THRIFT SAVINGS PLAN
As military members and men and women serving at the front lines of defense for our nation, we owe it to you first when it comes to providing both the information and the necessary education in making and securing the best investment decisions for your future. We often hear all too often of our veterans sacrificing for our nations to later being sacrificed by our nation.
At Smart Wealth Investments, we have a number of military devotees and veterans within our own ranks. At the very heart of the matter is the tremendous amount of time and sacrifice that it takes for our members to devote to the sake of our freedoms and democracy.
If its one thing that we can take part in now, it’s knowing that we are the responsible parties for securing you later in life after you are relieved from the watch. What smart decisions can you make now for your retirement that will pay off dividends for you later?
One of the benefits of the military is the financial security and stability that comes with pay day always being reliable and on-time. In a time when many are struggling with job security, the security of a government military job is one that has historically been consistent. We want to first thank you by offering our gratitude, but secondly, we would like to offer our valuable insight as a tangible form of appreciation for you to not only take home with you, but also for you to be able to forever mentally carry with you. Education, and the application of it, is something that you can forever take with you no matter where you are stationed.
Additionally, you may be the light of guidance for your brother and sisters alongside you at various duty stations. We understand that many military members are busy and don’t always have the ability to devote their own time to even their own finances.
We would like to offer you a free guide into the insight into just how exactly your Thrift Savings Plan is costing you money.
Will Debt Sink The Ship?
Weekly Market Update: Protect Your Retirement Account from Unsustainable, Rising Government Debt
The most recent Treasury Report is out and it reveals disturbing news. The net worth of the United States is now officially reduced to minus $21.5 trillion. The country’s total national debt has catapulted up to pass $22 trillion. Every month, President Trump’s administration adds to the debt pile with multiple billion dollar deficits. This graph depicts the shocking rise in national debt:
The real question is: Can the government indefinitely sustain this debt fiasco? Economist and analyst Wolf Richter argues that the United States is in a select club of financially troubled nations. The U.S. shares the deteriorating financial position of countries including Italy, Greece, and Japan.
It is true that Japan and the United States possess a single helpful advantage over Italy, Greece, and some other countries. The U.S. and Japan have full control over their own currencies. It allows their central banks (like the Federal Reserve and the Bank of Japan) to literally print their own money in order to by up government debt.
In Japan, their central bank keeps aggressively monetizing the debt of the government. In 2018 though, the Federal Reserve has not been a buyer of U.S. Treasuries. The end of the Federal Reserve’s program of reducing its balance sheet may change this before long, but as of now, it is actually not the country’s central bank making the runaway government spending possible.
It begs the questions: who is purchasing all this mountain of American debt and why? Answering the first question is straightforward. The total of all foreign investor holdings of U.S. Treasuries amounts to $6.4 trillion. Even after divesting some of their holdings, China and Japan are still ranked as the two biggest foreign investors in it.
The Federal Reserve presently holds approximately $2.1 trillion of American debt. American-based institutions and investors have around $7.7 trillion. They remain the biggest single category of Treasury holders.
A close second is the Social Security Trust Fund and pension funds (U.S. government entities). Between them they count almost $6 trillion of U.S. Treasuries in their holdings. The argument that this is money we borrowed from ourselves is deeply flawed. As Richter points out:
“This money is owed to those beneficiaries and it doesn’t cancel out. It is a real debt that the U.S. government owes and it has to pay.”
Keep in mind that China has reduced its sum total of U.S. Treasuries by around $46 billion versus just a year ago. The two Asian giants of Japan and China have a combined total holdings of around 10 percent of American debt. This impressive (or disturbing) figure is still off of 2018’s 11 percent total holdings that they counted last year.
Over the past year, U.S. investors have bought up the lion’s share of American government debt, approximately $1.2 trillion in just the past 12 months. This can not go on forever; it is unsustainable. The perception that the debt does not seem to be having any real impact on the economy is false. The point of Treasury oversupply as government spending continues to runaway looms large.
When we soon reach that point, the American federal government will encounter serious problems and have to make tough choices. The buyer of last resort will remain the Federal Reserve. This amounts to continued money printing in the form of quantitative easing. Keep in mind that as Treasury demand begins to decline, it forces interest rates (across the entire economy) to go higher as a result of supply and demand economics.
Is Your Retirement Portfolio Protected from Quantitative Easing and Rising Interest Rates?
In the end, the Fed will be left with only two unpalatable choices. Either they will have to cut interest rates and engage in more quantitative easing, leading to still more inflation. Alternatively they could simply do nothing and allow interest rates to skyrocket. Allowing interest rates to run wild would spell certain death for a national economy constructed on massive debt. Any way you look at the fiscal policies in Washington, the federal government in on a path that they can not possibly sustain much longer.
With inflation or significantly higher interest rates in the future cards, you need a place to take shelter from the gathering economic storm. Gold has the track record as longest lasting safe haven in world history. It has protected investors for thousands of years so that they could rest easy at night in the knowledge that their assets were safeguarded by the dependable yellow metal.
Click here now to obtain at no cost and at no-obligation to you a free gold IRA rollover kit from the country’s most trusted and award winning gold retirement firm anywhere— Regal Assets. The industry leader in gold retirement and alternative asset companies continuously strives to earn its envied reputation through taking care of its customers. Their 100 percent free precious metals investing report will ensure that you possess all of the crucially time-sensitive information that you must have in order to hedge your IRA retirement account with a prudent and partial diversification of your retirement assets into reliable, physical gold.
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