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IRA Confiscation: It's Happening

Tyler Durden's picture




 

Submitted by Simon Black via Sovereign Man blog,

I have an old acquaintance named Sam who has a hell of a deal for you.

Sam is actually a pretty famous guy with a big reputation. Unfortunately he has been a bit down and out on his luck lately… but he’s trying to make a comeback. And Sam is prepared to float you a really great investment opportunity.

Here’s the deal he’s offering: you give Sam your hard-earned retirement savings. Sam will invest your funds, and pay you a rate of return.

Granted, the rate of return he’s promising doesn’t quite keep up with inflation. So you will be losing some money. But don’t dwell on that too much.

And, rather than invest your funds in productive assets, Sam is going to blow it all on new cars and flat screen TVs. So when it comes time to make interest payments, Sam won’t have any money left.

But don’t worry, he still has that good ole’ credibility. So even though his financial situation gets worse by the year, Sam will just go back out there and borrow more money from other people to pay you back.

Of course, he will be able to keep doing this forever without any consequences whatsoever.

I know what you’re thinking– “where do I sign??” I know, right? It’s the deal of the lifetime.

This is basically the offer that the President of the United States floated last night.

And like an unctuously overgeled used car salesman, he actually pitched Americans on loaning their retirement savings to the US government with a straight face, guaranteeing “a decent return with no risk of losing what you put in. . .”

This is his new “MyRA” program. And the aim is simple– dupe unwitting Americans to plow their retirement savings into the US government’s shrinking coffers.

We’ve been talking about this for years. I have personally written since 2009 that the US government would one day push US citizens into the ‘safety and security’ of US Treasuries.

Back in 2009, almost everyone else thought I was nuts for even suggesting something so sacrilegious about the US government and financial system.

But the day has arrived. And POTUS stated almost VERBATIM what I have been writing for years.

The government is flat broke. Even by their own assessment, the US government’s “net worth” is NEGATIVE 16 trillion. That’s as of the end of 2012 (the 2013 numbers aren’t out yet). But the trend is actually worsening.

In 2009, the government’s net worth was negative $11.45 trillion. By 2010, it had dropped to minus $13.47 trillion. By 2011, minus $14.78 trillion. And by 2012, minus $16.1 trillion.

Here’s the thing: according to the IRS, there is well over $5 trillion in US individual retirement accounts. For a government as bankrupt as Uncle Sam is, $5 trillion is irresistible.

They need that money. They need YOUR money. And this MyRA program is the critical first step to corralling your hard earned retirement funds.

At our event here in Chile last year, Jim Rogers nailed this right on the head when he and Ron Paul told our audience that the government would try to take your retirement funds:

 

I don’t know how much more clear I can be: this is happening. This is exactly what bankrupt governments do. And it’s time to give serious, serious consideration to shipping your retirement funds overseas before they take yours.

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Wed, 01/29/2014 - 16:03 | 4381188 TheCanadianAustrian
TheCanadianAustrian's picture

His name is Barry Bonds, and he wants to give the country a shot in the arm!

Wed, 01/29/2014 - 16:06 | 4381213 Sudden Debt
Sudden Debt's picture

the economy... shaken... not stirred...

Wed, 01/29/2014 - 16:10 | 4381233 Occident Mortal
Occident Mortal's picture

Is it called MyRA or MyPonzi?

Wed, 01/29/2014 - 16:16 | 4381272 lakecity55
lakecity55's picture

It's called "Barry's Offshore Account."

Wed, 01/29/2014 - 16:20 | 4381291 Pladizow
Pladizow's picture

$17 +Trillion in National Debt - vs - $17 +Trillion in Qualified Plans = Convenient Sterilization Bitches!

Wed, 01/29/2014 - 16:43 | 4381383 derek_vineyard
derek_vineyard's picture

there is absolutely no doubt in my mind that IRAs and pension plans will be used to keep interest rates low to fund the government.

ive known this for years.  its how it will be implemented......first repeal tax deduction and allow deduction only for myRA. 

next make it mandatory.  

the real fear is that the government siezes your funds.  thats a little further down the road, if this ship isnt turned quickly...and turning that ship is remote at best.

its a toss up whether you should cash out your plan, pay the 10% penalty and then the the 35% or whatever tax rate. if you are younger than 55 i'd say cash it out.  those older draw as much as you can at 59. One might consider taking a few years off to just pay the 10% penalty and keep their tax rate low while cashing it in depending on the amount in the plan.  

NO MATTER WHAT OBAMA DOES , IT ENCOURAGES NOT PRODUCING.  ITS PROBABLY BETTER TO BE POOR IN THIS COUNTRY.

NO ONE SHOULD MAKE ANY WILLFULL CONTRIBUTIONS TO THEIR PLAN.

Wed, 01/29/2014 - 16:51 | 4381479 TerminalDebt
TerminalDebt's picture

Yeah ship it overseas so some other government can take it instead, good plan.

Wed, 01/29/2014 - 17:38 | 4381738 Kirk2NCC1701
Kirk2NCC1701's picture

"... and God bless the Black & White thinkers."  May they see the world in "24-bit color" some day.  Well, maybe just in Gray-scale, if they are color-blind.

Wed, 01/29/2014 - 17:57 | 4381842 wintermute
wintermute's picture

MyRapedAss

Wed, 01/29/2014 - 18:16 | 4381915 Frozen IcQb
Frozen IcQb's picture

Signaling the end of the money management industry as we know it.

Wed, 01/29/2014 - 18:34 | 4381979 smlbizman
smlbizman's picture

all they need for this to work is a 1 trillion dollar web site....

Wed, 01/29/2014 - 19:14 | 4382157 EscapingProgress
EscapingProgress's picture

I'm in my 20s and I tell all of my friends, co-workers, etc. that I will never put a penny into any retirement account (401k, IRA, w/e) because the gov't will confiscate at least part of it, maybe all of it, and it will be worth almost nothing after the dollar dies. They think I'm a certified moron, and I get a lot of chuckles. Time will tell who is the sucker and who isn't. I suggest you take all of your money out right now and eat the taxes. One bird in the hand is worth two in the bush.

Wed, 01/29/2014 - 19:19 | 4382201 jefferson32
jefferson32's picture

Yes, plant seeds of truth when ever you can. I do too. Any ocean is only made of drops.

Wed, 01/29/2014 - 19:40 | 4382307 Gankfest
Gankfest's picture

Everyone saw how Obama Care worked! lol

Wed, 01/29/2014 - 20:07 | 4382449 FEDbuster
FEDbuster's picture

Will everyone who opens one get a Spiderman beachtowel?

Wed, 01/29/2014 - 21:55 | 4382788 Paveway IV
Paveway IV's picture

Screw Spiderman... How do I know that My[ass]RApe is right for me??

Wed, 01/29/2014 - 22:18 | 4382838 mjcOH1
mjcOH1's picture

Hey...a government slush fund of dollars voluntarily donated by taxpayers to fund free shit payouts.  

What's not to love.

Wed, 01/29/2014 - 22:41 | 4382895 Keyser
Keyser's picture

Let's call it what it is, another tax. They need the cash flow or the system folds... When the bond market tanks, it'll make Enron look like a walk in the park. 

Thu, 01/30/2014 - 03:24 | 4383346 Things that go bump
Things that go bump's picture

We're going there anyway. No matter how much they take it will never be enough. When they've got it all, it will still not be enough, but they will take it anyway. We're very close to the stage where like Hemingway said, bankruptcy happens all at once. Protect yourselves, because the government will surely feel it's need is greater than yours and its continued funding is for your own good. If you don't have your possessions in your hand it and under your control outside of their banking and paper system you are going to be screwed. 

Thu, 01/30/2014 - 07:46 | 4383483 GetZeeGold
GetZeeGold's picture

 

 

 

 

I have some GM bonds I'll sell

 

No worries. They're guaranteed!

Thu, 01/30/2014 - 06:53 | 4383447 Frankie Carbone
Frankie Carbone's picture

It's MYRapedAss, and the decision of whether it's right for you or not is not yours.

You are a mere plebe. A subject of the Kingdom of the United Incorporated States.

The King and his Landowners will make that decision for you.

Thu, 01/30/2014 - 02:48 | 4383327 The Wedge
The Wedge's picture

No but if you call now you will receive a deluxe, free of charge, no questions asked, complimentary football phone. Just be sure to mention "football phone" to one of our friendly, helpful, non-threatening , no pressure MYRA customer representatives and in 2-9 weeks you will receive your WI-FI, spy grid enabled phone. It's our gift to you when you open a guaranteed forever, MYRA account.

Call now, get one now, everybody's got one. Guaranteed not to rip, tear or smell bad in hot weather, unless it does. Void where prohibited, must allow access to your bank account, credit card accounts and medical records.

And, as a gift to you, if you call one of our helpful representatives within the next hour you will also receive a free, complimentary, Russian made, WI-FI enabled, voice recorder pocket watch. No strings attached, our gift to you.

*only redeemable on the third Tuesday on months that begin with the letter C. *MYRA account subject to a 90% tax rate plus fee's and adjustments upon request for funds.

Wed, 01/29/2014 - 21:45 | 4382746 The Gooch
The Gooch's picture

It's still working.

Towards the END GOAL.

Wed, 01/29/2014 - 20:04 | 4382440 zerozulu
zerozulu's picture

Sam might have batter luck if he send his offer from Nigeria.

Wed, 01/29/2014 - 19:36 | 4382282 CH1
CH1's picture

They think I'm a certified moron

Actually, they probably don't. Most likely, they're defending their previous choices, which you made them fear were wrong.

Wed, 01/29/2014 - 19:51 | 4382381 MisterMousePotato
MisterMousePotato's picture

Read a quote on here yesterday about the hard thing about bubbles being that they force one to look like an idiot before the collapse or an idiot after the collapse.

Wed, 01/29/2014 - 23:54 | 4383083 matrix2012
matrix2012's picture

"The problem with bubbles is that they force one to decide whether to look like an idiot before the peak, or an idiot after the peak." - John Hussman

"And so your choice is upon you. Look at the evidence around you – a movie nearly identical to one you saw in 2000 and again in 2008 – and either decide to party with the herd while the music plays (look smart today), or park yourself in safety now (look smart tomorrow).

Since the timing of the next correction is unknowable, the prudent choice is obvious. But it's not easy, for all of the reasons mentioned at the start of this article."

http://www.peakprosperity.com/blog/83944/wisdom-looking-idiot-today

Thu, 01/30/2014 - 02:43 | 4383321 OldPhart
OldPhart's picture

I've gotten so used to bubbles over the last couple of years I don't even notice them in the tub anymore.

Wed, 01/29/2014 - 19:53 | 4382389 nmewn
nmewn's picture

Thats what I was thinking, its hard to admit ones been wrong.

Man I sure was on starting a 401k, well, I guess I sorta had to as they dumped the profit sharing plan and the funds had to go somewhere. Still, I shouldn't have been plowing mine in there afterwards. Had a personal IRA that I took the hit on a year or so ago & cashed out just to get it out of their hands.

Then of course, came the boating accident, so I'm as broke as a sailor after two days in port ;-)

Wed, 01/29/2014 - 20:00 | 4382434 New_Meat
New_Meat's picture

"... I'm as broke as a sailor after two days in port ..."

stamina, lad, and pacing ourselves, that's the trick ;-)  Chiefs never ran outta' money in the PI, don't cha' know.

and look up my cwm Teresa on this thread.  I'd betcha' she's got a wide-on with this news.

- Ned

Wed, 01/29/2014 - 20:20 | 4382500 nmewn
nmewn's picture

Ghilarducci?

Yeah, I know the type...much better with other peoples money ;-)

Wed, 01/29/2014 - 20:44 | 4382572 new game
new game's picture

pleaded with wify po to get it out-we have, last chunk last year. have some offsets-capial loss from sale of 2nd property(only 3k), but still i'm damn near qualing for eic.-hehe; pays to not work too much... fuck sam!

Wed, 01/29/2014 - 20:58 | 4382625 RiverDrifter
RiverDrifter's picture

I agree on 401k but if you have IRA, roll that shit over into gold & silver!  Yes we can!!

Wed, 01/29/2014 - 18:32 | 4381974 LostAtSea
LostAtSea's picture

@wintermute....haha.  Had to log in just to upvote MyRapedAss

 

Wed, 01/29/2014 - 17:51 | 4381818 meterman
meterman's picture

Don't just shoot from the hip cowboy. Do a little work Terminal - there are easy ways you can place your money in another country that is safe

Wed, 01/29/2014 - 18:07 | 4381873 hapless
hapless's picture

SHHH.  Let Terminal go on thinking that everybody must take life up the ass.

Wed, 01/29/2014 - 18:08 | 4381875 Real Estate Geek
Real Estate Geek's picture

While I'd be happy to do a little work, I'd appreciate being pointed in a direction you think would be productive. I'm not the best at being a bird dog, bit I can follow a scent very well. TIA

Thu, 01/30/2014 - 00:14 | 4383132 harleyjohn45
harleyjohn45's picture

If a different country is safe enough for you to trust your money to, then why wouldn't you go over there too, so you would be safe.  You sound like a man with a paper asshole.

Thu, 01/30/2014 - 00:53 | 4381948 MeelionDollerBogus
Wed, 01/29/2014 - 20:26 | 4382420 scrappy
scrappy's picture

TerminalDebt

I vote up!

Yeah ship it overseas so some other government can take it instead, good plan.

Or some one else like the bank or .gov you put your money in or some scummy IT bankster sellout guy who steals from US for his masters and jumps off a tall building, ya never know. GONE$

The "Trust Horizon" is shrinking, not growing "overseas."

Simon, if any of us follow your advice I assume you realize YOU are accountable.

Personally.

http://dollarcollapse.com/collapse-2/a-shrinking-trust-horizon-and-hard-...

 

 

Wed, 01/29/2014 - 16:51 | 4381481 Anusocracy
Anusocracy's picture

MyRA will turn out about as well as the pensions in the Soviet Union.

Wed, 01/29/2014 - 17:05 | 4381557 NumNutt
NumNutt's picture

I think a lot of people have over looked a detail that was mentioned by Obama during the SOTU. He kept refering to "first time investores". I honestly believe tptb have sat down and have figured out a way to try and save the country from financial destruction and it is at the expense of the 11 million illigal aliens. I believe they are counting on makeing them legal, and then having all of them participate in MyRA. Think about it, suddenly 11 million people forced to buy into MyRA. Oh and don't forget 11 million people forced to start paying into Obamacare.  I believe that is why both parties are suddenly all gungho to grant amnesty.

Wed, 01/29/2014 - 17:35 | 4381709 hedgeless_horseman
hedgeless_horseman's picture

 

 

suddenly 11 million people forced to buy into MyRA.

Don't forget irradiated Japan.

Help us Mrs. Watanabi. 

Move to America and buy US debt.

You're our only hope.

Thu, 01/30/2014 - 06:04 | 4383420 disabledvet
disabledvet's picture

these are both possibilities. What we know is real are dollar shortages.
There are no problems in the debt markets that I see.

With on line education you can downsize massively education itself...simply return to home schooling.

Snail mail?
What the heck is that for?
That'll save another 100 billion.

NASA has already "gone commercial."
That actually might make a fortune.

The only problems left are the highway bills (everyone live on Lakes and waterways) and healthcare (robot doctors.)

And that should pretty much reduce spending by hundreds of billions "and you're done."

As it in fact is energy prices are surging in the USA for heating fuel. Since the USA is now the world's largest energy producer (as well as capital provider) if we survive the winter this is great news.

That's a massive amount of pricing power that can be exported.

Right now that is being done in the form of a soaring US dollar and plunging US interest rates.

At some point that goods deficit will become a goods surplus.

Wed, 01/29/2014 - 17:34 | 4381719 Skateboarder
Skateboarder's picture

How many of them are unemployed? How many of them are min. wage? How many of them on welfare? Think they'll have anything to put in a MyRA, or be able to afford a year's worth of the lowest Bozocare package? In this case, more enrollees only bring very small marginal revenue.

Wed, 01/29/2014 - 18:55 | 4382087 cynicalskeptic
cynicalskeptic's picture

You'd collect a hell of a lot more if the uber wealthy were paying their fair share.  When 7 people INHERITING all their wealth (the Walton family) are worht more than 40% of the remaining US - and paying their employees crap while keeping as many as possible p/t to avoid paying any benefits.... when Billionaires are paying less than 15% in income taxes..... and TARP manages to bail out bankers who LOST BILLIONS (and got to keep hundreds of millions in bonuses).....

A VERY FEW people are making money far faster than they can spend it (and most are doing so through collusion with government - 'crony capitalism' at its best), at the expense of the rest of the country.  We've seen HUGE productivity gains over the past 50 years yet the average wages of workers have gone DOWN.  All those increased profits went to a VERY VERY few who then sucked even MORE out of the country.

Wed, 01/29/2014 - 20:20 | 4382504 PhilofOz
PhilofOz's picture

I think I have the contributors to these comments worked out until I see you with more down arrows than up arrows on what you state. Apparently these seven Waltons that inherited their wealth and just happened to be born into the right family deserve what they have. What the f*ck??!!!

Wed, 01/29/2014 - 22:05 | 4382813 Umh
Umh's picture

A puzzle for you. What percent of "Americans" have a negative net worth?

Wed, 01/29/2014 - 22:45 | 4382901 mt paul
mt paul's picture

most of them ..

Thu, 01/30/2014 - 03:21 | 4383343 stacking12321
stacking12321's picture

none of them.

the value of a human life is priceless.*

*this message brought to you by hallmark (TM)

 

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