Americans’ wealth just hit a new record. So, why do so many people feel so poor?
Most people say they’re falling behind financially, according to a recent Pew Research Center survey, with 56 percent reporting that their incomes aren’t keeping up with the cost of living. Among those with incomes under $30,000, 70 percent say they’re falling behind. Some pundits would have you believe we’re unhappy because our expectations are too high.They paint us as Frappuccino-sipping, iPhone 6-lusting mega-consumers, unable to curb our desires or delay gratification as earlier generations did.
Except earlier generations could count on their incomes steadily rising. We can’t. Most Americans are, in fact, worse off financially than they were before the recession, according to a Census Bureau study. Overall, incomes are shrinking. The median household income in 2012 was $51,017, down from $55,627 in 2007 and the 1999 peak of $56,080. (All figures are in inflation-adjusted, 2012 dollars.)
The gains in household wealth from rising stock and real estate prices are going mostly to those in the higher income brackets. The Federal Reserve, which announced that household wealth hit a record $81.5 trillion in June, also noted that fewer people in the bottom half of the income distribution own stocks or are contributing to retirement plans. Without exposure to equities, these households won’t share in any future stock market gains.
As incomes shrink, you might think people would be taking on more debt — especially if we’re the spendthrifts we’re supposed to be. But that doesn’t seem to be the case. Total U.S. household debt as a percentage of disposable income has been dropping since its peak of 130 percent in 2007. This summer, household debt fell to around 107 percent of disposable income.
A still-sluggish job market and the likelihood of economic setbacks contribute to Americans’ sense of financial unease. In the Pew survey, most respondents (58 percent) said jobs were hard to find and only one in five expect economic conditions will be better in a year. At the same time, 45 percent said they had suffered serious financial problems in the past year, such as a layoff, problems paying the rent or mortgage, trouble getting or paying for medical care or problems with collection agencies.
Clearly, a better economy — with higher incomes all around, rather than just for a few — could ease Americans’ sense that they’re losing ground. In the meantime, here’s what you can do to help build your own sense of financial security:
Keep saving (and investing) for retirement. Sure, the stock market crash was scary, but stock values have more than doubled since the March 2009 bottom. If you want to grow your wealth, a good portion of your retirement funds should be in stocks.
Continue to pay off debt. Target credit card and other high-rate, toxic debt first. But you shouldn’t accelerate payments on mortgage or federal student loan debt until you’re on track with retirement savings.
Look for opportunities to earn more. Economists say higher wages may be on the horizon, but right now your loyalty may be costing you since raises are so small. Jumping to another company may be the best way to get a substantial boost in pay.
Author: Liz Weston
Liz Weston is an award-winning journalist and author of several money books, including the best-selling “Your Credit Score.” She writes about personal finance at her site AskLizWeston. You can like her on Facebook and follow her on Twitter.
LIKE CLOCKWORK: Pension plans to be looted nationwide as Congress okays institutional theft of funds
On April 2, 2013, in an article entitled Economics 101: Production, coercion and theft, I wrote about the coming looting of pension plans, stating:
When societies approach collapse, coercion shifts to outright theft: Stealing money right out of your bank account, for example, like we recently witnessed in Cyprus. Government also routinely target pension funds and even private retirement accounts, attempting to keep itself afloat by any means necessary.
Just like clockwork, that looting of pension plans is now about to commence. “Congress could soon allow the benefits of current retirees to be cut as part of an agreement to address the fiscal distress confronting some of the nation’s 1,400 multi-employer pension plans,” writes Michael Fletcher of the Washington Post.  The Post continues:
“This proposal would devastate retirees and their surviving spouses,” said Karen Friedman, executive vice president of the Pension Rights Center, a nonprofit group. “The proposal would also torpedo basic protections of the federal private pension law … that states that once benefits are earned, they can’t be cut back.”
All the pension benefits that have been promised government retirees, in other words, are about to be stolen back from retirees.
This is precisely what I’ve long warned Natural News readers was coming. And this is merely the very beginning of the true destruction of the financial collapse headed our way. When the next market crash arrives, billions of dollars in retirement funds will be destroyed virtually overnight, and pension funds nationwide will be wiped out.
A “declaration of war” against the American worker
The fact that this wholesale theft of pension funds is now under way has not escaped union workers and retirees.
As WashPost also reports:
“This is nothing less than a declaration of war by Congress on American retirees,” said R. Thomas Buffenbarger, international president of the International Association of Machinists and Aerospace Workers.
Indeed, “war” is exactly how most people are going to perceive this… especially when retirement checks are the primary source of income for many retirees who are just barely getting by.
For millions of Americans, when those checks stop coming, it spells instant financial disaster. Many won’t be able to pay their mortgages or rent payments, and we are sadly going to see a massive wave of new American homeless coupled with a glut of vacant homes owned by banks teetering on financial collapse.
As pension funds are increasingly looted and stolen from retirees, more and more of America is going to resemble Detroit: a city that once shined with innovation but now — thanks to outrageous corruption, taxation and the endless expansion of government — has collapsed into third-world status that even lacks running water for many of its residents.
Back in 2013, I warned about all this in an article entitled “Production, Coercion and Theft.”
It’s time to revisit that article, so here it is:
Flashback: Production, Coercion and Theft
I’d like to share a lesson in economics today, and I call it the “Production, Coercion and Theft” lesson.
There are only three ways to accumulate money and wealth in world (other than stumbling across a hidden treasure and actually finding money, that is):
#1) Production: Offer something of value in exchange for money voluntarily traded by recipients
#2) Coercion: Confiscate money (or stores of value) by claiming authority over those who earn it
#3) Theft: Steal money (or stores of value) from those who already have it
Every person in society today acquires money in these three ways (with “gifting” being a fourth way that’s in a separate category because it’s passive, not active). The office worker, the entrepreneur, the laborer, the weekend burglar and even the professional politician all acquire money in one of these three primary ways.
Production means offering something of value to another party who is willing to trade you dollars for it. It can include both goods and services. A 9-5 office worker, for example, offers the value of their time and effort, and in exchange they are compensated at an agreed upon pay rate.
Production can also mean adding value to physical goods. We do this at the Natural News Store by sourcing organic superfoods from around the world and packaging them in pouches and cans for retail in the USA. This is a classic example of value-added production.
Out of the three methods of money accumulation covered here, production is the only one that adds abundance to the economy. The other two methods reduce wealth and ultimately promote poverty.
Coercion means forcing someone to give you money. This is the default method of all government bodies, from your local property tax collector to the federal IRS. Coercion means extracting money from someone in a non-mutually-agreed (i.e. “non-voluntary”) way.
Being mugged is a lot like being taxed
A mugging is money extraction via coercion. Ironically, it is almost identical to taxation: There is a threat of force stated or implied, followed by a request for a certain amount of money: “Give me your wallet” or “Pay $12,453.24.” Your compliance results in the source of the coercion taking your money then moving on to their next victim. Non-compliance results in you either being shot, stabbed, arrested at gunpoint or stripped of other possessions you may own.
Theft is different from coercion in that there is no interaction at all between two parties. Theft is when someone breaks into your house and steals your flat screen TV when you’re not even there. Or it’s when someone breaks into your online bank account and transfers all your money to an offshore crime haven in Nigeria.
Theft is what recently happened in Cyprus, where banksters stole 40% or more of private account balances, later stealing 60% or more of many business accounts. It wasn’t coercion because there was no threat of force, nor any compliance on your part. You simply wake up one morning and find that your bank account, your truck, your wallet or your laptop computers is missing. That’s theft… and that’s how the global banking system fundamentally functions.
Another advanced kind of theft is committed by the Federal Reserve. By printing new money, it steals the value of all the money you currently hold. This is called “currency theft” but a full discussion of it is beyond the scope of this lesson. For now, let’s stick to simple theft and coercion.
The illusion of compliance
Governments typically shy away from engaging in outright theft. Why? Because they hope to create the illusion of voluntary compliance. By coercing you into giving up your money “voluntarily,” they avoid the appearance of outright stealing money or property from you. You “agreed” to pay your taxes, didn’t you?
In certain cases, of course, the government does engage in outright theft. This is called “eminent domain” and it means the government simply claims ownership of something you own (usually some land or a building), then decides how much money to pay you for it. The government claims the right to steal from you for “the common good,” implying that the benefit of some is more important than protecting the private property rights of all.
Theft is also carried out through misrepresentation and fraud. If a used car salesman sells you a 2005 Chevy pickup with “only 25,000 miles” on it, but it turns out they hacked the odometer and the vehicle actually has 300,000 miles on it, that’s misrepresentation and fraud.
This is very common in the food industry where “extra virgin olive oil” often turns out to be cut with GMO canola oil. Or where “tuna fish” actually isn’t from tuna. In the health supplements market, misrepresentation and fraud is also common among heavily-hyped “miracle” supplements that claim impossible results. Acai weight loss pills are a good example.
Misrepresentation and fraud is how virtually the entire system on Wall Street operates, by the way. It’s all a numbers game where investment houses sell stocks short while telling their customers to buy. The ratings are faked, the customers buy the stock, the investment brokers sell it short and wait for the stock to tumble from its artificial high, after which they rake in the profits.
Why governments prefer coercion to theft
By and large, governments far prefer coercion to theft. The IRS, for example, continues to insist that paying federal tax is a “voluntary” act. “Compliance is voluntary,” they admit. But this brand of volunteerism comes with the heavy hand of coercion. A typical warning letter from the IRS threatens the recipient with losing all his property and spending years in jail if they refuse to comply.
So yes, paying the IRS is “voluntary” as long as you don’t mind the consequences: Years in prison and the forfeiting of everything you own. That’s classic coercion.
By the same token, a Chicago mafia goon could walk into a popular night club in 1929 and say, “You’s gonna volunteer to pay us 20% of your profits, okay?” (Say that in your head with a cartoonish mob accent for better effect.) Followed by: “It would be a real shame to see a nice joint like this burn to ashes, y’know?”
This is not unlike the offer made by the IRS. Pay us 50% (or more) of your income, or lose your freedom.
Obamacare is implemented entirely by coercion. The gambit is this: Buy Obamacare health insurance, or we’ll just confiscate money right out of your paycheck. That has very little difference from the mafia’s offer of “pay us 20% or we burn this place down.” In both cases, it’s a threat and a demand for compliance. That’s coercion.
Coercion and theft are signs of a crumbling society
When society is healthy, production is the dominant method of wealth creation. But when society begins to fall into criminality, corruption and government gone bad, coercion and theft become the dominant methods for diverting wealth from those who have earned it into the hands of those who are receiving it.
All agents and employees of the government are, by definition, beneficiaries of coercion. Their salaries are paid entirely by the government’s confiscation of wealth from private sector workers and businesses, all of whom comply solely because they are threatened with imprisonment if they fail to do so.
The ratio between production and coercion is a very good indicator of the level of freedom in any given nation. When tax rates are low, production is high because people have more incentive to start businesses, hire more people and produce more products or services. Wealth is primarily created by productivity
But when tax rates are high — more coercion — production plummets because the rewards for starting a business and hiring workers are diminished. The focus of the economy becomes government growth accompanied by increasing coercion / confiscation of private wealth.
When societies approach collapse, coercion shifts to outright theft: Stealing money right out of your bank account, for example, like we recently witnessed in Cyprus. Government also routinely target pension funds and even private retirement accounts, attempting to keep itself afloat by any means necessary.
Understand these three key truths
In summary, the fall of society can be understood through these key transitions:
Abundant society = Freedom and liberty = Production and wealth creation
…then Production becomes Coercion
Coercion society = High taxes, growth of government = Wealth confiscation
…then Coercion becomes Theft
Theft society = Looting of private bank accounts, government seizure of industry = Wealth destruction
…Theft leads to Collapse
The EU has entered the stage of “coercion becoming theft.” The collapse is near.
Readers always ask me for “sources” when I write original articles, so I’ll answer this question up front: What is my source for this analysis? There is no specific source. These ideas are self-evident. I did not read them in any particular book or website, nor learn them in a course of some kind.
Click here to read “Economics in One Lesson” (PDF) and gain an understanding of economics vastly exceeding that of Ben Bernanke.
See the article just published on Mises.org which just happens to coincide with my own article here. It’s entitled, Taxation is Robbery, Part 1.
Sources for this article include:
Author: Mike Adams
21 Signs That The New Reality For Many Baby Boomers Will Be To Work As Wage Slaves Until They Drop Dead
All over America tonight, millions of elderly Americans are wondering if their money is going to run out before it is time for them to die. Those that are now past retirement age are not going to be rioting in the streets, but that doesn’t mean that large numbers of them are not deeply suffering. There are millions of elderly Americans that are leading lives of “quiet desperation” as they try to get by on meager fixed incomes. Many are surviving on Ramen noodles, oatmeal, peanut butter or whatever other cheap food they can find in the stores. There are some that are so short on cash that they will not turn on the heat in their homes until things get really desperate. As health care costs soar, millions of elderly Americans find themselves deep in debt and facing huge medical bills that they cannot possibly pay. A lot of older Americans would go back to work if they could, but jobs are scarce and very few companies seem to even want to consider hiring them. Right now caring for all of the Americans that have already retired is turning out to be an overwhelming challenge, and things are about to get a whole lot worse. On January 1st, 2011 the very first Baby Boomers turned 65. A massive tsunami of retirees is coming, and America is not ready for it.
Sadly, most retirees have not adequately prepared for retirement. For many, the recent economic downturn absolutely devastated their retirement plans. Many were counting on the equity in their homes, but the recent housing crash crushed those dreams. Others had their 401ks shredded by the stock market.
Meanwhile, corporate pension plans all across America are vastly underfunded. Many state and local government pension programs are absolute disasters. The federal government has already begun to pay out significantly more in Social Security benefits than they are taking in, and the years ahead are projected to be downright apocalyptic for the Social Security program.
So needless to say, things do not look good for the Baby Boomers that are now approaching retirement age.
The following are 21 signs that the new reality for many Baby Boomers will be to work as wage slaves until they drop dead….
#1 According to a shocking AARP survey of Baby Boomers that are still in the workforce, 40 percent of them plan to work “until they drop”.
#2 A recent survey of American workers that included all age groups found that54 percent of them planned to keep working when they retire and 39 percentof them plan to either work past age 70 or never retire at all.
#3 A poll conducted by CESI Debt Solutions found that 56 percent of American retirees still had outstanding debts when they retired.
#4 A recent study by a law professor from the University of Michigan found that Americans that are 55 years of age or older now account for 20 percent of all bankruptcies in the United States. Back in 2001, they only accounted for 12 percent of all bankruptcies.
#5 Between 1991 and 2007 the number of Americans between the ages of 65 and 74 that filed for bankruptcy rose by a staggering 178 percent.
#6 Most of the bankruptcies among the elderly are caused by our deeply corrupt health care system. According to a report published in The American Journal of Medicine, medical bills are a major factor in more than 60 percentof the personal bankruptcies in the United States. Of those bankruptcies that were caused by medical bills, approximately 75 percent of them involved individuals that actually did have health insurance.
#7 The U.S. government now says that the Medicare trust fund will run dryfive years faster than they were projecting just last year.
#8 Starting on January 1st, 2011 the Baby Boomers began to hit retirement age. From now on, every single day more than 10,000 Baby Boomers willreach the age of 65. That is going to keep happening every single day for the next 19 years.
#9 Over 30 percent of all U.S. investors currently in their sixties have more than 80 percent of their 401k retirement plans invested in equities. So what happens if the stock market crashes again?
#10 All over the United States predatory lenders are coldly and cruelly foreclosing on elderly homeowners. You can read what one lender is doing to a 70-year-old woman and her terminally ill husband right here.
#11 Medical bills are absolutely devastating large number of elderly Americans right now. Many are going to great lengths to try to pay their bills. An elderly woman that lives in the Salem, Oregon area that is fighting terminal bone cancer tried to raise some money for her medical bills by holding a few garage sales on the weekends. However, a neighbor ratted her out, and so now the police are shutting her garage sales down.
#12 Social Security’s disability program has already been pushed to the brink of insolvency and wave after wave of new applications continue to pour in.
#13 Approximately 3 out of every 4 Americans start claiming Social Security benefits the moment they are eligible at age 62. Most are doing this out of necessity. However, by claiming Social Security early they get locked in at a much lower amount than if they would have waited.
#14 According to the Congressional Budget Office, the Social Security systempaid out more in benefits than it received in payroll taxes in 2010. That was not supposed to happen until at least 2016. Sadly, in the years ahead these “Social Security deficits” are scheduled to become absolutely nightmarish as hordes of Baby Boomers retire.
#15 In 1950, each retiree’s Social Security benefit was paid for by 16 U.S. workers. In 2010, each retiree’s Social Security benefit was paid for by approximately 3.3 U.S. workers. By 2025, it is projected that there will be approximately two U.S. workers for each retiree. How in the world can the system possibly continue to function properly with numbers like that?
#16 According to a shocking U.S. government report, soaring interest costs on the U.S. national debt plus rapidly escalating spending on entitlement programs such as Social Security and Medicare will absorb approximately 92 cents of every single dollar of federal revenue by the year 2019. That is before a single dollar is spent on anything else.
#17 Most states have huge pension liabilities that are woefully underfunded. For example, pension consultant Girard Miller recently told California’s Little Hoover Commission that state and local government bodies in the state of California have $325 billion in combined unfunded pension liabilities. When you break that down, it comes to $22,000 for every single working adult in the state of California.
#18 Robert Novy-Marx of the University of Chicago and Joshua D. Rauh of Northwestern’s Kellogg School of Management recently calculated the combined pension liability for all 50 U.S. states. What they found was that the 50 states are collectively facing $5.17 trillion in pension obligations, but they only have $1.94 trillion set aside in state pension funds. That is a difference of 3.2 trillion dollars. So where in the world is all of that extra money going to come from? Most of the states are already completely broke and on the verge of bankruptcy.
#19 According to one recent survey, 36 percent of Americans say that they don’t contribute anything at all to retirement savings.
#20 According to another recent survey, 24 percent of all U.S. workers saythat they have postponed their planned retirement age at least once during the past year.
#21 Even though prices for necessities such as food and gas have been exploding, those receiving Social Security benefits have not received a cost of living increase for two years in a row. Many elderly Americans that are living on fixed incomes are being squeezed like they have never been squeezed before.
There are millions of Americans out there that have done everything “right” all of their lives, but that now find the system letting them down in their golden years.
So how badly are some people hurting? Well, a reader identified as “Anna44”recently shared with us what some of her family members have been going through in this economy….
My B-I-L was a dealership owner/manager who worked long hours over 38 years and had to close his doors when Saturn was dissolved. When his dealership went under, 72 others lost their job. That’s 72 families who took a hit. He lost his home, everything. A few of his former employees lost their homes as well eventually. They were not lazy or WORTHLESS. It took him a year and a half to finally find something, but now he lives in a hotel unable to qualify for a house or apartment. This is an educated man who competed nationwide for top dog and got it more then once. His biggest fault? He’s almost 60, young enough to need the work, but too old to be hired.
As for my husband- 26 years AF officer, handling millions & billions on International & National levels has just entered his 7th month of unemployment. Two tours abroad- lazy he is NOT. He doesn’t qualify for unemployment, nor is he counted because he gets a retirement check. He wants and needs to work- yet there is little out there. If he doesn’t find something soon, we too will lose the home we sunk every cent into after 20 years of saving for it!
These are Americans that should be getting ready to enjoy their golden years, but that are now fighting just to survive.
Today you will find a disturbingly large number of elderly Americans flipping burgers or welcoming people to Wal-Mart. But most of them are not doing it because they are bored with retirement. Rather, most of them are working as wage slaves because that is what they have to do in order to survive.
Sadly, there are a whole lot of companies out there that do not want to hire people that are past a certain age. If you are older than 50, there are a lot of jobs that you should just basically forget about applying for.
Instead of valuing the experience and wisdom of our elders, our society openly makes fun of them and treats them as undesirables.
If you are afraid of getting old, you are not being irrational. Getting old is indeed something to fear in this society. We tend to treat elderly Americans like garbage.
Abuse of the elderly is rampant. For example, a report from a couple of years ago found that 94 percent of all nursing homes in the United States had committed violations of federal health and safety standards.
As the U.S. economy continues to crumble, the way we treat the elderly is probably going to get even worse.
Right now there is tons of bad news about the economy, and another major economic downturn would put even more pressure on federal, state and local government budgets.
The truth is that there is simply no way that we can keep all of the financial promises that we have made to elderly Americans even if the most optimistic projections for our economy play out.
If the worst happens, we are going to see a lot more elderly Americans eating out of trash cans and freezing to death in their own homes.
The United States is facing a retirement crisis of unprecedented magnitude. A comfortable, happy retirement is rapidly going to become a luxury that only the wealthy will enjoy.
For most of the rest of us, our golden years are going to mean a whole lot of pain and suffering.
That may not be pleasant to hear, but that is the truth.
Economic Collapse, August 22nd, 2011
The Folks Who Want to Steal Your 401 and IRA are From the Government and They are Here To Help You [Enter An Impoverished Retirement]. But You CAN Protect Yourself!
Keep Reading to Find out How!
For an in-depth personal discussion on How To Protect Your Retirement Funds and Support Health Freedom at the same time, please contact Ralph Fucetola, JD, our Counsel and Trustee, at 973-300-4594, email him at Ralph.firstname.lastname@example.org or Skype him at vitaminlawyer.
If you are looking for a way to safeguard your retirement and for a way to support health and health freedom, this letter is of enormous significance to you. Off shore investing is risky for novices. Off shore investing through a qualified investment vehicle and an experienced Custodian is simple, well-established and, at this time in fiscal history, a very, very good idea.
As the global economy prepares to spiral into hyperinflation and the collapse of the now-nearly-worthless dollar, the United States Government is going through a step by step process to steal your retirement. Their plan? To protect your hard-earned IRA and 401 money, leaving you with a guaranteed annuity paying you a whopping 3% – backed, you will be delighted and relieved to know, by the strength of the US dollar and the impeccable honesty of the US Department of Treasury.
Under current law, it is legal to move IRAs and, under some circumstances, 401 funds out of the United States (a process called expatriation while preserving the significant tax advantages of such funds. Using a self directed IRA and/or, if permitted by your 401 plan, a self directed 401 structure, you can direct where you would like to have your money invested. It is still, after all, YOUR money, although that will change shortly, according to the Federal Register of DATE [give citation] when your money is turned into a worthless annuity. Once that happens, the money itself will no longer be available to you, even if you are willing to pay a heavy tax penalty like the one you would incur if you took your money out of your IRA or, if allowed, your 401. You probably will not be able to access your annuity funds and you certainly could not put them into an off shore investment vehicle.
At this point, however, if you [wisely] want to get your money out of the reach of greedy, crazed and fiscally demented Uncle Sam, you can still do so by making sure that your funds are in a self-directed program and that the investment vehicle you want to put your money is has been closely examined and approved by an approved Custodian.
Once the investment vehicle is approved, the Custodian will complete the necessary paperwork to move your money into the offshore investment. Your money is now outside the United States, very difficult for the US Government to get its hands on and still within the tax deferred structure of your retirement program.
Why are the Trustees of the Natural Solutions Foundation telling you this? Our Valley of the Moon Eco Demonstration Project, www.NaturalSolutionsFoundation.org, in Volcan, ChiriquÃ, Panama, is an approved investment vehicle. Every Custodian who has examined it for a potential investment of a self directed IRA or 401 has concluded that it is a properly constructed corporation which meets all of the necessary requirements and has invested the money of their client as the client directed.
There are rules and restrictions to this way of investing your money, but they do not interfere with your participation in the Valley of the Moon Eco Demonstration Project as either a Beneficial Interest Certificate holder who can live in Panama as part of the project or as an investor whose money is living in Panama. In either case, your money is earning interest, safely tucked away offshore where the US Government would have a very difficult time reaching it and you are helping the work of the Natural Solutions Foundation.
How much time is left before you will no longer be allowed to expatriate your savings? We received this information from an Internet source:
Are There Any Government Documents To Prove It?
* In Chapter 3 of the Annual Report on the Middle Class released in
February by Vice President Biden and the White House Task Force on the Middle
Class, the Obama administration calls for enhancing the “retirement options” The
plan, as sketched in the 43-page document, calls for the creation of something
called “Guaranteed Retirement Accounts” (GRAs).
* U. S. Federal Register; -“annuitization” of Individual 401(k)s. set
forth in a set of “Proposed Rules” published on February 2, 2010.
What Government Agencies Are Involved?
Department of Labor and Treasury… among others. The last meeting took place
September 14th and 15th 2010, where they laid out the Course of Action. The
agenda is now called “Lifetime Income Options for Retirement Plans”
Why Do They Want Our IRAs & 401(k)s AND What Will They Do With Them?
The Treasury Department has (worthless) Bonds to Sell… and Foreign demand is
drying up. China no longer wants our Debt.. Do You?
This will be Done in an attempt to balance the U.S. Deficit and Once Again make
the U.S. Credit Worthy to China and Other Buyers of our Debt.
The Federal Government will Manage and Control an estimated $3.613 Trillion
Dollars in IRAs and $2.350 Trillion Dollars in 401(k)s.
The Equity will be placed in U.S. Treasury Bonds that will Pay out an estimated
3%. One major clause is that upon retirement, the value of the Individual’s
Account will be placed into Annuities. Once the individual Dies, the Value of
the Account will automatically become property of the Government. The Program
will be structured much like Social Security Accounts (the biggest Ponzi Scheme
What Financial Firm Will We Need To Trust, In The Handling Our Money?
The March 9 edition of Business Week, notes that new federal regulations
designed to “promote the conversion of 401(k) savings and Individual Retirement
Accounts into annuities or other steady payment streams” would help drive cash
into government-controlled entities such as American International Group (AIG).
VIDEO of BHO raising the issue at the State of the Union Address
Our National Debt and the Mass Production of Paper money has Hit A Point of No
Return! Desperate times, Call for Desperate Government Measures!
If the Following indicators are Right.. Things will get worse BEFORE they can
get any better.
* Unsustainable U.S. Debt
* Unsuccessful Treasury Bond Auctions
* Credit/lending Crunch
* Our Dependence on China
* Feeble Housing Market
* Real Unemployment continues to rise
* Out Sourcing Jobs overseas
* Bank Crisis (2-7 Banks fail every week)
The same reasoning applies to your private savings, trust funds or other assets. The ball is in your co