U.S. Government Squeezing Americans to Pay Its Debts

Anyone aware of the U.S. government’s real financial situation knows that time is running out.

The government has $15.5 trillion in admitted debts but those debts, when calculated under Generally Accepted Accounting Principles (GAAP), or ‘honest accounting’, is over $70 trillion.  $70 trillion divided by 300 million+ Americans works out to $233,000 per person in U.S. federal government debt and obligations.  Or nearly $1 million per family of four.

That does not included personal debt, state debt or municipal debt.

This debt plus an economy that has been completely hollowed out by the Federal Reserve system ensures that there is no way the U.S. government can ever pay off this debt.  And, everyone knows it.

It seems that the U.S. government is moving very quickly to enact any legal measure or fine against Americans and to make it nearly impossible for any American to escape payment to pay for their sins are everywhere.

It Is now Easier to Enter the U.S. Than It Is To Leave. Customs agents and cash sniffing dogs stand on guard at most international US airports checking to make sure no one has more than $10,000 in cash without declaring it.  The standard response to this is: “They are only making it difficult for criminals to move about and to transfer money”.

Well, the problem is, the U.S. government is moving very quickly to make it so almost everyone is seen as a criminal in the eyes of the U.S. legal system.

Now We Are All Criminals

It is already said that there are so many laws, rules and regulations in the U.S. that each person in the US breaks at least one law per day, if not much more — without even knowing it.  But the U.S. government is becoming more obvious in how it will go about making everyone a criminal and fining them ridiculous amounts of money in doing so.

Last week, an American family who said they were just trying to teach their son about responsibility and entrepreneurship was fined $90,000 by the USDA because the teenager sold $4,600 worth of bunnies in one calendar year without a license.  Not only were they demanded to pay $90,000, but if they did not pay within a short period of time the fine could increase to as high as $4 million.

This one case only goes to show how easy it is, within the system, to take any small transgression and to blackmail someone for, for all intents and purposes, every penny they have — or more.

Students to be Forced into the Military to Repay Debts

The U.S. college system draws people into large debts (“Debtucation“) and student debt is now larger than credit card debt in the U.S.  It is the U.S. government itself that has made college education so expensive by offering student loans to anyone who can fog a mirror but again they have shown their intentions by making student loan debt the only debt which cannot be forgiven.  A 2005 decree from the Bush Administration stated that student loan debt could not be dissolved through bankruptcy proceedings. The only other scenario where this “no-escape” clause exists is debt from criminal acts and debt from fraud.  In other words, student loan debt is seen, by the US Government, as being similar to proceeds from crime!

What will this mean with more young Americans in student loan debt than any other time?  It’s anyone’s guess but it would not be out of the realm of possibility to force students who cannot pay off their debt into the military to repay their debt.

And with the US military with 800 military bases worldwide with US military personnel in 156 countries and US Military bases in 63 countries and currently occupying or attacking Iraq, Afghanistan, Libya and with other drone operations in places like Yemen and Pakistan, the US is all but ensuring that it is screwing around in enough places to eventually draw in one of the big boys.  Russia, China or Iran.

And, hey, we Gotta Support the Troops, right?

US Government Eyeing Pensions and Retirement Funds

On the other end of the spectrum, seniors and those in retirement, the U.S. Government recently made it very obvious that funds held in retirement accounts are going to be the first to be taken when times get tough.

In the recent scuffle over raising the debt ceiling, the U.S. government was short of some funds after reaching the United States’ $14.3 trillion debt ceiling last Monday.  Where was the very first place the U.S. government went to find new sources of funds?  Two weeks ago they dipped into state pension funds in order to make payments.

It is no great leap to think that as things worsen in the U.S. government’s financial situation, which is all but guaranteed, that the first thing that will be nationalized will be all tax-sheltered retirement accounts. After all, we all have to do our part to pay for the debts of the government, right?

Anyone living off of U.S. pensions should be very worried.  And anyone with significant funds in retirement accounts should be running, not walking, to get any funds they can outside of the direct control of the U.S. government.

Get a 2nd Passport

There are two ways to look at the upcoming battle between the US Government and US citizens.  You can stay and fight or you can run and hide.

If you plan to stay and fight we wish you good luck and will try to support your efforts in any way we can.

If you would rather run and hide then one of the first things you should be looking to do at this time is to at least get a second passport.  This is still legal for Americans and there are many options.

As well, if you have the financial capability, we highly recommend buying some foreign real estate – preferably somewhere you like to live.

2011 Last Year to Get Out

Most things are still legal in the US.  It is still legal to have foreign bank accounts – although you are required by law to report them to the government.  It is still legal to get a second passport.  It is still legal to move assets in your IRA outside of the country.  It is still legal to move money outside of the country and buy foreign real estate.

The window of opportunity is closing.  If you live in the U.S. and still have all your assets inside of the U.S., you likely have months, not years, to internationally diversify your assets and to get your affairs in order.  Anything much after 2011 is taking a big risk of losing it all.

Jeff Berwick
The Dollar Vigilante
Whiskey & Gunpowder

June 1, 2011