Posted on September 6, 2016 by Perpetual Assets
On a personal note I am a client of Perpetual Assets and highly recommend working with these gentleman! You will not regret it! RR
There is approximately $17 trillion sitting in retirement accounts, 401ks, and pensions. Sources of liquidity of such magnitude are certainly at risk in the face of the upcoming financial crisis. The U.S. government, its central bank, and its entire financial and banking system are about to face a massive shortfall for cash.
In 2008 the bailout required via TARP was $700 billion, and estimates of backdoor easing and bailouts are in the tens of trillions, or more, not to mention the confirmed and admitted trillions in Federal Reserve off balance sheet transactions. This time the bubble is many multiples bigger, deeper, and broader. The derivative time bomb fuse has been lit. In fact, one very informed friend of mine believes there is $5 trillion per week in backdoor derivative “papering over” taking place right now.
We have seen bail-ins across the globe and warned clients and friends that they are coming to a bank account and IRA/401k near you. When governments and their central banks go broke, they steal from private industry. It is historical fact. It is the basis for taxation.
I initially thought that the IRA & 401k bail in would be dressed up as a “Save America Bond” that would be sold on the populace to help rebuild once the next banking crisis hits. Ownership of this bond would be mandatory at a certain percentage within IRA and 401k accounts and it would pay a nice guaranteed rate of return. The majority of the populace would swallow the bait. However, I was wrong. I believe that the powers that be are already “bailing in” in a much more covert way.
About two weeks ago we received news that a major 401k administrator was doing away with its money market fund only to offer a short-term government bond fund instead. Just yesterday I received a letter that a client of mine had just received from another even bigger 401k administrator– like $3 trillion in assets under management big.
Then it hit me; they don’t have to sell anything to the public. Our criminal government doesn’t need permission. It will simply collude with the big banks to force treasury investment via limited investment portfolio options. Let me explain…
Money market accounts are cash equivalent accounts, currently holding almost $3 trillion. This is where you would normally keep your IRA or 401k cash if you were not invested in stocks, bonds, mutual funds, et cetera. Many people think they are “out of the market” when they have told their advisor or plan administrator to sell their stocks. If your account is with Paychex or Vanguard, not only are you still in the market but you are 100% in U.S. government bonds; it’s very sneaky. Most people won’t even catch it.
I believe that the U.S. central bank, a.k.a. the Federal Reserve, and the U.S. Treasury have colluded with the Wall Street banks to force investment into treasury bonds to prop up the U.S. dollar. The announcements from these institutions are proof. However, I believe they are in the process of taking it a step further.
A vast majority of 401k and IRA accounts in this country are held and administered by the big banks. The self-directed IRA marketplace is only about 2% of total retirement assets. Next, we will see the investment portfolio options completely change. There already exist some 401k plans that have very limited investment options, maybe three or four different baskets of mutual funds offered by XYZ institution, and of course a money market or cash equivalent. I believe we will see limits across the board, and that money market is just the beginning. The next letter from your IRA custodian will inform that it no longer allows the ownership of individual stocks and other securities but only mutual funds, which by the way own mostly, if not only, U.S. treasury bonds. The vast majority of people will be forced into U.S. treasuries unbeknownst to them.
Another element of the Vanguard letter that should be noted is their mention that this new “Vanguard Federal Money Market Fund, as a U.S. government money market fund, will not be subject to fees or restrictions under the new regulations.” Does this mean that fees will be imposed on the institutions that do not comply? As my partner, Gus, would say, “When collusion fails, coercion is required.”
For this reason, among others, we have long been advocates of using a shelter like the LLC IRA to remove assets from the system without the tax burden. Putting your IRA into a self-directed limited liability company allows you to invest in tangible assets that cannot be stolen with the swipe of a pen and click of a mouse.
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PHOTO: GETTY IMAGES/ISTOCKPHOTO
By DONALD J. TRUMP
Nov. 9, 2015 7:33 p.m. ET
If we are to make America great again, we must do all we can to make sure that American interests are protected and that all Americans benefit from the actions of their government. Sadly, that is currently not the case. The incompetent, rudderless Obamaadministration’s negligence in foreign policy, trade and national security is making America less confident, less prosperous and less safe. Americans deserve better, and a Trump administration will turn us into winners again.
In late September, President Obama signed an agreement with the Chinese head of state that was intended to add a layer of protection to intellectual property in both countries. The ink was not dry before Chinese-sponsored agents began cyberattacks on private companies in the U.S. That agreement is not worth the paper it is printed on and the Obama administration is not doing a thing to fight back. Unfortunately, this has become an all-too-common pattern of behavior for President Obama.
The American people need to be told the truth about our “partner” China. China holds over $1.4 trillion in U.S. debt. The Chinese are, by far, the largest foreign debt holder. As of the end of August this year, the U.S. trade imbalance with China is already at $237 billion, on the way to an annual trade imbalance north of $350 billion. China’s economy is controlled by the government. Any notion that their economy is based on a free-market system is simply not true. If an American company wants access to the Chinese consumers, that company must share its intellectual property, a condition that violates international fair-trade standards, World Trade Organization rules and common sense.
But the worst of China’s sins is not its theft of intellectual property. It is the wanton manipulation of China’s currency, robbing Americans of billions of dollars of capital and millions of jobs.
Again, special interests and crony capitalism have weakened the resolve of the Obama administration in confronting China over its currency ploys. Economists estimate that the yuan is undervalued anywhere from 15% to 40%. Through manipulation of the yuan, the Chinese government has been able to tip the trade balance in their direction by imposing a de facto tariff on all imported goods. Imagine the impact these practices have had on our weakened manufacturing base, our agriculture industry and every small business unable to compete internationally.
By watching the Obama administration, you might think that nothing can be done about all this. What is most alarming is that much can and should be done, but the White House chooses to do nothing to protect American workers and companies.
On day one of a Trump administration, the U.S. Treasury Department will designate China a currency manipulator. This designation will trigger a series of actions that will start the process of imposing countervailing duties on cheap Chinese imports, defending American manufacturing and preserving American jobs. Add to these actions direct and focused protection of intellectual property and we will be back on the path to being the world standard for economic liberty and growth. But these actions alone won’t ensure Americans’ long-term security and prosperity.
When I am president, I will go to the American people and ask them to join me in getting Congress to reform our oppressive tax code. Specifically, capital held offshore will be brought back at a one-time tax rate of 10%. Corporate tax rates will be cut to 15%. This will spur immediate investment in America as we will once again be competitive. We will also need to attack deficit spending through budget discipline and begin the painful, but necessary, process of reducing our debt—especially reducing the debt held by foreign countries. To ensure the security of the nation and our investments, we will build the military we need to contain China’s overreach in the Pacific Rim and the South China Sea.
The American people need an administration that will tell them the truth and a president who will put America first. That’s what I intend to do.
Mr. Trump is a candidate for the Republican presidential nomination.