Thursday, October 25, 2012

The world is bankrupt -- How it will affect you

Harvey Gordin

Despite the disingenuous doublespeak coming out of the Federal Reserve and all the campaign rhetoric, the true state of our economy is in dire circumstances. It is not going to have a 'soft' landing and unemployment is not going to rebound for tens of millions of Americans. Not in 2012 or 2013. Unless the U.S. Congress suddenly awakens from their delusional state that spending us into the stratosphere is the right course to take, you should look out for yourself and your family - now.

Why? Because the toxic "global" economy for one thing is trillions in debt. Because the affected countries are socialist (except Germany), the reforms that should have been undertaken decades ago are too little too late. Greece is DOA and Germans are tired of bailing out the same repeated mistakes. Portugal, Ireland Spain and Italy are the next dominoes in line for major trouble.

Due to the foolish U.S. Congress, one session after another who refuse to abolish the central bank draining the lifeblood of this country, we the people are being bleed dry from foreign financial entanglements that are now rolling across the ocean. The "Fed" is swapping debt like drunk sailors in a bar trading "Matey" stories. Unfortunately, millions of Americans are unaware or don't understand the big picture and how all this will affect everything they've toiled for during a lifetime.

The Congress continues their lunatic spending ways as if there are no consequences to their actions. On January 17, 2012, the U.S. Treasury once again began borrowing from government retirement pension funds to pay for the reckless spending. Robbing Peter to Paul Paul only temporarily holds off the inevitable.

If the House and Senate again vote this week to raise the debt ceiling limit by another $1.2 trillion dollars, it should further reinforce what so many of us already know: Either members of Congress have zero understanding of what all this borrowing is doing or they simply don't care.

That should deeply distress every adult aged American in this country regardless of party affiliation. The actions of a few (Congress), while lining their pockets from insider knowledge, are ruining the lives of millions:

Boomers find 401k plans fall short

"The 401k generation is beginning to retire, and it isn't a pretty sight. The retirement savings plans that many baby boomers thought would see them through old age are falling short in many cases. The median household headed by a person aged 60 to 62 with a 401k account has less than one-quarter of what it would need in that account to maintain its standard of living in retirement, according to data compiled by the Federal Reserve and analyzed by the Center for Retirement Research (CRR) at Boston College for The Wall Street Journal. Even counting Social Security and any pensions or other savings, most 401k participants appear to have insufficient savings."

Will you be one of the tens of millions of Americans who finds their standard of living at the poverty level by the time you retire? Remember: Paper assets, whether it be the ones in your wallet or your 401(k) or other retirement tools, are not really money in that their only worth is backed by the "faith and credit" of a government that is more than $15 trillion in the hole, not counting the $202 trillion in unpaid mandates for social security, prescription pills and Medicare. Thomas Jefferson said: "Paper is poverty,... it is only the ghost of money, and not money itself."

Astute investors and the wealthy have always owned gold. If you look back at Germany under Hitler, people fled leaving everything behind. To withdraw money from banks would have brought attention to them that could have been fatal. Political and economic collapse are staring at the world and the world is buying gold in ever increasing quantities.

If you've never owned gold, give me or Jay Reichard a call so we can help you to understand the danger of leaving all of your assets in one volatile basket. If you already own gold and/or silver and want to further invest, give us a call today.

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