Recently we were inflicted with the choice that had a lesser of two evils. Although the decision was made in early November, the topic still infuriates a multitude. Which would be worse, the continued raising of the debt ceiling or not raising our spending and possibly causing a default on our financial obligations? People that support the raising of the debt ceiling continue to say that this is not additional spending but already following through with what we’ve agreed to spend. This sounds good in theory and is actually how it works. Why do we have an $18.2 trillion national debt that continues to escalate? When is the time when we will stop this insanity?
Who Is To Blame?
This is not a one party problem that we can pin on the Democrats or the Republicans, both are at fault. We the people have said emphatically to stop the spending yet it still falls on deaf ears. When George Bush took office the national debt was $5.8 trillion. Upon his departure President Obama inherited the national debt at 10.6 trillion. President Bush doubled the national debt during his 8 year term. The projections are that under President Obama when he leaves office, the debt will be around $20 trillion. Most presidents have doubled the national debt during their term in office. Even one of my favorite presidents, Ronald Reagan. When he entered office the national debt was $998 billion upon his departure it was $1.86 trillion. Let’s look forward into the year 2024, based upon previous president’s actions, our national debt will be approximately $40 trillion.
Underfunded Government Funds
The majority of government funds are severely underfunded, Medicare, Medicaid, Social Security, Social Security Disability Fund, The Civil Service Retirement Fund, The Disability Fund, The Currency Stabilization Fund, The Highway Trust Fund and Government Pension Fund, just to name a few, are all underfunded, and have been borrowed from to the point of insolvency. The conservative number of underfunded liabilities is $52 trillion while most economists say it’s more realistically $104 trillion when you add the interest payments.
So back to the passing of this bill which was to extend the US borrowing limit otherwise default could have happened.
President Obama, in this bill, got 90% of increased spending of what he asked for in February, with no limit of spending until March 2017, a blank check. John Boehner brokered and signed the deal while Paul Ryan has a clean slate to work with. The debt jumped $339 billion on Monday, November 2nd the same day President Obama signed into law legislation suspending the debt ceiling. The government can’t borrow beyond the debt ceiling, so when that gets close the Treasury does “extraordinary measures” to keep the government afloat. When the ceiling was lifted our debt soared to $18.5 trillion, because of the spending that was done during a short period of time.
A recent news publication reported that five of the largest countries that have bought our debt historically must see our financial catastrophe brewing since they all stopped buying our debt in 2013. This year together they sold massive amounts of dollars. According to the U.S. Treasury this year has been the largest sell off of the dollar since they have been collecting data since 1978.
What Does The Future Hold?
The future unfortunately looks dim. For the “system” to work somebody has to buy our debt. Who will that be now? Fortunately President Obama has the answer. Remember in 2014 in his State of the Union address where he rolled out his new government retirement program called “MYRA”? Guess what is the only thing you can invest in under this new government program. U.S. Treasures! Americans are going to be left holding the bag. Ironically President Obama went on national news within 5 days of signing the bill to raise the debt ceiling, he launched the MYRA retirement program as he spoke about with great passion. Why did he wait almost a year and a half from the time of his announcement to implement this new retirement? I see it this way, this will start as an option and soon your 401(k) and IRA will be forced into a government retirement to also buy U.S. Treasuries. There is a name for this also, which is a Government Retirement Annuity or GRA. This event would support government debt reduction and also the US dollar.
The Coming Bail In
If you haven’t received the white paper I wrote titled “The Coming Bail In” explaining the government seizure of your assets in retirements and bank accounts, then I urge you to contact my company and get the facts. If you’ve already read this white paper then the times we are living in is confirmed again.
The time is now to act since President Obama wants to implement capital controls in 401(k)s and IRA’s through the implementation of a new fiduciary rule that would restrict the ability to get your hard earned money out of harm’s way. Obama is wanting to restrict the ability to hold physical metals in your retirement in your hands without a tax liability. In 22 years of being in the precious metals industry, I’ve never been so concerned for the future of our country and individuals protecting their hard-earned money from government seizure. That is why between now until the end of the year our company will pay for the legal fees in setting up your new retirement to help you get your hard earn money before the government gets it.
David Fischer is a recognized industry expert in precious metals with over twenty one years of experience guiding investments in gold and silver and the founder of Landmark Capital Gold Group. David’s market knowledge and insight on Federal Reserve Bank actions make him a sought after speaker appearing across the nation at financial and investment conferences.
Reprinted with permission.
Photo credit t3hWIT