Saturday, October 13, 2012
Yikes!! What is Obama Doing to my Retirement Savings???!!!
By JC Leahy
People need to understand the magnitude of what Obama is doing to us. The Obama debt shown above doesn't include the $1.2 trillion new money "printed" through QE I and II, and doesn't include the massive, open-ended amount of money being printed now at a rate of $40 billion a month with no end in sight through QE-III. In other words, they are buying Treasury bonds on the open market using made-from-thin-air, newly "printed" dollars. Rather than admitting that they are printing money, they call this "quantitative easing." And by the way, the 10-time multiplier effect in reality turns $1.2 trillion into $12 trillion. Everybody agrees that creating this much new money will degrade the purchasing power of existing dollars, including grandma's retirement savings. It's called inflation. You can see inflation when you go to the gas pump or the grocery store or pay your winter heating bill. For example, gasoline cost $1.95 when Obama became president and I paid $3.71 yesterday and thought it was a pretty good deal!! Go to the grocery store and check for yourself: everything is rising in price!! When you finance excessive spending by creating trillions of dollars out of thin air, existing money buys less. This has the effect of stealing from grandma's retirement account to finance Big Government!!
Importantly, the above debt also does not include 5 trillion of Freddie Mac and Fannie Mae obligations, it doesn't included guaranteed obligations such as those under TARP, and it doesn't include 46 trillion of unfunded obligations such as Social Security and Medicare. Consider these obligations, plus the astonishing level of "national debt" it's safe to say that with 12 trillion of new money plus unlimited QE3 money creation, you still ain't seen nothin' yet!!!
(ALSO SEE EARLIER ARTICLE: THE ROAD TO STAGFLATION)
PS - For those of you checking the numbers, it will be by the end of the Government's fiscal year 2013, the last fiscal year of the Obama Administration, that Obama will have added more debt than the first 43 presidents combined -- according to the Obama Administration's own projections.