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Financial Articles
World Bank chief warns of financial crisis World Bank chief Robert Zoellick on Saturday warned of a "new and more dangerous" time in the global economy...
US Recession Risks Rises The threat of a new recession is rising in the United States, economists say, as they slash their ..
Unsafe US debt remains safe haven US Treasury bonds remain a hot ticket for investors looking for a low risk investment in a volatile market despite the unprecedented ...
US borrowing tops 100% of GDP US DEBT shot up US$238 billion (S$287.2 billion) to reach 100 per cent of gross domestic project after the government's debt ceiling was lifted
Consumers consumed by debt The average consumer may feel far removed from the heated debates concerning the $14.3 trillion debt ceiling. But the truth is...
Financial Crisis II. Get out of debt now There is increasing talk among traders and financial analysts that the latest slump in global share markets
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Global Financial Tsunami? Financial security in economic uncertainty

 

Scriptural Financial Freedom Obtaining God's blessings

 

 

 

 

 

Global Financial Tsunami? Financial security in economic uncertainty

Get out of debt now

A prolonged financial turmoil in Japan could impact the fragile global economic recovery and result in serious fallouts for the US economy, according to the Federal Reserve. US Federal Reserve governor Daniel K Tarullo has also warned that heightened European financial problems could also seep into the financial markets worldwide.

According to him, the crisis could impose losses on American financial institutions that have exposure to some European countries. Mr. Tarullo pointed out that one avenue through which the turmoil in Europe might affect the national economy is by weakening the asset quality and capital positions of US financial institutions. The spiralling European debt crisis, with its epicentre in Greece, has rattled investors worldwide and even threatens to derail the still fragile global economic recovery.

 

Frighteningly, there are those who consider our budget deficit - which just shot past the eight-trillion dollar mark - as a sign of prosperity. This doesn't include the controversial "unfunded liabilities" of Social Security and Medicare - which currently stands at $53 trillion!

There are, of course, several options we could use to reduce this staggering deficit. We could raise taxes - an unpopular strategy.We could decrease spending. We could rely on inflation, stalling on debt repayment so we could repay our obligation in "cheaper" dollar. None of these alternatives are easy, and all carry a tremendous economic, and political price. As the deficit mushrooms, the future becomes less and less secure.

What about interest rates? As a general rule, when the stock market is heading up, interest rates are falling, and vice versa. When the rates are low, it is an opportune time to borrow money, and at the same time a poor season to invest. When the rates are high, the opposite is true. As interest rates shift, many questions abound. Where should I put my money? How long should they be tied up. How often does interest rates change? The budget deficit, inflation, taxes, and stock-market swings are just a few factors that complicate our planning efforts.

More frightening are real estate deflation, the declining dollar and a string of bank and business failures. With so much uncertainty, how do we maintain financial stability?

 

Action Item:

In light of your long-term goals (which may include retirement, college educations for the kids, owning your business, or special giving), how close are you to where you'd like to be? Perhaps you haven't really thought through your goals. Even so, try to locate where you'd like to be financially on those charts when you hit retirement. What would it take to get there?

 

Today's Bottom Line

Compounding is a financial tool that helps us manageHis resources responsibly.

The Bible does show many ways to overcome any financial crisis. Many of these principles are laid out in our successful course, the Scriptural Financial Freedom series. To learn more, you can download the Small Groups kit from our estore.

Calculate your mortgage, credit card repayment, loan interest as well as your compounding interest and more with our 25 calculators!


This article is from financial articles


Financial Freedom Tips & Toolbox

Today's Pick: The dangers of Debt The Dangers of Debt by [Stacy Johnson]

 

 

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