Happy 2016! While there are many challenges ahead for the coming year, there are also opportunities and we wish you the best. We’ve entered a new phase of the crisis, the Powerball Economy. There has been a massive loss of faith in the Country, the World Economic System and the ruling class. Witness the rise of Trump and the outsiders taking over in so many places around the world.
Citizens around the globe understand that they’ve been lied to, deceived, manipulated and that the situation is far worse than they ever thought possible. As bad as things maybe and as desperate as you might find yourself, you still hold out that one last hope for a better tomorrow. Whether it be Trump or Bernie Sanders, or the Powerball Lottery, it doesn’t matter. The underlying motivation is the same, you hope against all hope that by pulling the lever for Trump/Sanders or buying that Powerball ticket, you will come up the winner and magically things will get better.
If only it were that simple. I met the Donald and hung out with him for a couple of hours many years ago. He’s funny, irreverent and extremely intelligent. But can he really make America great again? I hope so, but have my doubts.
Then there’s Bernie Sanders, if you’re of the progressive bent, he’s promising to tax us all to prosperity. Sounds like a tried and true plan. He understands that the financial system is the problem, but his solutions are all washed up.
And finally, there’s Powerball. This week’s jackpot is 1.5 billion, with a “B” dollars. Boy could that make a change in your living standard. Pay off the mortgage, send the kids to Yale and Harvard and off to the South of France for a much needed three month vacation.
However, the reality is far different. You have virtually no chance of winning. If you do and elect the annuity payout, you’ll receive $50 million per year for the next 30 years, less Uncle Sam’s 25% cut (state local taxes apply). If you take the cash payout, you receive around $900 million less the 25% tax payment.
By any standard that’s a lot of money. But again, all that glitters is not gold. It is financed on the backs of the poor, who buy most of the tickets. The State retains 30 percent of the take, before the tax gouge. This is far higher than any bookie or casino’s drop.
But hope is a funny thing and reason seldom interferes with it until reality strikes, which it inevitably does. So welcome to 2016, it’s time to take the blinders off and get real!
Republished with permission via .
Kerry Lutz has been a student of Austrian Economics since 1977. After graduating from The New York Law School, he became an attorney and life long serial entrepreneur. His diverse career has included: running a legal printing company, practicing commercial law and litigation and founding a successful distressed asset investment company.
After the 2008 financial collapse and the continued global economic deterioration, Kerry realized people needed a reliable source for accurate information. Believing that inflation would eventually run rampant, he dedicated himself to helping people protect and preserve their wealth. He urged investors to re-balance their investment portfolios and to implement precious metals based strategies to adapt to the new economic order. The ability to perceive economic reality, as well as to separate truth from governmental inspired economic fantasy will be essential for economic survival and prosperity in the years ahead.
In 2010, Kerry gave up most of his other interests to pursue his long held desire of becoming a radio show host. Thus the Financial Survival Network was born. Its mission is helping you to prosper and thrive in the New Economy.
Photo credit Arturo Pardavila III