submitted by jwithrow.
We have a question for you:
Is it a coincidence that the government has introduced the “myRA” plans just as the Federal Reserve has begun to taper its quantitative easing programs?
Let’s think this thing through for a minute.
- China is now a net-seller of U.S. Treasuries so the Federal Reserve has had to step in and purchase U.S. Treasury Bonds in increasing quantities to support government spending.
- The average American saves for retirement in a qualified retirement plan focusing primarily on mutual funds, exchange traded funds, and stocks with bonds comprising a small portion of the allocation.
- The proposed myRA plans are designed to focus on U.S. Treasury Bonds.
- The Federal Reserve’s quantitative easing programs have pumped massive amounts of liquidity into the system which has resulted in a broad increase of stock prices across the board.
- Tapering QE will withdraw liquidity from the system which will almost certainly result in a broad decrease of stock prices across the board and quite possibly a severe stock market crash.
- A falling stock market would likely cause many Americans to seek investment options that they deem “safer”.
- The government is already hard-selling their myRA plans stating that there is “no risk to lose what you put in”.
Maybe our benevolent bureaucrats really do think that myRA plans will help the common man.
But we hold dearly to a personal mantra:
Never Trust the Government.
With that mantra echoing in our mind, we can’t help but be a little suspicious – something funny seems to be afoot.
What do you think?