Why not, it's your money!

The Current U.S. Federal Government Spending Spree

Posted by admin in Government Spending - (2 Comments)

The Federal Government is definitely the largest customer of goods and services. The government has purchased all types of goods and services such as foodstuff, raw materials, research, properties, development, and even maintenance services and staff.. You can compare the government to a corporation if you take a close look.. The other companies will merely look very small.. If the company runs a business, then the government is a organization managing the nation. 
In order to provide the essential services for the country and its constituents, the government needs to buy what it require. Just like an office purchases utilities, supplies, along with other services for it to operate, the Federal Government must do the same thing. Government expenditures have reached as much as 0B in several goods and services.. 
Thousand of employees have been laid-off due to the fact of the economic catastrophe which also pressured companies to downsize.. The time to invest in government contracts is now.. The current release of the Stimulus Package is enough explanation.. The stimulus package is an supplemental budget from the government that allows it to shell out more to stimulate the suffering economic climate Exactly what does it mean? It means 7B will go in to the economy into diverse projects and programs. The government will buy services and products from, who knows, it may be you. With the stimulus package currently out and circulating, the time has come to sell to the Federal Government, a government contractor. 
A government contractor is usually a company or individual with products or services the government is interested. For those who have what the government needs, during a crisis it sure does need a ton; chances are you can get a government contract. The nation is in an economic hole and the government needs to pull it out of that hole. What better way to lift up than a spending spree, infuse money into the economy and try jump starting it. Businesses may not hire more workers and fire many. The Federal Government nonetheless is looking for ways to get the stimulus money into the economy through contractors. 
An undesirable economic environment and a government willing to spend billions in dollars, currently is the best time in selling to the Federal Government.

Commodity trader Phil Silverman discusses why the precious metal continues to rise at a record pace.
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Question by iamtruman: How will government spending and consumer spending improve our economy?
Fiscal deficit will likely to result in more borrowing by U.S government in the form of issuing more treasury bills and consumer spending with borrowing money will likely to result in more debt which they can’t afford to pay back. Japan has trillions of savings and Japanese government encourages consumer spending to stimulate their economy. Our savings rate is less than one percent, both our government and people are broke so the only way we can spend is by adding more debt which got us into this mess to begin with.

Best answer:

Answer by SDD
Government spending cannot “improve our economy” because every cent that the government spends has to first be taken or borrowed from someone in the private sector, who now has that much less to spend/invest. Only if you posit that that money would otherwise be buried in someone’s back yard could that be true.

You’re wrong about the personal savings rate, though. It’s about 6%

What do you think? Answer below!

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Are Tax Offset Programs Causing Student Loan Defaults?

Posted by admin in US Treasury - (0 Comments)

What is a Treasury Offset?

Under this Treasury Offset Program, the Financial Management Service, a bureau of the US Department of Treasury will offset Federal and/or State payments if a borrower fails to pay their obligation.  While the most common type of Federal payment offset is Federal income tax refunds, several other types, including social security benefit payments, are also eligible for full or partial offset. In other words, if a borrower has an outstanding debt and they have incoming social security benefits, this too can be subjected to the offset.

In addition to defaulted debts held by ED, defaulted loans held by guaranty agencies are also included in the process.

Other Federal and State agencies also certify debts for offset, but Department of Ed has historically been responsible for the largest volume of offsets.  As a result, many tax professionals, and even the IRS, will automatically assume that an offset has been requested by the Department of Ed when, in fact, it may have gone to some other Federal or State debt.

State Payments

State payments (e.g., State tax refunds), in addition to Federal payments, may be offset in the Treasury offset program.  Just recently the treasury was requested to offset both Federal and State payments on out standing federal student loans.

What is a Treasury Offset?

The purpose of a Treasury offset is to recover the amounts for the Federal taxpayers without the cost of litigation fees. It was created to basically recover the unpaid debts arising from federally supported activities, which include student financial assistance.

Since 1986 the Department of Education has referred millions of defaulted student loan debts and grant claims to the Department of Treasury for collection by offseting against federal and/or state income tax refunds and any other payments authorized by law. The Department of Ed can request that Department of Treasury arrange an offset to collect any Federal defaulted student loan debt or grant claim.  Once the Department of Educations refers a delinquent borrower to the treasury department these group of debtors are considered to be certified permanently as long as the account is in an active defaulted status (outstanding).

What does it mean if I am certified?

Once Department of Ed certifies a defaulted account for treasury offset, that account will remain certified for the life of the defaulted balance unless it is inactivated by law (e.g. active bankruptcies).  Once certified, borrowers may not avoid offset simply by making voluntary payments.  Borrowers may avoid offset by resolving the account through satisfying their account in full, settlement compromise (Partial pay-offs), completing the rehabilitation payment program, consolidation, or discharge by dispute.  In other words, if a borrower is not disputing the account they would need to either pay the balance in full or bring the account back to a current status.

How can I check if I am certified for Treasury offsets?

There are several ways to go about checking if a defaulted loan holder is certified for Treasury offset. The most common route would be to contact Department of Ed directly; however in most instances the Department of Ed’s customer service call center will often refer a borrower to the assigned collection agency currently holding the loan. A borrower is able to check with the collection agency if they have been certified for the offset because the collection agency has access to the same system as Department of Ed’s customer service representatives. As mentioned above, these agencies are notorious for falsely advising borrowers by twisting their word tracks in their favor. The collection agency’s main intent is to receive a commission from the Department of Ed for resolving the account so it may not be the wisest route. The best route to receive an unbiased answer would be to contact the Treasury Department directly. Most defaulted student loan holders are unaware that the Treasury Department has designated a call center to solely service individuals certified for Treasury offsets.

Department of Education’s customer service number: (800) 621-3115

Treasury Department’s designated offset call center: (800)304-3107

Other things that you might want to know:

Are there different types of compromises?
Standard compromises are compromises where the borrower:

* Pays only the current principal and interest (waiver of projected collection costs/fees)
* Pays at least the current principal and half the interest (50%); or,
* Pays at least 90% of the current principal and interest balance

What is the Rehabilitation payment program?
Rehabilitation payment program is the process by which a federal agency or a third-party given authority by a Federal agency, assess the borrower’s financial situation to allow a payment arrangement.  Through this process at the Dept. of Ed and the agency’s discretion, the debtors will be allowed to repay their student loans through installment arrangements (payments).  Only after the necessary documents have been obtained by Dept. of ED and the 3rd party agency the borrowers can complete the number of consistent payments required in order to successfully rehabilitate.

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Want To Know About Currency Trading And How It Effects The Dollar?

Posted by admin in US Currency - (1 Comments)

Currency trading is the wealthiest business in the world averaging about 2 trillions of US dollars and that too each day. This if compared to other equity markets together seems to be a comparison of Jupiter to earth. That is what the magnitude of forex trading and reason is for wealthy A Forex broker is a arbitrator between customer and the market.

Currency trading has its own aspects and largely depends on news and movements of the country for which currency is traded for. Here the Foreign exchange brokers come in handy and largely earn their commission either in hourly basis or volume brokerage. But their success depends largely on customers making huge profits and thus giving back huge precarious markets.

Also to capture this market there have been companies that provide security to be with the market from anywhere. Also the increased reliability and portability have made such platforms a need of the hour.

Each of us has a potent broker in ourselves, it’s just to realize and acquire knowledge, and nothing can stop you from being a successful broker. There may be hurdle and ks. So a Forex broker should always be in touch with the world and have knowledge of robust trading platforms to these brokers with large volume of transactions. These platforms are available online 24X7 and can be accessed from anywhere in the world. This makes it easy when you start but it’s easier when you know how to drive.

Question by fatjoe3833: Should I convert my US currency to Canadian dollars?
I am planning a trip to Niagara Falls, Canada. From past experience, I know that most merchants accept both US and Canadian currency. When the US dollar was worth more than the Canadian dollar I would always convert my currency. Now that each currency is worth about the same, should I still convert?

Best answer:

Answer by Jeff
If you are going to be in Canada, convert to Canadian money.

Not your whole life savings, but just what you’re planning to spend.

Add your own answer in the comments!

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