Monday, May 16, 2016

Know And Understand What Is Happening Politically To Position Your Investments So You Win!

So, have you been thinking about buying some “safe guaranteed” government bonds or treasuries? How about some nice “safe” mutual fund that invests in bonds or treasuries? Lets look into the United States Debt and determine what you should NOT have your money invested in as we are in the middle of a government bubble. Smart investors never invest in a bubble. They buy at the bottom of the market after its popped.

US Debt and what it consists of:

It seems that most people I talk to know we have this massive 20 trillion dollar debt that Obama created but most don't know who owns it. Which helps in determining how it gets paid off, what gets negotiated, etc.

People act like China owns all of our debt but that simply isn't true. China did help cause our debt though. Their devaluing of their currency over the years helped create the debt along with reckless government spending and entitlement programs that aren't sustainable.

Over 5 trillion of the debt is owed to 230 federal agencies. This is Federal Debt to the Federal Government. These federal agencies bought US Treasuries. And the largest of all is Social Security at 2.8 trillion. You also have the military retirement fund, office of personal management, medicare, other federal government retirement funds, etc. Yes they do still have pensions set up for government employees and they will fight to keep their pensions rather than let them go into bankruptcy.

The rest of the debt is owned by the public. Of which 5 trillion is foreign public debt. Which mainly includes China and Japan. China's owed roughly 14% of the total debt and Japan 13% of the debt. 2.5 trillion of this public debt is owed to the Federal Reserve. I personally don't care about that. With their mismanagement of our economy they deserve to lose money. Especially when they are the ones that can print these notes out of thin air and require the US to pay them back interest on everything they print. As you probably know the Federal Reserve is a private business that is owned by the 12 largest banks in the US with insane powers no private business should have. So who cares about their debt. Besides the fact that their debt is interest we haven't paid them on money they printed. Federal Reserve "Note". They print and we pay them back the value of the currency plus interest. But they CREATED that currency out of thin air. How would you like the ability to print dollars whenever you want money. Then charge the people you give them to interest on what you printed. A huge scam.

Then we have 1 trillion that was bought by mutual funds. That would be the idiots that bought mutual funds that bought the debt. Would you buy government debt right now? If you would you deserve to lose your money. I don't care about their losses. I don't think we should guarantee anyone's bad investment. Maybe the day when the public starts guaranteeing my real estate investments is the day we guarantee peoples stock market investments. What kind of idiot guarantees someones bad investment?

Also in public debt there is local and state government pension funds. I also am not overly concerned about that. But I'm sure you are if you work for the government. You people need to stop this crap and set up 401K plans. What company these days still has pensions but the government? That total debt is 803 Billion.

Then you have banks that own 515 billion of public debt.

Insurance companies with 293 Billion

US savings bonds 174 Billion

Other (individuals, government-sponsored enterprises, brokers and dealers, bank personal trusts and estates, corporate and non-corporate businesses, and other investors) - $1.198 trillion

And that's the debt and who owns it. Now lets see what we want to guarantee and what we will negotiate. I personally think paying the people back for the government robbing them of their social security is important. Then government officials that bought treasuries with social security need to go to jail. Or better yet get on a payment plan to pay back what they spent. What do you think is important? And what isn't. I told you what I think isn't.


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