The system is going to implode and you need to know and be sure of that. It is just a question of how long they can keep it afloat. Below is just one of the scenarios that I like to think will play out in the next year or so. If you have any interest in your retirement plan being confiscated by the government I suggest you read on.
"The National Debt has now increased more during President Obama's three years and two months in office than it did during 8 years of the George W. Bush presidency." National Debt has increased more under Obama than under Bush - Political Hotsheet - CBS News. See the chart in the post. Pictures can assist in allowing your mind's eye to wrap around an issue better than words sometimes. This debt is only going to expand and rapidly as the recent budget submissions indicate, they plan on cutting nothing.
If you have never seen the U.S. National Debt Clock : Real Time check it out. My favorite figure in the chart is not the debt in the top left corner, but the $118 Trillion in UNFUNDED US Debt at the bottom of the page. Did you catch that? Wrap your head around the $118 trillion in unfunded liabilities.
You need to know this September your government will run out of money AGAIN (this is becoming a reoccurring theme) and they will be dipping into or not funding the pension system of the government workers to stay afloat AGAIN! "Naturally, coming from Geithner, it meant this statement was a flat out lief the second it left his mouth, which is why we decided to do our own analysis of just when the latest and greatest debt ceiling would be breached. The answer is that at the current rate of debt issuance, which incidentally is going to accelerate sharply due to the recent extension of the payroll tax cuts which will require an incremental $100-150 billion total debt to be funded, and extrapolating future issuance solely on historical patterns, the US debt ceiling D-Day will be September 14, 2012." US Debt Ceiling D-Day: September 14, 2012 | ZeroHedge
All that brings me to something I speak of every now and then and used to fucus on quite a bit, retirement plans. The unfunded liability to social security is roughly the same as that of the national debt standing at $15.6 trillion. When social security was dreamed up there were 33 workers for every retiree, now there are less than 3. Those numbers have failed the system, but that not the bad part. The bad part is congress has robbed the social security trust, leaving it with only IOU's, to fund the growth of the past two decades and to cover other costs. Your government has taken all of the retiree savings and spent them in the name of growth.
But unfunded (not under, but un) social security is only part of the problem. How about state pension funding? Well, a year ago this was a massive issue and since the markets have recovered this topic has calmed down a bit. Any dip in the market and this will be back front and center in the news. You see the Fed must protect the markets not only to give the illusion that all is well with the economy but to ensure that the pension system remains
"The Pew Center on the States recently released a report entitled "The Trillion Dollar Gap" that estimates the difference between the financial promises states have made and their actual assets. Pew calculates that states are saddled with almost half a trillion dollars in pension obligations; worse, Pew warns its estimate is low because most states won’t assess their plans until June and the Pew calculation doesn’t reflect dramatic investment declines in the second half of 2008." Just how big are public pension liabilities? > Publications > State Budget Solutions. See how your state was fairing last year in the post!
OK, so now back to QE, the Fed, the markets and the failed global Ponzi. I hope you get that the retirement system is totally busted (not to mention everything else, but this is the big secret and where they do not want you to focus). Remember that (in a nutshell) the global Ponzi is that other countries purchases our treasuries, those funds flow out to the US citizens and we in turn buy their imported junk. It is our job to consume and theirs to manufacture.
So in recent years the net flow from other countries has been OUT of treasuries. Whoops! Not good. So in order to make up for the missing flow we had to start printing to keep the system alive. Well, as seen above the Obummer (aka Barry) administration has been on a bit of a spending spree and the Fed has been in CRTL+P mode since early 2009. Sadly all this has completed is making a bad problem worse and has accomplished nothing but re inflating the debt bubble that got us into this mess in the first place.
Here is the punch line - At some point the Fed will no longer be able to print to support the system and with the retirement burden hanging over the nation they will have only one place to turn - your retirement savings. That is what's going to fund treasury purchases when they can no longer print.
Don't think that the recent O-MFG (MF Global) event was just nothing. Don't believe me? Do you think I am nuts? Try this on for size from October of 2010, we're coming closer to being a socialist state every day -
"Democrats in the Senate on Thursday held a recess hearing covering a taxpayer bailout of union pensions and a plan to seize private 401(k) plans to more "fairly" distribute taxpayer-funded pensions to everyone." New Lame Duck Threat to Bailout Union Pensions
"The radical solution most favored by Big Labor is the seizure of private 401(k) plans for government disbursement -- which lets them off the hook for their collapsing retirement scheme. And, of course, the Obama administration is eager to accommodate their buddies.
Vice President Joe Biden floated the idea, called “Guaranteed Retirement Accounts” (GRAs), in the February “Middle Class” report.
In conjunction with the report’s release, the Obama administration jointly issued through the Departments of Labor and Treasury a “Request for Information” regarding the “annuitization” of 401(k) plans through “Lifetime Income Options” in the form of a notice to the public of proposed issuance of rules and regulations. (pdf)" Republicans Sound Alarm on Administration Plan to Seize 401(k)s
Just like the the globalists were not ready for the crash of 2008 they were not ready for this move either. With the next crash, they will have all the pieces in place (think about the growing police state I discuss all the time and now they have the right president - Mitt works just as well). They are coming for your retirement assets sooner than later folks. Get used to the idea. As a patriotic citizen and good thoughtful American you will gladly surrender your hard earned retirement savings for the good of the nation much like the gold confiscation in the 30's.
I can not recommend any actions to take in this case. I'm pretty sure it will happen in the middle of the night and it will be a decree and you will not have a choice in the matter. If they announce it the panic rush and selling will surely collapse the markets and every mutual fund on the planet. the other problem is the investment firms will not be able to pay you all that you are owed (that is for another post).
I can say that your millions or however much is there will be reduced to a monthly amount that will equal everyone else. How nice of you! I'm not going to go as far as them stealing all your investments, that is for another post as well.
It's coming folks and you need to wake up. When the system collapses the next time there will be no recovery only massive global default as I have been predicting for years.
Of course your thought on this are appreciated below in the comments section.
GL and GB.
Post a Comment
Keep it civil and respectful to others.