A Lesson In Retirement Planning
Before you can understand the concept of "retirement", you must understand money, financial assets, and a system that functions based on financial assets being money.
In 1980, the total debt in America was about $5 Trillion dollars. That means that the total money and financial assets in circulation was a bit over $5 Trillion dollars. That includes cash, stocks, bonds, etc...and interestingly, the DOW was about about 1000 in 1980.
Since 1980, this generation has BORROWED $50 Trillion dollars bring total debt to $55 Trillion dollars. Borrowing $50 Trillion put $50 Trillion dollars of cash into circulation. It is the ONLY reason that our pension funds, retirement accounts, and investment accounts are collectively worth so much today... about 11X more than they were in 1980. Coincidently, the DOW is about 11X more than it was in 1980.
Now, our children our inheriting this debt....the same debt that sits in our retirement accounts as bonds, mortgages, etc. The problem is technology is replacing many of the jobs that was the driver of our economy for the past 30 years.....and it has become MATHEMATICALLY impossible for our children to get jobs or pay this debt back, SYTEMICALLY.
Essentially, we are maintaining the financial assets' value by predatory lending to government and government guarantees, regardless of the ability to service this debt. Conversely, we are offering our children, or those NOT holding financial assets, little or no oppotunities in this system as we are now cutting off Main Street from credit.
In essence, we are punishing our children for our generations' borrowing excesses, making them economic slaves to service an otherwise bankrupt generation....and very few of the adults seem to give a damn. Especially those College Professor Economists who engineered this functional Ponzi Scheme and are awarded nobel prizes each year for perpetuating it.
So here we are, with about $55 trillion dollars of debt floating around and no way to service it absent fraud. Our children our beginning to understand the corruption with movies like InTime and the Occupy movement. The convulsive question going forward is who will be able to consume as more and more reject this fraudulent financial model based on predatory lending?
And if you think you can contemplate retirement or investing in a fraudulent system...I suggest you go talk to some of Bernie Madoff's clients for perspective.
Welcome to the consequences of 9.09....bailing out Wall Street and not Main Street....welcome to the www.udderworld.com
We will be offering solutions going forward....starting 11.11.11