Skip to comments.Gov wants your 401(k),Hearings require Treasuries in 'automatic IRA' Sept 14-15
Posted on 09/02/2010 12:54:07 AM PDT by Fred
The Obama administration appears to be proceeding with a novel way of financing trillion-dollar budget deficits by forcing IRA and 401(k) holders to buy Treasury bonds by mandating the placement of government-structured annuities in their investment accounts.
The requirement to invest private retirement assets has been cleverly buried within plans to create "automatic IRAs" that would mandate employer groups enroll all employees in 401(k) or IRA plans.
The U.S. Department of Labor released yesterday an agenda for an upcoming joint hearing with the Department of the Treasury scheduled for Sept. 14 and 15 on whether government life-time annuity options funded by U.S. Treasury debt should be required for private retirement accounts, including IRAs and 401(k) plans.
WND reported in January that Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry are planning to stage a public comment period before implementing regulations that would require private investors to structure IRA and 401(k) accounts into what could amount to a U.S. Treasury debt-backed government annuity.
In a 2010 budget blueprint unveiled Feb. 26, President Obama proposed that employers sponsoring 401(k) plans or other defined contribution plans should be required to offer automatic enrollment in these plans, or in direct-deposit IRAs, as steps that would change the nation's voluntary retirement plan into a government-mandated nationalized program.
With the Treasury needing to sell another $1.4 to $1.5 trillion in government debt to finance the anticipated fiscal year 2010 federal budget deficit, the Obama administration is obviously scrambling to find ways to sell government debt without having to raise interest rates.
Under ERISA, the Department of Labor regulates approximately 700,000 private pension plans, with approximately $4.7 trillion in assets.
(Excerpt) Read more at wnd.com ...
They can have it.
After everyone is transferred out of their current, good assets to IOU T-bills and notes and maybe Agency bonds, then worry about DEFAULT on them in a few years....US debts and monetizing are only rising astronomically and cannot do that for very long.
Analysts stress deflation, inflation, possibility of hyperinflation, but while the Congress is considering the IRA and 401k actions, there is little mention of DEFAULT. Therefore, consider the possibility as a final outcome.
Obambie to take ALL of your earnings and money, in exchange for five acres and a mule.
Because they’ve done such a great job with social security and that “lock box” thing.
I said, and I quote, ‘because the government is going to take it.’
Odd thing, my ex-wife did the exact same thing.
As soon as Obama was elected, half the people I know, dumped their 401s.
We all knew this was coming. And this is only the beginning.
The United States economy is in full meltdown.
It will not be long before everything you own belongs to the government. By government, of course, that would be China.
Wow! Isn't it wonderful to live in the Utopian Paradise the Libs and RINOs have given us?
They must be very proud. USSR rocks! (and now, we are them) Good going to all involved. Great Job. I'll see you in the bread line! You stupid losers.
Yeah right it will end up being a single room apartment in a slum somewhere and a bus pass....
I should pull mine out and hide the money under the mattress. Until Obama sends his secret police to check my bedroom, that might be the safest place.
Move mine to a Roth. No mas in my 401K.
Give the feds time; they’ll come for your Roth too.
Don’t know why they need to, what with our first Black Prez’s brilliant idea to re-create Zimbabwee economics (i.e. Weimar Republic finance policy) here in the USA.
Obama doesn’t need anyone to buy Govt debt, his Fed Reserve (or Kinko’s Copy Centers) will just create the money out of thin air and the Govt will have all the dollars it needs.
A process now called “quantitative easing” (aka counterfeiting or destroying the value of the dollar)
And since no Dem voter has the smarts to figure out that debasing the currency always leads to making it w/o value, Obama can do it all he wants. Trillions at the snap of his finger...too cool!
...and the mule has only three legs...
A;ready paid the taxes and can pull it out with min fallout...
This is not a natural spike. People are afraid of Obama and the Liberals, i.e, Communists.
Everyone knows the government is going to take everything and they rushing to Gold as a haven. It is as if they think the Communist government will not take their Gold.
Of course they will. And even if they can't find, the Government will just trading in Gold illegal.
No, short of moving to Australia, there is no way around this.
America has been conquered!
Sounds like a Conservative plan all along.
What the anti-capital collectivists are working towards are requirements to qualify an IRA for tax exemption before retirement.
Hussein was very clear in his campaign website that IRA tax exemption is a government subsidy, all money belongs to the government. Osama posted on the site that anyone rich enough to have a private retirement account, is rich enough to pay taxes on it. The website has long since been scrubbed.
The Treasury requirement is likely to be: X bucks of Treasuries in an IRA to qualify X bucks of other IRA investment tax exemption.
All of this was spelled out in Barak Hussein bin Obama al Kenyata's campaign literature long before he was elected.
They won't need any steenkin' secret police to take your savings.
Whatever gets past the taxman will be robbed by the central bankers et al - and they'll never have to get near your home to do it.
Sounds like another way of saying ‘’Stick em up,sucker.’’
I was paid unemployment. Got a call from the IRS and they wanted taxes on the unemployment.
I was confused. So I said to the lady, but unemployment is taxes. You tax people to have money to pay unemployment. That is one of the points of having taxes.
So, I continue, by this logic, the government pays me unemployment. The government then taxes the unemployment they just gave me. And then they count the amount of money they just gave me, that give back to them, which is their own money... as revenue.
So, basically, money that you give me, that I give back to you is productivity?
Man that is some wild logic. Get you money for nothing and your chicks for free.
Liberalism is a mental disease. They really do, they are pretending, they really do believe that money comes from nothing. It is like dealing with children.
Take my money and civil war starts.
Related, from last night:
They can “force” companies to offer this sham of an option.
They CAN NOT force individuals to invest in it!
If the Dems want to have a conversation about the pitfalls of “privatizing Social Security” vs. this hoax, bring it on!
I’m with you !
“WND reported in January that Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry are planning to stage a public comment period before implementing regulations that would require private investors to structure IRA and 401(k) accounts into what could amount to a U.S. Treasury debt-backed government annuity.”
Just like health care, what part of the Constitution gives our elected elite the right to demand that I purchase a product to live in the U.S.?
I wonder if there will be a way to invest in insurance on these CDO’s? We could make gazillion dollars, or euros or some new currency, on this. Go read The Big Short for a full explanation.
On a serious vein, put your hands on my IRA and that is where you are going to leave them.
Question, how can you get out of 401 without taking a hugh loss due to the penalty placed on it for early withdraw by the gov’ment?
They HATE the fact that some people worked hard during their lives and saved some money, and that some others lived a life of lazy uselessness, and now, poor things, have no savings.
So they WANT to take the savings and give them to the people who vote democrat.
They will find a way to do it by slipping in an amendment to an unrelated bill.
Once the fix is in to nationalize retirement assets, then means testing will redistribute them.
Imagine your pension fund (made up of your earnings you chose to defer or to save or to invest) being run by the people now running our economy into the ground. The economic geniuses who call tax cuts “spending” and unemployment checks and rampant govt pork spending “stimulus”
Imagine your pension being managed by the people who run the Post Office.
Retirees who own their own homes mortgage free, being “wealthy”, will get only half a mule. Actually a piece of paper entitling them to half a mule, payable over 10 years.
She took your IRA?................
Once you begin to hear that they are raising the penalties/fines/fees for early withdrawal, that’s right before they take your IRA.
Anyone who thinks that the govt will not eventually take over your IRA is being naive. Even if its 25years from now. Too much money.
Too late Mr. Gooberment. Worldcom disappeared my IRA a few years ago.
A real wealth killer if I ever saw one.
Stock market would dive.
“Take my money and civil war starts.”
They have been carefully crafting that monies collected by the feds are “theirs”, not yours. Things like “can we afford tax cuts” are designed to indoctrinate people to believe that the govt has legitimate claim to money(When actually it is not theirs but ours).
When it comes to the 401k and to IRAs, their premise is that if taxes have not been collected on them, they are not “yours” yet, so they see a legitimate claim to it.
That’s why it is better to have it “after-tax” rather than “pre-tax”.
I am 59 1/2 in 4 months and will pull as much as I can out of 401k.
No! They CAN NOT have it!
Gold has skyrocketed and the other stocks have gone down. Way down.
It’s the “Joe the Plummer” effect.
A free stock market that served as a genuine proxy for the underlying value of the companies listed on it might dive. The one we have today wouldn't go anywhere.
But to the more grim fact. Yes, she did. I had an unprecedented divorce decree.
Essentially, what the court decreed was, "You will all your assets and all your wages to this woman for the next 15 years."
It was revenge divorce. Her parents had money and hired the best lawyer in the state. I guess he was a friend of the judge. You don't get to be 'the best lawyer in the state' by playing fair.
I was condemned by the state to poverty for the rest of my life. All because I met this girl, married her(mistake!), and then I pissed off her loony parents. They were not even after money. Their goal, which was successful, was to crush me to my knees. American justice.
Oh well. You win some and you lose some.
The best part of the movie, 'Oh Brother where art thou', was when the Satan character scoffs and says, 'The Law? The Law?
The Law is a human institution.' And it most certainly is. Anyway, thank you for the chuckle.
The phrase "the law is an ass" originates in Charles Dickens' Oliver Twist, when the character Mr. Bumble is informed that "the law supposes that your wife acts under your direction". Mr. Bumble replies "If the law supposes that ... the law is a [sic] assa idiot. If that's the eye of the law, the law is a bachelor; and the worst I wish the law is that his eye may be opened by experienceby experience."
Thank you Fred, very much!!
Let's see...let see what I can do to counter your outrageous slander...
`It’s a pun!’ the King added in an offended tone, and everybody laughed, `Let the jury consider their verdict,’ the King said, for about the twentieth time that day.
`No, no!’ said the Queen. `Sentence first—verdict afterwards.’
`Stuff and nonsense!’ said Alice loudly. `The idea of having the sentence first!’
`Hold your tongue!’ said the Queen, turning purple.
`I won’t!’ said Alice.
`Off with her head!’ the Queen shouted at the top of her voice. Nobody moved.
`Who cares for you?’ said Alice, (she had grown to her full size by this time.) `You’re nothing but a pack of cards!’
At this the whole pack rose up into the air, and came flying down upon her: she gave a little scream, half of fright and half of anger, and tried to beat them off, and found herself lying on the bank, with her head in the lap of her sister, who was gently brushing away some dead leaves that had fluttered down from the trees upon her face.
`Wake up, Alice dear!’ said her sister; `Why, what a long sleep you’ve had!’
A Czech in the Austro-Hungarian empire, a German-speaker among Czechs, a Jew among German-speakers, a disbeliever among Jews; alienated from his pragmatic and overbearing father, from his bureaucratic job, from the opposite sex; caught between a desire to live in literature and to live a normal bourgeois life; acutely and lucidly self-critical; physically vulnerable--Kafka nowhere found a comfortable fit.