• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

Obama To Unveil Treasury IRAs, Or Planning For A Post-Monetization World

Tyler Durden's picture


Wondering who will take over the mantle of Treasury bond buyer now that the Fed is stepping away? Curious of the government's next steps towards repression and control of wealth? Wait no longer. As the AP reports, President Obama will unveil a new retirement savings plan tonight that allows first-time savers to buy US Treasury bonds tax-deferred for retirement. Of course, this is not the mandatory IRA that remains somewhat inevitable (as the muddle-through fails) but is certainly a step in the direction we alerted readers to a year ago by which the government generously offers to help manage your retirement savings. Two words spring to mind... remember Poland.


Via AP,

Eager not to be limited by legislative gridlock, Obama is also expected to announce executive actions on job training, retirement security and help for the long-term unemployed in finding work.


Among those actions is a new retirement savings plan geared toward workers whose employers don't currently offer such plans.


The program would allow first-time savers to start building up savings in Treasury bonds that eventually could be converted into a traditional IRAs, according to two people who have discussed the proposal with the administration. Those people weren't authorized to discuss it ahead of the announcement and insisted on anonymity.

Of course, this is not what the CFPB suggested a year ago... We're 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.

But it's getting close.

Though Poland remains the strawman...


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Tue, 01/28/2014 - 14:28 | 4375986 Murf_DaSurf
Murf_DaSurf's picture



Whelp, here comes the BIG Grab

Tue, 01/28/2014 - 14:29 | 4376000 fonestar
fonestar's picture

If 2008 didn't wake people up, nothing will.  

fonestar does not feel bad for them.

Tue, 01/28/2014 - 14:30 | 4376008 hedgeless_horseman
hedgeless_horseman's picture



What about an IRA margin account within which I can short US treasuries?  No? 

Tue, 01/28/2014 - 14:33 | 4376027 LawsofPhysics
LawsofPhysics's picture

Please, shorting and selling will be outlawed by the next "state of the police state."

Tue, 01/28/2014 - 14:39 | 4376083 InjectTheVenom
InjectTheVenom's picture

If you like your retirement account, you can keep your retirement account. With us.

Tue, 01/28/2014 - 14:45 | 4376115 ParkAveFlasher
ParkAveFlasher's picture


Tue, 01/28/2014 - 14:50 | 4376159 TeamDepends
TeamDepends's picture

We were wonderering when they would roll out Operation Grab Yer Ankles.

Tue, 01/28/2014 - 14:53 | 4376194 synergize
synergize's picture

The hand writing on the wall - it seems the gov't is desperate to find the next marginal buyer for US treasuries...

No thank you

Tue, 01/28/2014 - 15:08 | 4376279 zaphod
zaphod's picture

The biggest problem for the government now is they have to maintain the illusion of a free society.

So they can't force you to "invest" in treasuries, but they will make it easy to do so. Maybe even have treasuries be the "default" IRA plan unless you change it. This way they can capture a good number of sheeple, while maintaining the illusion of freedom. So basically, robbing from those who don't know better and don't manage their own finances well


Tue, 01/28/2014 - 15:28 | 4376385 dontgoforit
dontgoforit's picture

Impeach this POS failed 'leader'.   SOB, QE queer....etcetera, etcetera, etcetera....

Tue, 01/28/2014 - 15:32 | 4376410 SoilMyselfRotten
SoilMyselfRotten's picture

They would like us to buy their shit so they don't have to

Tue, 01/28/2014 - 15:37 | 4376432 101 years and c...
101 years and counting's picture

moral of the story: this must mean bonds are going to crash once the program starts.

Tue, 01/28/2014 - 15:38 | 4376438 WarriorClass
WarriorClass's picture

and the Republican response:  

Immigration Reform!

Tue, 01/28/2014 - 16:14 | 4376575 gmrpeabody
gmrpeabody's picture

The O-K affordable retirement plan...

Tue, 01/28/2014 - 16:23 | 4376627 Citxmech
Citxmech's picture

"Going to crash?"  Hell, treasuries are already brain-dead, in a coma, and the only thing keeping them warm is constant life support from the fed.  If they cut QE by any substantial amount - the patient would flat-line in an instant.   

Tue, 01/28/2014 - 16:38 | 4376686 NoDebt
NoDebt's picture

All these comments (I read 4 pages of them before my eyes glazed over) and nobody caught this:

"first-time savers"

Could somebody explain to me what the hell a first time saver is?

Tue, 01/28/2014 - 17:11 | 4376814 Rip van Wrinkle
Rip van Wrinkle's picture

A muppet.

Tue, 01/28/2014 - 17:25 | 4376853 krispkritter
krispkritter's picture

 'The program would allow all savers to start building up savings in traditional IRAs that eventually could be converted into Treasury bonds , according to two people who have discussed the proposal with the administration. Those people weren't authorized to discuss it ahead of the announcement and insisted on immunity from prosecution.  Fixed it.

Tue, 01/28/2014 - 17:57 | 4376983 Keyser
Keyser's picture

One thing they failed to mention, this will be a MANDATORY investment in your future... And oh how they larfed... 


Tue, 01/28/2014 - 19:19 | 4377319 0b1knob
0b1knob's picture

Check your annual 401k statement.   Many 401k's were switched to 100% T bonds recently without the knowledge or permission of the owners.   In many cases even AGAINST the explicite instructions of the owner.


This is already a done deal thanks to the Obama / Wall Street crime syndicate.

Tue, 01/28/2014 - 17:29 | 4376873 Billy Sol Estes
Billy Sol Estes's picture

Jim Cramer fans

Tue, 01/28/2014 - 17:13 | 4376818 Town Crier
Town Crier's picture

It means young people.  The people who aren't buying Obamacare

Wed, 01/29/2014 - 03:05 | 4378831 Theosebes Goodfellow
Theosebes Goodfellow's picture

Bingo, Town Crier. That is exactly who the mark is in this presidential Ponzi. After 12 years of public schools, Obama thinks that these poor idiots won't even know they're being screwed until way after Obama and cohorts are dead. Let's see, 2.75% interest on 29.5 hour a week minimum wages. Oh HELL YES!!! Sign 'em up! /sarc

This will get as much support from the young kids as Obamacare did. Obama is going to have to force people into this rip off, just like he did Obamacare.

Tue, 01/28/2014 - 17:29 | 4376881 vs an army all alone
vs an army all alone's picture

Anybody with a job not sucking of the .gov tit

Tue, 01/28/2014 - 17:49 | 4376955 new game
new game's picture

if i got this clear, moar debt promisses into the future. debt tp cover debt coming due and created currently. more ponzi debt to cover the demand part of the ponzi debt scheme. and let us talk about how this going to work out.  if s.s. is an example moar promisses with money spent today and a promise, from the worst money managers known to mankind-the federal goberment, that there will be a payment in the future. NOT! are you kidding me. are people this stupid. thank god i emptied my wife 403b! wew! fukin-eh!

Tue, 01/28/2014 - 17:53 | 4376970 new game
new game's picture

the squid grows another huge tenacle! oh, and i supose bak of america is going to manage the money-hehe-transfer agent-hehe. is this the last straw? or is comingthe bail-in?

deparation, just plain desparation, like a junkie for next fix...

Tue, 01/28/2014 - 15:38 | 4376437 1000 splendid suns
1000 splendid suns's picture

Just like fucking income tax, never officially ratified ('America: freedom to fascism'), starts off as obligatory, ends with Nicolas Cage having his houses thugged from him. This whole UST ponzi is a joke, +$200Tril in debt, never to be paid back, just another form of tax and control. Will Cramer whore this crap?

Hey government, take a walk.

Tue, 01/28/2014 - 19:55 | 4377442 Stuck on Zero
Stuck on Zero's picture

Will Cramer call this crap?  No Obama will call the new plan CRAP:

CRAP:  Compulsory Retirement Account Plan



Tue, 01/28/2014 - 16:35 | 4376671 insanelysane
insanelysane's picture

Impeach?  Did you ever look at the next guy in line?

Tue, 01/28/2014 - 16:43 | 4376709 kaiserhoff
kaiserhoff's picture

A brain dead zombie would be a vast improvement.

I would have said an "old yellow dog" would be a vast improvement, but that could be misunderstood.

Tue, 01/28/2014 - 17:15 | 4376837 dogmete
dogmete's picture

Well we will get a brain dead (and soul dead) zombie, you can count on that.

Tue, 01/28/2014 - 17:24 | 4376858 rabbitusvomitus
rabbitusvomitus's picture

...or the guy after him!!!!

Tue, 01/28/2014 - 18:45 | 4377166 James-Morrison
James-Morrison's picture

At this point they are all cardboard cut-outs.




Do you believe it really matters?

Tue, 01/28/2014 - 15:53 | 4376493 RafterManFMJ
RafterManFMJ's picture

Buying Treasuries for your retirement is akin to handcuffing yourself to a railing on the Titanic - after it's hit the iceberg.

Tue, 01/28/2014 - 16:10 | 4376558 eclectic syncretist
eclectic syncretist's picture

One has to consider the possibility however, that the FedGov will run up treasuries for the first year in order to bring the sheep into the pen for the subsequent shearing, in which case one might expect treasuries to do very well for a year or so before the dumpfest really ensues.  I'll hold what little I have for now and see how it plays out, but obviously they're garbage in the longer scheme of things.

Tue, 01/28/2014 - 17:10 | 4376808 Parabox
Parabox's picture

You are assuming they will let you out once you are in.  Remember, they want to do "what's best for everyone".  That means theyre in control.

Tue, 01/28/2014 - 17:11 | 4376809 Parabox
Parabox's picture


Tue, 01/28/2014 - 17:54 | 4376976 SilverRhino
SilverRhino's picture

Running Treasuries up would also have a few side effects :  

  • Starts to kill the housing market (Bad effect) 
  • Slams gold / silver (They'd like that) 
  • Runs up inflation (They'd like that too) 


Tue, 01/28/2014 - 16:41 | 4376698 StandardDeviant
StandardDeviant's picture

Quite right -- but, sorry, an automatic -1 for the supercilious "sheeple".

Wed, 01/29/2014 - 01:33 | 4378695 aerojet
aerojet's picture

I don't even worry about retirement savings or funds or any of that shit anymore.  The numbers are not going to work out such that millions upon millions of Baby Boomers retire and cash out all at the same time.  It is not going to happen, it will not happen, period.  So by all means, buy your bonds, your stocks, your Bitcoins, or what have you, but it's all going over the cliff.  Silver and gold coins aren't going to help either, that is a total pipe dream.  

Tue, 01/28/2014 - 14:56 | 4376208 ACP
ACP's picture

Sounds like the gubmint is now the Godfather.

"We'll just hold onto it for...safekeeping. Joey and Vinny will give you a little dough, ya know, when you really need it."

Tue, 01/28/2014 - 15:23 | 4376352 LMAOLORI
LMAOLORI's picture



TREASURY BAIL OUT  or  TREASURY BAIL IN  - (depending on your point of view ) who else is going to buy our debt now that China's no longer able to extend and pretend.


Fed Owns 64% More U.S. Government Debt Than China


Classic Socialist trick just like Social Security

Tue, 01/28/2014 - 15:54 | 4376496 TeamDepends
TeamDepends's picture

(kicks the tire)  This is a piece of shit.

Tue, 01/28/2014 - 18:03 | 4377010 new game
new game's picture

this shit has been pondered for a while-now they see the need mathematically to get the ten year back under 2. many problems solved. housing, spending deficeits, current funding of s.s ponzi shortfall. all american plan to buy time to keep this ponzi alive and well. all good, green light buy, buy, the gov has it all figured out for you. uncle sam for president-he wants you!

Tue, 01/28/2014 - 16:43 | 4376712 El Oregonian
El Oregonian's picture


Tue, 01/28/2014 - 15:19 | 4376336 sunnydays
sunnydays's picture

401K plans have already been switched to 100% government bonds without people knowing it or being notfied.  They found out on their end of the year statement. 


Tue, 01/28/2014 - 14:45 | 4376122 kralizec
kralizec's picture

Everything belongs to them, and they'll prove it, or die trying.

Tue, 01/28/2014 - 17:00 | 4376774 bh2
bh2's picture

Ok, let's hope it's "die trying". Them, not us. ;)

Tue, 01/28/2014 - 14:50 | 4376152 redpill
redpill's picture

fed.gov: SPEND don't SAVE!  But if you do SAVE, buy TREASURIES!

Tue, 01/28/2014 - 15:13 | 4376312 agent default
agent default's picture

So we can do the spending for you.

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