The International Monetary Fund (IMF) has today downgraded its forecast for the US economy expecting growth of 2.5% this year and 2.7% next year.
The forecast for next year is below the Federal Reserve’s prediction of 3.3%.
The Washington-based Fund was providing its annual review of the world’s largest economy and is warning the US to come to an agreement to lift the Government’s borrowing limit.
The warning comes as the Obama administration and Congress are in tense negotiations over making budget cuts before approval is given to raise the limit.
Last month, the US Treasury reached its $14.3 trillion limit and needs to raise the ceiling by 2 August or the country will default on its debt.
Tomorrow Ill publish a more robust and detailed article on this subject but given how high gas prices are threatening to go, wanted to touch briefly on it today.
Understanding that financing vehicles is more expensive than paying cash, lets consider how much it costs Betsy and I to own our paid off vehicles perhaps we should be riding our bikes more!
We currently own a 2002 Pontiac Grand Prix and a 2000 Jeep Cherokee . Both vehicles have been paid off for years but despite that fact how much are they costing us each month and do we really need to own both?
No, we dont need both, but will most likely hold on to both until one dies. We will not, however, be replacing both.
Adding up our costs of insurance, maintenance, fuel, etc we found that our 2 paid off vehicles are costing us roughly $750/month. As mentioned above, Im publishing a detailed article on the topic tomorrow so watch for that. In the meantime, check out these other personal finance articles from around the web.
Entrepreneur, Kat Nouri, describes herself simply as a mom. However, she is much more. According to The Oakland Tribune, her steps in eco-manufacturing help put her in a whole new category.
As founder and creative director of Modern-twist, shes taken the idea of a home-based business to levels that could serve as a guidebook for budding entrepreneurs.
In six years, Nouri has created a company whose place mats, coasters and wine tags are carried by 2,000 retailers worldwide, all the time maintaining a mission of using only sustainable products that are as attractive as they are beneficial.
Were bringing art to the table and combining sustainability and design, she said. Weve created eco-chic products for a sustainable planet.
While working with her husband, Afshin, an engineer whose business was manufacturing test-interface products, she hit on the idea of using plastics, adding silk-screened designs.
For many years, I have been an advocate of going Swedish. In addition to a surplus of beautiful Scandinavian blondes, Sweden understands what to do in a financial crisis. They do not rescue banks, they rescue the banking systems. They do not bailout creditors but instead, ensure credit can move freely through the economy. Lastly, they do not place the burden of failure on taxpayers, but rather leaves it where it belongs with bond and equity holders.
The Washington Post discussed this truism last week in an article titled Five economic lessons from Sweden, the rock star of the recovery.
What were those five lessons?
1. Keep your fiscal house in order when times are good, so you will have more room to maneuver when things are bad.
Prior to the 2008-09 recession, the U.S.and Britain had budgets deficit equal to 3% of GDP.
Furniture chain Habitat is to be put into administration but three of its stores are to be bought by Home Retail Group (owner of Argos and Homebase).
Home Retail Group is acquiring the rights to the Habitat brand in the UK and the Republic of Ireland.
Administrators have been appointed for 30 of the outlets, which will trade for the next six months until a buyer can be found.
It has promised to fulfil all existing orders and safeguard customer deposits.
The retailer has suffered as consumers rein in their spending and opt out of buying big-ticket items such as furniture.
The chain was established in the early 1960s and said recent times have been challenging.
In a statement, the company said: A return to profitability for the business in the UK appears unlikely in the near term as many of the stores are expensive and poorly located for a furniture retailer.
25 Jun
Posted by: James Pease in: Financial Tips
Savings Accounts and Money Market Rates provided by 21 April 2011 There has been seemingly endless political wrangling in Washington D.C. over the proper way to rein in surging health care costs. This March, lawmakers celebrated the one-year anniversary of the historic passing of President Obamas health care overhaul law. Among other stipulations, the legislation ensures all children in the U.S. will be covered and that insurance companies will not be allowed to unfairly hike premiums.
However, critics – and some backers – assert the bill is hard to read and requires a degree in health policy to full understand because of all of its intricacies. If youre trying to buy new health insurance and are unsure of where to turn, fear not: You are not alone. Though policies vary among states, there are guidelines that can help confused consumers.
CNN reports the first rule everyone should follow is to buy a health insurance plan. Read full post…
25 Jun
Posted by: James Pease in: Financial Tips
Yesterday I was inspired by a John Wesley quote from an article by Joe Plemon of PersonalFinanceByTheBook.com published on ChristianPF.com:
This quote inspires me by turning a common Christian viewpoint on making money on its head choosing instead to gain as much as we can to have more effect. After all how can we give more if we dont have more?
To highlight the concept I shot the following video, which also touches on embracing your calling in life and pursuing it with passion I hope you enjoy.
Please share your thoughts in the comments.