The Slippery Slope Steepens
The United States is rather rapidly sliding into a fascist-type state (you can use the "corporatism" euphemism if the truth is too difficult to swallow). The government and their corporate oligarchy are stealing from the people and no longer care if the people have any cake to eat. The process was gradual at first, then accelerated during George Bush Jr's tenure.
Socialism does not describe what has been happening to the United States at all over the past decade. The military industrial complex, Homeland Security, war against a military tactic (i.e. the "War on Terror"), and unusually aggressive unprovoked invasions into tiny third world countries with no real military are the hallmarks of a more aggressive form of developing collectivism than socialism.
Couple this with the raping of the American taxpayer by corporate bail-outs that were unwarranted and unnecessary, government take-overs of corporations and industries, and the unprecedented infiltration of government ranks by corporate whores and felons like Hanky Pank Paulson and widdle Timmy Geithner (paid your taxes yet this year, widdle Timmy?). Add it up and we now essentially meet the traditional definition of a fascist state, which is a union of the government and large corporations that run the country with military/imperialist overtones. Because our aggressive and out-of-control government is broke and desperate, more measures to steal from the public and debase the currency are coming.
News of a recent major and intentional government-sponsored currency devaluation by Venezuela should send shivers down the spine of anyone paying attention who has their savings in U.S. Dollars. No, I am not saying we are Venezuela, but we are heading in that direction awful fast. Yes, a currency crisis can happen here and it almost certainly will, whether via capital flight or some new currency scheme. The timing is the only real issue.
Now, your retirement savings are at risk. I first commented on the likelihood of a 401(k) confiscation about a year ago. Because the government and Wall Street prefer to trick people and prey on the ignorance that has crept into our once great country, this confiscation it appears is progressing on schedule in a not very subtle form that should pass muster with most of the sheeple.
This article highlights how 401(k) distributions may be "structured" to provide "steady income" for retirees, as Obama and his dedicated administration are concerned over those who are interested, struggling and able to actually save money for retirement. Once introduced to the Congress, these proposals will provide an irresistable source of revenue to the government - just ask Argentina. For those who don't understand what this means, it means that the U.S. government is going to steal your retirement money and put it into government bonds to finance the deficit that they created by giving out money to their corporate friends in the defense, finance, housing and pharmaceutical industries (among others) and promising things to the populace that they couldn't possibly deliver.
Not only will the money in your 401(k)s, IRAs and/or other tax-sheltered investment vehicles be forced into government bonds (i.e. stolen and misappropriated), but this will occur at a time when government bond yields are near historical lows and can only move higher, which means this government lifeline and "guaranteed" income will be a wicked curse on those who "do the right thing." Couple this with the almost guaranteed further devaluation of the U.S. Dollar and you have a recipe for disaster.
If you think this proposal and this "exploration" of the annuity concept to "save" retirees from the volatile stock market are going to go away, then sleep well. Just don't say you weren't warned when your IRA is converted to "something better" that will "protect you." Who do you think will stand up for your rights when the time comes? Do you think that the 50% of the people in the U.S. who pay no federal income tax will come to your aid? Do you think the large percentage of the U.S. population that works for the federal government will come to your aid when their salaries and pensions will be at risk if this money is not stolen from you? Do you think Congress cares what you think when they passed the Wall Street bailout packages despite a deluge of calls, faxes and letters 90:1 against the measure? If you have savings, you are wealthy, and we all know the rich are evil.
The slope is getting steeper and more slippery. Now that the entire U.S. mortgage market is on the taxpayer's balance sheet waiting to explode like a nuclear bomb, now that the baby boomers are needing their Medicare and Social Security in rapidly increasing numbers, now that we have military bases all over the world and are destroying tiny defenseless countries and then paying to rebuild them, and now that the government is heavily involved in the auto, insurance, banking, and mortgage industries (health care is next), our economic future is guaranteed to be grim for the next several years and worse than it needs to be.
Additionally, taxes and fees will be raised significantly at all levels of government. Those who play by the rules are going to get screwed the worst and thus the middle class will continue to evaporate, exactly what is needed to clear the way for more aggressive government policies. The moral hazard has risen to the boiling point for those who play by the "old school" American rules and understand what is happening. Why not walk away from your mortgage? Why not stop paying your credit card? Why not stop paying taxes? Why not ignore the conventional social and/or "moral" constructs of our society when everyone who plays by the rules gets screwed while white collar criminals are rewarded and promoted? How else can you get back at "the system" for leaving you holding the bag short of outright rioting?
Physical Gold held outside the financial system is a good investment during such times because it can be hidden from the insane clown posse that poses as our leadership and the mistaken masses who continue to believe that they can get something for nothing from their government and fellow citizens. The tipping point is getting very close and one can only hope that there are enough motivated and educated patriots available to stop the process at this point. America is no longer very close to a free capitalist society and to think otherwise is ridiculous in my opinion.
Things are going to get darker in America before a new dawn can (hopefully) begin and few are prepared for it. And if you think this is a Democrat or Republican issue, you haven't got a clue what's actually going on right now. Look out for yourself and your friends and family, as those who were paid to do these things for you have done the opposite and they are going to leave you holding the bag.