States Losing Faith In US Dollar – More Than Dozen States Push For Gold as Legal Tender, Bernanke Backlash; Americans Feeling Pain of National Debt – More Spending Cuts And Higher Taxes – Obama’s Budget: “The Pain Is Going To Get Worse”
Distrust of the Federal Reserve and concern that U.S. dollars may become worthless are fueling a push in more than a dozen states to recognize gold and silver coins as legal tender.
The measures backed by the limited-government Tea Partymovement are mostly symbolic — you still can’t pay for groceries with gold in Utah. They reflect lingering dollar concerns, amplified by the Fed’s unconventional moves in recent years to stabilize the economy, said Loren Gatch, who teaches politics at the University of Central Oklahoma.
“The legislation is about signaling discontent with monetary policy and about what Ben Bernanke is doing,” said Gatch, who studies alternative currencies at the Edmond, Oklahoma-based school. “There is a fear that the government, or Bernanke in particular and the Federal Reserve, is pursuing a policy that will lead to the collapse of the dollar. That’s what is behind it.”
Legendary gold trader Jim Sinclair sent out an email alert to subscribers over the weekend, advising investors that You must now act to exit the system! Sinclair, who as recently as 2 weeks ago advised those attending his NYC meeting that investors have 2 years to withdraw their IRA and 401k funds from the system, has changed the urgency of his call significantly, stating:
You must exit the system immediately because the Financial Nazis struck in Cyprus and now are moving directly towards you. This is simple fact, which if you ignore will be akin to the rise of the Nazis in Germany for those that knew they should, but never made the decision to leave that system.
Most Americans will ignore the dickering over the federal budget that President Barack Obama wants Congress to pass this year. But there’s an important message for just about everybody in that budget: The pain is going to get worse.
It would be easy to conclude that Washington has imposed enough austerity on the U.S. economy already, given the tax hikes and spending cuts that have already gone into effect this year. Those measures, if they stick, will reduce the national debt by perhaps $2.5 trillion during the next decade.
But that’s not enough. Budget experts say Congress needs to cut the debt by at least $4 trillion, plus figure out ways to rein in the mushrooming cost of the biggest budget-busting programs: Social Security, Medicaid and especially Medicare. Budget measures up till now have done nothing about those so-called entitlement programs, but Obama is finally seeking some reforms.
Obama, for instance, wants to reformulate the way cost-of-living increases for Social Security payments get calculated. Many experts say switching to a so-called “chained” consumer price index would be a more accurate way to measure inflation. But in general it would mean lower cost of living increases for Social Security recipients. For a typical retiree, a 1 percentage point reduction in the cost-of-living increase would cut Social Security payments by about $150 per year.
Relatively minor adjustments might be enough to make Social security more stable, but Medicare is a bigger problem. Obama wants to make some administrative changes in the program that might lower payments to healthcare providers, while also reducing benefits or raising premiums for wealthier Medicare patients. But on its current course Medicare is headed for insolvency, and Obama’s moves probably wouldn’t be enough to change that. At some point, bigger cuts will be needed, with most seniors likely to pay more.
Welcome to the new US. Socialism always has the same predictable process. Once the government collectivizes a sector then the politicos and bureaucrats get to work on “improving the system”.
In a private enterprise, that’d mean offering more to your customers for a cheaper price. In government, it is always the opposite, finding ways to reduce benefits for their “customers”.
This is why Obamacare is and will be a disaster to anyone interested in having quality medical care and choice in the US. Once the government uses its force to gain a monopoly on a sector like medical care then all of a sudden it now becomes everyone else’s business what you do with your own body.
You smoke? You should be stopped! Don’t wear a seatbelt? You should be fined. Why? Because we are all paying for each other’s medical care and so it now becomes everyone else’s business what you do with your health because it could potentially cost them more money.
The same has been happening since the US government has had a multi-decade long monopoly on retirement savings (IRAs). Since they get to make the rules they get to decide just how much is enough for your retirement and that is exactly what will be happening next week when President Obama will be releasing his budget plan which will limit how much a wealthy individual can keep in those tax-reducing IRA plans and other retirement accounts.