How Can We Survive Another Four Years of an Obama Administration?

  -->Updated from 11/17/2012 original post - 11/25/2012

If the early days following President Obama’s reelection is an indication of what’s to come over the next four years, we are in serious trouble.  Investments. including IRAs absorbed an initial shock, reflecting the generally pessimistic outlook of the financial markets.  While there has been partial recovery with the usual ups and downs in markets, implications may be particularly ominous for retired people.  Not being able to make up for market losses through future earnings, this group is dependent on savings built up slowly over many working years through IRA and/or 401k savings.  Adding to this ominous outlook is the high likelihood that “ObamaCare”  will now fully take effect.    It's been reported that half the cost of running this massive new federal program will be paid for by taking funds away from Medicare.  This nearly assures that overall future medical care for seniors will be drastically reduced.

The above should also serve warning to those still working that government promises and implied contracts with the people are hollow and can be withdrawn at any point in time.  In my view, it is foolish to trust the government with your financial future.  Whatever wealth you intend to build for your future retirement years, it would seem wise to insulate it as much as possible from the reach of the government.  What good is it to work hard for 35 or 40 years, being prudent with spending and saving decisions, often denying immediate gratification, only to have government raid the nest egg that you carefully planned for and dutifully saved for retirement? That's exactly what looms in our future as the massive debt grows and the government continues to rely on printing money rather than sound fiscal discipline to "right the ship".  Ultimately, accelerating inflation is likely to kick in and everyone will see their savings shrink before their eyes.

The standoff between the administration and the Republican House of Representatives over "taxing the rich" vs spending cuts is getting us nowhere.  There needs to be a negotiated course of action that brings to an end expanding debt.  Regardless of how much more the "rich"are taxed, that will not begin to do the job.  It's been calculated that even if the government took every penny from the "rich", it would barely make a dent in government debt, now in excess of $16 trillion.  Significant reductions in spending will be required and that means major entitlement reforms.   It’s not that my generation nor my parent’s generation have failed to be generous and compassionate with the less fortunate.  These two generations have arguably been the most generous and compassionate the world has ever known.  My father’s generation not only saved much of the world from German and Japanese aggression in WW2 but then basically put the world back together.  It sickens me to listen to the liberal demagogue politicians attempting to rewrite history.  Everyone should listen to, or at least read, “The Americans, A Canadian’s Opinion by Gordon Sinclair”. Although it was composed nearly 40 years ago, much of it is still relevant today.  It may provide a somewhat different perspective of our country and maybe even make you a bit wary of where the far left is currently attempting to take us.