Meet “The Feds”…A Family that Spends like the U.S. Gov’t

Meet “the Feds,” an imaginary American family that spends like the U.S. government. On the surface, the Fed family seems to be the richest household around: they own the largest mansion, print their own currency and are believed to be ageless.

Envious yet? Don’t be.

If you ran your household’s finances like the Feds, you would be labeled reckless and bent on self-destruction.

No Agreement, Except to Spend More

The Fed family is constantly fighting. Why? Despite their enormous power in the neighborhood, the Feds can never agree on how to keep spending under control. Paralysis rules; critical family decisions are postponed indefinitely. As a result, the Fed’s debt is spiraling up as they continually print money and borrow money from neighbors to pay bills.

So much so, in fact, that the Fed family has run up credit card debt that totals 6 times their annual income!

That doesn’t hold them back one bit: they still overspend their income by more than 20% per year, every year, despite repeated warnings from their financial advisers about what will happen.

25% of their annual budget goes to health care and 35% pays for retirement and health care for their elders, which Grandpa and Grandma were supposed to have already prepaid for. Unfortunately, the Fed family used those pre-payments for other things along the way,so the money is all gone.

The Feds spend 15% of their annual budget defending their property with state-of-the-art alarm systems, window locks, armed guards and drones. Despite lots of bickering with neighbors, they help protect the community from mean bullies and thugs.

But the Fed’s bills will come due one day.

This once-proud and now hopelessly divided family will be forced to declare bankruptcy and their beautiful mansion will be repossessed. In fact, the paper money the Fed family prints could one day become worthless, causing businesses to collapse, unemployment to rise and allow the return of the bullies and thugs.

Only the neighbors and local businesses who demand to be paid by the Feds in gold will emerge from the wreckage unharmed.

Nobody Can Spend More Than They Earn Forever

You get the idea. This might seem like fiction, but the reality is something to consider. Just like a rightfully-skeptical neighbor, you should consider whether you would store all your retirement assets in currency issued by someone like the Fed family.

By the time President Obama leaves office in January 2017, the U.S. national debt will reach $20 trillion dollars. Both the President and the U.S. Congress have abdicated their responsibilities to reign in excessive and wasteful government spending.

Buffett: Don’t Listen to the Experts

Taking action to take control of your future is the best way to go.

Warren Buffett gave this advice recently to investors: “Don’t listen to the ‘experts’…anything can happen anytime in markets…market forecasters will fill your ear but never fill your wallet.” Buffett believes higher taxes are inevitable because of unprecedented U.S. government spending which will in turn pressure corporate earnings and depress stock and bond prices for many years to come.

Last week, the Federal Reserve and the Federal Deposit Insurance Corporation warned that five of the eight largest U.S. banks have no “credible plans to wind down during a financial crisis and are still ‘too big to fail.’”

In the face of this kind of uncertainty, no surprise that gold just enjoyed its best quarter in many, many years.

What we have here is a death-spiral of profligate U.S. government spending coupled with no credible efforts to contain it. You can benefit by owning gold: a tangible asset that offers critical diversification benefits and often shines brightest in uncertain times. Like the ones we are facing right now.


Contact our experts today to learn more about how to protect your family’s hard-earned wealth from the Fed’s fiscal foolishness. Please call us at 800-462-0071 and we can help you develop a strategy to safeguard your family’s future.

In times like these, having a little gold or silver in the home safe is of considerable comfort to anyone, regardless of your exact view of the markets ahead, your political leanings or even your age.

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