The Next Shoe To Drop On Your Retirement Account

Tyler Durden's picture




 

Submitted by Simon Black of Sovereign Man blog,

President Obama released his 2015 budget proposal this week… and as expected, it contained even more language about his MyRA initiative.

As we’ve discussed so many times in the past, IRAs are an irresistible kitty for such a bankrupt government.

The US government itself estimates that over $5 trillion is tucked away in American retirement accounts.

They need that money. Your money.

Think about it– the Chinese are starting to dump their US Treasuries in record numbers. The Social Security trust fund is also on track to start dumping Treasuries in order to pay out record numbers of retirees.

The US government is struggling to come up with new funding sources… and retirement accounts are by far the easiest target.

Why? Because the majority of retirement accounts at trapped at big Wall Street banks, which are all de facto agents of the government. All the Treasury Department has to do is make a phone call.

Of course, they’ll claim that it’s for your own good. I suspect they’ll wait until there’s a big stock market crash and then say “We must protect Americans from such risky investments. And that’s why today we are requiring these banks to invest a portion of the retirement accounts they manage in the safety and security of US government Treasuries.”

A few weeks ago in his Sad State of the Union address, President Obama announced this MyRA program– a new initiative that will “help” Americans invest directly in US Treasuries.

Then he looked everyone in the eye and said, “These accounts will never go down in value…”

Naturally. How could loaning money at rates which don’t even keep pace with inflation to a country that has racked up more debt than any other nation in the history of the world possibly pose a risk?

After announcing MyRA, Mr. Obama took to the streets, and his team took to the media… flooding newspapers and airwaves with MyRA propaganda.

Yesterday’s budget announcement constitutes the next phase: automatic enrollment.

And I suspect that, just like Obamacare, there will soon come a time when it will become MANDATORY to have some sort of retirement plan set up, naturally with the government option at people’s fingertips.

This isn’t some far-fetched conspiracy theory. In fact, it’s already happened in so many countries over the last few years– from Argentina to Ireland to Poland.

In fact, even the Treasury Department grabbed government pension funds at least three times since 2011 in order to plug temporary funding gaps.

The Federal Times, a publication for senior government managers, ran a story back in 2011 entitled “Treasury raids your pension – but don’t worry, Geithner says”.

This idea is no longer theory or conjecture. It’s happening, and the conclusions are all supported by the data.

Anyone who thinks ‘that will never happen here’ is really fooling themselves… and playing very dangerous games with their hard-earned savings.

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Thu, 03/06/2014 - 14:35 | 4517782 thedrickster
thedrickster's picture

Upper middle class anarchy, bring it.

Thu, 03/06/2014 - 14:37 | 4517799 Slave
Slave's picture

If you don't hold it, you don't own it.

Thu, 03/06/2014 - 14:41 | 4517818 Hippocratic Oaf
Hippocratic Oaf's picture

MyRA is right. If by my you mean the Gubbmint.

Thu, 03/06/2014 - 14:53 | 4517900 El Oregonian
El Oregonian's picture

I got My-n-Rat he-uh. It ain't paper, it ain't promises, it ain't nowhere but wit me! and it be real, and it be sumtin you blood-suk-in thieves cain't git!

Thu, 03/06/2014 - 15:12 | 4518017 SoberOne
SoberOne's picture

At trapped at, in bold. Proof read, Simon!

Thu, 03/06/2014 - 15:19 | 4518062 Dollarmedes
Dollarmedes's picture

Time for a string of government worker "suicides." The higher up the chain, the better.

Thu, 03/06/2014 - 15:40 | 4518179 Boris Alatovkrap
Boris Alatovkrap's picture

Two shot to back of head with long barrel rifle is most common method of government assisted suicide.

Thu, 03/06/2014 - 16:03 | 4518297 johnQpublic
johnQpublic's picture

MyNRA....bitchez

 

come and get it, and bring scuba gear, cause my silver dont float

Thu, 03/06/2014 - 23:21 | 4519954 Boris Alatovkrap
Boris Alatovkrap's picture

IRA...ther not give to government money thinking is for own retirement but is really for capricious spending in slush fund of political class to buy favor of bankster class.

Thu, 03/06/2014 - 17:28 | 4518684 Hacked Economy
Hacked Economy's picture

Boris,

One round of .22LR is sufficient if the shot is good.  And if you really want to make a point, put it right between the eyes, so anyone else will know you were able to get in front of him, at your leisure, at any time.

But we at ZH don't condone such things in times of peace, yes?

Thu, 03/06/2014 - 23:18 | 4519950 Boris Alatovkrap
Boris Alatovkrap's picture

"LR" = "Long Range"? Yes, is sufficient for government assisting suicide.

Thu, 03/06/2014 - 15:35 | 4518137 NoDebt
NoDebt's picture

Couple of thoughts on the article:

1.  I agree the roll-out of such a program would DEFINITELY take place right after the "market" does a half-gainer off the Sears Tower again.  Without question, that would be the timing.  Handy for the MIC that the "markets" are almost fully controlled by the government and the big banks.

2.  Roth IRAs and Roth 401Ks would be the first to take a hit.  Watch for government to phase them out or simply begin taxing the withdrawals from them (which are currently tax-free).  That's your warning that time is short on all other retirement accounts.

2.  You can write off the US if this goes down.  Steal middle class people's retirement accounts and you will see a loss of wealth that will make the housing crash look tame.  AND YOU CAN ONLY DO THIS TRICK ONCE. 

Thu, 03/06/2014 - 15:41 | 4518186 0b1knob
0b1knob's picture

401K and IRA withdrawals have been taxed as regular income since their creation.   Only the Roth accounts are not taxed.

Thu, 03/06/2014 - 15:43 | 4518193 NoDebt
NoDebt's picture

Isn't that what I said?

Thu, 03/06/2014 - 15:59 | 4518275 zaphod
zaphod's picture

They already have a mandatory retirement savings plan, it is called social security and it takes ~16% from everyone's paycheck every day of their life till they hit retirement age, which will be 80 soon.

Thu, 03/06/2014 - 16:07 | 4518313 johnQpublic
johnQpublic's picture

i'm thinkng fukushima is going to end up fixing social security for us

Thu, 03/06/2014 - 22:06 | 4519753 John_Coltrane
John_Coltrane's picture

If Nagasaki and Hiroshima didn't work to solve the Japanese aging problem (Japan is the ultimate inverted age pyramid) why would anyone with the smallest knowledge of radiation physics think Fukashima is going to have any effect on the population?  (Hint radiation falls off as the inverse square from its source, as does any sort of radioactive contamination)  One individual actually got dosed twice (both Nagasaki and Hiroshima) and lived into his 90s despite major radiation burns.

Thu, 03/06/2014 - 23:25 | 4519964 Boris Alatovkrap
Boris Alatovkrap's picture

Correction, in 3-D world of radial dispersion, intensity of RADIation is inverse cube from source.

Fri, 04/18/2014 - 02:05 | 4672268 MeelionDollerBogus
MeelionDollerBogus's picture

Boris make is good sense for of total accumulation radiation. Intensity, much howevers, still spherical slice of radial distance from source is be pseudo-surface of 2 dimensions.

Fri, 04/18/2014 - 01:59 | 4672264 MeelionDollerBogus
MeelionDollerBogus's picture

It's a good thing radiation doesn't take the form of solid emitters of alpha or beta particles and moves along with liquids flowing in a very non-radiative manner (like rivers or roof-eves, gutters, sewers), radiating energy from those particles as they are moved by fluids.

That was a close one.

Maybe you should also teach us all about global warming hoaxing too.

Thu, 03/06/2014 - 16:14 | 4518319 NoDebt
NoDebt's picture

Very true.  But it won't matter.

The real reason why these types of accounts are at risk is because the retirement plan industry doesn't spend even a fraction of what, say, the National Association of Realtors spends on lobbying.  You'll see retirement plans looted and plundered LONG before you see any attempt to trim back the motgage interest deduction.

Those are the two big "competitors" for what they call "tax expenditures" in Washington (which are actually only tax DEFERRALS in the case of a traditional retirement account, but a true dead-weight peranent tax loss with mortgage interest deductibility).  Politicians don't care and don't want to care.  Whoever lobbys with the biggest bucks wins.  Period.

AND RIGHT NOW RETIREMENT ACCOUNTS ARE LOSING BIG AND LOSING FAST AGAINST MORTGAGE INTEREST DEDUCTIBILITY IN THE DC TAX-GRAB WORLD.

And that's just the tax side of things.  There are some (not just Obama) who would advocate a full government take-over off all retirement accounts TODAY.  You probably don't want to know the full horror of the situation.

 

Thu, 03/06/2014 - 19:17 | 4519129 Doubleguns
Doubleguns's picture

The stock market is the lobby for the roth IRA and 401K. There is no way they could dump those stocks and buy bonds without crashing the market. That being said thats probably what they will do.....crash the makets.

They are litterally that stupid. 

Thu, 03/06/2014 - 17:00 | 4518580 DosZap
DosZap's picture

401K and IRA withdrawals have been taxed as regular income since their creation.   Only the Roth accounts are not taxed.

 

Because they WERE taxed BEFORE they were invested in ROTHS.

Thu, 03/06/2014 - 15:43 | 4518195 Boris Alatovkrap
Boris Alatovkrap's picture

Boris always say, you can sheer sheep till is old and crusty, but can only skin sheep single occasion.

Thu, 03/06/2014 - 19:23 | 4519150 Doubleguns
Doubleguns's picture

Yep they must decide if they want lamb chops tonight or a sweater every christmas. Being politicians they do not think about tomorrow. Lamb chops it will probably be.....unless "we the people" have a hanging sooner but with so many sheeple running around there is no way to make it to the  tree ("voting booth") in time. 

Thu, 03/06/2014 - 17:26 | 4518683 August
August's picture

>>> Roth IRAs and Roth 401Ks would be the first to take a hit.

Roths may well be phased out, and soon (as the law now stands, Roths are indeed "too good a deal" for the muppet investoriat.)  But I very much doubt that the original contributions to a Roth plan will be taxed; after all, such contributions were fully exposed to income tax before they were even put in the plan. 

Surely the US government is not so broke, so stupid and so evil as to break a solemn promise. /irony

Fri, 03/07/2014 - 10:40 | 4520997 PTR
PTR's picture

Thank you for saying Sears Tower.

 

 

Thu, 03/06/2014 - 15:51 | 4517925 Thought Processor
Thought Processor's picture

 

 

I think MyRA is both a 'Bail In' and a 'Bail Out.'

 

It will move funds over to US Treasuries, creating demand and putting a floor underneath them in a time of urgent need (at some future date).  This thereby 'Bails In' the Government Debt market.

 

It will also 'Bail Out' the FED who will gladly sell said securities in order to get them off their books.

 

My crazy theory of the day.  Plausible?

 

(What am I saying, this is CRAZY............  the US Gov. would never try to fleece it's own citizen's like this.  Forget I even mentioned it.  Now get back to your regular programming).

 

P.S.  If they do pull this off it would easily one up the whole TARP 'gun to the head' extorsion scheme (which oddly enough worked flawlessly).   

 

Does anyone care?

Thu, 03/06/2014 - 19:28 | 4519167 pacu44
pacu44's picture

It is not money but fiat currency... SO you cant lose  ;-)...

 

Purchasing power will be nill when you withdraw/maturity... I saved 40 years to blow  it all on McDonalds food like products for one meal...  -.-

 

 

Thu, 03/06/2014 - 21:32 | 4519652 Milestones
Milestones's picture

Very astute post;-never looked at it that way. I think you may have hit a bulls-eye. Congrats.           Milestones

Thu, 03/06/2014 - 15:38 | 4518170 SWRichmond
SWRichmond's picture

MyRA is right. If by my you mean the Gubbmint.

 = What's yours is mine and what's mine's my own.

Thu, 03/06/2014 - 14:41 | 4517821 thedrickster
thedrickster's picture

True. That being said I cannot think of anything more likely than to turn the average fat, content, bathrobe sporting McMansion dweller (those who the rotten system desperately needs to contiinue functioning) against the whole damn #VichyDC cherade than a move on retirement savings.

It would be #VichyDC's Marshall Applewhite moment, bathrobe anarchy. One can dream.

Thu, 03/06/2014 - 14:40 | 4517813 observer007
observer007's picture

Special Retirement Account:

22 Billion Dollars found: Photos of a Mexican drug lord's home after being raided

 

The money  and valuables found in this one house alone, would be enough to pay for  health insurance for every man woman and child in the USA for 12  years!

 

All photos here:

http://homment.com/drug-lord-home

Thu, 03/06/2014 - 14:52 | 4517895 A Nonymous Bosch
A Nonymous Bosch's picture

Basic arithmetic ... really isn't your strongest suit, is it?

Thu, 03/06/2014 - 15:04 | 4517962 bonin006
bonin006's picture

That's $5.88 per person per year. What's the problem?

Thu, 03/06/2014 - 15:09 | 4518000 superflex
superflex's picture

Try $57.89 per person assuming a population of 380 million.

Thu, 03/06/2014 - 15:15 | 4518030 SoilMyselfRotten
SoilMyselfRotten's picture

If that $57.89 per person is used for a prescription cyanide tablet, no more money need be alloted for healthcare

Thu, 03/06/2014 - 16:13 | 4518351 bonin006
bonin006's picture

22e9/312e6/12 = 5.876

Thu, 03/06/2014 - 17:22 | 4518665 Hacked Economy
Hacked Economy's picture

@bonin006,

You originally said "per year", which would be $70.51 per person ($22 B / 312 MM people).  You twice quoted $5.88, which is per month.

Thu, 03/06/2014 - 17:55 | 4518830 bonin006
bonin006's picture

read the original claim:

The money  and valuables found in this one house alone, would be enough to pay for  health insurance for every man woman and child in the USA for 12  years!

The 12 in my calculation is the 12 years claimed in the article, It has nothing to do with 12 month per year.

Data may lack certain skills related to human emotional behaviour, but you should not think you are any match for logic, mathematics, or reading comprehension.

 

 

Wed, 03/12/2014 - 20:22 | 4541074 MeelionDollerBogus
MeelionDollerBogus's picture

A lot of tards here like to downvote math & evidence. +1 for you

Sad.

Global warming is real, math isn't an opinion & abortion isn't murder because a woman who is pregnant is one life, not two.

Facts. Math. Evidence. Reality.

It grinds you like a kick to the balls with sandpaper, hey -1 trolls?

Thu, 03/06/2014 - 15:08 | 4517965 Ranger4564
Ranger4564's picture

The quote is from the link. FYI.

 

The quote stated that 22B in CASH + other valuables / property value, etc, would be enough. It did not say 22B alone would be enough. But you guys may still be right, it might still not be adequate for even 1 year.

Thu, 03/06/2014 - 16:13 | 4518347 superflex
superflex's picture

Nice story from 2007

 

Thu, 03/06/2014 - 15:02 | 4517949 Jumbotron
Jumbotron's picture

Words from the prophet George Carlin from years ago......

https://www.youtube.com/watch?v=sJeFrqBJF6E

"They're coming for your fucking retirement money.....It's a BIG CLUB...and YOU AIN'T IN IT ! "

Thu, 03/06/2014 - 16:17 | 4518375 ndotken
ndotken's picture

"If you like your IRA, you can keep your IRA ....

Thu, 03/06/2014 - 14:37 | 4517796 Stoploss
Stoploss's picture

Lemme guess. I should put my paper in a more stable overseas bank...

Thu, 03/06/2014 - 15:17 | 4518044 NoDebt
NoDebt's picture

Well played.

Thu, 03/06/2014 - 14:38 | 4517800 Grande Tetons
Grande Tetons's picture

Take the penalty now. Only a few sheep will be allowed to leave the heard. 

I strongly suspect that if they see money leaving....boom...up goes the electric fence...and the rest of the sheep are penned.

Thu, 03/06/2014 - 14:38 | 4517801 bugs_
bugs_'s picture

its already gone, only the accounting remains to be done.

Thu, 03/06/2014 - 14:38 | 4517804 youngman
youngman's picture

You can bet when things go bad that they will try to take this money from Pensions and retirement accounts....a drowning rat has no morales

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