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Date: November 30, 2010
Subject: This Only Takes Common Sense to Understand


This is
G&G Associates Tax & Financial Consulting
e-Newsletter

This Only Takes Common Sense to Understand

Alafia (Peace & Blessings) G&G Readers,

It's all fun and games until somebody loses their IRA.

By now G&G Readers should all be familiar with the games central bankers play… print a little money here, prop up the market there, pass the buck like a hot potato, and do everything possible to keep the circus going.

We put up with the games mostly because… well… I don't really know why we put up with them. Maybe it's apathy or laziness. Or maybe we're all so busy trying to keep our own heads above water, we're not paying attention.

But we can't ignore what's going on in Europe right now. It’s painting a picture for what’s to come here is the US.

*** Side-Note: see archived newsletter “Uncle Sam Wants Your Retirement Plan” from March 30, 2010 at G&G Associates website.

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Last week, Ireland's government announced it would use (confiscate, seize, steal) $30 billion from the country's public pension program to purchase Irish government bonds. Hungarian officials announced a similar program using $15 billion of public pension assets. French officials also surrendered to the idea and are putting $45 billion of pension assets into France's sovereign debt.

Just to be clear… Much of the proceeds these governments receive from selling bonds are used to fund social programs such as welfare, health care, and unemployment benefits. So, by using pension fund assets to buy these bonds, the governments are taking long-term savings from hardworking, industrious individuals… and giving the money to those who are currently down and out.

What happens years from now when the hardworking, industrious folks decide to retire and discover their money isn't there, or it's worth only a small fraction of its original value?

Of course, government officials will argue this is a temporary measure to bridge the funding gap caused by the weak global economy. When the economy improves, tax revenues will increase, and they'll be able to pay down the debt and replenish the pension fund coffers.

Bull Shigidy!!!

The funding problems are systemic. They're not the result of economic downturns. They're the result of stupid politicians making stupid promises to gullible people. "From those who can to those who need" may sound good on paper, but it fails miserably in practice.

The real issue, however, goes beyond the politics of socialism and/or communism. What does it say about the quality of a government's debt when the only entity willing to purchase it is the issuing government itself? {Can anyone say Ponzi Scheme}

Now, you can dismiss this as a European problem – just a bunch of Irish, French, and Hungarian politicians doing whatever they can to appease the masses and keep their cushy offices. Why should we care?

We should care because it's happening here too – in the good old U.S. of A.

The Fed is already using taxpayer money to prop up the bond market and keep interest rates artificially low. Once again, what does it say about the quality of a government's debt when the only entity willing to purchase it is the issuing government itself? {Again…Ponzi Scheme}

And… does anybody remember the trial balloon the current administration floated several months ago? You know… the one about using public pensions to buy annuities backed by U.S. Treasury securities.

None of this happens by accident.

Central bankers talk to each other. They know the ticking time bomb everyone is trying to kick down the road. And they know if it gets to the United States, it's a dead end. There's nowhere else to go.

So what can you do?

*** First, if you're a government employee and have a government pension, you need to do whatever you can to take control of the assets yourself. NOW… Talk to your administrator and find out what your options are.

***Second, sign up and become a GGIS Paid Subscriber and I’ll tell you what else to do to save your retirement.

*** Or, you can keep doing nothing and watch your retirement be gone…your choice.

Until the next time,

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You are most likely aware that gold prices have been higher each of the last nine calendar years and have averaged about 15% annually. And, in this tenth year, The Wall street Journal reports that gold is now up 22%. This confuses most of the public, political scientists, scholars and journalists.

However, a true economist, using fundamental macro-economic monetary principals, can easily understand what has happened and what is in store. Seriously, is the astronomical growth in the monetary base of U.S. dollars, in which gold is denominated, any secret? A highly acclaimed book that is perceived as an ''easy-read'' for those who want to gain insights into this issue is titled AFTERSHOCK. It can be found on Amazon for about $15 at the following link:

http://www.amazon.com/Aftershock-Protect-Yourself-Financial-Meltdown/dp/0470481560

On Amazon.com, a reader from Houston said this about the book: ''I find this to be the most complete and comprehensive analysis of America's ongoing economic problems that I have thus far encountered. In addition: the reasoned deductions which the authors draw from their analyses are far ranging and logical; and, for the most part, the conclusions which they reach are well justified and difficult to dispute. So, if you are looking for a book that will give you some valuable insight into what is happening to the U.S. economy today, and why; which explains how the ultimate collapse of that economy and the U.S. dollar will take place; and which forecasts what the United States and the world at large will be like following that calamity, then this is certainly a book which you should read.''

If you sign up to become a 2 year or lifetime GGIS Subscriber, I’ll send you a free copy of AFTERSHOCK. So, sign up today so I can get you a copy of this must read book.


Ankh Uja Snb (Life, Health, Strength),

Asar Gary Gray
Tax & Financial Consultant, RFC
G&G Associates
757-251-0174 office
866-361-3872 toll free fax
www.gngassociates.net

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LEGAL NOTICE: This work is based on SEC filings, current events, interviews, corporate press releases and what I've learned as a financial consultant. Nothing herein should be considered personalized investment advice. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.



 

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