President Trump has recently threatened a government shutdown. In this week’s installment of USMR Market Insights, Patrick Brunson talks about what this may mean for the American people and how they can keep their money safe during these changing times.
Is a Government Shutdown on the Horizon? – Video Transcription
Hello, thank you for tuning in to USMR Market Insights. My name is Patrick Brunson and I’m one of the account executives with U.S. Money Reserve. Today we are going to talk a little bit about something that has been slightly ignored over the course of the last few months, at least since March, and that’s our deficit. It’s a big deal because we’re going to start to see the debt that we have as a nation start to hit the headlines in a big way going into the third quarter of this year. The reason being is because this last quarter is technically the last quarter of the fiscal year for the government. Okay, so what that means essentially is that back in March when we hit our debt ceiling back then, they extended the debt to go out until October and you’ll notice that Trump, President Trump is actually threatening a government shutdown if the Democrats don’t come to some sort of an agreement with the Republicans on immigration. Well, the fact of the matter is if we’re going to have a government shutdown, it’s because we’re broke and that’s the actual reality of where we’re at right now as a country. I know that the media tries to paint the picture that we ‘re up and booming and we’ve made it to a recovery as a country from the 2008 recession, but the fact of the matter is, things are not back to normal when you have more than half of the country living off of some sort of a government subsidy that is not normal. When you have the majority of the workforce living paycheck to paycheck, living off a salary of 35 to $50,000 a year, that’s not normal. There’s many things that stick out as red flags that suggest that we’re not in a recovery. In fact, it’s a big possibility that most Americans just got used to living in a recession. A lot of people ask, well, if we’re in a recession, where are the soup lines? Welfare, food stamps, those are your food lines. Those are your soup lines. Okay, so the fact of the matter is if we’re getting to the point where we’re using a government shutdown as an negotiating tool to try and get certain immigration plans passed or whatever the case may be, the fact of the matter is there’s a real issue there. There’s a real issue with money and the fact of the matter is now that we have other countries dumping U.S. Treasury bonds, if we’re going to raise the debt ceiling in October, where are we going to get the new money that we plan on borrowing? We have countries like China and Russia who are dumping U.S. Treasuries now not buying them. The Federal Reserve is doing quantitative tightening instead of quantitative easing, so that means they’re not printing money and buying more treasuries right now. So the big question is where are we going to get the money? We’re already knocking on the door $22,000,000,000,000 in debt with all the new tax cuts that we’ve been adding to the Trump Administration with all the new programs that they’re trying fund, their asking for another $5,000,000,000,000 to add to that deficit when they implement all these programs and cut all these taxes, where is this money coming from? So the big question that a lot of consumers have been asking me personally is, can the government come after my money? Well, that’s been the million dollar question for quite some time now. The answer is probably yes. I don’t put anything past this particular government that we have, and it seems like the more and more we go into debt, the more and more they’re looking for untraditional avenues to try and tax the average American in areas that they have never been taxed before. There’s a lot of talk about wealth confiscation, like what happened in Cyprus a few years back. There’s a lot of fear that the government may come after retirement assets like IRAs, 401ks and annuities, if it gets to the point where nobody’s willing to buy our treasury bonds. And that’s a big possibility. I mean, Richard Cordray, who is the head of the U.S. Consumer Financial Protection Bureau, he came out and stated that he was, it was about two, three years ago, he talked about in an interview how the government told him to put together a program that would allow the government to come in and seize funds from IRAs, 401k’s and annuities because it just so happens that there’s a little over $24,000,000,000,000 tied up in those assets. I don’t know what’s going to happen. We don’t have a crystal ball, but the one thing we know we can do to protect our money from confiscation or a government shutdown or any type of major crisis that we have with our debt and our financial system. The one area we can protect our money is tangible assets like precious metals. So if you’re not in a position right now where you have a portion of your portfolio protected outside of the digital financial system, you need to get there and you need to get there fast. October’s right around the corner, it’s at the end of this quarter, and if we have another government shutdown, it could be the next trigger that causes the next major financial crisis. For today, that’s all, you can obviously call the number at the bottom of your screen or click on the link to pick up your copy of our latest report, A House of Cards. It talks a little bit about what we’ve discussed today as well as what Mr. Wells spoke about recently and quite frankly, it’s really good information to help you prepare your finances for what we’re about to go through. If you have any questions, please click on the link below or ask your questions in the comment section and we’ll address those in our next video or right there on the Facebook page itself. For today, that’s all, thank you for tuning in to USMR Market Insights.