You heard the news about Social Security, right? President Obama finally came out and said the only way to save the social insurance program is to immediately confiscate all qualified retirement plans like 401k and IRAs.
The President called on us to do our “fair share” because otherwise millions of Americans who depend on the program will fall through the safety nets.
Of course this confiscation has not actually happened YET, but pleas like this are not a far cry. For years we’ve known that Social Security is insolvent. According to the Heritage Foundation the Administration ran a $71 billion deficit in 2013.
Let’s face it; we all know something has to give. The government has embezzled Social Security funds and used them for other things, and Obama has been speaking about nationalizing retirement plans since his arrival on the national stage.
Countries like Poland and Argentina have required their citizens to buy government bonds or go to jail. How would you like for your 401k to be converted to government municipal bonds right after the economy spiraled further into the hole?
Former Congressman Ron Paul said this week that the fundamentals of our economy are not sound and there is a “dollar bubble.” And he went on to explain that we are on the precipice of a financial disaster.
· Something has to change with Social Security.
· Will 401Ks and IRAs be confiscated or heavily taxed to save Social Security?
· The “dollar bubble” could pop anytime.
According to economist Joseph Meyer, the Dow Jones Industrial Average in September 1929 (one month before the Great Depression) topped out at 381 points. By late 1932 the Dow had slumped all the way down to 41 points. That is roughly a 90% drop in value, and it took 25 years for the Dow to get back over 381 points in 1954.
Therefore it is realistic to think that the stock market could drop by similar measures. As we have written previously, when the stock market is closed you will probably be locked out of moving your CDs.
Now is the time to have your assets in safe positions. Now is the time to have a physical contract on your money, a contract that you hold in your hand.