The Weekly TreeceCo Report
By Tony Treece
It was shocking. Do you ever have moments when everything comes together? During President Obama’s State of the Union address when he announced his plan to start a new kind of government retirement account, the master plan began revealing itself.
MyRA uses your retirement savings to buy U.S. Treasuries, which in turns pays for U.S. debt. With nobody left to buy government debt, this is a last ditch effort to seize your retirement and savings to fund the government’s thirst for more debt.
Remember when debt created growth? That is no longer the case, and in fact it is the opposite. For example in days past $10 of debt would create $50 of growth, but now it is the opposite. Today $50 of debt creates $10 of growth. Basically, we are upside down in our debt with no way to continue.
America is $17 trillion in debt, not including unfunded liabilities. Wrap your mind around the fact that the U.S. Treasury has estimated that our debt will be $28 trillion by 2018! This cannot go on, and President Obama knows it.
To make matters worse the Federal Reserve has been printing stimulus money at a rate of $85 billion per month for months on end, and only recently has began drawing back what it prints. They only began the tapering because they cannot afford to fund the national debt.
Take a guess how much money is wrapped up in in retirement accounts like 401Ks, IRAs, and other accounts. Conveniently it happens to be $19 trillion. The government has been eyeing this money since 2008, and do not forget that other countries are already requiring their citizens to buy government bonds or go to jail!
Obama’s MyRA is sold as a safe no-risk savings plan. Here’s exactly what he said: “I will direct the Treasury to create a new way for working Americans to start their own retirement savings: MyRA. It’s a new savings bond that encourages folks to build a nest egg. MyRA guarantees a decent return with no risk of losing what you put in.”
Essentially, nobody wants to buy U.S. debt, so you should. Further, it’s been demonstrated many times that our debt cannot be paid off. And with the Fed tapering, interest rates have nowhere to go but up. Which means those bond prices will go down. Seems to be a pretty bad investment choice, if you ask me.
That begs the question then of how the government will get us to buy these Treasuries? Force. Brute force and manipulation is what I expect. With a little research you can find Teresa Ghilarducci’s plan to nationalize retirement accounts. Also legislation has already been proposed to put this motion. Her motivation is to put private retirement accounts in government-managed accounts.
Once the MyRA system is in place and it lacks interest like Obamacare, the government will begin forcing us to buy this insolvent government debt.
With this information it may seem that you do not have many options, but there are actually specific things that you can begin doing today to prepare your life and finances. I would be happy to share those with you personally. Give my office a call at 1.855.534.4653 to schedule a time to speak.