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Raiding Retirement Accounts - Coming to a 401K Near You?
publication date: Feb 20, 2010
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author/source: Brad Hamill
The
Federal government is still trying to sneak through the king of all “trust”
funds in the form of the Health Care bill. I’ve written extensively on what
their target will be if this legislation ultimately goes up in smoke – namely,
retirement accounts.
Plain and simple, the Federal government needs lots
of dollars, and it doesn’t have many more places to get them.
Here’s an
article by Newt Gingrich and Peter Ferrara where they’re now recognizing the
obvious:
Class
Warfare's Next Target: 401(k) Savings
From the
article:
“They will tell you that you are "investing" your money in
U.S. Treasury bonds. But they will use your money immediately to pay for their
unprecedented trillion-dollar budget deficits, leaving nothing to back up their
political promises, just as they have raided the Social Security trust
funds.”
Where have you heard that before?
P.S.: Keep watching
the 2-yr vs. 10-yr and 2-yr vs. 30-yr spreads shown below. They’re at
historical highs. That’s bad – really bad.
P.S.S.: US
bank lending falls at fastest rate in history
P.S.S.S.: U.S.
runs $43 billion budget deficit in January. The first four months of
the Federal government fiscal year have us $434 billion in the hole
already.
______________________________________________________
Watch
for these indexes to drop:
Chinese Shanghai Composite Index: 3,018.13
(change of 7.62% from July 20, 2009 base
value of 3,266.92)
Shenzhen Stock Exchange Component Stock Index (SSE):
12,304.78 (change of 8.04% from July 20,
2009 base value of
13,381.22)
________________________________________________________
Here
are today’s numbers for the economic indicator:
1) Gold = $1,106.80
2) Silver = $15.89
3) Dollar
Index = 80.46
4) Oil = $77.41
5) S&P 500 Index = 1,099.51
6)
3-month Treasury Bill yield = 0.09
7) 3-month OIS = 0.15
HEI =
33.73
(A value of under 100 indicates deflation, while over 100 indicates
inflation – as referenced to Sept. 12, 2008…the day before Lehman Brothers
collapsed)
__________________________________________________________
Here
are the numbers for the day:
Dollar Index adjusted indexes:
Dow =
(10,309.24) x (0.8046) = 8,294.81
S&P 500 = (1,099.51) x (0. 8046) =
884.67
Nasdaq = (2,226.29) x (0. 8046) = 1,791.27
3-month Treasury:
0.09
2-year Treasury: 0.85
10-year Treasury: 3.74
30-year
Treasury: 4.71
2-yr vs. 10-yr Spread (Target > 273): 289 basis points – (Danger Zone)
2-yr vs.
30-yr Spread (Target > 369): 386 basis points –
(Danger Zone)
3-month LIBOR: 0.25
3-month EURIBOR:
0.66
3-month OIS: 0.15
TED Spread: 16 basis
points
LIBOR/OIS Spread: 10 basis points
Dollar Index:
80.46
Volatility Index: 21.72
JPY-EUR Exchange Rate (Target <
115): 124.2182
JPY-GBP Exchange Rate (Target < 145): 143.1096– (Danger Zone)
JPY-USD Exchange
Rate (Target < 90): 91.298
USD-EUR Exchange Rate (Target < 1.25):
1.3606
USD-CNY Exchange Rate (Target > 7.0):
6.8334
Warmly,
Brad
Comments or questions? brhamill@hamill.com
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currently on the Economic Update email list you can email me at: economics@datatogo.com to be
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