The Government Generously Offers To Help You "Manage” Your Retirement Account

Tyler Durden's picture

Via Michael Krieger of Liberty Blitzkrieg blog,

[ZH: We have discussed this threat over the past several years (must read).] The obvious concept is that when the government runs out of money, or they face a drying up in interest for its debt, they will come for the $19.4 trillion in American’s retirement accounts.  It seems that day may be finally drawing near.

I stopped contributing to my 401k back when I worked at Bernstein, and I will probably now have to give more serious consideration whether I want to take the penalty and move the funds out of my retirement account entirely.  I haven’t made any decisions, but will be watching closely.

I’m sure the government is just trying to protect your retirement account from terrorists.

From Bloomberg:

The U.S. Consumer Financial Protection Bureau is weighing whether it should take on a role in helping Americans manage the $19.4 trillion they have put into retirement savings, a move that would be the agency’s first foray into consumer investments.


That’s one of the things we’ve been exploring and are interested in in terms of whether and what authority we have,” bureau director Richard Cordray said in an interview. He didn’t provide additional details.


The bureau’s core concern is that many Americans, notably those from the retiring Baby Boom generation, may fall prey to financial scams, according to three people briefed on the CFPB’s deliberations who asked not to be named because the matter is still under discussion.


The Securities and Exchange Commission and the Department of Labor are the main regulators of U.S. retirement savings vehicles and funds. However, the consumer bureau — established by the 2010 Dodd-Frank Act — sees itself as a potential catalyst for promoting a coherent policy across the government, the people said.

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DoChenRollingBearing's picture

Get out bitchez!

I sold my investments and cashed in my IRA in late 2008.

Slept better ever since.

CH1's picture

And so it begins.

There's been a committe at Treasury working on this for 4 years or so. Now they step into the arena.

sunaJ's picture

The OECD is "Audrey II," the alien plant from Little Shop of Horrors.


HoofHearted's picture


The bureau’s core concern is that many Americans, notably those from the retiring Baby Boom generation, may fall prey to financial scams,


You mean like the scam of being forced to buy T-bills???

Cdad's picture

This has been written about by some for years now.  It shouldn't take long for folks to connect this bright new idea with another one floated almost exactly one year ago:

The question was asked if it made sense for Treasury to permit bids and awards at negative interest rates in marketable Treasury bill auctions. [A Treasury employee] noted that there were operational issues associated with such a rule change, but that the hurdles were not insurmountable. It was the unanimous view of the committee that Treasury should modify auction regulations to permit negative rate bidding and awards in Treasury bill auctions as soon as feasible.

Treasury Borrowing Advisory Committee


1+1= [bye bye]401[k]

redpill's picture

Mandatory treasury holdings in 401k plans is coming, and if you still think that's a conspiracy theory you're a dumbfuck.

Mr Pink's picture

Alex Jones has been warning listeners of this for years. I guess he isn't a wing nut after all

SafelyGraze's picture

At the Consumer Financial Protection Bureau, we are fortunate to count among our staff many of the finest financial analysts in the world.

These fiduciary-like analysts have considerable real-world experience, as evidenced by their large positions in many different markets.

These market positions will guide us in choosing where to invest the 20 trillion under our management.

Our Freedom Stewardship program will also allow us to channel funds safely into higher-risk higher-reward emerging industries (HRHREI) that investors might be hesitant to choose, such as solar energy research, for the betterment of all citizens alike.

The program will instill confidence in American workforce, relieving it of the worry about saving toward retirement.


SeverinSlade's picture
Aside from what this move would mean, the fact that people willfully sign up for a 401K in the first place boggles my mind. Here, hold my money hostage...And penalize and tax me if I ever need to access it.
francis_sawyer's picture

Why do you think the $SPX & DOW are at 'all-time' highs?...


Yup ~ that's right... The teleprompter needs to get his seat warmed up for a second term [and all the new appointments in place]... Need to keep the muppets happy & giddy until the trap door is ready to be sprung...

It's a BONUS that the ammo is getting more scarce during the same process...

your neighbor's picture

they cant do this at dow14K. Easily done at 8K though.


Popo's picture

Easier at Dow 8k, but keeping the hand of government out of the world's biggest cookie jar isn't going to be easy at any level.   

Governments (all governments) crave money and power insatiably.  Where there is no pushback, they will go and they will take.

jeff montanye's picture

if the sec cared about protecting customers from financial scams, jon corzine would be in prison.

Thomas's picture

Beware the 401K cashouts: beyond the 10% penalty you will pay taxes at the marginal rather than effective tax rate. Not only that, the marginal rate will be the new, higher marginal rate due to the cashout. It will be one hell of an expensive put option.

Sam Clemons's picture

Better to have 70% of your money now than access to 0% later.

trav777's picture

Krieger is such an one article he says that the market is foodstamps for the 1% then in the next he says that the gov is going to seize market funds.

OK...if they do that, revolution ensues.  Immediately.  The lower portion of the 1% has more numbers and more political power than the top slice just by virtue that they are the business owners and trade classes, the professionals.  The lawyers and doctors are those who lead and start revolutions, not the cretin class or the wymyn's studies majors.

You can't just screw most of the upper class and get away with it.

francis_sawyer's picture

You're kind of missing the point...


You have to take the DOW to 14K ~ then back to 8K to make people go... "Oh No!... Not again... Please ZOG, help me!"

Zog will be VERY NICE & probably give you a nice 20% premium off your 8k balance to sweeten the deal... Hurry in now... Last Chance [or lose it forever]...

your neighbor's picture

agree. The fact they are floating this trial balloon (again) could signal a market top. Otherwise, timing for the discussion is stupid.

HamFistedIdiot's picture

I too cashed out in late 2008 after 99% of the public said no bailout to the banker bastards and yet our elected whores went ahead and gave them everything. As well, I agree that a collapse in the DOW will get all the sheep bleating for complete government control of their assets. Type "Argentina, government pension" into a search engine and you will find all sorts of stories in the last decade of private pensions being seized to pay government debt. Say it can't happen here? The psychological warfare is far more sophisticated in the US. The conditions will be manufactured (using media, banker collusion, financial repression, et cetera) such that we beg to be enslaved. At the end there will be war, and of course, we will all forgive Uncle Satan for spending every last penny and fucking our arseholes good when we have to be protected from those dreadful Chinese, a resurrected bin Laden, or whoever can shield the oligarchs from blame. The Rand Corp., the Bohemian Grove folks, and other higher ups will give the green light to the red one being pushed. As the motto of the 33rd degree Masons goes from 1395 "Ordo ab Chao" or "Order out of Chaos."

If the US cared about morals, we wouldn't be trading with China. But now we are suckling from that bliblical She Beast. cf "Clinton Grants China MFN, Reversing Campaign Pledge...President Clinton Thursday reversed course on China and renewed its trade privileges despite what he said was Beijing's lack of significant progress on human rights.... "



A Nanny Moose's picture

The 100% contribution match is a tough carrot to resist.

NumNutt's picture

LOL!! exactly what went thru my mind when I read this article. I could see the south park character sitting in the chair with the surprised look on his face. Then I read you comment, almost blew beer out my nose.  Fuck! Looks like it is time to cash in every last electronic dime and convert to physical gold.....crooks, thieves, and swindlers......AKA The Federal Government.

Boris Alatovkrap's picture

Aspiration of beer through nasal cavity is, how you say, invigoration and refresh. But is blow vodka through sinus is much painful!

StychoKiller's picture

We're from the Govt. and we're here to help (ourselves to yer dinero!)

caconhma's picture

A pillage of American people by the zionist oligarchy is in a high gear.

CPL's picture

No, they get it as well.  While their blade bites in front of them, five old feuds are rekindled along with five blades that slip in their back.

HobbyFarmer's picture

As the gov't pulls trillions out of the market and into bonds, the value of stocks will fall.  People who try to refuse the moving of their 401k's will lose massive amounts of wealth.  Government work in action.

YBNguy's picture

Behold the 801k! The government will guarantee its solvancy, but in order to qualify more than 50% must be invested in T-bills!

Bindar Dundat's picture

But $ 19 Trillion will pay the dificit for another 7-8 years. A slow motion train wreck for sure.

Move to Canada over the next two years if you like to work and want to sleep well.  

You can apply as refuges and we will likely accept you.  We accept our friends to the south as people with potential to help pay our deficit :-)  .



TWSceptic's picture

Someone should introduce a version of Godwin's law for blaming the jews. Then we could all dismiss you idiots right away. Oh wait we already can.

StandardDeviant's picture

Well, it's not quite what you're looking for, but my current favourite is Poe's Law, which I think is very apropos to the ZH comments section these days:

"Without a winking smiley or other blatant display of humor, it is utterly impossible to parody a Creationist in such a way that someone won't mistake it for the genuine article."

Or, to put it another way:

"Any sufficiently advanced troll is indistinguishable from a genuine kook."

For "Creationist", substitute pretty much any other sort of whack job.  The trolls and the lunatics on ZH have reached that critical point where you can no longer tell them apart, so why bother trying?  Just -1 them all, if it makes you feel better.

Just Ice's picture

Yep...another government bureaucracy minted from thin air to require more government employees, public trough perks, benefits, retirement plans, fee collections, all while screwing the public over.  And this one wants to gain direct access to the people's honey (money) pot.  More disgusting overreach.  How to cut government spending?  How about simply starting with the removal of every single new agency/bureaucracy created since 2000.

Poor Grogman's picture

I think 1980 would be reasonable

Buckaroo Banzai's picture

I think 1913 has a certain symmetry to it, as well as historical significance.

Double.Eagle.Gold's picture

Ya, there are some real concerns about the gobermint acquiring an interest in retirement accounts.


I was concerned enough to go another route, using my IRA to fund a startup business and doing so without tax penalties. I found Guidant Financial to be very helpful with this and I would recommend them highly.





Dr. Sandi's picture

Sometimes wing nuts are the best tool for the job.

Tom_333's picture

Alex Jones . Though I still disagree with some of the things he´s ranting about - especially in the finer details on stuff that I have better knowledge on - this is turning spooky.

I started listening to him for entertainment but he has been proven right on much more than he´s wrong.I ask myself , can it really be that bad....and the answer is....YES. I have to disagree with myself and say...YES

CPL's picture

This now opens the door to two things.



  1. Divide: While the private sector funds are being 'offered' the 'choice' it puts them all into a state of paranoia, waiting to see who slips and who's a shill.
  2. Conquer:  All private federal, state, municipal pensions are going to be mandated to roll under the Treasury and Central authority, directly and statefully.  The sales pitch will ring hollow, but will be passed with a slim vote under the idea that "they are all government, what the fuck does it matter who holds the pot of money as long as it's government people."

So anyone currently on a Federal, State or Municipal pension be VERY forewarned WITH a certainly like the sun rises and sets.  The vacation is over.  You are about to be looted like a drug store in a riot.  Terribly sorry.

To those paying into it, expect your contributions to TRIPLE while this happens.  It will look like unnecessary union, HR, service, ticket, rem, sil...look for those and start adding it up.  Those of you left will be robbed blind regardless of position, rank, opportunity or classification.  

Keep an eye on your HR departments, there's been an uptick in SAP certain types of business modules for all government agencies.  You won't even feel the blade slide in, it's now in all your departments like a rot.  

Good luck to you all now.

Never One Roach's picture

CPL, good point. The tidy sum in those plans seem ripe for the pickings...the low lying fruit gets picked off first.


I notice most of Congress holds theirs in a Roth IRA. That may be a "safer" place. I don't know.

CPL's picture

Unfortunately not for them either.


Their Vacation is over as well.  Who would dare speak up?  


Not one of them.

CompassionateFascist's picture

Occasionaly one does: Cynthia McKinney...Paul Findley...Pete McClosky. ZOG disposes of them quickly. 

Dewey Cheatum Howe's picture

I'd say no and the reason is most of the Congress is probably on the take in some way shape or form. Their true retirement funds are the cushy high paying positions sitting on boards of major companies, the same companies that lobby in the name of special interests.

sun tzu's picture

Congress will exempt themselves from any shitty laws they pass, just like they are exempt from 0bozoScare. I think they will exempt union pensions at the beginning too. They will first go for the 401k's then IRA's then come for the unions last. As usual the union idiots will support the theivery, thinking that they are exempt, until they find out they weren't.

CPL's picture

As if you would keep puppets for the next act of the play.  They are disposable.  New act.  New puppets.  That's the way it is done and in no other fashion has that changed ever.

The act ends with everyone in the original act betrayed.  Then appause...or silence.  Depends how some other things happen first.

Dr. Sandi's picture

I am not one of those who believe that the members of Congress rely on salary and pension for their lifestyles when so much more gravy is sloshing around on the platter.

Dewey Cheatum Howe's picture

I don't know about the unions being on board anymore. They just found out Obama pulled the old bait and switch concerning health care effectively killing their competitiveness against non union plans.

I suspect as things get tighter (and they will) there is going to be an alliance albeit an uneasy one between union, libertarian and small govt. minded people in general with the common goal of trying to break the economic stranglehold on the lack of capitol in the private sector.


As much as I don't like Romney he was right about bankruptcy forcing clarity. When those that are struggling to put food on the table that don't want to become EBT zombies are going to naturally group together. Lack of jobs and loss of competitive edge will push them to this side of the fence.

otto skorzeny's picture

congress is too busy trying to make sure chuck hagel gets his head straight about who really runs this country-confirmation hearing total- 230 "Israel" mentions- 220 "Iran" mentions- 2 "US serviceman suicide" mentions- 0 mentions of "Yemen, Pakistan drone strikes"

CPL's picture

And while they are busy doing whatever they do, they'll be looted blind as well.  Not a pot to piss in.  


masterinchancery's picture

T-Bills are sound as the dollar! No scam like a government scam.