Saturday , 29 February 2020

Your Retirement: What Happens If the Gov’t Doesn’t Get Its Act Together?

I recently discovered a video entitled 10 Myths About Government Debt that lays out several reasons why we are in real trouble. I encourage you to watch this 21 minute video.

The most troubling assertion in the video is that our nation’s usual sources of loans are tapped out…[and that] the only source we have left is the Federal Reserve, which means printing money.

The current U.S. money supply is $3.4 trillion and our current budget deficit is $1.1 trillion, so funding the entire deficit with newly printed money will increase the money supply by 33%. At the same time, $4 trillion in Quantitative Easing is being gradually unwound (removed from bank vaults), an event that…could create serious inflation because there’s a multiplier effect — $4 trillion in new money can lead to $40 trillion in circulation.

What can we do?

Inflation is a tax on dollar denominated savings, so a sensible protection is to save in other forms like a basket of:

  • Treasury Inflation Protection Securities (TIPS),
  • Precious metals,
  • and real estate.

…What do you think is going to happen to your retirement if the government doesn’t get its act together?

Editor’s Note:  The above excerpts from the original article by Ronald Surz have been edited ([ ]) and abridged (…) for the sake of clarity and brevity.  The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.  Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor. Also note that this complete paragraph must be included in any re-posting to avoid copyright infringement.

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