Looters Ascendant: They're Coming For Your Retirement Money, As Well
Read this piece from Boortz's Wednesday column on the Mighty Kenyan's plan to steal your 401(k) retirement account...uhh, I mean "provide you with a lifetime retirement income":
I've been telling you about this for a while now. This, to me, is one of the most dangerous schemes currently slithering through the crevices and dark spots of the Imperial Federal Government in Washington. What am I talking about? What I believe to be plans by the Obama administration to, in effect, seize your retirement funds and use them to finance their deficit spending. Remember ... there are more than $3 trillion dollars sitting out there in individual retirement, IRA and 401K plans. Politicians just can't stand the idea of this much money sitting out there in private investments ... out of the grasp of politicians.
So .... Something needs to be done. And sure enough, something is going to be done. The Treasury Department and the Department of Labor were going to start taking comments on ways to promote the idea converting 401(k) savings and IRAs into annuities or other steady payment streams. Well, you can finally take a look at this document for yourself:
Request for Information Regarding Lifetime Income Options for Participants
...Earlier this week I told you of a story from the investment press which stated that investors now look at blue chip stocks like Coca Cola as better and safer investments than U.S. Government treasury certificates. China has signaled that it is not in the mood to buy many more U.S. government securities. This is how we finance our debt! If investors and other nations won't voluntary finance our debt, what does our government do? Well, our government does what governments always do. Fall back on its unique ability to use force to accomplish its goals. There's a problem here. We aren't going to force China to buy more Treasuries ... so where is the force to be applied? YOU, that's where.
The government is talking about some form of "lifetime income distribution" and "lifetime stream of income." (Isn't this what Social Security was supposed to do?) But just HOW does the government provide this "lifetime" income? Simple ... by FORCING you to take all or a portion of your retirement funds and invest them where China won't go; invest them where private international investors no longer want to go; invest them in Treasury Certificates. Oh yeah ... they'll probably come up with some fancy new name for some fancy new type of T-bill ... but the goal and the effect will be the same. You'll see your money seized by government and used to finance the insane spending plans of politicians .. Democrat and Republican...
Here's the ZeroHedge post on the topic.
And here's the Denninger column from last month that broke the story, with our commentary:
Along with the Evans-Pritchard piece cited in Denninger's article, see also this article from US News & World Report from October, 2008, and a related USNWR article from January, 2009.
Best to run the numbers on a cash-out, unless you like the answers to these questions:
- Would you take a promissory note from a bankrupt?
- What if that bankrupt takes your money via the FedGov pistol in his hands and leaves you a promissory note in "exchange"?
Do you understand yet?