The New Financial Scam Driving Workers Deep Into Debt

By Dave Johnson

If you can lure people into borrowing then you own them, sometimes literally—it’s a game as old as money itself.

Regular people don’t know much about money, loan terms or the trap of debt-slavery. This enables predators to dangle loans in front of desperate people and entrap them into various forms of financial and even actual servitude. Again and again schemes and scams pop up that trick people into borrowing. Of course, we all know how the credit-card trap has ensnared millions. Car loan terms have gone from two to three and now as long as five or even six years because people think a lower monthly payment is a good thing. In recent years we’ve seen “subprime” mortgages and payday lenders entrap borrowers. Now there is a new predatory lending scheme in operation called “workplace loans.” Keep an eye out for this, it is just one more way for the financial industry to lure workers into debt slavery.

But also keep an eye out for a different form of workplace loan that can actually help employees.

Yesterday: Payday Loans

These are tough times for a large number of people. By some estimates as many as 76% of Americans are living paycheck to paycheck some or all of the time, if this is defined as not having enough savings to live for at least six months. Some surveys show that 40% of Americans have less than $500 in savings. This means they are one car breakdown away from needing an emergency loan.

These are the very people who are poor credit risks and cannot get loans from the usual sources. So they often turn to “payday lenders.” Payday loans can have an interest rate up to 500%. They charge very high interest rates for short-term loans, often trapping people into a vicious debt spiral, borrowing to pay the interest on earlier borrowing while money for food and rent disappears. These lenders charge 15% or more for a two-week loan. That’s not 15% per year, that’s 15% for two weeks.

Read More The New Financial Scam Driving Workers Deep Into Debt | Alternet.

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20 Things the Poor Really Do Every Day

By Ben Irwin

FEMA Photo by Michael Raphael

FEMA Photo by Michael Raphael

Dave Ramsey probably wasn’t expecting this much pushback when he shared a piece by Tim Corley contrasting the habits of the rich with those of the poor. In her response on CNN, Rachel Held Evans noted that Ramsey and Corley mistake correlation for causality when they suggest (without actually proving) that these habits are the cause of a person’s financial situation. (Did it never occur to them that it might be the other way around?)

Ramsey fired back, calling the pushback “immature and ignorant.” This from a guy who just made 20 sweeping assertions about 47 million poor people in the U.S. — all based on a survey of 361 individuals.

That’s right. To come up with his 20 habits, Corley talked to just 233 wealthy people and 128 poor people. Ramsey can talk all he wants about Corley’s research passing the “common-sense smell test,” but it doesn’t pass the “research methodology 101” test.

To balance the picture a bit, I wanted to take a fact-based look at 20 things the poor do on a daily basis…

1. Search for affordable housing.

Especially in urban areas, the waiting list for affordable housing can be a year or more. During that time, poor families either have to make do with substandard or dangerous housing, depend on the hospitality of relatives, or go homeless.

(Source: New York Times)

2. Try to make $133 worth of food last a whole month.
That’s how much the average food stamp recipient gets each month. Imagine trying to eat well on $4.38 per day. It’s not easy, which is why many impoverished families resort to #3…

(Source: Kaiser Family Foundation)

Read More 20 Things the Poor Really Do Every Day | Ben Irwin.

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FBI Drops Law Enforcement as ‘Primary’ Mission

By John Hudson

Federal Bureau of Investigation (FBI) (http://www.crwflags.com/), via Wikimedia CommonsThe FBI’s creeping advance into the world of counterterrorism is nothing new. But quietly and without notice, the agency has finally decided to make it official in one of its organizational fact sheets. Instead of declaring “law enforcement” as its “primary function,” as it has for years, the FBI fact sheet now lists “national security” as its chief mission. The changes largely reflect the FBI reforms put in place after September 11, 2001, which some have criticized for de-prioritizing law enforcement activities. Regardless, with the 9/11 attacks more than a decade in the past, the timing of the edits is baffling some FBI-watchers.

“What happened in the last year that changed?” asked Kel McClanahan, a Washington-based national security lawyer.

McClanahan noticed the change last month while reviewing a Freedom of Information Act (FOIA) request from the agency. The FBI fact sheet accompanies every FOIA response and highlights a variety of facts about the agency. After noticing the change, McClanahan reviewed his records and saw that the revised fact sheets began going out this summer. “I think they’re trying to rebrand,” he said. “So many good things happen to your agency when you tie it to national security.”

Although a spokesman with the agency declined to weigh in on the timing of the change, he said the agency is just keeping up with the times. “When our mission changed after 9/11, our fact sheet changed to reflect that,” FBI spokesman Paul Bresson told Foreign Policy. He noted that the FBI’s website has long-emphasized the agency’s national security focus. “We rank our top 10 priorities and CT [counterterrorism] is first, counterintel is second, cyber is third,” he said. “So it is certainly accurate to say our primary function is national security.” On numerous occasions, former FBI Director Robert Mueller also emphasized the FBI’s national security focus in speeches and statements.

Although a spokesman with the agency declined to weigh in on the timing of the change, he said the agency is just keeping up with the times. “When our mission changed after 9/11, our fact sheet changed to reflect that,” FBI spokesman Paul Bresson told Foreign Policy. He noted that the FBI’s website has long-emphasized the agency’s national security focus. “We rank our top 10 priorities and CT [counterterrorism] is first, counterintel is second, cyber is third,” he said. “So it is certainly accurate to say our primary function is national security.” On numerous occasions, former FBI Director Robert Mueller also emphasized the FBI’s national security focus in speeches and statements.  – See more at: http://thecable.foreignpolicy.com/posts/2014/01/02/us_customs_not_sorry_for_destroying_11_rare_flutes_of_renowned_musician#sthash.v4KCp57Q.dpuf
Although a spokesman with the agency declined to weigh in on the timing of the change, he said the agency is just keeping up with the times. “When our mission changed after 9/11, our fact sheet changed to reflect that,” FBI spokesman Paul Bresson told Foreign Policy. He noted that the FBI’s website has long-emphasized the agency’s national security focus. “We rank our top 10 priorities and CT [counterterrorism] is first, counterintel is second, cyber is third,” he said. “So it is certainly accurate to say our primary function is national security.” On numerous occasions, former FBI Director Robert Mueller also emphasized the FBI’s national security focus in speeches and statements.  – See more at: http://thecable.foreignpolicy.com/posts/2014/01/02/us_customs_not_sorry_for_destroying_11_rare_flutes_of_renowned_musician#sthash.v4KCp57Q.dpuf
Although a spokesman with the agency declined to weigh in on the timing of the change, he said the agency is just keeping up with the times. “When our mission changed after 9/11, our fact sheet changed to reflect that,” FBI spokesman Paul Bresson told Foreign Policy. He noted that the FBI’s website has long-emphasized the agency’s national security focus. “We rank our top 10 priorities and CT [counterterrorism] is first, counterintel is second, cyber is third,” he said. “So it is certainly accurate to say our primary function is national security.” On numerous occasions, former FBI Director Robert Mueller also emphasized the FBI’s national security focus in speeches and statements.  – See more at: http://thecable.foreignpolicy.com/posts/2014/01/02/us_customs_not_sorry_for_destroying_11_rare_flutes_of_renowned_musician#sthash.v4KCp57Q.dpuf

Read More FBI Drops Law Enforcement as ‘Primary’ Mission.

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Better

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Happy Kwanzaa – Umojo

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Learn

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You

Hey

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Tyga (ft. Justin Bieber) – Wait For A Minute

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John Mayer (ft. Katy Perry) – Who You Love

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27 Things to Leave Behind in 2014

By Stacey Woods

baby-new-year1. Liking Things Ironically

The Baby Boomers rebelled against their dorky parents. We Gen Xers, however, couldn’t rebel against our parents since rebelling against your parents had been done, so instead, we cultivated irony; it was all we could do. This subtle, handcrafted irony, however, has fallen into the hands of subsequent generations who have been misinterpreting ever since, and now we have dorky a cappella singing competitions on TV. Ironically, that’s what happens when you try to be ironic — you end up making things a million times worse. Therefore, all intentional irony should be abolished until everyone’s clear on what’s good and what’s bad. It’ll probably take about five years.

2. Being All Ghetto

Getting your drink on, making it rain up in here, giving a shout out, being all about things, and throwing gang signs in pictures are all about 15 years out of date and weren’t that great to begin with. Classically, a ghetto is a tragic place from which to emerge, not dive into and declare fabulous.

3. Stepping Up Your Game and/or Bringing Your A-Game

Just forget about your game completely.

4. The Namaste Gesture

When directed at, let’s say, the dry cleaner, this abridged prayer and bow combo comes off as highly insincere. As with everything, if you can imagine Adam Levine doing it, you should avoid it.

5. Being Stoked

All too often, being stoked leads to giving a shout out. Best to avoid it.

Read More 27 Things to Leave Behind in 2014 – Esquire.

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