Posted on 11/07/2008 5:50:37 AM PST by Red in Blue PA
(There are plenty of US gold coins dating before the 1930s to prove it!)
You forgot to add that the financial services industry will be devastated as a result. Without a tax incentive for future contributions or employer matches, cash inflows will dry up. And then there is the matter of the treatment of other types of qualified retirement plans (403b’s 401a’s, 457 plans, etc.). What about ERISA provisions for both defined benefit and defined contributions - how will these be affected? And who is going to pay for the difference between present valuation and the GRA guarantee? Well, that’s an easy one: we all are.
In 1933 there some folks that thought the gold that they had bought and paid for was theirs too. SURPRIZE!
The Nazis passed laws covering what they did.
Taking our money will be a piece of cake.
If a plan allowed that, it would not qualify as a 401k plan. As long as the money is in the plan it's not yours. Once the plan allows you to take it out and you take the money out of the plan it becomes yours - and then you owe the tax on it (and maybe penalties).
Most 401k plans let you take the money out if you leave the employ of the plan sponsor but they don't have to allow that. And most plans will let you take an in-service distribution at age 60 or older but they don't have to do that either.
Oh no, a typo ... I guess I'll just have to slink back to my double-wide ... I'm not worthy.
Exactly, and FDR took the gold with the stroke of a pen on,IIRC,an executive order. Then he turned around and devalued the gold from $20/oz to $35/oz hence reducing the value of our currency by 40%. So taking our 401K’s is what I call Social Security Mark II.
What you are arguing is that any funds that you deposit in a time account (CDs, Bonds, etc.) are not yours, which is ludicrous!
The 401k money is YOURS; you may withdraw it at anytime, but you must pay tax on the full amount of the withdrawal plus penalty interest.
So let me get this straight. The government wants to take my 401 from the employers control to the government control? Another Social Sec scheme where the government does a IOW. Unbelievable.
Here’s the code. Researching now.
http://assembler.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00000401——000-.html
Maybe I’m not thinking clearly...
If you devalue something, it’s worth less; meaning that it takes fewer dollars/marks/pounds/yen to buy it.
So, gold was REVALUED and the dollar was devalued as a result. Right?
I'm arguing no such thing. I'm only talking about 401k plans. Please read what I actually write or I'm going to ignore your responses.
http://en.wikipedia.org/wiki/Executive_Order_6102
Executive Order 6102 is an Executive Order signed on April 5, 1933 by U.S. President Franklin D. Roosevelt “forbidding the Hoarding of Gold Coin, Gold Bullion, and Gold Certificates.” It required all persons to deliver on or before May 1, 1933 all gold coin, gold bullion, and gold certificates owned by them to the Federal Reserve. Under the Trading With the Enemy Act of October 6, 1917, as amended on March 9, 1933, violation of Executive Order 6102 was punishable by fine up to $10,000 ($166,640 if adjusted for inflation as of 2008) or up to ten years in prison, or both. Because of this forced immediate sale of gold to the Federal Reserve at the government set price of $20.67 per ounce, this Executive Order is often referred to as the Gold Confiscation of 1933. Shortly after this forced sale, the price of gold from the treasury for international transactions was raised to $35 an ounce; the U.S. government thereby devalued the U.S. dollar by 41%.
That's the proposal that was put before the committee. I don't know how seriously it's being considered but that is what was proposed by the woman who testified.
Coins deemed rare and of special interest were allowed but guess who decided the definitions. From the Act,
“(b) Gold coin and gold certificates in an amount not exceeding in the aggregate $100.00 belonging to any one person; and gold coins having recognized special value to collectors of rare and unusual coins.”
Gold was valued at about $20 an ounce at the time.
That is to say, there was more value in keeping money in your pocket than spending it,or investing it.
The 40% devaluation turned out to be BS. Deflation is such a powerful force that once under way man's piddling efforts to use inflation to fight it are insufficient.
Everything Roosevelt did served only to deepen and extend the Great Depression.
He had the same bad advisors who'd told Hoover what to do, and who are now telling Obama what to do.
We are about to enter four years of smug lefties laughing at pissed off America.
http://www.presidency.ucsb.edu/ws/index.php?pid=14611&st=&st1=
34 - Executive Order 6102 - Requiring Gold Coin, Gold Bullion and Gold Certificates to Be Delivered to the Government
April 5, 1933
http://www.answers.com/topic/gold-reserve-act
The act also authorized the president to devalue the gold dollar so that it would have no more than 60 percent of its existing weight. Under this authority the president, on 31 January 1934, fixed the value of the gold dollar at 59.06 cents.
That’s what I thought. The government bought gold for $20/oz and then revalued it at $35/oz thus devaluing the dollar.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.