Will Chinas New Five-Year Plan Force U.S. Utilities to Ration Your Electricity?
According to Chinas Ministry of Land Resources, China plans to build up sufficient reserves of uranium and other minerals, in a new five-year government plan. The ministry said it would be stockpiling strategic reserves of uranium, copper, aluminum and other key minerals because of rising demand for those commodities. The Chinese also wish to avoid supply disruptions by hoarding uranium and other minerals, over the next few years.
Until now, youve probably taken for granted a steady, reliable source of electricity. A large part of your dependable energy came about because of the nuclear energy generated by the 103 nuclear reactors in 30 states. Without a steady supply of uranium to power those nuclear reactors, the U.S. electrical transmission network suffers a 20 percent loss. Chinas new five-year plan to stockpile uranium had better be a Wake-Up Call to U.S. utilities. If they missed the import of Chinas announcement, we are all going to be in a heck of lot of trouble before this decade ends.
Since June 2004, we have warned of supply disruptions for uranium. David Miller, who has since become President and Chief Operating Officer of Strathmore Minerals, argued at the time, In my opinion, no one has any extra uranium to sell on the spot market. Theres just not excess inventory that people are unloading in the spot market. We interviewed Miller again in November 2005, for an article entitled, China Demand for Uranium, World Growth in Electricity Demand to Drive Uranium Price Higher. Miller warned us, China is the future wild card what they are planning for nuclear is probably the most aggressive program in the world. Miller added in his explanation, All the new production is already factored into the future market for uranium. Were underwater right now without building one more nuclear power plant.
In mid April, during an interview with Sprott Asset Management Market Strategist Kevin Bambrough, we asked him about the Chinese. He answered, Why shouldnt they have strategic uranium reserves to supply their nuclear reactors? It makes sense to have a good stockpile of uranium considering the relative cost of nuclear power versus anything else. And now, the Chinese plan to build up a strategic reserve of uranium for their aggressive nuclear program.
In another interview, also published in April, Gene Clark, CEO of TradeTech LLC warned us, In reality, the U.S. utilities, which tend to wait longer to contract, may be the ones on the losing end because the Chinese and the Indians will contract early. The implication of current group-think is that the Chinese and Indians are not going to be able to find enough uranium for their new plants. But, they are committing for supplies way out into the future. When the U.S. utilities come to the market, theyre going to look around say, Oh blankety- blank, what happened? Wheres the uranium? Theyll be the ones that sat around. I think that is whats going to happen unless things really change in the way contracting is done in the United States.
U.S. utilities have been cautioned, warned and advised that the Chinese demand for uranium could very well create a serious energy crisis for the U.S. grid. Nuclear reactors help supply the baseload generation for the U.S. electrical grid. Nuclear power plants provide stability to the electricity transmission network. About one-fifth of electrical generation is derived from nuclear power. Nuclear plants are running at more than 89 percent capacity. U.S. utilities are fiddling around like Nero, who watched Rome burn, hoping that promises of increased uranium production will stem the dramatic uranium price rise.
Severe strains in natural gas supplies, combined with the ongoing uranium supply squeeze, could very well put U.S. consumers on rations for their electricity. Cant happen, you say? Ask the Brits about how business was conducted in their country, in late 1973 and early 1974, during the Arab oil embargo crisis. Or more recently, Californias rolling brownouts.
An electrical energy crisis is in the making, while U.S. utilities are patiently hoping or praying the price of uranium stop climbing. UxC President Jeff Combs wasnt kidding when he urged U.S. utilities, during our interview, to support the expansion of (uranium) production in the United States. And if you dont let your local utility know about the upcoming electrical energy crisis, then perhaps it will be your lights they may someday be turning out. The irony of ironies: All of those sweet anti-nuclear folks in Vermont, who depend upon nuclear energy for more than 70 percent of their electricity? Theyll be the first to suffer the most, if U.S. utilities dont respond to Chinas five-year plan.
The Good & Bad Points Of A Prepaid Debit Card
In todays world it is almost impossible to not be able to get by without some type of credit card. From checking into a hotel, to being able to make a purchase online to filling up your car with gasoline, a credit card is helpful in all those situations. So what exactly are you supposed to do when your credit it not at its best and there just really isnt the possibility of getting a secured credit card at this time? A prepaid debit could be just the thing that you need. Now just what are the good and bad points of getting a prepaid debit card?
A advantage of prepaid debit cards is that you can use them without worrying about going into debt. Since the prepaid debit cards are paid for in advance, theres no big bill at the end of the month. In this aspect, prepaid debit cards are more like cash than like a credit card.
The benefit of prepaid debit cards that appeals to people with bad credit probably the most is that you do not have to worry about going into debit. Since you need to deposit money onto the card in order to use it you do not have to worry about a huge bill arriving at the end of the month.
One huge benefit of a prepaid debit card is that you do not need to have good credit to get a card. Just pay the activation fee and deposit some money and you are ready to shop.
Something that could be looked upon as both a good and bad point of having a prepaid debit card is that you are given no credit privileges. What this means is that you are only able to spend what is deposited on your card and nothing more than that.
Some bad points of having a prepaid debit card is you need to report it right away when it is stolen as there are much stricter timeliness with this type of card as opposed to a normal credit card. You cold be out a lot of money if you dont report things in time. Also there are monthly maintenance fees that you need to keep a look out for on many prepaid debit cards. You do not want to end up paying a lot of unnecessary fees.
Defining your savings goals is the first thing to do before you invest, especially when that investment will have an impact on your childs future.
It is after-all your childs future that you are investing in–and school finance cannot be avoided, as babies will grow into adults who need to be given the best opportunities we can offer as parents.
The best advice that any parent can get is to start saving early. College tuition fees can cause a strain on your family’s budget and lifestyle. You need to have a goal to keep you motivated to save. And what better motivation is there than knowing that the money you save will finance your child’s education.
Normally the best stage to start saving for your childs finance towards college tuition is at birth. If, however, you have not started, then the time to start saving is now. It is never too late to start saving.
The sooner you start saving, the more time therell be for compound interest to build up into a nice college fund for your child. Remember that each child should get his or her school finance savings fund.
You also need to decide the amount you intend to save by the time that your child reaches college age. There are many options available for you to choose from when it dollar amount. This means that you calculate the projected cost of public college tuition by the time your child is ready for college.
The other commonly used method, which many parents prefer, involves devoting a fixed percentage of income to their child’s future college costs. The idea is this: whatever you do, you have to have a defined goal. You should save as much as you can, whether it be a large amount, like several hundred dollars a month or a more modest amount, such as $25 to $50 each month.
A college education is an investment in the future of your child. If you truly want to see your child succeed, as all parents do, what could possibly be a better investment?
If debt is currently an issue in your life, debt consolidation really can save you from the stress of bills, debt collectors, and the nagging thoughts of foreclosure or even bankruptcy. Debt consolidation can drastically change your life within weeks, months, or years depending on your current debt situation. Consolidating your debts will allow you to live with peace of mind that you are taking care of your financial obligations while continuing to live a happy life.
Debt consolidation is taking all of your bills and fitting them into one monthly payment. Fitting all your bills into one payment also means one interest rate, which will limit the amount you pay out every month, saving you a lot of money in the long run. Debt consolidation also makes paying off multiple debts easier because the monthly payments can be lowered when you take away insane interest rates. The average debtor pays more interest every month than they do on the actual principal balance of their debt! Eliminating the sky-high interest rates is a good start to getting your debts paid, without going completely broke.
Many people assume when they cant pay the bills its time to just throw up their hands and consider drastic actions such as foreclosure, repossession and bankruptcy. While there are some extreme cases where bankruptcy would be the best option, foreclosure is almost always avoidable as is repossession. Banks, car dealerships, mortgage companies, and creditors dont like to have to take back property or write off your debts, they would rather work with you on debt consolidation so that they can get back what they are owed and you can go on your way with your credit still in tact. Bankruptcy, repossession, and foreclosure are not easy outs when it comes to debts; in fact, they are choices that will continue to affect you for a long, long time. Consider debt consolidation before making any hasty decisions.
Debt consolidation on your own can be tricky, or downright impossible depending on your credit situation. Luckily, there are debt consolidation companies waiting to help people who are in over their head, just like you! Debt consolidation companies will take your credit report and any unreported debts that you can give them and work out a payment plan for you. These debt consolidation companies often contact each company and strike a deal to lower or get rid of the interest and even split the balance of the amount due. Obviously, lowering or getting rid of interest and part of each debt will limit what you spend each month, enabling you to actually pay the bill.
Whats the catch with this type of debt consolidation? Well, there really isnt one. Yes, this is a business and the consolidator does make money because while he takes away the interest that each company is charging, he will charge you interest or a percentage of what you owe. Doesnt seem fair? It is! It works out better for you, because even though you are still paying interest its just one interest payment for all the debts you currently hold. So, instead of paying twenty seven percent to ten companies youll pay twenty percent to one company. So, you go from having multiple payments and interest rates to just one payment for all the bills and one interest rate. It works! If you follow the plan, and make your monthly payments debt consolidation will soon have your credit report looking much better than it does right now.
You may think that you have so much debt you cannot possibly afford to repay even on a debt consolidation plan. Youd be surprised what these companies can get done on your behalf. And, if your debt is that outstanding you can work through the process slowly, a few debts at a time. There is nothing wrong with the process taking a while, as long as you keep up with the process and intend to actually pay off your debts. Getting your credit where it should be does take time, but its worth it. Your credit is your buying power, and each payment you make gets you closer to having more of it.
Worried that the companies you are dealing with wont work with a debt consolidation company? Youd be surprised. Yes, the companies will loose a little bit of money compared to if you showed up with cash to repay the debt tomorrow, but in the long run its better for them to take a debt consolidation deal than not. Most companies figure theyd rather get a portion of your debt back and settle the deal than not get anything back at all. Getting seventy five percent of your debt back is more reasonable to them than to keep paying debt collectors to contact you and try to get the money back. All in all, any money is worth striking a deal over, and that is why a debt consolidation company can really get you where you need to be. They are professionals and they know how to get companies to agree to their terms.
Debt consolidation companies will usually work with you to get your debts paid off within a reasonable monthly payment. Each month youll make just one payment, reducing the time and stress of paying the bill, and each month youll be a step closer to financial freedom. Paying off your debts, through debt consolidation or otherwise will take a weight off your back that you may not even realize is there. No one wants to have unpaid debts, but sometimes life gets in the way and it happens. It happens to the best of us. But, dont be too proud to consolidate those debts and get back on the right track. Open up your local phone book, or get online and find a debt consolidation service in your area. Contact a debt consolidator not with shame, but with pride, because you are stepping up to do the right thing.
Many successful people have mentors to guide them in learning the skills that lead to achievement, and Ill do my best to offer you some critical personal finance perspectives. They say that life is a school where you learn the lesson after the test. The same thing applies to money, but you cant go back in time to fix catastrophic financial mistakes that you have made over time. As long as you are alive, you are a player on the field of the money-game, and you need to know the basic rules before you get tagged by the experienced players.
Rule #1: To earn money from money. The only way to escape becoming a wage slave for the rest of your life is to set aside savings. The profit on your savings can be used to increase your lifestyle spending, reduce the number of years until you retire, or allow you to actually have any retirement at all. How are you doing so far toward saving and getting it to earn money for you?
Every dollar that you spend eliminates its ability to earn money for you in the future. I am not recommending that you stop eating at restaurants and going to movies, I am recommending that you use some common sense, like looking at your four biggest expenses over the last few months and aggressively finding a way to reduce them.
The biggest obstacle for the first rule is personal debt of any kind (other than a mortgage for your home) or a lease of any kind. Every personal debt that you incur reduces your net worth which could have been working for you over your life time. Acquiring personal debt is exactly like putting a large hole in your wallet. In the money-game, a huge transfer of wealth occurs between the Haves and the Have-Nots over the words, I can afford that monthly payment. Here is a hint: the Have-Nots are the ones who make that statement. So please dont ever look at whether you can afford a monthly payment to make a purchase; pay in cash after youve saved for the item. [Everything that you buy with a 0%-interest payment plan must be over-priced. Behind the scenes, your payment contract is sold to a lender with an interest rate, and retailers dont do this without building-in an acceptable profit for themselves. Ask retailers how much the item will cost if you pay in full, and you could get a lower price.]
Rule #2 Always keep your finances under control. The first step in losing financial control and spiraling into debt and money problems is simply not dealing with personal finances. Prepare for catastrophic financial accidents with health, life, disability, and auto insurance. Plan and save before you buy something. Create a balance sheet for yourself at least once a year to see how you are progressing. Pay every bill on time, or contact the creditor to tell them what is going on and make a partial payment. If you are temporarily unable to handle any of this, ask for some help immediately and find someone trustworthy who will do this for you.
The most common source of financial trouble is a trauma in your life. This can be a health problem (large expenses or unable to work), an emotional problem (divorce or loss of loved one), or a financial problem (losing a job, cut in pay, relocation, unexpected expenses). Whichever the source may be, it leads to three emotional problems: the first is denial, the second is being overwhelmed, and the third is hopelessness. Denial causes people to not open their mail and continue spending as usual, and being overwhelmed paralyzes people from getting assistance and dealing with the situation. For example, if you just lost a loved one, balancing your checkbook and paying bills is not high in your priorities. Unfortunately, tiny amounts of debt grow with interest and penalties into seemingly insurmountable mountains of debt; leaving you with loathsome options such as bankruptcy, poor credit, declining lifestyle spending, and added stress that you bring to relationships and work.
Rule #3 Pay attention to the finances of the people with whom you spend the most time. Whether they are relatives, friends, or co-workers, these people have the most impact on your financial life. Do they consistently follow the first two rules of the money game? Do they earn about the same money as you? If the answer to either of those is no, then I recommend that you start spending a little less time with them; and this is why. If they dont consistently follow the first two rules, it is unlikely that you will either. You unconsciously model the people around you, and the more people you are exposed to that dont follow the first two rules, the more likely that you will unwittingly follow them. No one thinks they are trying to keep up with the Joneses, but we all do it to some extent, and this is the mechanism. On the other hand, if they earn a lot more money than you, you may rack up a lot of debt trying to keep up with them (meeting them at their favorite expensive restaurant, joining them for another expensive vacation, buying a new car because yours is the junker among all of your friends, etc.) On the other hand, if most of your friends earn a lot less than you, you will turn into the groups banker. For example, youll find yourself in the pattern of putting your credit card down to pay for dinner and theyll all say theyll pay you back later, but 50% of them never do; and they dont mind taking advantage of you because, after all, you earn a lot more than they do. Or, you and your friends need to pay a deposit for renting a house and they expect you to write the checks because you have the money available and they do not.
The neighborhood that you live in also creates financial pressure to violate the first two financial goals. Your neighbors are likely to become friends (and Ive already gone over this), but they also influence the size of your home, extent of your landscaping, price of furniture, and the size of your TV. So pay very close attention to the finances of your neighbors if you dont like how they are measuring up for first two rules, move somewhere more in alignment with your financial goals. If your family and friends, dont measure up financially, find some additional people to spend time with that have financial habits that youd like to emulate and learn from. I have friends with a wide range of income, but it is much more difficult to follow the first two money rules when I am with the extremes from my own income. Youll just find it easier to reach the next rule when the peer group that you hang out with aligns closer to your economic level.
Rule #4 Accelerate the other three rules:
Add to your savings by increasing your income through advancing your career. It doesnt matter whether you enjoy it; it is a means to an end with the end being progress toward the fulfillment of rule #1. Increase the amount that you save by aggressively lowering four of your highest expenses. Start spending time with people that talk about investing money and are systematically building their wealth the fastest. The combination of all four of these rules will hopefully offer a next-step for you to take today to start getting more wins in the money-game.
The world stock markets are going through quite a turbulent period at present and on average around ten percent has been wiped off some of the leading markets over the last month. In this article I write about how on a personal note I try to save in a series of different financial products which helps me to spread the risk, including when we have these stock market falls.
I started saving money on a regular basis about five years ago. At this stage the stock market in the UK had just had some dramatic falls after the terrorist attacks in New York. I wanted to build up a kind of rainy day fund and decided to invest monthly premiums into a unit trust. I started saving 50 a month and over time I increased this figure.
I have to say that I have been very lucky as my investment has done very well, I have even over the last couple of years cashed in some of the units to pay for our family holidays. At the start of this year the stock market in the UK was showing its highest levels in five and a half years.
In the five years that I have been investing, I have bought and now own a large number of units in this unit trust fund. What it now means however, is that if the stock markets have a period just like the one it has had, it costs me financially on paper quite a lot of money.
I now believe that my exposure to the stock markets is high enough and have decided that I will leave the units that I have invested in the fund as they are, but that I will not be adding to them. Instead I am going to put my regular savings into one of the high interest regular savings online bank accounts. This of course is a way of spreading the risk.
I have no idea which way the world stock markets are going to go over the next few months. Many people are saying that the United States interest rates may rise and that this could have a damaging affect on world markets. There could well be another major terrorist attack which could of course result in dramatic stock market falls.
I am hoping that the stock markets will continue to rise in the same way that they have over the last five years and that the falls over the last few weeks are just a blip. I just think that I have enough money invested and would like to start building some form of other savings in a safer type of environment.
The world stock markets are going through quite a turbulent period at present and on average around ten percent has been wiped off some of the leading markets over the last month. In this article I write about how on a personal note I try to save in a series of different financial products which helps me to spread the risk, including when we have these stock market falls.
I started saving money on a regular basis about five years ago. At this stage the stock market in the UK had just had some dramatic falls after the terrorist attacks in New York. I wanted to build up a kind of rainy day fund and decided to invest monthly premiums into a unit trust. I started saving 50 a month and over time I increased this figure.
I have to say that I have been very lucky as my investment has done very well, I have even over the last couple of years cashed in some of the units to pay for our family holidays. At the start of this year the stock market in the UK was showing its highest levels in five and a half years.
In the five years that I have been investing, I have bought and now own a large number of units in this unit trust fund. What it now means however, is that if the stock markets have a period just like the one it has had, it costs me financially on paper quite a lot of money.
I now believe that my exposure to the stock markets is high enough and have decided that I will leave the units that I have invested in the fund as they are, but that I will not be adding to them. Instead I am going to put my regular savings into one of the high interest regular savings online bank accounts. This of course is a way of spreading the risk.
I have no idea which way the world stock markets are going to go over the next few months. Many people are saying that the United States interest rates may rise and that this could have a damaging affect on world markets. There could well be another major terrorist attack which could of course result in dramatic stock market falls.
I am hoping that the stock markets will continue to rise in the same way that they have over the last five years and that the falls over the last few weeks are just a blip. I just think that I have enough money invested and would like to start building some form of other savings in a safer type of environment.
Yes, this is a good idea! I know you want to know what is mad money? Well, a long time ago this term came about when a young lady went out with her friend to a party and her friend left her at the party with no way home. So, the young lady was mad with her friend that left her at the party and luckily for her, she had money stowed away in her shoe to take a cab back home. She thought to herself on her way home in the cab, that it was good that her mother had taught her to always have money set aside for emergency situations such as this!
Thank goodness, this young lady had the forethought to stash her mad money away so she could take a cab back home, since her friend left her in a lurch. Get the point? Having an emergency fund whether it be mad money or saved money is important for you to have. You say, how do I go about doing this? Well, you can read these tips to help you learn what you can do:
1) Set up a savings account specifically for your emergency fund or mad money fund. Whatever you want to call it, just establish one!
2) Deposit a certain amount of money on a weekly, biweekly, or monthly basis in your account. You may want to set up automatic deposits to your account via your payroll department. Or, you may want to have your bank automatically withdraw a certain amount of money from your checking account into your emergency or mad money savings account.
3) Try to save at least 2-3 months of your monthly salary to cover your bills for at least three months if you were to loose your job. This amount of time will hopefully allow you the cushion you need until you secure new employment.
4) The money you save in your emergency or mad money account should be used for household emergencies, personal emergencies or if youre no longer able to work. Dont use it for other expenditures such as bills, travel, etc… Get the idea? Its a savings account that you dont want to touch unless its absolutely necessary!
5) Make sure the bank account you put your emergency or mad money into, is paying you the most interest you can earn for this account! Research as many sources as possible on securing the best interest rate you can get. Check with your bank, the internet, newspaper and other sources for the prevailing interest rate. You want to make sure your money can be accessed easily and quickly if you need it for an emergency!
By establishing an emergency or mad money fund, this will give you a better peace of mind if you need access to money when there is an emergency in your life. So, the sooner you start setting money aside for a rainy day, the better off you will be! Make sure the amount of money you contribute to your emergency or mad money fund, is realistic for your budget. Save as much as you can without upsetting your overall personal or family finances. So go ahead, get started today!
With health care costs continuing to increase, the future of Social Security unclear and pension plans available to fewer and fewer workers, America’s retirement readiness is a major concern for both individuals and the nation as a whole.
Since June 2004, Fidelity Investments has completed about 200,000 income plans for retirees and pre-retirees who faced the daunting task of gauging their preparedness for retirement. Fidelity learned that some simple, yet often ignored, investment strategies can help ensure a more comfortable retirement. Here are some basic strategies to consider.
* Make it work while you’re still working. Investors in their peak earning years should take full advantage of employer-sponsored retirement plans, individual retirement accounts and deferred annuities.
Asset allocation should be age appropriate and investors should avoid two common retirement savings mistakes: being overly cautious or taking excessive risks when deciding how much of their assets to invest in cash, stocks or bonds. Remember, though, that this does not ensure a profit or protect against a loss.
Individuals also may want to take into account simple tradeoffs that can reduce expenses and increase savings, such as holding on to the family car a few extra years once it has been paid off.
* Make it last as long as you do. Once you reach retirement, stretching retirement savings to make it last is very important. Some investors are planning to work in retirement while others are postponing retirement to take advantage of added income and continued health care benefits.
Pre-retirees may want to consider putting their salaries into income annuities, which some call “self-made pensions” because they provide guaranteed lifetime income.
Finally, given that Americans are living longer, and that market returns are unpredictable, smaller withdrawals in the early years of retirement could lead to greater long-term financial security.
* Make it count to live the lifestyle you want. Typically, investors who are able to achieve the retirement lifestyle they want have created a detailed, realistic budget for retirement living expenses. Investors should plan for rising health care costs and other financial contingencies. To help stay on track, individuals and their spouses should review their plans annually, including expenses, investments and asset allocation.
Creating a successful retirement takes more than a one-step solution. Whether it’s finding a “fun” part-time job, eliminating one of the family cars or taking a vacation locally, retirees have implemented multiple strategies to extend their incomes, control their spending and maximize their savings. – NU