Well, it seems that Cyprus has decided to extend its so-called bank holiday until Thursday of this week. (Banks in Cyprus were suppose to open on Tuesday.) Who is next in line to confiscate wealth of its citizens? Italy? Spain? United States?
Ok, why will the United States have to confiscate a portion of your wealth? The answer lies in the simple fact that within two years the government of the United States will only have sufficient tax revenues to fund "Medicare, Medicaid, Social Security, and Interest on its National Debt," which by the way corresponds to the end of the Shemitah on September 13, 2015. For example, last year Medicare took in slightly more than $200 billion; however, between Medicare and Medicaid, our government spent slightly more than $1 trillion. Now, keep-in-mind, our government only took in approximately $2.3 trillion. That leaves $1.3 trillion for everything else, which, of course, was not enough because our deficit was over $1 trillion. That deficit of $1 trillion was for all practical purposes monetized (Created money out of thin air to buy the debt, which in itself is illegal. But then again, our government doesn't seem to be too concerned about the rule of law. Remember GM bondholders.) by the Federal Reserve System. If the Federal Reserve System stops its policy of monetizing the debt, or is forced to by the market, the only option for the government will be a Cyprian type measure of wealth confiscation. If the Fed continues to monetized the debt, your wealth (currency) will be completely debased (destroyed) through hyper-inflation, which will be the same as a direct confiscation of your bank and retirement accounts. Therefore, you just might want to consider a greater allocation of your wealth into precious metals.
Ok, why will the United States have to confiscate a portion of your wealth? The answer lies in the simple fact that within two years the government of the United States will only have sufficient tax revenues to fund "Medicare, Medicaid, Social Security, and Interest on its National Debt," which by the way corresponds to the end of the Shemitah on September 13, 2015. For example, last year Medicare took in slightly more than $200 billion; however, between Medicare and Medicaid, our government spent slightly more than $1 trillion. Now, keep-in-mind, our government only took in approximately $2.3 trillion. That leaves $1.3 trillion for everything else, which, of course, was not enough because our deficit was over $1 trillion. That deficit of $1 trillion was for all practical purposes monetized (Created money out of thin air to buy the debt, which in itself is illegal. But then again, our government doesn't seem to be too concerned about the rule of law. Remember GM bondholders.) by the Federal Reserve System. If the Federal Reserve System stops its policy of monetizing the debt, or is forced to by the market, the only option for the government will be a Cyprian type measure of wealth confiscation. If the Fed continues to monetized the debt, your wealth (currency) will be completely debased (destroyed) through hyper-inflation, which will be the same as a direct confiscation of your bank and retirement accounts. Therefore, you just might want to consider a greater allocation of your wealth into precious metals.
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