Crying Baby Boomers

Social Security is BANKRUPT! The first segment of the Baby Boomers is about to help themselves to their share of Social Security. These are the people who were born in 1946 and are now 61 years of age. Shortly, an increasing number of these Baby Boomers will be taking early retirement. We are now seeing the front edge of a major Baby Boomer wave when those people who were born between 1946 and 1964, 80 million in all, will qualify for Social Security.

The Boomers tend to come from the age when you're told to go to school, get good grades, go to college, get a good job, work until retirement, retire, and enjoy the good life... with either your employer or government "entitlements" like Social Security taking care of you. The vast majority of Baby Boomers have been forced to take the latter Social Security since very few employers offer fully funded "Defined Benefit" retirement programs any more.

But unbeknownst to most people is the fact that the Social Security (SS) trust fund has no... funds. The cupboards are bare. You see, as the Social Security tax rolls come into the government, they go into the general treasury. Current SS recipients are paid from these funds, but there is no surplus... in fact, there's a deficit... more is paid out than comes in. So there really is no "trust" so to speak.

Brian Riedl of the conservative Heritage Foundation warns, "This is the single greatest economic challenge of our era."

If you believe, as do I, that the U.S. government's balance sheet is a tad bit tipped to the negative to the tune of almost $9 TRILLION, you've seen nothing yet. Over the next few decades the unfunded liabilities of Social Security and Medicare will rack up $50 trillion more in government obligations.

The US government has essentially two ways to address this situation. The first way will be to scale back on the benefits... there's just no other choice. The second way that the US government will address the situation will be through monetary inflation, the most subtle form of currency devaluation.

The government will have to print the money to cover the coming tidal wave of unfunded liabilities. Say what? Print money? If you or I printed money, what would happen to us? We'd be thrown in jail. Not so for the U.S. government... or more accurately, the Federal Reserve, which is neither federal nor are there actually any reserves of value. The gold backing of our "fiat" Federal Reserve Notes, the dollar, was completely removed back in 1971 by then President Nixon. The Federal Reserve prints money, so to speak, by creating the dollars out of thin air and then using them to buy U.S. treasuries (bills, notes, and bonds) in the "open market"... thus the name "Federal Open Market Committee (FOMC)" that we hear so much about in the news.

This "printing" process will have a brutal impact on the dollar, a dollar that is already in decline and has broken major support at 80 on the dollar index. So what can you do to protect yourself from the further decline in the dollar? These and many more solutions you will find at our wealth-building web page.

The purchasing power of the dollar will continue to head down. Since 1913 when the Federal Reserve was created by an act of Congress, the dollar has lost 96 percent of its value. A dollar in 1913 is worth 4 cents today. We must wonder what the dollar will buy ten years from now -- fifteen years, twenty years. It's very sad, indeed.

This is the reason to own gold, silver, other precious metals, commodities, collectibles and just about anything that has inherent intrinsic value. The ultimate fate of the US dollar, and all fiat currencies for that matter, is for it to seek its ultimate intrinsic value... zero.

The third phase of the great commodities bull market lies ahead as the decline of the dollar and other fiat currencies is "discounted" in the market. Gold is destined to rise to "impossible" heights in terms of current US dollars. The reason the big move lies ahead is that the vast majority of investors remain clueless about what's happening to the US dollar and correspondingly, gold. The US public owns no gold. But when they wake up... look out!

"In every dark cloud there is a silver lining." Although there remains a preponderance of negative economic fundamentals in the United States, there is always a way to take advantage of such situations
Please see the Investors section of our web site at: http://www.dreamlifestylefound.com/investors/?CryingBabyBoomers

Jay Jolly has been creating wealth and investing since 1981. He has developed proprietary intellectual property that he shares with clients and institutions world wide. As an entrepreneur Jay empowers and inspires you to create the lifestyle of your dreams. Because of Jay's experience and reputation, he is a sought-after presenter for wealth and investing conferences across North America speaking on the global economy, geopolitics, markets, and investing. Jay's primary mission in life is to empower you with the knowledge, education, and experience in order for YOU to make your own decisions about money and investing. You CAN achieve the lifestyle of your dreams... and it is Jay's purpose and goal to assist you in every way he can. Your ultimate goal: freedom of choice ... your ability to choose whatever it is you wish to do with your precious time remaining on this mos

expert: Jay Jolly