Sovereign Responsibility And The Self Directed IRA

We recently came across a very interesting, joint project between Mike Walker, former US Comptroller, and some graduate students from Standford. This particular project was to analyze the basic policies and fiscal practices of the world’s major countries. The list is interesting and has definite implications for self directed IRA investors.

This project was designed to assess and measure:

  • Fiscal Space – how much debt is too much
  • Fiscal Path – projected levels of future debt
  • Fiscal Governance – a score for a country’s fiscal rules, fiscal transparency, and fiscal enforceability

The following table is the result of their research.

Source: Stanford Institute For Economic Research (click here to view the report)

What is interesting about this table is the fact that the US is so low – #28 out of 34. The other interesting fact is the company that the US is keeping such as Italy, Ireland, Japan, Greece, Portugal, Spain. Every single one of these countries have been in the news and are all in some sort of fiscal or economic crisis. Not good company to be keeping, but we are there none the less.

Our interpretation of the data

What this data is suggesting is that the US is not and has not shown sound fiscal policy or financial management, and there is not a overall plan or strategy to deal with the economic problems confronting the US. This is a wake up call for everyone in the US to start seeing our country for what it is: A run away, out of control spend thrift, nation with ZERO plans for making any changes.

Implications For The Citizens of the United States

The implications of this study accompanied with the other associated data we have presented in other postings is that our government will continue to print. This printing will eventually lead to inflation. Consumer spending and jobs will not be coming back any time soon. The US dollar will weaken and fall despite any short term improvements due to other currencies being so dismal.

This is a call for people to review their self directed IRAs, meet with competent advisors and invest in precious metals and real estate or other hard assets not linked to US Government.

Disclaimer

The information provided is for educational purposes only and are not a solicitation or offering of an investment, investment advice, or tax advice. You should consult with your tax, legal or financial advisor to determine the suitability of any investments made with a self directed IRA account.

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