Wednesday, July 6, 2016

Stop putting money into IRAs, 401k, etc. Government will steal it at some point.

As I have been warning for many years, government promises aren't worth spit.  As long as the debt can pile up and be used by politicians to remain relevant by bribing people for their loyalty, governments keep promising more and more free stuff. At some point governments can no longer rob Peter to pay Paul (take on more debt in order to pay for past promises and obligations).  When this happens they just default. Deadbeat politicians lie like Hell and cannot be trusted! 

Today's proof of this is in Spain where Mish writes that the Spanish social security  system will go broke in 2018.

Spain is no different than the USA, it's just at a massively smaller scale.   But the same events will eventually befall both countries in the fullness of time.  There is no escape from this because without the ability to rack up debt to pay the bills, the US government cannot pay the social security claims.  What cannot be paid will in fact not be paid. Being the USA does not change this...

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