The Door Is About to Shut for Americans

Email Print
FacebookTwitterShare

 

 
 

Anyone aware
of the US Government’s real financial situation knows that time
is running out. The Government has $15.5 trillion in admitted debts
but those debts, when calculated under Generally Accepted Accounting
Principles (GAAP), or ‘honest accounting’, is over $70 trillion.
$70 trillion divided by 300 million+ Americans works out to $233,000
per person in US Federal Government debt and obligations. Or nearly
$1 million per family of four.

That does not
included personal debt, state debt or municipal debt.

This debt plus
an economy that has been completely hollowed out by the Federal
Reserve system ensures that there is no way the US Government can
ever pay off this debt. And, everyone knows it.

The indications
that the US Government is moving very quickly to enact any legal
measure or fine against Americans and to make it nearly impossible
for any American to escape payment to pay for their sins are everywhere.

We recently
commented on how It
Is now Easier to Enter the US Than It Is To Leave
. Customs agents
and cash sniffing dogs stand on guard at most international US airports
checking to make sure no one has more than $10,000 in cash without
declaring it. The standard response to this is: "They are only
making it difficult for criminals to move about and to transfer
money".

Well, the problem
is, the US Government is moving very quickly to make it so almost
everyone is seen as a criminal in the eyes of the US legal system.

Now We Are
All Criminals

It is already
said that there are so many laws, rules and regulations in the US
that each person in the US breaks at least one law per day, if not
much more – without even knowing it. But the US Government is becoming
more obvious in how it will go about making everyone a criminal
and fining them ridiculous amounts of money in doing so.

This week,
an American family who said they were just trying to teach their
son about responsibility and entrepreneurship was fined
$90,000 by the USDA
because the teenager sold $4,600 worth of
bunnies in one calendar year without a license. Not only
were they demanded to pay $90,000, but if they did not pay within
a short period of time the fine could increase to as high as $4
million.

This one case
only goes to show how easy it is, within the system, to take any
small transgression and to blackmail someone for, for all intents
and purposes, every penny they have – or more.

Students
to be Forced into the Military to Repay Debts

We also recently
commented on how the US college system draws people into large debts
(Debtucation)
and how student debt is now larger than credit card debt in the
US. It is the US Government itself that has made college education
so expensive by offering student loans to anyone who can fog a mirror
but again they have shown their intentions by making student loan
debt the only debt which can not be forgiven. A 2005 decree from
the Bush Administration stated that student loan debt could not
be dissolved through bankruptcy proceedings. The only other scenario
where this “no-escape” clause exists is debt from criminal
acts and debt from fraud. In other words, student loan debt is seen,
by the US Government, as being similar to proceeds from crime!

What will this
mean with more young Americans in student loan debt than any other
time? It’s anyones guess but it would not be out of the realm of
possibility to force students who can not pay off their debt into
the military to repay their debt.

And with the
US military with 800 military bases worldwide with US military personnel
in 156 countries and US Military bases in 63 countries and currently
occupying or attacking Iraq, Afghanistan, Libya and with other drone
operations in places like Yemen and Pakistan, the US is all but
ensuring that it is screwing around in enough places to eventually
draw in one of the big boys. Russia, China or Iran.

And, hey, we
Gotta
Support the Troops
, right?

US Government
Eyeing Pensions and Retirement Funds

On the other
end of the spectrum, seniors and those in retirement, the US Government
recently made it very obvious that funds held in retirement accounts
are going to be the first to be taken when times get tough.

In the recent
scuffle over raising the debt ceiling, the US Government was short
of some funds after reaching the United States’ $14.3 trillion debt
ceiling last Monday. Where was the very first place the US Government
went to find new sources of funds? Last week they
dipped into state pension funds
in order to make payments.

It is no great
leap to think that as things worsen in the US Government’s financial
situation, which is all but guaranteed, that the first thing that
will be nationalized will be all tax sheltered retirement accounts.
After all, we all have to do our part to pay for the debts of the
Government, right?

Anyone living
off of US pensions should be very worried. And anyone with significant
funds in retirement accounts should be running, not walking, to
get any funds they can outside of the direct control of the US Government.
We recommend looking at "Unleash
Your IRA
", a great program for diversifying your IRA internationally.

Get a 2nd
Passport

There are two
ways to look at the upcoming battle between the US Government and
US citizens. You can stay and fight or you can run and hide.

If you plan
to stay and fight we wish you good luck and will try to support
your efforts in any way we can.

If you would
rather run and hide then one of the first things you should be looking
to do at this time is to at least get a second passport. This is
still legal for Americans and there are many options. We discuss
many of them, regularly in our newsletter.

As well, if
you have the financial capability, we highly recommend buying some
foreign real estate – preferably somewhere you like to live.
Our favorite place, at the moment, is La Estancia de Cafayate in
Argentina (email them for more information at tdv@lec.com.ar).

2011 Last
Year to Get Out

Most things
are still legal in the US. It is still legal to have foreign bank
accounts – although you are required by law to report them to the
Government. It is still legal to get a second passport. It is still
legal to move assets in your IRA outside of the country. It is still
legal to move money outside of the country and buy foreign real
estate.

The window
of opportunity is closing. If you live in the US and still have
all your assets inside of the US, you likely have months, not years,
to internationally diversify your assets and to get your affairs
in order. Anything much after 2011 is taking a big risk of losing
it all.

The Government
Can

After all,
we, as individuals have to live within our means and it is considered
a crime if we forcibly take money from others to pay for our debts.
The Government, on the other hand? The Government Can.

Email Print
FacebookTwitterShare
  • LRC Blog

  • LRC Podcasts