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The Countdown to the Nationalization of Retirement Savings Has Begun
International Man ^ | 02/05/2014 | Nick Giambruno

Posted on 02/05/2014 12:30:52 PM PST by SeekAndFind

Simply put, the new myRA program put forward by Obama is at best a sucker's deal… or worse, it's a first step toward the nationalization of private retirement savings. (Note: If you haven't yet heard of myRA, I'd strongly suggest you read this excellent overview by my colleague Dan Steinhart.)

Even before the new myRA program was announced, there had been whispers about the need for the US government to assume some risk for US retirement accounts. That's code for forced conversion of private retirement assets into government bonds.

With foreigners not buying as many Treasuries and the Fed tapering, the US government has been searching for new buyers of its unwanted debt. And this is where the new myRA program comes in.

In short, it's ostensibly a new way for people to save for retirement. Of course, you can only invest in government-approved investments—like Treasuries—which probably won't even come close to keeping up with the real rate of inflation. It's like Jim Grant says: "return-free risk."

In reality, a myRA doesn't really provide any significant new benefits over existing options. To me it just looks like a way for the US government to pass the hot potato on to unsuspecting Americans in exchange for their retirement savings.

The net effect is the funneling of more capital to Treasury securities and thus helping the US government finance itself.

You'd be much better off using a precious metals IRA to save for retirement than participating in the government's latest Ponzi scheme.

There are other protective strategies as well, such as internationalizing your retirement savings into assets that are hard, if not impossible, to confiscate on a whim—like foreign real estate and physical gold held abroad. More on that below.

Retirement Savings Are Always Juicy Targets

As bad as it is to deceive naïve Americans into trading their hard-earned retirement savings for garbage (i.e., Treasury securities), the myRA program potentially represents something far worse… the first step toward the nationalization of existing private retirement accounts.

I believe myRA is a way to nudge the American people into gradually becoming more accustomed to government involvement in their private retirement savings.

It's incorrect to assume nationalization couldn't happen in the US or your home country. History shows us that it's standard operating procedure for a government in dire financial straits.

In just the past six years, it's happened in some form in Argentina, Poland, Portugal, Hungary, and numerous other countries.

To me it's self-evident that most Western governments (including the US) have current debt loads and future spending commitments that all but guarantee that eventually—and likely someday soon—they will try to unscrupulously grab as much wealth as they can.

And retirement savings are a juicy target—low-hanging fruit for a desperate government.

Naturally, politicians will try to slickly sell the idea to the public as something "for their own good" or as "protection from market instability." This is how similar programs were sold to skeptical publics in the past.

In reality, governments take these actions not to "reduce the risk" to your retirement savings or whatever propaganda they happen to come up with, but rather to obtain financing—by forcefully dumping their unwanted debt onto seniors and savers.

Below are several ways it has happened or could happen. Of course, there could always be some sort of new, creative proposal that was previously unthinkable. No matter the method, however, the end result is always the same—the siphoning off of purchasing power from your retirement savings.

New Contribution Mandate: The government could mandate, for example, that 50% of new contributions to private retirement accounts must consist of "safe," government-approved investments, like Treasury securities.

Forced Conversions: This is where a government will forcibly convert existing assets held in retirement accounts into so-called "safer" assets, such as government bonds. For example, if the US government forcibly converted 20% of the estimated $20 trillion in retirement assets (401k plans, IRAs, defined benefit and contribution plans, etc.), it would net them $4 trillion. Not a bad score, considering the national debt is north of $17 trillion.

Special Taxes: The government could look into levying special taxes on distributions from retirement, especially those deemed to be "excessively large."

In order to be more effective, forced conversations probably wouldn't happen until after official capital controls have been instituted. Once in place, capital controls would make it very difficult, if not impossible, for you to avoid the wealth confiscation that is sure to follow… like a sheep that has just been penned in for a shearing.

Since FATCA and other regulatory burdens already amount to a soft form of capital controls, it's absolutely essential that you start implementing protective measures now.

It's like I have always said: internationalization is your ultimate insurance against the measures of a desperate government. In the case that the government makes a grab for retirement savings, it's much better to be a year or two early rather than a minute too late.

Internationalize Your Retirement Savings

It's much more difficult for the government to convert your retirement assets if they're outside of its immediate reach. If you have a standard IRA from a large US financial institution, it would only take a decree from the US government and Poof!: your dividend-paying stocks and corporate bonds could instantly be transformed into government bonds.

Obviously, this is much harder for the government to do if your retirement assets are sufficiently internationalized.

For example, you can structure your IRA to invest in foreign real estate, open an offshore bank or brokerage account, own certain types of physical gold stored abroad, and invest in other foreign and nontraditional assets.

In my view, owning an apartment in Switzerland and some physical gold coins stored in a safe deposit box in Singapore beats the cookie-cutter mutual funds shoved down your throat by traditional IRA custodians any day.

If and when there's some sort of decree to convert or otherwise confiscate the assets in your retirement account, your internationalized assets ensure that your savings won't vanish at the stroke of a pen.

There are important details and a couple of restrictions that you'll need to be aware of, but they amount to minor issues, especially when weighed against the risk of leaving your retirement savings within the immediate reach of a government desperate for cash.

After placing a juicy steak in front of a salivating German shepherd, it's only a matter of time before he makes a grab for it. The US government with its $17 trillion debt load is the salivating German shepherd, and the $20 trillion in retirement savings is the juicy steak.

Internationalizing your IRA has always been a prudent and pragmatic thing to do. And now that the US government has now officially set its sights on retirement savings, it's truly urgent.

You'll find all the details on how it to get set up, along with trusted professionals who specialize in internationalizing IRAs in our Going Global publication.


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: 401k; economy; ira; myra; nationalization; retirement

1 posted on 02/05/2014 12:30:52 PM PST by SeekAndFind
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To: SeekAndFind

If you like your retirement account, you can keep it.


2 posted on 02/05/2014 12:37:07 PM PST by Track9 (hey Kalid.. kalid.. bang you're dead)
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To: SeekAndFind

Question — If the government were able to nationalize all retirement savings tomorrow, wouldn’t there be unintended severe consequences, such as a stock market crash? If trillions were flowing from stocks into government bonds, wouldn’t such action tank the stock market, creating other severe problems? Or have Obama and his boys NOT thought all of this through?


3 posted on 02/05/2014 12:37:09 PM PST by Dilbert San Diego
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To: SeekAndFind

Good thing I just ran out of savings...


4 posted on 02/05/2014 12:37:10 PM PST by null and void (<--- unwilling cattle-car passenger on the bullet train to serfdom)
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To: SeekAndFind
that's what ss is.....and just like Medicare...the government is the legal heir...

The government wants control of ALL your funds.

5 posted on 02/05/2014 12:38:43 PM PST by Sacajaweau
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To: SeekAndFind
This is also why I'm leery to invest in anything specifically labeled a retirement account or pension. You are probably better off simply investing your money in some type of general investment with the intention of using it for retirement, you will lose the tax deferment that retirement accounts provide, but on the other hand, you gain the ability to withdrawal or move around your investments without jumping through all the tax hoops that are required by retirement accounts.
6 posted on 02/05/2014 12:39:48 PM PST by apillar
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To: SeekAndFind
.. Retirement Savings ..


       

7 posted on 02/05/2014 12:43:19 PM PST by tomkat
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To: Dilbert San Diego

Unintended severe consequences do not apply to 0bama. Although his economic policies have been tried and have had severe unintended consequences throughout history, nobody as smart as 0bama has ever had a chance to try them again. /s


8 posted on 02/05/2014 12:43:37 PM PST by forgotten man
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To: tomkat

9 posted on 02/05/2014 12:46:23 PM PST by 4Liberty (Optimal institutions - optimal economy.)
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To: SeekAndFind

PFL


10 posted on 02/05/2014 12:47:24 PM PST by Alex Murphy ("the defacto Leader of the FR Calvinist Protestant Brigades")
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To: SeekAndFind

If this passes, I’m going to have to find another job, so I can roll my 401k into an IRA, where I have more control over where I put it.

And then as soon as I can, move the funds from there into something that’s harder to steal.


11 posted on 02/05/2014 12:52:58 PM PST by jdege
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To: SeekAndFind

Your money does not belong to you. It is the governments. They only allow you to use it.
Think Cyprus.


12 posted on 02/05/2014 12:54:46 PM PST by griswold3 (Post-Christian America is living on borrowed moral heritage)
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To: Dilbert San Diego

Forced conversions would also cause a widespread panic; bank account withdrawals, panic stock selling etc.
Of course, they know this and they are waiting for the right time to pull the trigger.
The government/corporate elites need enough time to get their offshore compounds hardened.


13 posted on 02/05/2014 12:57:49 PM PST by grumpygresh (Democrats delenda est. New US economy: Fascism on top, Socialism on the bottom.)
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To: SeekAndFind

There will be more than a few people ready and willing to accept a “guaranteed benefit” from Super-Duper-Social Security. Especially if the stock market continues to tank.


14 posted on 02/05/2014 1:05:45 PM PST by Buckeye McFrog
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To: SeekAndFind

It was obvious to me from the first moment that this was a cleverly disguised way of government controlling IRA’s.

They will find a way to take money from those who earn it legally, and give it to those who vote democrat. It will be a different rate of interest, a different withdrawal “penalty”, or something else. I know how these people think.


15 posted on 02/05/2014 1:14:36 PM PST by I want the USA back (Media: completely irresponsible traitors. Complicit in the destruction of our country.)
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To: Buckeye McFrog

How many Americans live paycheck-to-paycheck? How many have zero net worth? How many have no plans for the future except receiving their Soc. Sec. checks, foodstamps and Medicare?

The answer: A LOT.

I expect at least 50%, probably many more, of Americans would not mind the Government looting private retirement and bank accounts if it was proposed as the only way to keep government checks coming.


16 posted on 02/05/2014 1:16:29 PM PST by PGR88
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To: SeekAndFind

bfl


17 posted on 02/05/2014 1:21:32 PM PST by Faith65 (Jesus Christ is my Lord and Savior!)
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To: Dilbert San Diego
Question — If the government were able to nationalize all retirement savings tomorrow, wouldn’t there be unintended severe consequences, such as a stock market crash? If trillions were flowing from stocks into government bonds, wouldn’t such action tank the stock market, creating other severe problems? Or have Obama and his boys NOT thought all of this through?

No, because underlying stock portfolios would not have to be sold.

It would merely (?) be changing who controls how your 401k/IRA is managed, i.e., what it is invested in. As a sheeple, you're not capable of managing your own investments, so government, working at the behest and at the direction of international banking will decide where they need your capital, and they'll invest it there. Of course, you'll have no say in the operations of the businesses they invest in.

Eventually, like Social Security (which is technically a separate benefits plan and not part of government spending), there would be a gradual merger of the value of those accounts into other, and then general, government funds and obligations.

At the end of the day, anyone stupid enough to have a 401k/IRA account would simply have to be content with receiving a check from the government when they retire; the amount would be determined by the government.

Meanwhile, financial elites sitting atop this new world order do not have the bulk of their assets in IRAs/401Ks.

The elites have tax avoidance schemes on a much grander scale than IRA/401k, i.e., placing millions/billions in stock portfolios inside tax-exempt foundations in order to avoid most capital gains and inheritance taxes in perpetuity, while working on projects that profit the elites - in perpetuity, with no more funding required, as the investment income is used to fund the foundation operations. The limits on contributions to IRA/401k make them "little people" schemes.

It's quite funny that even the minions of new world order, like university professors, union folks, various operatives and intelligence folks, etc., all are thrown in with the rest of the sheeple from a legislative and financial perspective. New world order elites subscribe without any hesitation to the credo that once in a while it's necessary to kick the man below you off the ladder, even though he was instrumental in helping you climb the ladder.
18 posted on 02/05/2014 1:24:27 PM PST by PieterCasparzen (We have to fix things ourselves)
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To: SeekAndFind

First of all, they want to do this. They’re busy figuring out a way to confiscate money, while disguising it in flowery language and complex rules.

Don’t doubt me.


19 posted on 02/05/2014 1:32:22 PM PST by I want the USA back (Media: completely irresponsible traitors. Complicit in the destruction of our country.)
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To: SeekAndFind

population growth, needed for the ponzi scheme known as Social Security in this era of baby boom generation retirees, is not keeping pace with Social Security needs for more new active payrol tax contributors, which is, and will continue to cause Social Security benefit payment outflows to exceed payroll tax receipts and that requires Social Security to demand cash from the Treasury for IOUs (Treasury notes) stuffed in the Social Security “trust fund”, which requires more borrowing and/or more taxes, or both to pay for those IOUs

thus Obama has come up with his MyRA, which, just like Social Security, leaves nothing in the MyRA “trust fund” by U.S. Treasury Notes, gives the actual cash to the general fund, and sets up future debt and/or tax requiremnets that will be needed to come up with the cash to pay for the actual MyRA payouts in the future

in other words, just like Social Security, the MyRA is another plan to get more money for the general fund now, leaving more debt that will have to covered in the future to pay back to individuals what they assumed we had “saved” in the MyRA “trust fund” -

its another way to spend the money now ON THE GOVERMENT and when you retire don’t worry your kids and grand kids will be left with the debts to pay for your retirement


20 posted on 02/05/2014 1:49:39 PM PST by Wuli
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To: apillar

I have done that. Recently retired and I put most of my money in non-pension investments. The small amount that I lost by not putting in pre-tax money has to me been more than paid back by the ability of me now to do whatever I want with my own money.

The little I had through a pension fund I am paying through the nose in taxes for.


21 posted on 02/05/2014 1:55:04 PM PST by blastbaby
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To: SeekAndFind

IRS agents will all be gone with in one month of the signing

Within 60 days, the President will also be gone.


22 posted on 02/05/2014 1:56:25 PM PST by bert ((K.E. N.P. N.C. +12 ..... History is a process, not an event)
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To: PieterCasparzen

“Meanwhile, financial elites sitting atop this new world order do not have the bulk of their assets in IRAs/401Ks.”

Nor should anyone


23 posted on 02/05/2014 1:59:03 PM PST by aMorePerfectUnion
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To: SeekAndFind

bttt


24 posted on 02/05/2014 2:08:41 PM PST by JDoutrider
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To: PGR88
You are right on the money here. My guess is that if it was held to a national vote, not only would you get everyone who doesn't have savings, but you would get another 15-20% who would just want someone else to handle their retirement funds for them! It would probably pass in the order of 65-35.
25 posted on 02/05/2014 2:09:16 PM PST by aegiscg47
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To: PGR88

Your thesis is likely correct.
And that’s scary.


26 posted on 02/05/2014 2:12:03 PM PST by nascarnation (I'm hiring Jack Palladino to investigate Baraq's golf scores.)
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To: SeekAndFind

It’s Part II of Obamacare.


27 posted on 02/05/2014 2:24:45 PM PST by Eric in the Ozarks ("Say Not the Struggle Naught Availeth.")
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To: PGR88

When Liz Warren floats her idea to eliminate the income cap on SS taxes and sweeten the benefits, it polls something around 70% approval.

That’s why Obama is doing this. It’s popular with the low-info voters.

That and yes, it is a way to keep the Treasury Shell Game going.


28 posted on 02/05/2014 2:27:26 PM PST by Buckeye McFrog
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To: PGR88
 
 
You're echoing the same thoughts I have. Am certain that's one reason why they always kept the class warfare strategy alive, to keep the pump primed for moves like this.
 
 

29 posted on 02/05/2014 2:33:33 PM PST by lapsus calami (What's that stink? Code Pink ! ! And their buddy Murtha, too!)
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To: SeekAndFind

Privatization of Social Security wouldn’t work, but stealing private accounts does.


30 posted on 02/05/2014 3:46:50 PM PST by CommieCutter ("For an idea to be too simplistic, it must first be proven wrong" --Thomas Sowell)
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To: Buckeye McFrog
When Liz Warren floats her idea to eliminate the income cap on SS taxes <<

Actually....I don't see anything wrong with that...

Should there be a cap on income taxes too?...like maybe anything over a million is tax free

SS is a tax! (a progressive tax)...whether u like it or not....What am I missing??

31 posted on 02/05/2014 4:43:51 PM PST by M-cubed
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To: Dilbert San Diego

Think in terms of Rehypothecation. The government will use this vast accumulation of formerly privately owned assets as collateral. Then the political corruption goes into warp drive as they write legislation to take your principal. But that’s after they’ve made the linkage between you as a ward of their cradle to grave benevolence and your obligation to pay them back for the state being so kind to you. That meme is already half completed.


32 posted on 02/05/2014 5:04:33 PM PST by Track9 (hey Kalid.. kalid.. bang you're dead)
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