Posted on 02/21/2010 2:20:28 PM PST by Texas Peartree
It has been reported by Business Week that the US Labor Department and Treasury Department are asking for public comment on a plan to convert individuals' retirement accounts (IRAs and 401(k)s) into government sponsored annuities featuring US Government bonds. The scheme would start off as voluntary, but only makes sense -- like socialized health care -- if it becomes mandatory and universal.
In essence the government is asking if we would mind if they nationalized our money in return for a promise of more money in the future . . . like a Ponzi scheme called Social Security, but even more nonsensical because people can already voluntarily hold T-bills in their retirement accounts. Why force people?
Ah, that is the rub. The Chinese and Japanese increasingly fear buying new US T-bills as we increase our money supply to pay for needless stimulus spending. Holding too much of our debt is increasingly problematic. Would you want to hold California State Bonds?
Today, not enough Americans are willing to buy T-bills through their retirement accounts. So the government wants to take our retirement accounts and convert them into low yield government bonds. Very convenient! Also, it must seem very fair, since only the well-off have been saving for retirement.
If this comes to pass it will be a disaster. Why would I continue to withhold present-day income in to a retirement account that must buy low yield US Bonds? Frankly, by socializing retirement in this way, we would remove the benefit a thrifty person would have over a spendthrift. It would be a one-time theft because all incentives for retirement savings and personal responsibility for retirement would end the day the government stole all savers' money.
(Excerpt) Read more at corybirenbaum.blogspot.com ...
I’m already hearing talk of inflation starting up. We’ve been warning about this for over the past two years. They will try to duck out of it like they are still doing with the housing bubble.
Two questions: 1) Will the public focus the blame on the progressives, as well they should? and 2) How angry will the public be when they see their economy and everything they planned for go down in flames before their very eyes?
In The Obammunist's campaign websight (long removed), he lamented rich people who could afford IRAs and that the government subsidized them through tax exemption on gains.
This new trick by treasury would probably be a theme something like:
Only U.S. treasury instruments, government organization instruments and municiple bonds interest payments in retirement accounts will be exempt from taxation. Also:
Unrealized capital gains/loses wherever held must be reported annually to be calculated in AGI.
Welcome to the wealth tax.
yitbos
In the unlikely event the Feds actually pulled this stunt there would be open violence and frankly, I’d probably support it.
There is another, easier way they might use to punish thrift.
IRAs or 401K Offset to Social Security.
Any IRA or private pension payments would be calculated used to reduce any SS payments to retirees.
calculated “and” used.
>>IMO - this will be a tipping point for many.<<
.
Nah, Americans have become so patient and longsuffering. They don’t even mind having a potentially constitutionally non-qualified president.
Swiss francs, British Pound, Deutsche Mark
I will try to drain my 401K before that < censored> takes it for his personal enrichment. And I will stop all contributions to it permanently.
I decline to comment what I’ll do if they steal it.
The instant the public suspects confiscation is POSSIBLE, they will stop all contributions immediately.
Just be OPENING THE QUESTION is insanity from the authorities.
“...now they want to get their stinkin’ hands on our private retirement funds.”
.
This also means that you won’t have an inheritance left to pass on to your kids. This is the whole idea.
I was cocksure enough to tell him that since the Government approved IRAs they probably had all intentions of taking the money later on, if needed, under the lie that since they gave a tax break then they owned the entire amount of money.
I then made a comment about how politicians thought that all income was theirs to play with and they just allowed us to have a bit of it.
My Sq/CC pegged me a a trouble maker and a radical.
Hey Zero, how about War Bonds? yea yea, I know.
Yes, the Congressman is Miller from CA and some other jackass desperate socialists. The problem with socialism is that eventually you run out of other people’s money... like the personal funds and life savings of CITIZENS. This is the tipping point. And IRS is where it will be enforced. This is a function of representative government which CAN BE CHANGED.
Incarcerate these criminals at Labor and Treasury.
I guess Immediate Annuities don't count....anyone know?
And their taxes, previously protected, will skyrocket.
He's gonna get us either way...
this would sink the equities market. It will never happen.
Not seeing that, the P.I.G.S. must be bailed out via Euro loans, the Pound is being devalued as I type this, leaving only Swiss Francs and there are not enough of them in circulation.
Thank you, Banksters, enjoy your bonuses.
DEMONKATS
That's what they said in Argentina (and many other countries) ... But it did happen.
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