in time where it will be appropriate, I think, to raise interest rates further,” Dudley, who serves as vice chairman of the rate-setting Federal Open Market Committee, said Tuesday on Fox Business Network. Asked whether the FOMC could vote to raise the benchmark rate at its next meeting Sept. 20-21, Dudley said, “I think it’s possible.”

So here we go again. The markets seem tethered by an invisible thread to what the Feds say and do, but mostly since what they say happens far more frequently then when they actually act, the “Fed Speak” has had tremendous sway on what markets do in its day to day movements.

Investors must be scratching their proverbial heads. One day the markets shoot higher on a particular news piece then the bottom falls out on some other news item.

It could be argued the markets react on both fundamental news and non-fundamental news which means it may not be so tied to what the economy is actually doing but tied to what the Federal Reserve is actually saying.

In my father’s day, stock markets generally reflected what was expected to happen in the economy and the businesses in it. More specifically it was said the stock market told us what would happen in advance, like six or nine months in advance. Good business news and growth in earnings bolster investor confidence and subsequently they bought stocks.

Fast forward to today, and the markets seem not only concerned about what businesses will do but what the monetary authorities will say and do as well.

If businesses have positive growth, investors may perceive the Federal Reserve will raise interest rates, which is what they do to cool off an overheating economy. This fear of rising rates may spur a selloff in stocks, the exact opposite of what traditional stock market reaction would be in the face of good news in the business sector. Conversely if businesses start to suffer, and the economy shows signs of weakening, investors my think the Feds will drop rates, which is generally good for stocks, and the markets may rise despite a poor business environment.

Case in point: New York Fed President Dudley’s remarks that rates could rise sooner than expected caused a significant sell off in stocks the day he made his speech. It is indeed a strange world we live in when the markets now react positively to negative business news and react negatively when businesses say they’re doing better.

This “opposite reaction” compared to what markets had done in years past may be caused by the Federal Reserve’s hyper activity in the markets of the world as they attempt to steer the economy where they think it should go. As the Feds have increased their activity and involvement in the economy over the decades in their belief they can control such a beast, it could be argued the cure may be worse than the disease.

All for now, email me with your questions,

Marc

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