The end of March 2010, the Federal Reserve will stop buying mortgage backed securities and from that point on, mortgage interest rate will move up nearing 6% until the end of the year. Currently interest rate on a 30-year fixed US mortgage is 4.95%. Some homeowners wait and “gamble”, hoping for the interest rate to go down again, but after March, is not not likely to happen. When mortgage rates are above 6% chances are that the refinance market is going to die.

This means that the now is probably the only best time to get a fixed low interest rate. However, before you do that there are a few things to consider in order to determine whether refinancing your mortgage is even worth it.

How much lower is your interest rate going to be?

If your interest rate is going to be less than 1% lower, it may not be worth it to refinance. Depending on other factors, such as closing fees and others, you might end up paying just as much or even higher than before.

How much will the monthly payment be?

If your monthly payment is not going to be much lower than before, why even bother?

How long is the new loan term?

This is a very important question you should ask your lender. If your current loan has 25 years left or even shorter, and you are thinking of refinancing, you will have to start up with another 30 year loan. The best deal would be if you have 25 years left and are refinancing to a 15-year mortgage, then it is worth the shot.

How much does it cost to refinance?

Some lenders may charge a lot of money for closing. Sometimes it is so much that you will need years to finally pay off the costs of your mortgage refinance with your savings.

The best decision whether to refinance or not is by going through these questions first and weigh on the answers. You may get a lower monthly payment but the new loan is going to add years of payments. Or you may get a lower interest but the closing fees are so high that at the end of the loan term you find out that you have paid more than you would have paid if you hadn’t refinanced your mortgage.

To find the lowest costs on a refinance shop around and compare between lenders. You may want to search the internet first and then talk to at least four or maybe five types of lenders, which are credit union, big lenders such as Wells Fargo or Bank of America, your local mortgage broker, an online lender such as ING Direct and your local bank.

Before talking to them, make sure that your credit score is at least 660 because if it isn’t you will not qualify. Once you have cleaned up your credit score, make sure your lenders know that before you ask them questions.

Most of the mortgage borrowers that were qualified for the Making Home Affordable plan by the Obama administration have refinanced their mortgages by now. Some of them are gamblers who finally gave in thinking that the rates are not going any lower.

The fact of the matter is that mortgage rates have been shattered for 1.5 year to record low levels but the refinance volume has never been strong. When Obama first announced the mortgage refinance plan people would immediately go out and refinance their mortgages without even looking at what the interest rates were. Later on, mortgage borrowers have become smarter by carefully waiting in order to position themselves for the long-run.

This threatens the mortgage industry. Currently 65% of all the mortgage application in the industry are for refinance. However the percentage of refinance applications that are actually approved are at an all time low. Right now the interest rate for mortgage refinance can be under 5% for well-qualified borrowers. But this doesn’t increase the number of mortgage refinance at all.

The forecast is that mortgage interest rates will rise again at the end of this year to 6%. Maybe even more. The increase of interest rates will begin at the end of March or early April as soon as the Federal Reserve stops buying mortgage backed securities this month. When this finally happens, refinance volumes will sharply drop by 80%. It looks like extending help for troubled homeowners as Obama has recently done is not going to make any difference in refinance number.

It’s only logical that nobody would want to refinance their mortgage at 6.25% for 30 year fixed. Especially not those borrowers who do not have any equity left in their homes. So what does it mean? There is a great chance that Obama’s “help” for troubled homeowners is once again going to be a total failure. There is good chance that the refinance market will die off.

Who will be most affected? Most mortgage professionals. How bad it is going to be will eventually depend on whether or not refinance market is completely dead or not. It is almost certain that this year there will be another wave of financial meltdown caused by student loans default. With the death of refinance, God knows how bad this wave is going to be. Prepare!

Most great nations, at the peak of their economic power, become arrogant and wage great world wars at great cost, wasting vast resources, taking on huge debt, and ultimately burning themselves out.
~ Kevin Phillips, Wealth and Democracy, 2002

An English-born American artist who is regarded as the founder of the Hudson River School created a series of paintings he named The Course of Empires between 1833-1836. Thomas Cole’s paintings depicts the growth and fall of a city and is notable of reflecting today’s popular views about America, being on the way of an inevitable destruction. The painting series consists of 5 stages of the rise and fall of the empire.

Stage 1 – The Savage State

The first paintings reflects the savage land of the native Americans discovered by Columbus in 1492.

Looking at the first painting, you see the three decades of exploring the wild and expanding throughout the whole new continent – the whole new world.

During the 300 years of exploring and expanding the new world, in Europe Mayer Amschel Rothschild designs plans for the creation of the Illuminati and then entrusts an Ashkenazi Jew (Jews originating from Khazaria, who became Jews not by descent but by conversion of faith in 700AD) to lead the new occult: Adam Weishaupt, a German Jew who was outwardly Catholic. In 1774 the Illuminati was born in Germany, known as the Bavarian Illuminati and Adam Weishaupt was initiated into Freemason and began to implement the Illuminati masterplan for a new world order in a newly discovered land, America.

Illuminati was founded in America on May 1st, 1776. Two months later, the American Empire was born.

Stage 2 – The Arcadian or Pastoral State

The second painting shows how the inhabitants of the city cleared up the land, planted fields, and built a Greek temple. When Thomas Cole was painting this the President of the United States was Thomas Jefferson who just recently finished building the University of Virginia using classical Greek and Roman Architecture.

Looking at this picture imagine the beginning of the rise of the empire but also the collapse when the Rothschild gained control over the money supply of a nation. In 1790 Mayer Amschel Rothschild stated,

Let me issue and control a nation’s money and I care not who writes the laws.

A year later, the first central bank of America was founded whose money supply was controlled by Mayer Amschel Rothschild, the First Bank of The United States.

Stage 3 – The Consummation of Empire

The third painting showed a glorious city. The landscape is covered by a magnificent marble trading center. In the life cycle it is only midday. The overall look of the painting suggests the glorious peak of ancient Rome.

This is the time when the industrial revolution began and the groundwork for the modern US industrial economy was laid, just after the Civil War. A rapid economic development followed and an explosion of new discoveries and inventions took place. Coal was found in abundance, oil was discovered, large iron mines were opened.

During these times it was an epoch of the nations economic tycoons. This was the peak of the nations power, affluence and glory where leaders arose, ran about frenzied with imperial visions and sabotage themselves, their people and their nation. Although they had it all, more was never enough. Greed, arrogance and thirst of power consumed them.

According to Gerald Celente, there are only 6 words to wrap up the people behind the rise of the Empire, the consummation and the death of it later on: Princeton, Harvard, Yale, bullets, bombs and banks – the few elites that are running the Empire and leading the people into their own death.

Stage 4 – The Destruction of Empire

The fourth painting shows the action of the sack and destruction of the empire. The American Empire is currently on the way to this stage. Partly thanks to the Federal Reserve, with all the debts and deficit that it is facing, the coming destruction is inevitable.

In the book The War of the World, Niall Ferguson explains about the destruction in the 21st century as “the bloodiest in history, one hundred years of butchery.”

Besides the financial collapse, the American Empire will also experience collapse in unity. Back in Jan 2009, a Russian professor predicts the US disintegration by 2010. He said around end of June or July 2010 the US will break into 6 pieces with Alaska reverting to Russian control. Many thought of it as being the “music to the ears of the Kremlin” but the fact is that the CNN and Fox News just do not tell the world that the Russian professor’s prediction may come true as a growing number of states are already declaring sovereignty!

Too many Americans may not believe this but click on each state below to read yourself the declaration of sovereignty by each respective state: Washington, New Hampshire, Arizona, Montana, Michigan, Missouri, Oklahoma, California and Georgia.

Prof. Panarin predicted a Civil War after the disintegration of America, thus bringing the Empire into a stage that is “a far bloodier return to savagery” as suggested by relentless high-tech news cycle. Adding to Panarin’s prediction, if it really happens, Obama’s administration will end in violence. There will be no more US Presidential election in 2012. Extreme poverty, famine, and crime rates high will spread all over what is once a great nation. The destruction of American Empire will be there.

Stage 5 – Desolation

The final painting shows the moon rising over a desolate place. No living beings are seen. The once great city has been abandoned, the remains of their architecture is buried under mantle of trees, ivy and other overgrowth.

The final end of the Empire will be complete desolation. Whoever can leave before this all happens shall leave and never return. Just like the Jews in Europe fled to Canada and America before the Holocaust and never returned. The land will be left and will return into wilderness as it is written in the Book of Lamentations.

How deserted lies the city,
once so full of people!
How like a widow is she,
who once was great among the nations!
She who was queen among the provinces
has now become a slave.
(Lamentations 1:1)

For many people in the whole world the financial crisis today does not make sense. Probably the vast majority of Americans are confused how this financial meltdown actually started and became this ugly. Moreover, it will even get so bad that forecasts say that America is about to collapse very soon.

The beginning of all this that we are facing today is that at some point in the past bankers turned money into debt. For most people, this statement is confusing. How can money be turned into debt? To understand that statement above, you have to look at the world of money from a bankers point of view. This point of view is something that bankers hate for you to understand.

On your balance sheet, your savings in the bank is asset. It is something that generates you money – the savings interest. However, in the bankers point of view, your savings is a liability. This is because for all the money that you save with them, they will have to pay you interest every month.

In order to be able to afford to pay people interest for their savings at -say- 5% annually, bankers at some point in the past had to come up with a game plan to generate profit from somewhere. So that is how they invented the “loan” game.

So what happens next is simple. In order for the bank to make money, they have to use your savings, and then loan it to somebody else who would pay it back with a higher interest than what the bank owes you.

If your interest on your savings is for example 5% annually, the bank needs to find somebody who would want to borrow money from them with the interest rate at 10% or maybe even more. If nobody wants to borrow, it will cost the bank their own money to pay you your savings interest.

However, what eventually makes this whole “harmless” game deadly for a nation (as it is now happening to the US) is the deadly system which is called the fractional reserve system. This kind of system is nothing but a legal way for banks to rob you off your money. Unlike robbers like Jesse James or others who rob banks from the outside, these kind of robbers do it from the inside and… legally too. Robbers like these are for example the Federal Reserve.

Here is how the fractional reserve system works:

The Federal Reserve decides on the fractional reserve number which would then multiplied by the amount of savings people deposited into the banks. If for example the fractional reserve is 10 and your savings in the bank is $1,000, then the amount of money that the bank will use to loan it at a higher interest than the saving interest will be $1,000 x 10 which is $10,000. So if somebody is willing to borrow, they are able to borrow more than what the bank actually has.

The problem is, the bank does not have $10,000. It has only $1,000 which was deposited by you. This is where the inflation comes in. What they do to come up with the $10,000 is just print more money. They can legally do it not backed by gold because in 1971, President Nixon took the US dollar off the gold standard. So what the banks are doing is just printing money out of thin air. They need $10,000, fine, let’s print and make up $10,000.

This way the bank actually robs you of your wealth because your $100 no longer has the same value as before there was this $10,000 new money. Your $100 savings has lost its purchasing power. If now your $100 bill can buy you (for example) nice designer clothes, because of the fractional reserve system, it takes 10 more bills like that to buy the same clothes. This is what this system is doing to you and your money – inflation.

So let’s get back to the question. Why do banks not want America to save money?

As we have discussed above, it is because American’s savings is a liability to the bank. If they can not find any borrower wwho would  pay interest higher than they pay you, they will eventually go bankrupt as they will have to pay you your interest out of their own pocket.

Imagine 300 million Americans saving all their money and none of them borrow anything from the bank. They will have to pay all that interest every month.

Back in 1973 after the Arab world stopped their oil supply to the world, oil price rose from $2.82 per barrel to $10.10 per barrel in 1974. The US should have slowed down on buying oil at the time but they were already in the mindset of printing money out of thin air and that was what they did. All of the sudden, the Arab world was overwhelmed with all that money and were unable to handle them. So they saved the money in US banks outside the country, mainly in Europe and America.

Now the American banks are overwhelmed because lots of savings means lots of interest to pay and that is how easy credit started.

All of the sudden, Latin America and even the American people themselves find it so easy to get credit and borrow money. The government even encouraged them to borrow money and get into “good debt” such as student loans. (This good debt now of course turned out to be toxic debt and not good debt at all.) Hot money was flowing into the economy.

American banks didn’t want Americans to save money adding to all that Arab money sitting in them. What they wanted (and still do) are big debtors. When the real estate boom started, so many Americans are gullible enough to get caught in this bankers game of money. This was what the banks didn’t want Americans to know. Ironically, the education system, either deliberately or not, kept the people in the dark by not teaching anybody about the money game that banks and the government with the Federal Reserve were playing.

Now the credit crunch has left Americans miserable with their debt.

Last Friday on the 5th of March, 2010, Senate Majority Leader Harry Reid proclaims the big day of America, “Today is a big day in America.” The reason for that day being a big day was that “only 36,000 people lost their jobs today”. I am not sure if that fact should become a reason of Americans to celebrate it as a ‘big day’. Here is the full story of his ironic proclamation, click here. Or go ahead and watch him actually say that on national TV:

Fortunately I personally don’t believe that Harry Reid is actually happy to see 36,000 people lost their jobs. However, I do believe also that he is very happy if Americans are silly enough to accept this as really good news. Some people might actually be silly enough to be happy to see a slight increase in the job loss rate although it is still in the tens of thousands each month.

Pathetically, it may be that the number is actually higher than whatever the Americans are told to believe. People are to believe that unemployment rate trickles down each month and still thousands of jobs each month are lost.

The government reported that the unemployment rate in February is up to a bit to 16.8%. However, there are many other statisticians that have a completely different number than what the government’s U6 reports. If you check the graphic below, you will see that according to SGS Alternate the real unemployment rate is almost 22% now.

The Shadow Government Statistics reports to you “Analysis Beyond and Behind Government Economic Reporting”. You will be able to see statistics completely different from what the government is reporting to the people and want the Americans to believe.

The US economic has been in a mess way before the recession actually started in 2007. However, the media/ government economist kept telling the people that there was no recession up until Spring 2008 and then after the stock crash happened. The same media and government economist are now telling you good news of the US unemployment rate being 36,000 on March 5th, 2010 and the unemployment rate for the past month in February 2010 was 9.7%… where as the Shadow Government Statistic graphic above actually say that it was close to 22%.

Whatever the media or the government is now telling you, it is most likely now that it is a lie. When Harry Reid proclaimed that “big day of America” what he was really suggesting was a celebration that the unemployment rate is truely 22%.

With the new credit card regulations in place card issuers have come up with more practices that are unfavorable for consumers. SmartMoney.com Senior Consumer Reporter Kelli Grant tells us about five new tricks cardholders need to watch out for.

…is an interactive online book written by Robert Kiyosaki to help commoners to understand what is going on in the economic world today, what will happen and what to do (or not to do) in order to survive the coming greatest depression of all time.

Beginning with two questions, “Is the love of money the root of all evil? Or is the ignorance of money the root of all evil?” Kiyosaki makes his readers wonder whether the lack of education about money in schools was really a simple oversight by our education leaders or whether there is actually a greater conspiracy behind this. The fact is that money plays a tremendous role in people’s lives regardless of age, gender, nationality or economic status and so on. To have no educational system at all teaching about money is something that should raise questions in our minds. He then shares how the book “Grunch of Giants” by Dr. Buckminster Fuller actually confirms his suspicion of why the world doesn’t teach their kids about money – there is a bigger conspiracy behind it.

Today, Americans start to wake up and point fingers at the Federal Reserve, partly blaming it for the current recession which does not seem to end. Back when it was created in 1913, only few people knew that the Federal Reserve “is not federal or American, it is not a reserve and it is not a bank”. Only a few people who have had proper financial education knew that itt is a part of a system created by the rich and powerful to nationally control the money supply.

Kiyosaki’s book starts with an interesting introduction of how President Nixon freed the US dollar from gold in 1971 and made it illegal to exchange the US dollar directly with gold. He started printing strange money that is backed by nothing in order to pay debt – that is the US national debt. Gold is no longer backing the US dollar. It is replaced by a mere promise that the US taxpayers will pay the bills. Nixon’s innovation for the US to print its way out of debt was the beginning of the economic boom in the 1980’s and 1990’s and today, the boom has busted.

The online book “Conspiracy of the Rich” teaches you the new rules about money that ordinary people were never told about. The wealthy and powerful have long understood these rules and hid it from the rest of the world. They created 2 different sets of money rules, one set is made for the rich so they can be richer and the other is made for the ordinary so they can control them and ensure an endless supply of employees to make money for them and who are constantly in need of money, a job and job security.

Through the book you will discover that whatever they have told you since you were kids are nothing else than to help the bank and not you. Most people do not understand the difference between capital gains and cashflow, stocks and bonds, asset and liability. People’s ignorance serves the purpose of the wealthy and powerful. From the book you will find out that what people have believed for years to be the safest investment, US bonds, today it is the riskiest investment of all.

In the latest chapter that Kiyosaki has updated, he shows his readers why the rich countries of the world are on the verge of bankruptcy starting from America. Only those who understand the 8 new rules about money will survive and prosper during that time.