I got an interesting email from one of my readers this week alerting me to a great opportunity for seniors. Summer Jobs in Alaska working for Cruise lines, lodges and as tour guides.  This is the real deal –nothing to buy – just apply.

One of the employers is Princess cruises who operate several wilderness lodges in Alaska.  Even though you are a seasonal employee, when you are not working your get steeply discounted crusises on Princess. Here is what it says about that:

Under the Employee Space Available Program, eligible employees are afforded the chance to travel at a reduced rate for an inside cabin on a space-available basis.  Cabin upgrades may be available for an additional fee.  To be eligible for this program, employees must complete two consecutive seasonal contracts, working a minimum of 600 hours total.  With every consecutive season worked, you gain higher seasonal seniority, which means a greater chance of being confirmed on your selected cruise!

The Friends and Family Program offers select cruises for Princess seasonal employees at discounted rates not available to the general public.  You are eligible for this program after one seasonal contract and remain eligible until one year from the date your seasonal employment ends.  You may book as many cruises as you like under this program!

Employees traveling on either program are eligible for onboard Captain’s Circle privileges at the applicable level (depending on how many Princess cruises you have taken in the past), as well as a variety of discounts on items including bar purchases, boutiques purchases, photo purchases, and more.  As a Princess employee, you are also eligible to purchase industry travel protection insurance at a deeply discounted rate.

One of the other employers is the Alaska Tour Division.  Here is what the website says about them:

A summer job in Alaskaat one of our many tour divisions offers a wide range of exciting opportunities. Positions range from Server and Chef on our award winning train cars to Driver Guides, Tour Directors and Guest Service support staff. Together with competitive wages and great cruise privileges, Princess Tours and Holland America Line have more unique job offerings in more diverse locations than any other tour company in Alaska.

If you have a passion for adventure and service, we would love to meet you. So take a closer look at our many Alaska job opportunities and discover what we have for you. Whatever adventure you desire, it’s ready for you in Alaska!

Welcome to the Alaska Tour Divisions!

Who are we?

We are HAP Alaska – Yukon.  Headquartered in Seattle Washington, we are the largest tour operator in Alaska and  the Yukon.

HAP Alaska – Yukon is a collaborative land operation owned jointly by Holland America Line and Princess Cruises. Princess Cruises and Holland America Line are part of Carnival Corporation, one of the largest vacation companies in the world.

HAP Alaska – Yukon is a unique operation. The joint operation formed by Holland America Line and Princess Cruises is only found within the Alaska and Yukon tour product that each company sells.

Its too late to work there now, but now is the time to apply for next year.  Maybe Karen and I will see you there next year?

Skip McGrath,

Head Geezer

The huge blow off in the market today is probably just a glimpse of things to come, but most analysts agree that we will get some up days before we get more down.  Obama didn’t help matters with his speech today. Every time he speaks my IRA drops.  Barring any bad news, I suspect we will see some bargain hunting tomorrow.

My strategy for the past two weeks has been to sell 1/2 of my stocks  to raise cash for a huge buying opportunity to come.  I have also done well with gold.  Currently I am holding gold as 15% of my portfolio.  Gold will probably correct soon and I think it could go all the way down to the low $1500s.  It will need to do that to build a solid base before the next leg up which could be huge.

So now is the time to sit on your cash and wait patiently for opportunity. Then move into rock solid dividend paying stocks once the Dow bottoms out –probably in the 9500 range.  The Fed will start easing and printing money again and may even buy assets and that will set off a stock market boom like you haven’t seen in years.  I think the Dow could hit 20,000 before the elections next year.

Remember – I am not a registered investment adviser so you always want to do your own research and make your own decisions –just be careful listening to brokers.  I always advise looking for independent advisers who don’t make money when you buy and sell.

That is not a political question. Both parties are lying to the people about the budget deficit and the debt cieling.

Big Lie Number 1:  If we don’t pass the debt ceiling we will go into default

Default has nothing to do with the debt ceiling.  The government would only default if they could not make interest payments on our debt in the form of treasury bonds and bills.  Here is the math:

• The government spends about $295 billion per month
• The government takes in approximately $200 Billion in taxes every month
• This leaves a monthly deficit of $95 billion per month
• Interest payment on the debt is about $20 billion per moth
• Social Security runs another $50 Billion per month and Medicare about $55 Billion
• So far we are up to $125 Billion – and we still have $75 billion to work with.
• Defense spending is about $50 –but could be cut by $10 if we only paid for the essentials
• Then what is left would have to run the rest of the government.

So there is no default unless we decide not to pay the $20 billion per month on interest. If a politician says you won’t get your social security check he (or she) is lying. There is plenty of money to pay social security.  Of course if the president though it was more important to pay for the EPA, Agricultural subsidies to farmers, The National Endowment for the Arts or National Public Radio –then he could make the choice to do that instead of sending us our social security checks.  But if he did that I suspect seniors would march on Washington by the millions.

Yes, a lot of programs would be cut, employees furloughed and probably the parks and museums would close.  But interest on the debt would be paid, social security checks would go out, soldiers and sailors would be paid, doctors would be paid by Medicare and the country would probably run just fine.  So forget about default. Stress and inconvenience – yes. Default – No.

Big Lie Number 2:  Both parties are coming up with plans to cut spending

This is an even bigger lie.  Both parties claim to have plans to cut the deficit to offset the increase in the debt ceiling. That is total bull!  When you look at both party’s plans there are no real cuts in spending –they are only cuts in the estimate of how much the deficit will grow. Currently the government projects the deficit will grow about $10 Trillion over the next ten years (that estimate is on the low side as some economists predict it will grow over $15 Trillion).

But when President Obama, Harry Reid or John Baynor speak about cuts they are talking about letting the deficit grow less.  So if a $2 Trillion cut is announced as part of a deal, that meant the deficit will only grow to $8 Trillion instead of $10 Trillion.  That is Washington’s idea of a cut.

Where are the real cuts?  Between the last two censuses (2000 – 2010) the population of the United States grew slightly less than 7%. During that same period the number of US Government employees grew 19% and state government employment was up over 16%.  So, bottom line, the government is growing much faster than the population.

Big Lie Number 3:  If we raise taxes on oil companies, corporate jet owners and millionaires it will balance the budget.

This one is really cute.  Lets take them one at a time:

• Oil companies – When the Politicians talk about special breaks for oil companies they are speaking about the “depletion allowance.”  This is a tax break to compensate the oil companies since they are losing their reserves as they pump. The allowance was put in place to give them an incentive to explore and drill new well to replace the oil that is depleted.  If that deduction were taken away from the oil companies the total taxes collected over the next ten years would amount to about $40 billion.  That’s over ten years.  But our deficit just this year is over $1 Trillion.
• Corporate jets – A few years ago when we were trying to recover from the recession that hit after 9/11, the congress passed and the president signed a bill that allowed corporate jet owners to accelerate their depreciation deduction.  The reason for this was the corporate jet industry was in the toilet and unemployment in that industry was running over 25%.

  The deductions worked.  The corporate jet industry is now healthy and currently employs over 700,000 people between the manufacturers, sales, maintenance, fixed base operators, pilots and so on.  So here we are in the middle of a recession and the president wants to raise a tax that will put people in the industry out of work.  He wants to stick it to millionaires jet owners but in the process he will hit factory workers, pilots, food service, sales people and maintenance personnel.  And worse – the total taxes saved will amount to less than $9 Billion over the next ten years.

• Millionaires – The president keeps mentioning millionaires and billionaires paying more taxes.  Well taxes are taken from income –not wealth.  Most true millionaires and certainly billionaires actually make very little money from earned income.  The number of people who make over $1 million in income in a given year is less than ten thousand.

  You could raise the tax rate to 90% on all of those people and you would only take in an additional $10 to $12 billion a year.  Besides, these are the people who invest in companies, create jobs and buy things that employ people.  So with a recession on, lets hit them where it hurts – Right!

  Remember the annual deficit for just this year is over $1 Trillion. If you add all three of these tax increases up, you get $25 billion is increased revenue. Even if you taxed everyone who made over $200,000 a year at 90% you would only bring in another $60 to $70 billion.

So now you know what is going on.  It doesn’t matter if you are a Independent, a Democrat or a Republican we are all being lied to by both parties.  The one thing Washington won’t do is actually cut actual spending.

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The debate in Washington over raising the debt limit has highlighted something that most of us (and the folks in Washington DC) have known for a long time.  There is simply not enough money in the world that can pay all the future bills of Medicare, Social Security and Medicade –Let alone Obamacare that will add another Trillion Dollars in unfunded liabilities over the next ten years.

I can’t remember who did it, but one of those Washington think tanks did a study where they calculated that you could raise the tax rate to 90% on every single American –rich, poor and middle class, and you would still not have enough money coming in to pay for all of the entitlement spending at current and projected levels.  So yes.  Social Security and Medicare too will have to be cut.  And the cuts will have to be deep.

Here is what the cuts will probably look like.  They will consist of some or all of these steps. (Note: I am not suggesting we should do these things –just saying this is what the folks in Washington are considering).

Social Security Cuts

• Raise the retirement age to 68 now and later to 70.
• Eliminate early retirement at age 62
• Adjust inflation indexing downward
• Extend the tax rules on retirees earning over $14,000 a year to age 70. (Each $2.00 of income you make over $14,000 a year, reduces your payment by $1.00).
• Some type of means test based on total retirement income from all sources (dividends, other retirement plans, military retirement and withdrawals from IRAs and 401Ks.  Those with a total retirement income over a certain level (the betting is $30,000) would receive a reduced payout.

Medicare Cuts

• The Justice Department will set up a special Medicare/Medicaid fraud unit with a goal to reduce fraud by $100 billion per year  (about 1/3rd of the current estimated fraud).
• The Government will hire an outside auditing firm to audit Medicare claims to prevent fraud and general misuse.
• A deductible system will be introduced based on retirees total income from all sources.  Those whose only income is SSI would be left alone. Those whom have additional sources of income would have to pay a deductible and perhaps even co-pays based on the size of their income.
• Institute medical review panels to limit care to end of life situations
• Allow Medicare to negotiate rates with drug companies and medical supply companies as is now done by the Veterans Administration.  This one step alone will save $70 Billion/year.

All of these steps combined could reduce SSI and Medicare payments by about $500 Billion per year by 2015.  That will still leave a shortfall, but it will be more manageable and could be covered by a combination of economic growth and increased taxes.

I would love to hear your comments.  How would you fix the problem of a $5 Trillion shortfall over the next 15 years?  Please use the comment form below.

Note – All comments have to be approved so they will not show up instantly. I only kill comments that are either spam or contain objectionable material so feel free to vent –but I would really like to hear some positive ideas.

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I usually do my own posts, but sometimes a really important one comes along that I want to share with my readers.

This is from the Smart Money Blog:

Faced with bruised nest eggs and high unemployment rates, older Americans –ever resourceful–are becoming entrepreneurs.

According to the nonprofit Ewing Marion Kauffman Foundation, individuals between the ages of 54 and 64 represented 22.9% of the entrepreneurs who launched businesses in 2010 –up from 14.5% in 1996.  Since 2007, the foundation said …read the rest of the article.

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Learn How To Make Money Buying and Selling Gold.  This is a perfect business for seniors.  Low cost – low risk and part time profits over $1000 a week are easy to accomplish.

Learning how to buy and sell scrap gold jewelry is a perfect home business for seniors.  No heavy lifting, quick profits (avg 1 week) and very low risk.  See the next post below for some great info on this business.

My latest book, Make Money Buying and Selling Gold is now available on ClickBank. If you are a ClickBank Affiliate, just use this hoplink to buy or promote the book:

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Be sure and replace the XXXX’s with your ClickBank affiliate ID. If you are not a ClickBank affiliate, click here to learn how the ClickBank program works and how to join.

One question I always get is: “Can I join the affiliate program and then buy the book and earn a commission on my own sale?” The answer is yes! Get a ClickBank ID, replace the XXXX in the link above with your ID, and you will earn a 40% commission on your sale. Then send out the link to your friends on Facebook or post it on your blog and you will earn 40% on each sale you make.

Buying and Selling Gold is Fun and Highly Profitable

If you just want to get the book and not mess around with Clickbank – then just click on this link:

Make Money Buying and Selling Gold

Besides publishing my Geezer Guides, I also write other books on ways that ordinary folks can earn extra money. Most of my books center on ways to make money on the internet, but my latest book is about something anyone can do from home. The name of the book is…

How To Make Money Buying and Selling Gold and Silver

I have been buying and selling scrap gold for over fifteen years. When I started the price of Gold was in the mid $300′s.  Today gold is selling for over $1400 and some analysts predict it will go to $2000 within the next year or so.

I have developed a system for buying and selling gold that anyone can learn…And, its the perfect business for retired folks like us –no heavy lifting required!!!

Just what is scrap gold?

The United States is the largest jewelry market in the world and millions of Americans have old, broken or just out-of-fashion pieces of jewelry sitting in their jewelry boxes. Just last week my wife came across a single 18K gold erring. She lost the other earring in the set about ten years ago and the remaining earring has just been sitting in her jewelry box ever since. I put the earring on my gold scale and it weighed 8 grams. At today’s prices that one earring was worth over $250 –which is more than she paid for the pair of earrings ten years ago.

There is literally a fortune in gold –billions of dollars worth, sitting around collecting dust. But the high price of gold today is bringing it out of the woodwork. And all you have to do to get your piece of the pie is to ask. But you have to know who, how and where to ask –and that is what I will teach you.

It is amazing at just how profitable this little business can be. It is a perfect business for part-timers and retired folks like us.   I show you six different ways to find gold.

How much you can make buying and selling gold?

I can’t predict what you will do, but here is my experience:

I usually see between 4 and 6 people a week. On average, I will purchase about 15 grams (1/2 troy ounce) from each person I see.  (I could easily see more people each week, but at this stage of life that is all I want to do).

If I am buying 14K gold, at today’s prices I will typically pay about $13 per gram and I sell that gold to a refiner for between $25 to $27 gram. (The more gold you send a refiner, the more they will pay you).

Do the math…  If you can average the same number of sellers, that works out to $180 profit for each person you see (Once again, that’s an average).   See 4 people per week and you make $720.  See 6 people per week and you make $1080.

Sometimes I set up in a local hotel room and put signs out around town that I am paying cash for gold.  On those days I often see as many as 20 people.  I have made as much as $3500 on those days, even after paying for the room and food.

Have you ever been to a Tupperware Party?

Most home parties you go to you end up spending money.  I can show you how to get your friends to throw a gold party.  When you host a gold party, everyone goes home with money and the hostess makes money as well. Gold Parties are just one of the six different ways I show you how to find gold to buy.

My system works for anyone!!!

To get started you only need about $50 for equipment… and enough cash to buy gold with.  If you don’t have the cash to buy gold with –no problem.  How To Make Money Buying and Selling Gold and Silver will even show you one way to get started with no investment whatsoever.  You can make enough money with this one technique to start your business off right.

Click here to get your copy of How To Make Money Buying and Selling Gold and Silver.  

And…There is no risk! All of my books come with a no-hassle, no-questions-asked, Money Back Guarantee.

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Today’s post is a guest article by Tony Sagami.  Tony Sagami is the editor of Asia Stock Alert, a monthly newsletter with a mission to help you profit from booming Asian economies with companies the Wall Street crowd ignores.

Tony’s article makes a good case for coming food shortages.  And food shortages equal higher prices.  If you saw yesterday’s post you know that prices have already started rising.  Unless weather patterns change soon, the increases we have seen so far this year are just the beginning.  If you did not read yesterday’s post, scroll down and read it first then come back to this.  Its getting downright scary out there.

Extreme Weather, Food Shortages and Three ETFs to Consider

Tony Sagami

Don’t the weather and natural disasters seem more extreme to you lately? The world has seen what seems like a wave of floods, fires, tornados, earthquakes, tsunamis and droughts.

Tornados:

The tornado tragedy in Joplin, Missouri, was heartbreaking, but there have been many more. The average number of tornados over a three-year span in the United States is 1,376.

Americans, however, have suffered through 1,425 tornados over the last 36 months. Heck, April witnessed a record 600 tornados, and meteorologists are calling 2011 “The Year of the Tornado.”

Cities that have been hit this year include some of the usual locations, such as Dallas, Oklahoma City, Minneapolis, and St. Louis. But twisters have also struck unusual places, such as Philadelphia, Raleigh, and even Springfield, Mass.

Floods:

It is tragic but not unusual for the Mississippi River to flood, but floods are breaking out all around North America, including parts of Utah, Montreal, Nebraska, North Dakota, Manitoba and Montana.

How bad is the flooding this year? The Federal Emergency Management Agency typically collects more than $3 billion in premiums annually but expects to end this year in the red.

This may surprise you, but even Pakistan is suffering from unprecedented flooding this year.

Last year wasn’t any better. Remember the huge flooding in Australia, and Pakistan got an unprecedented flood.

Wildfires:

Summer hasn’t even arrived, but wildfires are already popping up all around the country. Firefighters in eastern and southeastern Arizona are battling two huge wildfires that have charred almost 200 square miles of brush and tinder. Texas, Colorado, Georgia, New Mexico, and even Alaska are battling smaller but dangerous wildfires.

In northern Alberta, 115 fires whipped by 60 mph winds have set 74,000 acres ablaze.

Last year was no picnic either. Russia was hammered with wildfires last summer that severely reduced the global supply of wheat.

Drought:

Texas, Oklahoma and New Mexico are being ravaged by droughts. A whopping 50.6% of Texas has been declared to be in drought stage due to a record low spring rainfall. Only 1-1/2 to 1-3/4 inches of rain fell across the state, which makes the March-May spring period the driest on record.

The National Weather Service has classified South Florida as D4 drought stage, or the “exceptional drought” stage.

This is the first time South Florida has been placed in the “exceptional drought” category in the 80 years since the National Weather Service started tracking droughts.

The Amazon is in its second drought in four years. Typically, the Amazon has a once-in-a-century drought.

Droughts are not just a North American problem. China is suffering from one of the worst droughts in its long history.

The Yangtze River basin, which is Asia’s biggest river and supports 400 million Chinese, is filled each year by monsoon rains that flood the region each spring. But the rains did not come as expected this year, causing the worst drought in 50 years. The Yangtze River has only received half of its usual rainfall. Almost every province in the region has reported severe drought conditions.

• Jiangxi Province’s Poyang Lake, China’s largest freshwater lake, has shrunk by two-thirds and is the smallest size since satellite recording began. Another huge Yangtze-generated freshwater lake, Hong Lake, has gone dry.

• More than 2 million acres of farmland don’t have enough water to grow crops.

• Shanghai, which is located at the mouth of the Yangtze, has seen its drinking water compromised from salt because the altitude of Yangtze is below sea level.

The consequences of the drought include water shortages, a drop in electricity production, crop losses, and transportation disruptions.

Drinking water:

Chinese officials have declared more than 1,300 lakes to be “dead,” which means they are out of use for irrigation and drinking supply. More than 1 million people and 380,000 livestock are short of drinking water, according to the Office of State Flood Control and Drought Relief Headquarters.

Transportation:

Water levels are so low in some parts of the Yangtze and its tributaries that thousands of boats have been stranded, forcing the authorities to halt shipping along many parts of the river.

Electricity shortages:

The world’s second-largest steel producer Shanghai Baosteel has received a government notice that its electricity used for production will be restricted between June and September. Many manufacturers in Zhejiang Province have been forced to take two days of production off every week.

“If the drought continues, dams in the province will run out of water to generate electricity,” said Hu Xiaofei of Anhui Electric Power. The company estimates that 2011 will have the most severe power shortfall since 2004.

Food crops:

But the drought’s biggest impact will be felt by China’s farmers. Without water crops won’t grow and will only harvest a fraction of normal production. Areas affected are among China’s major producers of rice and wheat, so a poor harvest will translate into higher prices.

Food shortages have plagued the world since the dawn of man. Even today a large number of the world’s population goes to bed hungry each night. Josette Sheeran, the executive director of the United Nations World Food Programme, calls it the “silent tsunami.”

What’s more disturbing is the problem is getting worse. The Worldwatch Institute estimates that 1.02 billion people were “undernourished” in 2009, a 12% increase over the previous year. ONE OUT OF EVERY SIX PEOPLE ON EARTH IS UNDERNOURISHED.

I don’t know what it is like to go to sleep on an empty stomach, but I can imagine how desperate I would be to feed my children if we ever faced a food emergency.

Food prices have jumped to an all-time high, according to the Food and Agriculture Organization of the United Nations (FAO). In fact, the FAO food index, which is comprised of 55 various food products, is higher today than it was when food riots broke out in 2008.

“We are entering a danger territory. There is still room for prices to go up much higher,” said Abdolreza Abbassian, the chief economist at the FAO.

Feeding that growing number of mouths is already big business, but it is going to get much bigger as the demand for better diets and more protein increases. I believe that you’ve only seen the early stages of an agricultural boom, and that it will be one of the most profitable sectors you can invest in.

There are three exchange traded funds to consider. One such fund is the Global X Farming ETF (BARN), which launched last week and has some special appeal to me because of its heavy Asian weighting. BARN gives investors a solid choice because it only has 31% of its assets in U.S. stocks.

Here’s a geographical breakdown of the fund followed by two other agriculture ETFs to consider:

• United States, 31.64%

• Singapore, 15.06%

• Malaysia, 12.03%

• China, 7%

• United Kingdom, 5.94%

• Japan, 5.37%

• Canada, 4.75%

• Netherlands, 3.35%

• Brazil, 3.35%

PowerShares DB Agriculture Fund (DBA) is more of a pure food commodity play as it invests in a basket of agricultural futures such as corn, soybeans, sugar, cattle, cocoa, coffee, cotton, lean hogs and wheat.

Market Vectors Agribusiness (MOO) invests in agricultural commodity producers such as Deere & Company, Potash and Archer Daniels Midland.

As always, you need to do your homework and decide whether any of these securities are appropriate for your personal situation and financial goals.

Lastly, since timing is everything when it comes to investing, you should wait for these securities to go on sale before jumping in or wait for my buy signal in Asia Stock Alert.

Best wishes,

Tony

P.S. If you are looking for more specific buy/sell recommendations on my favorite Asian stocks, please consider a subscription to my Asia Stock Alert for only $199 a year. I think it may be the best investment you’ll ever make.

Tony Sagami is the editor of Asia Stock Alert, a monthly newsletter with a mission to help you profit from booming Asian economies with companies the Wall Street crowd ignores. One of the most experienced research analysts in the industry, Tony follows a “boots-on-the-ground” approach for getting his market insights by traveling throughout Asia. Each month, he brings members profit-packed opportunities. Plus, Tony lets you know when to buy, how much to pay, and when to lock in those profits. For more information on Asia Stock Alert, click here.

This investment news is brought to you by Uncommon Wisdom. Uncommon Wisdom is a free daily investment newsletter from Weiss Research analysts offering the latest investing news and financial insights for the stock market, precious metals, natural resources, Asian and South American markets. From time to time, the authors of Uncommon Wisdom also cover other topics they feel can contribute to making you healthy, wealthy and wise. To view archives or subscribe, visit http://www.uncommonwisdomdaily.com.

Inflation is already here and the government is lying to you about it.

Consider these facts (all from Official US Government Data)

The government reports inflation using the Consumer Price Index (CPI). But this index excludes food and energy prices.  The problem is when you get older you still have to eat, drive your car and heat your home.

Here is the latest “official” CPI release:

May 13, 2011
On a seasonally adjusted basis, the CPI-U increased 0.4 percent in April after rising 0.5 percent in March. The index for all items less food and energy rose 0.2 percent in April after increasing 0.1 percent in March

But what has really happened?  Lets take a look at some real inflation numbers:

• MacDonald ‘s reported that it expects its food prices to increase over 5% in the first half of this year.
• The price of gasoline, although falling somewhat over the past few weeks is up over 75% since January 1st.
• Heating Oil up over 60% since January
• Flooding along the Mississippi has affected hundreds of thousands of corn acreage. Corn prices are up 50% since January and headed higher.
• Beef is only up a little over 10% so far this year, but cattle eat corn and corn prices are driving up the wholesale cost of beef.
• The size of a king sized Snickers Bar is smaller by 11%, but the price is the same
• Kellogs just reduced the cereal in their boxes by up to 15% with no decrease in price.
• Government tracking of the price of imports shows an 11% gain year over year.
• The Gap reported that soaring cotton prices (now at world record levels) will cause clothing prices to skyrocket this year.
• Sugar up 220% in past year –Some traders forecast gains of 500% more over the next 3 years.
• Industrial materials like Aluminum, copper, zinc, concrete and steel are seeing double digit gains over the past year.
• Coffee is up over 120% in the past year and forecast to double over the next two years.
• Gold is up 15% so far this year and up over 200% since the financial meltdown in 2008
• Silver recently corrected from its high just over $47 to $36 today, but many economists and traders forecast silver to be at $70 by the end of this year.

As seniors we may not buy many industrial metals or Snickers bars but we do buy heating oil, gas and food.

What Causes Inflation?

Food price inflation has several causes. The US used to produce most of the world’s grain, but that is no longer the case. Grains are now international commodities.  As the third world has prospered and large countries like India, Brazil and China are developing a middle class –they all want to eat more.  Average family Incomes in formerly 3rd world countries have increase 74% since 2000 according to the World Bank.  When incomes rise food is one of the first things people purchase more of and they are.  Food shortages are becoming common.  Commodity analysts at the Chicago Exchange expect China to import over 700,000 tons of corn this year to offset their lack of production.  Just a few years ago China could grow enough corn to feed all who could afford it.  Today several million more people can afford corn and they are doing it.  So bottom line – demand for food around the world is rising and demand is one of the biggest drivers of inflation.

Next is weather. A drought in Canada, the US, The Ukraine, China, South America or Australia can have a huge impact on grain prices and we know that grain prices also affect the price of meat.  This year its drought in China and flooding on the Mississippi, but we are just getting into summer and we don’t know yet what will happen in Canada and the US.

The other factor that guarantees inflation is the continued government printing of money with nothing behind it.  Loose money has always led to inflation.  Banks and corporations are sitting on gazillions of dollars and when they finally start to spend it – look out!  When excess money is chasing fewer and fewer goods you get an inflationary spiral that doesn’t stop until the government raises interest rates sky high to cool down the economy.  Our kids may not remember Jimmy Carter but we do.  Karen and I bought our first house then. We were thrilled to get an 11.5% mortgage interest rate.  Rates eventually went to 14%.

The last driver is deficit inflation.  This has been tried by almost every country in the world and it has always failed. I won’t bore you with the technical economic reasons, but government deficits ALWAYS lead to inflation.  And we are running the largest deficits in the world.

So what can seniors do to protect themselves from inflation?

The sad answer to that question is not much. You could of course horde food.  Some foods like beans and some grains can be stored for long periods of time.  Here are some resources if you want to look into that:

• Emergency Food Storage & Survival Handbook: Everything You Need to Know to Keep Your Family Safe in a Crisis
• Food Security for the Faint of Heart
• Here is a link to a 4-part short video series on YouTube that shows you how to store food. http://www.youtube.com/watch?v=vW7_cTn6YpE

If you have retirement savings you will want to consider protecting yourself by investing in some silver or gold as those always rise during periods of inflation.  I don’t give investment advice but the folks at Weiss Research do and they give very good investment advice for seniors on fixed incomes. They have both paid services and several free newsletters.

A freezer is a great investment. It lets you take advantage of sales and bulk buying and today’s modern freezers use a lot less energy and are highly efficient.

Lastly if you are not already doing it, become an expert on coupons. Here are a couple of websites that can help you find ways to save money on food:

Coupon Cravings

www.cheapcooking.com

Money Saving Mom

That’s it for now.

The UK is one of the most popular travel destinations for seniors.

UK Senior Rail Pass

The United Kingdom has an excellent deal for elderly citizens and visitors with their Senior Rail Card.  For about $25 US or $20 euros, a person who is over 60 can get a special senior rail card that allows him or her to receive discounts of 30% off of most ticket purchases.  You can go coach and pocket the 30% savings or use the savings to ride first class.

Once a person has the card then they have a valuable tool that will allow them to cheaply move from place to place in one of the most beautiful and historic countries on the planet.  The train allows a person the luxury of seeing the English countryside from the comfort of a classic mode of transportation, without the noise of a bus or the distraction and expense of an automobile.

Local folks in England can purchase the card by going to their nearest rail station and filling out a form, along with showing proof of age.  When you arrive in the UK you can purchase a card from any staffed rail station in England, Scotland or Wales. The senior rail card is also available at Gatwick Airport and Stansted Airport.  It is not available at London Heathrow Airport.

The senior rail card will save you 1/3 of the purchase cost on most fares.

A customer can use the card for long trips across this breathtaking country, as well as for short trips.  The discounts are available at any time across the weekends, on holidays, and during the week.With the money a senior saves from using this card, he or she can eat at fine restaurants, tour ancient art galleries and museums, or just take a few extra days to enjoy their visit to the gateway to Western culture.

Some of the tickets savings include purchases of first class day tickets and cheap day tickets.  A standard day ticket is good any time of the day. However a cheap day ticket is only good outside of peak hours. The definition of peak hours depends on the train company, but typically it means before 9:30 from Monday to Friday.  But who wants to get up that early anyway?

There are a few restrictions when a person uses the senior rail card.  According to the website www.senior-railcard.co.uk, ìThe Railcard discount isn’t available on tickets when journeys are made wholly within the London and South East area (including all South West Trains services to and from London Waterloo), on morning peak period services, Monday to Friday (not including Public Holidays).î

This means the new owner of a rail card should call ahead to see if his or her plans will fold nicely into the benefits this card brings, especially if they are heading out in the morning.

A senior rail card is not for everyone.  If a person is touring Europe, and not just England, then he or she should consider senior passes from Rail Europe.  The company tailors these passes to fit a traveler’s itinerary as he or she crosses international borders and visits several European countries.

But if you are one of those lucky seniors who are spending most of their vacation in the United Kingdom, then consider the benefits of a senior rail card.

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