Stephan Molyneux on Accepting Responsibility for Social Security Failure – Or Not
I agree with Stephan and here’s my 2¢
When I was young I hated the fact that “they” were taking “even more” out of my check for social security over and above the taxes they were already taking. In my shortsighted view I figured I’d rather have the money now and I’d worry about retirement later.
I worked most of my life “outside” the normal system and paid very little in taxes and less in social security taxes. I can’t say that I did this because of principled resistance or because I had figured out early on that it was all a scam. It just felt right to hang on to as much of what was mine as possible. Plus, I hated working jobs where others controlled my time and my life.
With time I concluded that most likely very few of my contemporaries would see a return on their social security dollar. I am 63 now and drawing a VERY meager social security pension – one I never counted on.
I won’t say that I was wise enough to start some other plan for paying for myself in my waning years. I never really learned that lesson but I have learned that there are damned few ways of storing wealth that are not in some way susceptible to loss. Most of those who have managed to save for their old age are seeing their savings stolen through inflation. Even gold can be lost, confiscated or stolen.
It seems the truest store of wealth lies in the knowledge one acquires. And, indeed, in the relationships one forms. Though I have experienced some bankrupt relationships.
Mostly, I’m sorry for those who got lazy and stopped acquiring knowledge somewhere along the way. I may not have great stores of physical wealth but I am secure in the knowledge that I will always find a way to provide for myself and those who depend on me. Words like ingenuity, agility, foresight and providing value come to mind.
I feel that a great leveling of the playing field is about to happen. I’m anxious to see if my theory is correct.
Oh, and thank you Stephan for your kind offer to share your wealth if we (the older generation) will accept responsibility for being asleep at the wheel. Or accept that government has gone beyond out control. But you know, I’m quite sure that those dollars won’t do either you or me much good in the not so distant future. Your wealth of knowledge however will be priceless and you are already sharing that.
While I feel 100% confident about my belief in precious metals, especially gold bullion, as basic financial insurance, I would not consider myself qualified to make currency trading recommendations.
OK – that was the disclaimer – now here’s my take on currencies. Trading currencies looking for short term gains is not something I am interested in personally. Too much work keeping track of what’s happening day to day.
Also, today, all the worlds currencies, not just the dollar, are based on nothing but a lick and a promise from some government. They are all fiat currencies and can be manipulated by politicians looking for ways to finance their agenda, whatever that might be. Mostly this means robbing the savings of older generations by devaluing their savings and mortgaging their children’s future by borrowing with the intent of paying back with cheaper dollars, euros, etc.. As such, all currencies are infected with the inflation virus which could get out of control at any time.
That being said, the Asian economies are a good bet for growth and strong currencies over the longer term. There have been many naysayers who forecast the fall of Asia as a result of the loss of their markets in the west. This domino effect hasn’t happened. Instead we see the decoupling of these economies from the west and the growth of internal markets and regional trade.
Asians have been working hard and consuming less than they produced for many years and have thus accumulated a large pool of savings. This is the position the United States was in after World War II. Those savings, that capital, financed many decades of growth in the U.S. and Europe. Asia is now ready to do the same.
Asian governments are spending their increasingly worthless dollars on stimulus projects. Their populations are sitting on a pile of money. Sales to the west is less and less important as Asia exports more and more to itself.
As these trends grow there will be less need for Asian governments to keep their currencies cheap relative to the dollar and the euro. (ie: their currencies will rise against the dollar and the euro).
While gold and silver can be looked at as investments, I consider them to be insurance. Their purchasing power over the long run stays constant whereas the value of our dollars is being inflated away more and more with each trillion dollar bailout that is funded with an increase in the money supply.
Since our politicians want to get reelected they will not raise taxes to fund their programs…
Since China and other foreign sources of capital have dried up (who wants to buy dollars that are being devalued daily) we can no longer look to them to fund our buying spree…
And since the public demands that the government “fix” the economy and continue to keep filling the trough from which so many feed…
…It is almost certain that the source of funding for these programs will come from printing more and more dollars. Money created out of thin air. Monetary inflation will be followed by price inflation. Your dollars will buy less and less.
At some point people (here and abroad) will lose faith in the dollar. At that point you will be glad that you have purchased some gold and/or silver. An ounce of gold still buys approximately the same amount of basic commodities as it did in Roman times. Over the centuries gold has proven to be a reliable store of value.
I believe it is prudent to hold a gold and silver reserve sufficient to provide basic living expenses for 2-3 years. It can’t hurt and may turn out to be the best decision you ever made.