US Retirement Accounts at Risk
mrearlygold
Posts: 17,858 ✭✭✭
US Retirement Accounts at Risk
by Michael Ross
Retirees, investors, business owners, and countless others are becoming increasingly concerned by the growing debts of governments worldwide. As Japan slips into its third decade of an ever-deepening recession, observers also point to the United States, whose national government indebtedness is now the largest of any in human history. Consider these facts:
In 2001, the US federal debt was less than $6 trillion. By the end of the 2012 fiscal year (September 30), it had topped $16 trillion [source: Treasury Department].
It increased more during President Obama's first three years and two months in office than it did during the eight years of his predecessor's two terms [CBS News]. By the end of Obama's first term, the debt had increased by $5.8 trillion, which is greater than the total debt accumulated under all the presidents from George Washington through Bill Clinton [CNS News].
The US government is responsible for more than a third of all the government debt in the world, which itself is now well past $40 trillion [Huffington Post].
The ratio of US federal debt to the country's entire GDP is almost 75 percent, and the country's external debt relative to its GDP has reached 103 percent [Trading Economics], making it the second worst major country, and putting it in the fiscally disreputable company of Ireland and Portugal.
The US government debt is increasing by about $150 million every single hour. It now exceeds $52,000 per citizen, and is almost $146,000 per taxpayer [US National Debt Clock].
The first trillion of debt took two centuries to accumulate, while the most recent trillion was racked up in only 286 days [Sovereign Man].
This is the official debt, and thus merely the tip of the iceberg of unfunded obligations of Social Security and Medicare, estimated at an astounding $222 trillion, by economics professor Laurence J. Kotlikoff [Real Clear Policy].
With Keynesian economists claiming that indebtedness is not only benign but economically beneficial, and American politicians asking every voter to trust that they will somehow balance the books in the future, we should ask ourselves how this is going to end. If history is any guide – and it invariably is – then it all may end quite badly. Every major political power in the past – even the mighty Roman Empire – could not sustain these levels of indebtedness forever. In the meantime, it is a worsening drag upon the American economy. Economists Carmen M. Reinhart and Kenneth Rogoff (authors of This Time Is Different: Eight Centuries of Financial Folly) have shown that government debt exceeding 90% correlates with a decline in economic growth of approximately one percentage point each year. More disturbing is Professor Reinhart's observation that hitting the debt wall is typically an unexpected and nonlinear event [Wall Street Journal]. (Anyone who wishes to learn more about the US national debt can view the documentary "I.O.U.S.A." or a condensed version.)
There is ongoing debate as to how long the United States can continue to sustain these growing levels of federal debt. Based upon analysis conducted by The Comeback America Initiative, a deficit watchdog group, the Sovereign Fiscal Responsibility Index [Wall Street Journal] indicates that the US government is on target to default within 16 years.
IRA/401K's targeted
by Michael Ross
Retirees, investors, business owners, and countless others are becoming increasingly concerned by the growing debts of governments worldwide. As Japan slips into its third decade of an ever-deepening recession, observers also point to the United States, whose national government indebtedness is now the largest of any in human history. Consider these facts:
In 2001, the US federal debt was less than $6 trillion. By the end of the 2012 fiscal year (September 30), it had topped $16 trillion [source: Treasury Department].
It increased more during President Obama's first three years and two months in office than it did during the eight years of his predecessor's two terms [CBS News]. By the end of Obama's first term, the debt had increased by $5.8 trillion, which is greater than the total debt accumulated under all the presidents from George Washington through Bill Clinton [CNS News].
The US government is responsible for more than a third of all the government debt in the world, which itself is now well past $40 trillion [Huffington Post].
The ratio of US federal debt to the country's entire GDP is almost 75 percent, and the country's external debt relative to its GDP has reached 103 percent [Trading Economics], making it the second worst major country, and putting it in the fiscally disreputable company of Ireland and Portugal.
The US government debt is increasing by about $150 million every single hour. It now exceeds $52,000 per citizen, and is almost $146,000 per taxpayer [US National Debt Clock].
The first trillion of debt took two centuries to accumulate, while the most recent trillion was racked up in only 286 days [Sovereign Man].
This is the official debt, and thus merely the tip of the iceberg of unfunded obligations of Social Security and Medicare, estimated at an astounding $222 trillion, by economics professor Laurence J. Kotlikoff [Real Clear Policy].
With Keynesian economists claiming that indebtedness is not only benign but economically beneficial, and American politicians asking every voter to trust that they will somehow balance the books in the future, we should ask ourselves how this is going to end. If history is any guide – and it invariably is – then it all may end quite badly. Every major political power in the past – even the mighty Roman Empire – could not sustain these levels of indebtedness forever. In the meantime, it is a worsening drag upon the American economy. Economists Carmen M. Reinhart and Kenneth Rogoff (authors of This Time Is Different: Eight Centuries of Financial Folly) have shown that government debt exceeding 90% correlates with a decline in economic growth of approximately one percentage point each year. More disturbing is Professor Reinhart's observation that hitting the debt wall is typically an unexpected and nonlinear event [Wall Street Journal]. (Anyone who wishes to learn more about the US national debt can view the documentary "I.O.U.S.A." or a condensed version.)
There is ongoing debate as to how long the United States can continue to sustain these growing levels of federal debt. Based upon analysis conducted by The Comeback America Initiative, a deficit watchdog group, the Sovereign Fiscal Responsibility Index [Wall Street Journal] indicates that the US government is on target to default within 16 years.
IRA/401K's targeted
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
0
Comments
Wall St. agents squashed this discussion in 2010. When and if it resurfaces look for them to repeat their actions.
I do however foresee a change that would allow non-penalty early withdrawal of previously non-taxed Roth IRAs in order to expedite the taxation of funds withdrawn. I also expect legislation that ends the Roth deferred tax break, thus eliminating all future Roth accounts/contributions. There is no doubt that Washington would like to get its hands on retirement fund capital but don't expect Wall Street to give up their piece of the pie. To get to your retiirement account money Washington has to first go through Wall St - Wall St. controls Washington.
"How many times can a man turn his head and pretend he just doesn’t see?” - Bob Dylan
Got GOLD?
Default is already in process. It simply won' be declared as such. Good luck with your "government guarantees". I'll stick with something real.
I knew it would happen.
likely say you have too much income (because you saved) during your retirement, so you pay higher tax,
and reduce SS payments.
<< <i>there's a better chance we will get hit by an asteroid in the next 16 years than US Government default
Default is already in process. It simply won' be declared as such. Good luck with your "government guarantees". I'll stick with something real. >>
One of the things I learned during "superstorm" Sandy is, you can't eat gold, it can't heat your house or run the lights, and you can't use it in place of gasoline for your car.
Did you also learn that you can't eat government-issued bonds or use them to heat your house, run the lights or pay for gasoline? What does "superstorm" Sandy have to do with government default?
If government debt is such a good idea, what percentage of your net worth are you holding in bonds? Just askin'.
I knew it would happen.
Knowledge is the enemy of fear
Free Trial
Actually you can use them to heat your house. Some may in the future. MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>
<< <i>there's a better chance we will get hit by an asteroid in the next 16 years than US Government default
Default is already in process. It simply won' be declared as such. Good luck with your "government guarantees". I'll stick with something real. >>
One of the things I learned during "superstorm" Sandy is, you can't eat gold, it can't heat your house or run the lights, and you can't use it in place of gasoline for your car. >>
One of the things I learned from snow storm Nemo last week is that I couldn't heat my house with less than fully seasoned wood. Also found out that gasoline, fresh motor oil,
newspapers, coin catalogs, or FRN's weren't of any help either to get a strong, sustaining fire going. It really didn't matter if gold could "heat the house" because nothing else was getting
it done either. I though for sure the old coin catalogs would go up quickly. They aren't even good for burning....lol.
Ironically, within an hour of power restoration I was loading up on some 3 yr old seasoned oak from my neighbor. First time in 21 years here that we lost power in the winter.
Will have a better plan in place for the next time.
"How many times can a man turn his head and pretend he just doesn’t see?” - Bob Dylan
Most people would go along with this and it gives them an immediate cash infusion which they will in turn
obliterate through their various wealth transfer schemes.
Loves me some shiny!
calm is can't change in a minute. Give back some tidbits here and there and people think things are going fine.
We are frogs in lukewarm water (the economic state) and we don't know it.
2. people considered as readily available and of little value: cannon fodder.
<< <i>Thanks for the laugh; there's a better chance we will get hit by an asteroid in the next 16 years than US Government default. >>
Agree. The government can and will create any money necessary to pay its debts. That's why you can expect inflation in your future. Tangible assets anyone?
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
BST Transactions (as the seller): Collectall, GRANDAM, epcjimi1, wondercoin, jmski52, wheathoarder, jay1187, jdsueu, grote15, airplanenut, bigole
<< <i>
<< <i>there's a better chance we will get hit by an asteroid in the next 16 years than US Government default
Default is already in process. It simply won' be declared as such. Good luck with your "government guarantees". I'll stick with something real. >>
One of the things I learned during "superstorm" Sandy is, you can't eat gold, it can't heat your house or run the lights, and you can't use it in place of gasoline for your car. >>
If that's the case, then your FRN's weren't of much help either unless you used them to fuel your wood stove or fireplace. I would consider a dollar devaluation essentially the same as a default. And that seems quite likely in the next 16 years. So where can I buy an asteroid shield? Will they accept 1 oz AGE's in payment? The govt might be able to pay their debts in a shtf environment. Just don't expect your FRN's, TBonds, munibonds, or stock certificates to necessarily pay for your own purchases. But signing over the deed to your house might work.
This, and Wall St. wont have a damn thing to do with any of it, in the sense of being able to stop a dime from it from happening, as some here think.
Poof! Gone with the push of a button.
"How many times can a man turn his head and pretend he just doesn’t see?” - Bob Dylan
HE>I
In public finance, hedge funds will sometimes give slight discounts, but the numbers are still enormous. In Rhode Island, over the course of 20 years, Siedle projects that the state will pay $2.1 billion in fees to hedge funds, private-equity funds and venture-capital funds. Why is that number interesting? Because it very nearly matches the savings the state will be taking from workers by freezing their Cost of Living Adjustments – $2.3 billion over 20 years.
Its only human nature, that a system controlled by either a conspiring body like a government or a lone person like a dictator, it will be become corrupt as long as there is a treasury to loot-social security, public, private pension funds, etc. Man will never change, it is innate or part of is genetic make up that all power will corrupt absolutely. The mistake that is being made throughout history, is man is gullible and trusting in nature in which he allows such a government or lone person to be in complete control of his destiny.
Box of 20
Is Poland the Bail In model for the US?
"How many times can a man turn his head and pretend he just doesn’t see?” - Bob Dylan
I knew it would happen.
It is funny in a peculiar kind of way that somehow folks have fallen away from this piece of wisdom...the mind reels.
But, knowing that the gov has $86.8 T in public retirement obligations...now you really got me reeling.
Methinks that we might soon be seeing "Bail-In" floated in some of the better read and watched media (in plain, lay language) to get folks used to the thought. That will be the cue to get all of your eggs in good order.
Hey Buddy, can you spare an ASE?