Part Of The System
by David Tanner

I have advised my customers for quite some time to quit adding to their 401(k) plans at work. My logic is simple.

First, pay your taxes now rather than defer them till later when tax brackets will be much higher. We are all going to have to pay a larger percentage of our incomes in taxes as our government debt becomes greater and greater with a shrinking working population to pay for it. Retirees will be forced to pay higher taxes in the future to make up for the shortfall. Period. Consider the following:

However, it is the three levels of the U.S. government who have the most serious solvency crises. Over just the next generation, the U.S. government is facing a $3 trillion per year shortfall just on benefit entitlements of existing social programs – for which not one penny of money has been set aside. Indeed, instead of saving money for when those trillions would be needed, the federal government has plundered over $4 trillion from various government “trust funds”, over just the last two decades. source


Second, I would not suggest putting your money in anything that "ties it up" at this point in history. ANYBODY can be jobless tomorrow. Liquidity is of ultimate importance at this time. It is also important to have a source of funds out of the reach of the long arm of the federal government.

And finally, you have no investment options within your retirement plans except mutual funds and insurance company fixed accounts. THIS IS THE MAJOR DANGER.

As our economy spirals into the abyss, the government and corporations alike are finding it harder to sell their bonds to raise money. Smart money managers are refusing to buy them with their own funds. HOWEVER, they are glad to buy them with yours.

Mutual funds and insurance company guaranteed accounts are simply pools of investor money that are managed by professional money managers. These managers are the same "insiders" that are responsible for this whole mess in the first place. The future derivatives collapse (perpetrated by professional money managers) is a time bomb waiting to go off. Nobody in-the-know wants to own them. However, mutual fund investors are not in-the-know, and the professionals that are paid to manage their 401(k)s are more than happy to dump these trash securities from their mega-client portfolios into yours and mine. If you think they care about you, then you need to return to Kansas, Dorothy.

Our government recently quit reporting who was buying their bonds. (see note below) Why? Because no one is buying them. They are being forced to buy them back themselves, and pawn them off on the banksters who in turn pawn them off on unsuspecting mutual fund investors. It is you and I that will be left holding the bag when all this "crap" defaults.

So, as you go through your annual 401(k) enrollment at work, if you really care about your financial future, you will opt out and buy gold, which is the ONLY financial asset that is not somebody else's liability.

(Plus, if you buy gold from me, I will make lots of money, and that's really what this post is all about!)


Note:
source
Again, this act of desperation is also being (temporarily) concealed, through totally altering the reporting of its Treasury “auctions” so that even bond-dealers with decades of experience in this market have absolutely no idea who is buying U.S. Treasuries.

While the U.S. government claims that most of these auctions are “covered”, as a matter of elementary logic, such denials are obvious lies. The U.S. government is currently attempting to flog more of its debt than any other government has ever attempted in history – at a time when the amount of available dollars to soak-up those new debts is at its lowest level in at least a decade.

Obviously if you want to try to borrow more money than any other nation has ever attempted, you would go out of your way to increase the “transparency” of that bond market – to inspire the confidence of your would-be lenders. The only, possible explanation for the U.S. government going to extreme lengths to obscure its bond market is to hide the fact that the U.S. government has become virtually the only “buyer” for its own debt.