SchoonerPete

In one of the most shocking State of the Union Addresses in recent memory, President Obama announced he will create a new kind of retirement account – the MyRA – which uses your retirement savings to buy U.S. Treasures and pay for U.S. debt. Obama’s announcement follows a number of startling events which demonstrate how desperate the government is becoming: with nowhere else to turn, the government is making a last-ditch effort to seize personal savings & retirement to fund the nation’s insurmountable debt. And there’s only ONE thing you can do to stop it from happening. Read more...http://www.wholesaledirectmetals.com/index.php/gold-blog/609-obamas-myra-s**m-your-savings-pays-for-us-debt

pana Loc: are we there yet?

This was a great article to how this man actually got them to admit that they were forcing IRA seekers into the program.
"Last week in his State of the Union address, the President of the United States laid the groundwork for a new government program he calls "MyRA".

As he explained to the American people, this program will allow US taxpayers the ability to loan their retirement savings to the federal government (which, according to POTUS, carries ZERO risk).

Given that US Treasury yields fall far below the rate of inflation, this is a big win for the government, and a big loser for the poor suckers who loan them the money.

The President then hit the road, touting his one-of-a-kind program. The Treasury Secretary hit the newspapers, encouraging Americans to enroll.

I can see this unfolding like a War Bonds campaign, appealing to Americans’ love of country to get them to loan their money to the government at sub-inflation yields.

In Italy they’ve already used football stars in patriotic appeals to get Italians to buy government bonds. In Japan they use teenage girl bands to entice wealthy Japanese businessmen to open their wallets for government bonds.

So let’s see how long it takes for George Clooney and Matt Damon to make the pitch for the MyRA program… and how long after that it becomes mandatory for all Americans.

Meanwhile, the IRS is doing its part.

One of the best solutions that we’ve discussed in the past to liberate your IRA from this destructive trend is to set up a particular type of self-directed IRA.

But the IRS has been intentionally making it more difficult to set up these structures over the past year. Now there’s even more roadblocks.

In order to set up this type of structure, it’s imperative to first obtain a tax ID number. But due to agency budget cuts, the IRS is no longer issuing tax ID numbers for domestic entities through its call center. They’re saying that now you HAVE to use the online system.

This is one website that the government actually got right. The tax ID application website is fairly straightforward, and it works great. EXCEPT if you are trying to set up this type of IRA.

So if you’re an individual trying to obtain a tax ID number for your new company, no problem. The online system works great.

But if you punch in that you are setting up a company to be owned by your IRA (or some other entity), then suddeny the system crashes and times out.

I had my staff ring up the IRS yesterday to demand an answer. After two phone calls, each with a 30+ minute wait time to reach a human being, we finally got an answer. Confirmation, actually.

The agent told us that yes, in fact, the online system has been programmed to intentionally reject tax ID number applications for companies that are owned by entities like an IRA.

So they have essentially eliminated the option to apply online. But they won’t let you apply over the phone either.

You can apply through the mail, but that will take 30-days, according to the agent. Or by fax, provided that you first cough up all sorts of other documentation.

It certainly begs the question– at a time when the President of the United States is whipping up excitement over this new program to loan the government your retirement savings, why is their tax agency putting up huge roadblocks for Americans who don’t want to become victims?

Until tomorrow,
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Simon Black
Senior Editor, SovereignMan.com "

stan3186

The above link is basically an advertisement to buy gold and silver from a company, but what he says is true. The MyRa is a s**m that the Federal Government is running or plans to run to force all retirement accounts to be invested in the Federal Government thereby funding the National Debt with retirement funds.
I for one will never invest into the Federal Government as they have no clue howto handle money as evidence by the 17 Trillion dollar debt. I would never invest in a company that was highly leveraged, and the Feds don't even have assets, just debt. Anyone would be foolish to invest in such a poorly run organization. You actually may be better off just taking the money and burying it in the back yard.

pana Loc: are we there yet?

Burying money is a bad idea. Real inflation was over 9% last year when calc'ed by the 1980 process.

MarvinSussman

Why should the peasants get the same investment advantage as the 1% of the 1%? Let them gamble at the Wall Street casino! Look what it did for their 401(k)s!

MarvinSussman

Q1: For taxpayers, is our “national debt” really a burden that must be repaid?
A1: No. For taxpayers, it is not a real debt. It’s a “Debt In Name Only”, a “DINO”-*

THE DINO IS NOT NOW AND NEVER WILL BE A BURDEN FOR TAXPAYERS. It is rather the buyers of newly-issued bonds who, in a virtual rollover, pay for redemption of mature bonds. In every auction, more bonds are demanded than are available. Auction winners get the safest, most liquid US dollar instruments; the losers are stuck with bank risk. If it were ever necessary, the Fed, with cost-free keystrokes, could increase the demand for bonds by buying a large slice of the DINO in the market.

THE DINO WILL NEVER BE REPAID AND SHOULD NEVER BE REPAID. Only a budget surplus can reduce the DINO. Since Truman, no President has reduced the DINO and no annual budget surplus is now in sight. To supply enough bonds, the ONLY risk-free securities used for trade collateral, insurance, pensions, bank reserves, etc., the DINO MUST GROW with the economy! Our world needs the DINO!

Every federal dollar spent and not taxed is saved by the private sector. Yes! DEFICITS = SAVINGS! The Treasury has a “National debt” and the private sector has a “National asset”! The bad “Debt Clock” is also the good “Asset Clock”. Since, with our trade deficit, we export money, deficit spending is our economy’s SOLE source of savings! In fact, if large budget deficits don’t soon replace our vanishing cash, deflation will freeze our economy solid. Who would spend a dollar today if it would buy more tomorrow?

Our economy is suffering from acute anemia. Our (DINO + total bank deposits) / GDP ratio is less than half of China’s figure. Our M2 (money supply) / GDP ratio is half of Switzerland’s ratio and one fourth of Hong Kong’s ratio. To become and stay prosperous, we need to DOUBLE the DINO / GDP ratio to return it to the World War II level that was followed by 35 years of prosperity without harmful inflation.

Ine******y worsens the anemia. Most of the paltry money supply circulates among the Rich who corrupt Congress for estate laws to stay rich to buy Congress for laws that enrich the Rich to buy Congress…..etc.
Wealth is power and inherited wealth is inherited power: aristocracy, always the enemy of meritocracy!

Q2: Won’t the annual debt interest expense explode the budget?
A2: Bond-holders’ taxes return about 20% of their interest income. New bond issues finance the rest. As no physical resources are consumed and the money supply does not change, there is NO INFLATIONARY EFFECT. About 80% of the interest is added to the DINO, which is good. For those reasons, CBO budget economists deal only with the “primary” budget, which excludes the annual debt interest expense.

Q3: Could savers make a “run” on US Treasury bonds?
A3: Yes, when savers can get risk-free returns from the Wall Street casino or from GM bonds, Illinois bonds, or Detroit bonds. Safety is not everything. Safety is the ONLY thing! That’s why the whole world relies on US bonds.

Q4. Could savers stop buying US Treasury bonds?
A4. Yes, indeed! SAVERS WILL ALWAYS WANT THE SAFEST BONDS for trade collateral, insurance, pensions, bank reserves, etc. Now, almost two thirds of the world’s reserve currencies are in US dollars and almost half of all US Treasury bonds are held by foreigners. But if China’s infrastructure and productivity become better than ours, its bonds could become safer than ours and we could then lose our bond-buyers. And that could happen if US v**ers let their DINO concerns stop the renewal of falling bridges, failing schools, creaking railroads, leaking sewers, etc. Money can be printed, but infrastructure has to be built with real resources and time, which have no substitutes.

Q5: Won’t we need higher income tax rates to pay for infrastructure?
A5: Congress NEVER asks the Treasury if can pass a spending bill. In effect, Congress writes a check that Treasury NEVER bounces. To finance a deficit, the Treasury auctions new bonds created out of thin air with keystrokes.

The only rational reason to restrict deficit spending is the onset of harmful inflation. Until then, Congress can
finance both the DINO’s annual interest payment and our much-needed infrastructure. Every day, you fill your sink with water AND you prevent it from overflowing. Why can’t Congress fill our economy with money by building infrastructure AND prevent harmful inflation? China builds 24/7 without harmful inflation. Why can’t we do that?

While a bank holding too many bad loans can certainly hold too many maturing CDs, our non-lending Treasury cannot hold too many maturing bonds unless its deficit spending causes harmful inflation. And that happens ONLY in a war or emergency requiring rationing. It NEVER happens during a recession. During prosperity, banks are ALWAYS the main cause of inflation, creating over $6 of credit for every $1 of deficit spending. To curb inflation, regulate the banks before stopping work on infrastructure projects!

Q6: How much should Congress tax and spend?
A6: Ideally, Congress should tax just enough to prevent harmful inflation and should spend almost enough to cause full employment (and therefore harmful inflation). Result: prosperity with low inflation.

Instead, bribed by Wall Street, Congress taxes as little as possible, enriching the rich, and spends as little as possible, impoverishing the rest of us by restricting deficits / savings. Just as quacks k**led George Washington by bleeding his “bad blood”, Congress is destroying our younger generations by reducing (possibly to zero!) our annual budget deficits / private sector savings increase / consumer demand. And, by bribing Congress to pass austerity budgets, the Wall Street charlatans are deliberately nursing a huge army of unemployed labor to suppress the wages and working conditions of the shrinking middle class.


Q7: How should one v**e?
A7: V**e only for someone who NEVER EVER worries about the DINO and who ALWAYS worries about people looking for work and drawing benefits instead of building infrastructure for their grandchildren.


Q8: “I have to balance my budget. Why doesn’t Congress balance its budget?”
A8: If you could legally print money in your attic, why would you balance your budget? Congress only needs to balance full employment against harmful inflation. Why is something so simple so hard to see?

The “debt crisis” is simply a h**x crafted by Wall Street to gain a fortune in commissions through privatization of Social Security and other government programs. Don’t be a sucker for the s**m!
.
To stay ahead of China, please help me convince v**ers that deficit spending on infrastructure is limited ONLY by harmful inflation. Please copy and distribute this message where possible.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
*The Q & A dialogue above is based on works by: (books cost about $10)
Frank N. Newman, former Deputy Secretary of the US Treasury, recipient of the Treasury’s annual “Alexander Hamilton” award, author of “Freedom from National Debt” (Two Harbors Press);
Francis X. Cavanaugh, US Treasury economist for over 30 years, author of: “The T***h about the National Debt”: Five Myths and One Reality” (Harvard Business School Press);
Warren Mosler, economist, author of “Seven Deadly Frauds of Economic Policy” (Oxford U. Press);
Dr. Stephanie Kelton, Chair of the UMKC Economics Department, at NewEconomicPerspectives.org.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
© 2014 Marvin Sussman All Rights Reserved. Permission granted only to copy entirely.

madshark

Marvin, just because you have cobbled together a bunch of questions and i***tic answers which are the failed excuses for Keynsian economics, and post the same i***tic pap every time the topic comes up, does not make it true. Those demostrably wrong economic theories have been causing the decay of the US since FDR.

pana Loc: are we there yet?

The US is losing the currency war for global reserve position.
http://www.theguardian.com/business/2014/jan/10/china-surpasses-us-world-largest-trading-nation
With the betrayal of our reps to allow profitable outsourcing of our manufacturing jobs and H-1B visa's to give foreigners our white collar jobs there is no policy that will allow an economic recovery.
The solution lies in the elimination of the Federal Reserve. Restore the power to congress to handle our currency as the constitution directed. Boot them out of this country and tell them the debt was always unconstitutional and we are being kind enough to allow them to leave instead of jailed or worse. Print the money to pay our foreign debt (since we are printing anyway) Institute a flat tax, Without the fed manipulating the currency for their own benefit (the banks) inflation would not have the devastating fluctuations Separate the banks from the investment banks and insurance companies (AIG) and limit their derivatives trading (gambling) with depositors money.
North Dakota has a state owned people bank and is one of the biggest reason that the are the top economically stable state in the Union.
That is just my opinion but I think if any politician ran on that platform we would have the biggest land slide in history. We could afford to continue to help our own people, bring our troops home, mind our own business and create jobs again.

stan3186

It is the Liberals way of saying everything is fine and nothing to worry about, which is total BS. The larger the debt, the less value the dollar has. If all the debt were to be owed to US Citizens instead of foreign countries, then the temptation would be huge for the Feds to default. After all, what would be the fallout since Americans could do nothing about it. Where, if they were to default on foreign investments then we would lose the reserve status for our money and they wouldn't be able to print more.

pana Loc: are we there yet?

:thumbup:

MarvinSussman

Demonstrate! Demonstrate if you can! But you can't because you have neither the knowledge required nor the brains required to get the knowledge.

All you can do is parrot something you read somewhere!

Bug off, blowhard!

pana Loc: are we there yet?

This is not a good sign. IMHO. this is the chart to watch to see when manipulation is no longer effective and I will go shopping and stock up when it hit 78-79.

bmac32 Loc: West Florida

Just to be on the save side we bought a safe years back and decided metals were safer than any other form of worth. While it's true we make no money on what we have we're not dependent on the money men whom have turned the dollar almost worthless.

pana Loc: are we there yet?

Extremely smart move.
I just finished "Gold Wars" by Kelly Mitchell. If I had any doubts before I don't now. It is an amazing book.

bmac32 Loc: West Florida

Have been a tight wad since I had a kid and have always looked for the safest place to put anything of value. Heard this from my aunt who was a democrats democrat. I have to wonder if she were alive today if she'd be a democrat.