Posted on 05/25/2015 5:06:04 PM PDT by SkyPilot
The United States government could start seizing 401(k) plans, says one economist who believes a recent Supreme Court ruling sets the stage for Washington to initiate any such plans.
Economist Martin Armstrong published a blog post Monday that took a look at the recent Tibble v. Edison case. The court concluded that employers have an obligation to protect their workers’ 401(k) plans from mutual funds that provide deplorable returns. Armstrong thinks this could give the federal government the arsenal to begin seizing private funds and take companies to court if mutual funds perform poorly. This comes as the Obama administration has attempted to battle Wall Street brokers who peddle certain retirement investments that may prove to be a conflict of interest.
Here is what Armstrong, who reportedly predicted the ’87 crash and 1990s Russian economic collapse, wrote in his article:
“This comes just in time for then the next step is government to seize private funds and prosecute employers who choose badly a fund manager. This fits perfectly just in time for the Obama administration’s next assault as they prepare a landmark change of its own by issuing rules requiring that financial advisers put the interest of customers ahead of their own. This creates a very gray area wide enough to justify public seizure of pension funds under management.”
He added: “Between the court ruling and the Obama administration’s push for stronger fiduciary rules send a strong message that government can much easier seize the pension fund management industry of course to ‘protect the consumer.'”
(Excerpt) Read more at economiccollapsenews.com ...
long before the current fed chairman was hinted at as being the replacement,
I knew they would promote and nominate some vacuous starry eyed nancy pelosi type with an almost borderline dementia posture about her,
Someone to be a complete obama worshiping koolaid drinker to rubber stamp any corrupt administration policy no matter how far out of economic reality it seemed,
I was not disappointed,
That is what I have done over the last few years. Cash only. Withdraw what I need, and use cash. Sure i have a debit card, its for the banks ATM and thats it
The next time the Democrats get control of the House, you can count on it happening. It was discussed in 2009 and the 2010 election interrupted it.
I believe you are talking about “unusual account activity”.
The problem is that government and union retirement funds have been depleted. They have to get that money from some one, and guess who that some one will be? Yep, all those people that saved their money through 401K. That’s the only place they can get that money. They can’t print any more dollars. I’m suspecting that along with all the 401K, the government will also make it illegal for any civilian to own gold or silver. That will also be confiscated.
I hope so. If not we’re ALL screwed.
In Yellen, I suspect that fund managers saw someone who might be more easy to manipulate, which type many were crying for. But not all fund managers and advisors are looking for success with the same strategy, and not all investment clients are treated the same.
Select research groups with select members are paid well by governments, companies and very influential individuals to do research into events that might occur (wars, social changes, political changes, weather changes, geological changes, astronomical changes, etc.). Some of those members of research teams have visited some of the most dangerous places on earth while seeking knowledge pertinent to what might happen next. Even they will not find enough information to predict everything.
There’s some real knowledge behind the sponsored propaganda about man-caused global warming. I know a thing or two (solar and geo-) but not the extent of it (possibly astronomical and more having to do with physics).
Just curious, what do you think about 18 trillion in US debt?
“You’ll have Civil War II if that happens.”
One would expect.
“The complete Anti-Christ system is almost in place.”
Pretty much Sky, a turnkey system is being established with everything to be in place for when he emerges. Every day we see more and more of the pieces being put together.
“Once a year someone always posts on this topic as though it is news. This same stuff has been talked about for at least the past ten years.”
Yeah, and every year I respond with this:
The problem with such a seizure, is that unless it was all secretly pre-planned in massive detail such that on one late Friday afternoon the dictator President announced freezing all IRAs, 401(b)s, 403(b)s and all other plans, the normal process of legislative authorization and its lengthy debate would give plenty of time for everyone to sell out of their retirement accounts, biting the bullet of paying the maximum tax rate incurred from emptying the accounts in a single year. Such a scenario in which everyone attempted to exit at the same time would crash the financial systems and the economy and do it in such a way recovery would be nearly impossible.
Even the above mentioned freeze would itself crash the economy. After all, the government itself couldn’t exactly sell off those trillions overnight in order to convert them to money or government bonds without crashing the economy either. Heck, they couldn’t even do that over the course of several years. Not to mention the chaos in the markets due to the massive uncertainty such a seizure would cause, meaning the seized assets would become suddenly worthless anyway. And finally, such a seizure would leave millions destitute and lead to massive numbers of lawsuits, adding more chaos and uncertainty.
So the paranoid scenario of sudden retirement account seizure by the government has a probability that approaches zero.
What if he withdrew $3,000 this week and another $3,000 two weeks later?
Yeah. Yeah. The sky is falling and politicians are so stupid that they never want to be re-elected.
The politicians have 401(k)s. Their spouses have 401(k)s. The judges all have 401(k)s. Every constituent has a 401(k).
But some idiot of an economist thinks that politicians and judges are so frickin' stupid as to confiscate 401(k)s.
What. an. idiot.
Armstrong has a nearly prophetic ability to predict economic events (good and bad). You would not be doing yourselves a favour to dismiss his forecasts because of some illicit activities in the past (illicit according to the ruling elitists who sent him to jail).
True. Everything. In fact, permits will be required to attend religious services very soon. They will justify this on 1st Amendment grounds on the basis of "equal availability to everyone". Expect delays in getting your permit if you belong to a 'non-conforming' group (Traditional Catholic, evangelicals, etc.). You heard it here first.
That is called "structured finance", is seen as an attempt to evade financial laws, is illegal, and has resulted in many individuals seeing the insides of a prison for the first time.
I guess Cyprus didn’t happen either. Their politicians and judges lost their “excess” savings as well (at least those who didn’t get it moved out-of-country in time). You, sir, are an idiot.
It will be via Executive Order, not legislation, and they will probably implement it during a severe crisis. That's my guess. It could be a natural disaster, it could be a financial collapse, it could be war. It could be all of those things simultaneously.
I 100% agree. And the tax exempt status we have given to churches will be the first to go (except for cults like Scientology, they will be able to keep theirs). The IRS will do this on the basis that Christian churches "practice discrimination."
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