Keeping Up to Date.

A Gentle Nudge in the Right Direction

Since I have warned you folks of what I think will be the results of 5 years of a very inept government administration, I feel I should keep you up to speed on the bread and butter issues as we approach the unknown. I would really like to tell you why the Fed has to taper their quantitative easing but I will have to defer that conversation to a later date because of new information about your retirement accounts.

We all know what has happened in Greece, they have leveraged retirement accounts with the EU for bailout funds, that’s old news. They need another bailout, no surprise there. Here’s the deal, they don’t have any collateral, so the EU (European Union) has hatched a new plan to take the public road system and public buildings as collateral against the new loan. So now not only will the Greeks only get pennies on the dollar of their retirement accounts but their roadways and buildings will be sold to the highest bidder when they default once again – anyone looking to buy a country at a liquidation sale ? On another front Ecuador has delivered 466 thousand ounces of gold to Goldman Sachs as collateral for a 3 year lease deal to pay its bonds to the Chinese for the money they borrowed from them. I think the total Ecuadorian indebtedness to the Chinese is around 11 billion dollars so a quick 20 million won’t keep them off the hook for long. Lastly the ECB (European Central Bank) has for the first time in history lowered interest rates to negative, a very dangerous precedence and something our own Fed has hinted at recently. Let’s see what the implications are for the US.

The president is at the G7 today and he warned the UK to stay in the EU. This administration has no idea what to do in the US and he is giving advice to the UK, that can only mean one thing, he is planning to take your retirement accounts in the same way the EU does it in Europe. It will be to protect you from consumer fraud, he will take your IRAs, 401Ks and Annuity Accounts and give you government bonds – low yield government bonds and tie them to the economy. Remember he set up MYRA bonds at the beginning of the year, that’s where your retirement account will go and you lose all control of your own money.  Well why not he got away with government controlled health care – a 10% tax on every person that pays taxes – doesn't it follow that he would take your retirement and promise future payments while spending your money giving freebies to the illegal aliens and the undeserving.