It's one thing when governments make a mess of their own finances, but it's harder to take when they're doing it to mine.
Like many others, I've watched my retirement savings go on a roller coaster ride the last few years thanks to a variety of factors, most of them taking place well beyond our country's borders.
I realize personal and public finances are inextricably linked, but for the most part I figured there was enough separation between what our government did, to say nothing of foreign ones, and what I was up to that everything would be OK.
I figured mounting government debt would eventually lead to even higher taxes and likely reduced services and benefits, but as long as I dutifully put 15 per cent of my pay cheque in a RRSP account every two weeks, I would build a nest egg that would ensure I wasn't too dependent on the folks in Ottawa. I was heeding that ever-present warning about not relying on a cash-strapped government during my golden years.
Trouble is, they still got me. I can't say it was necessarily the gang in Ottawa as much as it was their colleagues around the world, but mismanagement of the public purse, coupled with less than stringent regulations on a host of financial matters, have created reverberations so large they've shaken even the most modest investor.
I had only recently begun to peek at my RRSP statements after taking a twoyear break, but last month's meltdown, fueled primarily by the debt ceiling circus in the U.S., will undoubtedly put them in hiding for a while longer.
I recognize there's a massive amount of pressure on politicians, here and elsewhere, to provide ever-increasing services, so short-term, debt-inducing thinking has unfortunately become the norm.
But at some point - we're actually beyond it now - that mind set has to change, for both politicians and those who elect them.
Cutting too quickly can stagnate the economy and make matters even worse, but mounting debt has already proven it's not the answer.
I don't profess to have the solutions to a worldwide financial crisis, but I know it's gone too far when governments of countries I've never set foot in, and some that I have, are routinely taking shots at my retirement portfolio. It doesn't seem right, or fair, to put everyday, hard-working folks through such a ringer.
By socking away money every cheque, I feel I'm doing the responsible thing. I wish I could say politicians were doing the same.
