Your Retirement Cash in Danger: Government managed retirement, the Obligation Roof and Charles Ponzi

Proud to announce that Opkey has secured a new funding round

How might you respond if Sam, your monetary guide, came to secured capital funding you with a stressed grin extended across his tubby cheeks and said, “Recall that cash you requested that I contribute?”- you had contributed $100,000 with him to fabricate your retirement-“Indeed, umm…I don’t have it any longer. I gave it to another person to follow through with a commitment.”

You nearly lurch for him yet for his pacifying hand signals. “Yet, it’s everything taken care of,” he demands. “All I want from you several hundred thousand more to follow through with another commitment. I’m a man of integrity, all things considered. That is the reason you can trust me. I guarantee that I’ll repay you, with interest obviously.”

Most likely you reject his requests, document a claim for extortion and report him to the specialists, presumably landing him in jail to share the destiny of Bernard Madoff and Charles Ponzi who gave name to his plan. Your annoyance is legitimate. Indeed, even with the claim, you never really recuperate the entirety of your cash. Sam was running a fraudulent business model taking cash from one individual to support the “speculation” of the first, and afterward taking cash from one more to subsidize the venture of the second, etc which implied there were numerous others hoodwinked by Sam, passing on insufficient cash to go around.

In any case, unwind. What has really happened to you is far, far more awful. Your retirement monetary counsel isn’t your pal Sam; he is your Uncle Sam, and the program is called Government managed retirement. Our aggregate interest in Government backed retirement isn’t only a couple hundred thousand bucks; it’s trillions. Your cash isn’t being utilized to support your own retirement; it is being utilized to finance another person’s. To top it all off, there is no rejecting Uncle Sam’s grant. It’s a Ponzi plot with a weapon to your head.

Ongoing occasions don’t rouse certainty that the pyramid will endure long enough for us to gather. Uncle Sam is currently requesting that we give him more cash. He needs to raise the national government’s obligation roof to stay away from a default and move this act along. Simply last year Congress raised the obligation roof from the generally high $12.4 trillion to an incredible $14.3 trillion. Presently we are knocking against the roof once more, with obligation drawing nearer almost 100 percent of 2010 Gross domestic product.