This morning I was looking over financial markets to see just how bad things were eroding. As I was doing that, I stumbled onto an article talking about another Obama proposal. I realized I had skipped Obama's State of the Union speech and therefore I must have missed Obama unveiling a new retirement plan for Americans.
The new MyRa plan would allow Americans to buy government debt, bonds, directly from the government to secure some sort of return for "retirement." Buy the debt of a country already 17.5 trillion in the hole with no way of reducing the principal amount. The article I read was actually selling this as a good idea. I am in awe once again.
This government just can't keep it's hands off your money.
I cannot stop thinking about Japan. With a debt to GDP ratio north of 220%- Japanese citizens own most of the country's debt. This is precisely what President Five Iron wants you to do. Start buying American debt because nobody else in the world will. They have run out of customers and you are the customer of last resort.
Anybody, with half a brain, is not going to buy the debt of a country offering no collateral with a currency on the verge of default. But maybe the American sheeple will.
This is a government that simply refuses to quit spending- ever.
I fell into the government trap years ago. I started a secondary retirement plan because I could do so "tax free." What a line of shit that was. I was barely able to hang onto it through a divorce and then I caught the great depression. I was forced to cash out that retirement plan. The government took it's 10% penalty, another 20% off the top in taxes, and the state took their 6%.
So not only did I lose nearly half the value of my savings but I also received what remained- in newly minted, inflated QE dollars.
Don't ever, ever, forget what I am about to tell you. Don't ever trust this government. If it is offering you a "retirement plan" what that really means is that the government wants to steal your money, change the rules at will, and the money you save today will be paid back to you at some future date with a completely devalued currency that the government can print at will- backed by nothing. Zimbabwe dollars.That's the real key. The government will simply erode your savings completely away by printing money.
That's their solution. A hyperinflation event is the only means of eliminating the debt they have accumulated and I guarantee you it will happen.
If all of this weren't bad enough- we haven't even seen the effects of Obamacare yet not to mention the 8 new tax hikes going into effect after this year. I think President Five Iron is beginning to realize that Obamacare is DOA.
Compounding this even further, the entire working middle class is broke. They don't have money for retirement. There are 100 million of us out of the labor force. What the following chart doesn't capture is the 5% decline in disposable income from 2009 until now- double what this graph depicts.
To call Obama reckless is too simplistic. This is a guy completely detached from the reality of what is actually occurring in this country. The government is quickly running out of tricks. Don't fall for this one.