When have economic tensions not been high? The reality is that in America’s brief history we’ve been going from one recession or depression to another. We largely go from turmoil to turmoil due to our immense appetite for war. Prior to the Great Depression the only comparable event was the Panic of 1893.
Of course the Great Recession has been minimized and quantitative easing programs have covered the full ramifications of it. The money printing programs are clear evidence that the American government is insolvent. Because we’ve been able to rely on this fiat money printing game our depression has been covered up and called a recession. One of the problems is that all the Washington bureaucrats at the Treasury Department have really done is rearrange the deck chairs on the Titanic.
Most troubling, U.S. liabilities far exceed the official stats that the Treasury Department reports. Unfunded liabilities are north of $200 trillion from government created entitlement programs and from Social Security, which the government uses as a taxpayer-supported slush fund.
When our government shows no signs of wanting to end our wars abroad, and in fact they are actually planning and preparing for warfare on American soil, the question remains: how will you protect your assets from economic uncertainty?
Remember, when you lose 50% of your retirement nest egg, you must make 100% to break even again. How many years will that take? Seven years after the last downturn some people are just now at a breakeven point… And this is when the stock market has been artificially inflated with fake money and setting records. What happens when you are in your prime retirement years and your mutual funds tank?
Remember, the greatest dangers we face are raising taxes and inflation. Milton Friedman said, “Inflation is the one form of taxation that can be imposed without legislation.” With constant wars and a growing entitlement class and fiat money printing, taxes and inflation must necessarily increase.
With that, are you willing to take on the unnecessary risk mutual funds and the stock market pose? With inflation rates soaring, you’re losing money if it’s locked away in a bank. Not to speak of the financial uncertainty that surrounds the banking industry.
When all deck chairs on the Titanic are going overboard, will you be on the lifeboat or will you stay on the sinking ship?