The biggest financial crisis in American history is actually not the $20 trillion U.S. National Federal debt, contrary to what you might believe. Instead it is something else that will impact tens of millions more Americans in the end. It is the fact that a new report from the Social Security Trustees to Congress (just revealed in the past weeks) showed that the shortfall for the social security benefits is now greater than $46 trillion.
To help you put this enormous figure into perspective, recognize that it proves to be more than twice as great as the entire Federal debt, and almost three times the entire size of the United States’ economy. The worst part of the news is that the projections of the Trustees on this matter are wildly optimistic (at best). This is because they must rely on some set of economic assumptions for the future in order to create their longer term financial forecasts and models.
This includes how high will interest rates be over the future, how low (or more likely how high) will inflation turn out to be, what will the U.S. population growth rate amount to, etc. Each of these assumed figures will have dramatic effects on the future sustainability and viability of the Social Security Trust Fund in fact.
Consider that the geniuses over at Social Security have decided there will be an average impressive 1.7% to 2% growth in productivity within the American economy each year going forward. It would be great news if it were true, as it would entail a faster expanding economy that delivered a greater amount of tax revenues and income to the program. Yet sadly, the economic reality on the ground is that the past decade has yielded a 25 percent lower real productivity growth figure. For 2016, the productivity figure proved to be negative in fact.
They are also counting on an average female fertility rate of 2.2 children for every American woman going forward. This would also be terrific news if it were at all realistic. The actual numbers are 20 percent less than their rosy projections.
Yet the most critical number which they forecast surrounds future interest rates. All of their income from investments stems from their considerable holdings of American Treasuries. Higher interest rates would mean that they earned a greater interest amount. Lower ones will mean that they receive very little instead.
Social Security Trustees are hoping for 3.2 percent in after inflation adjusted interest rates. Today’s real rates are minus .5 percent. This makes their most critical assumption fundamentally different from actual reality. Yet in the end, all of their assumptions are wrong.
Is Your Retirement Portfolio Protected by Gold Against the Near-Term Social Security Shortfall?
In other words, social security would be lucky to be only $46 trillion underfunded. This ticking bomb even comes with a date when it will explode, ruining the retirements and hopes for tens of millions of Americans in the very near future. Here’s a hint— it is less than five to ten years away from now. You have never imagined an angry senior citizen until you tell him that he will no longer receive the monthly government check that feeds him and pays for his medicines.
It all means that you simply must count on gold in your retirement portfolio when the massive social disruption breaks out over it. The time-tested yellow metal has seen people through one financial and social collapse after another since before the Roman Empire fell over fifteen hundred years ago (plunging the world into a thousand years of proverbial societal darkness). Click here now to get your free gold IRA rollover kit from the world’s leader in retirement accounts Regal Assets so that you have all of the critically important information you need in order to protect your retirement accounts with a partial diversification of your IRA assets into physically held, real gold.