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The Next Shoe To Drop On Your Retirement Account
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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Your IRA is now My RA....hee hee, suckers.
Payback for Oldpeoplebama Care I guess...
It looks like Boeing is gonna make sure it is only union people who get screwed.
http://news.yahoo.com/boeing-says-end-pension-plans-non-union-employees-...
This piece of shit article is exhibit A for how the rubes are kept barefoot and dumb. If Simon Black wasn't a financial services industry and big bank whore, he would have informed all of us that the proposed MyRA accounts must be converted to Roth IRA's when they reach $15,000 in value.
This is not some "big government" money grab. No, the MyRA is a Wall Street money grab. The Oligarchs are, again, using the government to separate lower and middle class Americans from their money.
I see dumbass comments about Social Security below, and that it is just like the MyRA proposal. Well, if we continue to stay dumb and let the Oligarchs convince us that our assets don't belong to us, then yes, once Social Security is privatized, it will be just like the MyRA.
You're funny.
You're talking like Wall Street and Washington DC weren't the same single body.
That's hiliarious.
Could they also accept foreign "investors"?
I am far more worried about automatic enrollment in ObamaCare than I am about automatic enrollment in a MyRA. The uninsured are not signing up, and Obama has to do something about it - urgently. If they want to bleed someone like my sister, who has assets but little income, dry, that is the way to do it.
Have you considered giving your sister boating lessons? Aptitude in sailing not required, in fact if you last were Captain of the Exxon Valdez, this is an asset.
All aboard the SS Davey Jones Locker!
Time to Escape to Ecuador...
http://yourescapetoecuador.com/retirement/why-should-you-retire-in-ecuador/
The Social Security Trust Fund is an illusion. It's simply not there.
Decades ago, the $4.5 Trillion trust fund was looted and spent on government expenses. The Treasury Dept. gave the SS Dept. IOUs for the purloined funds. These IOUs pay some interest, but technically are not Treasury Bill or Notes. Now appoligists for the system say this is just fine, these IOUs are functionally identical to Treasuires, which is a good investment for the Trust fund. And the $4.5 Trillion SS debt IS part of the $17 Trillion debt, so it's not like we forgot about it.
However, if the payroll taxes that pay for SS cannot cover the SS benefits paid out every year, the difference must come from the Treasury. Even though the Baby Boomers have not begun retiring enmass, this has happened decades earlier than predicted. It doesn't matter whether you think these are interst payments or load repayment, the SS administration is CASH-FLOW negative, and real money has to come from somewhere.
In 2012 SS was $55 Billion in the red, and it's projected to have been $75 Billion in 2013. Now generally, the federal debt is necessary to keep the money supply lareg enough to support the reserve currency status of the dollar. Therefreo, there was NEVER ANY INTENTION of paying that back. But they have to pay the $4.5 Trillion back to SS beneficiaries, and so will have to borrow it again pay it. So even though the debt is $17 Trillion, we will need $4.5 Trillion in new debt just to keep that constant. Note we are not rolling it over, because we borrowed it from ourselves. To be real money somebody else has to borrow it. Of course the Fed can just print the money and buy it.
Notice that if the SS Admin had simply invested the trust fund, we would have no problem paying for the Baby Boomers (with our own money I might add). So as Baby Boomer, when they stole my money the first time, I didn't even whimper. Now when they will steal the rest of it (IRAs 401ks etc.) I'll just sit there and let 'em do it. (NOT!)
Perhaps a different type of stick and carrot will be tried - such as all retirement accounts except MyRAs will be subject to a "one time only" surcharge of 10%, per IMF recommendations. Oh, and there will be a window where the maximum MyRA contribution will be raised to accomodate larger accounts wishing to transfer. Such a deal!
You'll know when you're properly screwed when the President says your retirement accounts will be allocated in Bitcoin.
Many 401K plans already have automatic enrollment - I think your employer is FORBIDDEN from telling you when you are in one, or that it is about to hit you.
example: http://www.dol.gov/ebsa/publications/automaticenrollment401kplans.html
OK this does NOT say they are forbidden from telling you, but certainly nobody told me, and certainly no opt-out was offered me - even though once in, all you need to do to exit is call.
What's theirs is theirs, what's yours is negotiable!!!!