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Jim Sinclair’s Commentary

This is the future of your 401Ks and Roths.

Social Security is dead. The retirement programs of government employees is going to rest in pieces.

Uncle gives, and Uncle will take away. There is no free lunch. Get ready to pay the Piper.

Ireland Seizes $7 Billion From Its Pension Fund To Boost Employment
Hugh O’Connell, thejournal.ie | Jun. 12, 2011, 7:38 AM

THE GOVERNMENT WILL use the last €5 billion in the National Pensions Reserve Fund (NPRF) to help create employment although it will need approval from the International Monetary Fund (IMF) and Europe before doing so.

The Sunday Times reports today that the money will be used by the government to create as many as 80,000 jobs in Ireland. The paper cites government sources in reporting that the use of the money would be seen as more viable then the proposed sale of semi-state assets in the current weak market.

One source says that the view of the troika of IMF, the European Union and the European Central Bank is that if you have money it should be spent rather than drawing on outside funding or money from selling off assets at the wrong-time.

The NPRF was launched ten-years-ago by the then Minister for Finance Charlie McCreevy.

Its purpose was to build up assets which would part-finance the cost to the exchequer of social welfare and public service pensions from 2025 onward.

A total of €17.5 billion of it is being used as part of the €85 billion EU/IMF bailout that was agreed last November with €10 billion of that being used to recapitalise the banking sector in Ireland.

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Jim Sinclair’s Commentary

Sell your gold? I do not think so.

Paul tells Manchester crowd inflation will hit 50 percent
By MARK HAYWARD
Published Jun 11, 2011 at 3:00 am (Updated Jun 10, 2011)

MANCHESTER — Texas congressman Ron Paul on Friday predicted that inflation will hit 50 percent in the next couple of years, thanks to the massive debt the country has accumulated.

Paul, who spoke to admirers and Republican activists at a Manchester house party, said the inflation will act like default.

Social Security checks will still be cut and interest payments will still be made, but the inflated dollars will allow the government to repay borrowed dollars with devalued money, Paul said.

“They cannot pay the debt,” he said. “I don’t think that means you shouldn’t try and work things out, but with the size of this debt it never gets paid.”

The national debt is about $14.3 trillion.

Paul spoke to about 150 people at the home of Ovide and Bettie Lamontagne, who are hosting receptions for candidates in the Republican presidential primary.

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