Anyone aware of the US Government's real financial situation knowsthat time is running out. The Government has $15.5 trillion in admitted debtsbut those debts, when calculated under Generally Accepted AccountingPrinciples (GAAP), or 'honest accounting', is over $70 trillion. $70trillion divided by 300 million+ Americans works out to $233,000 perperson in US Federal Government debt and obligations. Or nearly $1million 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 bythe Federal Reserve system ensures that there is no way the USGovernment can ever pay off this debt. And, everyone knows it.
The indications that the US Government is moving very quickly toenact any legal measure or fine against Americans and to make it nearlyimpossible for any American to escape payment to pay for their sins areeverywhere.
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 mostinternational 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 totransfer money".
Well, the problem is, the US Government is moving very quickly tomake it so almost everyone is seen as a criminal in the eyes of the USlegal system.
Now We Are All Criminals
It is already said that there are so many laws, rules and regulationsin 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 isbecoming more obvious in how it will go about making everyone a criminaland 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 paywithin a short period of time the fine could increase to as high as $4million.
This one case only goes to show how easy it is, within the system, totake any small transgression and to blackmail someone for, for allintents 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. Itis the US Government itself that has made college education soexpensive by offering student loans to anyone who can fog a mirror butagain they have shown their intentions by making student loan debt the only debtwhich can not be forgiven. A 2005 decree from the Bush Administrationstated that student loan debt could not be dissolved through bankruptcyproceedings. The only other scenario where this “no-escape” clauseexists is debt from criminal acts and debt from fraud. In other words,student loan debt is seen, by the US Government, as being similar toproceeds from crime!
What will this mean with more young Americans in student loan debtthan any other time? It's anyones guess but it would not be out of therealm of possibility to force students who can not pay off their debtinto the military to repay their debt.
And with the US military with 800 military bases worldwide with USmilitary personnel in 156 countries and US Military bases in 63countries and currently occupying or attacking Iraq, Afghanistan, Libyaand with other drone operations in places like Yemen and Pakistan, theUS is all but ensuring that it is screwing around in enough places toeventually 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 inretirement accounts are going to be the first to be taken when times gettough.
In the recent scuffle over raising the debt ceiling, the USGovernment was short of some funds after reaching the United States'$14.3 trillion debt ceiling last Monday. Where was the very first placethe 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 USGovernment's financial situation, which is all but guaranteed, that thefirst thing that will be nationalized will be all tax shelteredretirement accounts. After all, we all have to do our part to pay forthe debts of the Government, right?
Anyone living off of US pensions should be very worried. And anyonewith significant funds in retirement accounts should be running, notwalking, to get any funds they can outside of the direct control of theUS 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 USGovernment and US citizens. You can stay and fight or you can run andhide.
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 youshould be looking to do at this time is to at least get a secondpassport. 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 recommendbuying some foreign real estate - preferably somewhere you like to live.Our favorite place, at the moment, is La Estancia de Cafayate inArgentina (email them for more information at [email protected]).
2011 Last Year to Get Out
Most things are still legal in the US. It is still legal to haveforeign bank accounts - although you are required by law to report themto the Government. It is still legal to get a second passport. It isstill legal to move assets in your IRA outside of the country. It isstill legal to move money outside of the country and buy foreign realestate.
The window of opportunity is closing. If you live in the US andstill have all your assets inside of the US, you likely have months, notyears, to internationally diversify your assets and to get your affairsin order. Anything much after 2011 is taking a big risk of losing itall.
The Government Can
After all, we, as individuals have to live within our means and it isconsidered a crime if we forcibly take money from others to pay for ourdebts. The Government, on the other hand? The Government Can.