Attention Baby-Boomers: Do You Want To Save Your Retirement?
In the upcoming primaries you are not only voting for the next president, but you are also voting for the defense or demise of your retirement plan. You may have designed your retirement based on the official inflation rate of around 2-½%. However this number is a lie. The true inflation rate that the Federal Reserve is causing is 17.3% this year!
There is only one candidate for president who will not only acknowledge this crime but also stop it in its tracks; that is Ron Paul. He is passionate about economics and understands that the American way of life and your retirement are on the verge of collapse. This is largely in part to the Federal Reserve’s addiction to printing money out of nothing. The founding fathers knew the dangers of a central bank and that is exactly what the Federal Reserve is. Only Ron Paul will tackle head on the imminent danger your financial future is in.
The official 2-½% is based on a basket of goods (CPI), which they severely misrepresent to mislead you and the business world. In order to get an accurate inflation rate you need to look at how much money the Federal Reserve is creating out of nothing. It follows the basic supply and demand theory; the Fed is increasing the money supply by billions of dollars a day, which is reducing the demand. For every dollar that they create out of nothing, they are stealing the value of your saved dollars. This is simply theft.
For years the Federal Reserve published the M3 report, which tells the amount of money they are conjuring up, but now they are afraid to tell us and in March 2006 they stopped reporting the M3 (Ron Paul has introduced House Resolution 2754 to force them to report it).
If you plan on retiring with a fixed income you may want to recalculate how long your plan will support you. Let’s say your pension will provide you $2,500 per month. At 10% inflation, in 5 years you will need an income of $4,025 to afford the same standard of living; in 10 years you will need $6,475, in 20 years $16,825. Conversely, your $2,500 a month will have the purchasing power of: $1,551, $965, and $371 respectively.
As far as your savings, if you are earning 5% interest and inflation is 10%, you are really losing 5% per year. What’s the point in saving money if inflation is higher than your investment return? There are only two solutions: either diversify into other than dollar investments such as Euro, gold, real estate, etc. or vote for Ron Paul.
If our existing fractional reserve system of eternally increasing money supply continues, double-digit inflation will destroy the nest eggs and devalue the fixed incomes of the entire baby boomer generation. Action must be taken now to begin the reversal towards a secure and viable economic system. The lone hope for this is the election of Ron Paul as president. Ron Paul is running as Republican so you must be registered as a Republican in order to vote for him in the primaries. You can do that here.
-August
