A simpler solution they could implement is a mandatory 1% purchase of government bonds by retirement accounts. It starts small, as a way to supposedly diversify peoples’ holdings. Then up the percentage that must be held in government bonds. They aren’t officially confiscating it, but actually are.
the fed would have a grand time using money confiscated from retirement savings accounts to purchase more US govt debt, wouldn’t it?
and when the time comes to pay that debt? well just confiscate more money or “means test” the debt holders to decide whether they “need” to be repaid
sounds all too familiar
Incrementalism.
Works every time with the low info voter. i.e. most people.
What they are more likely to do is to either manufacture, or at the least take advantage of, a major financial crisis. The perfect example would be when (not if, mind you, but WHEN) the market tanks. After most people get their financial clocks cleaned, Obama will "ride to the rescue" by offering everyone with an IRA or 401(k) the option of transferring X% of their fund into special US Treasury instruments. These will bear "guaranteed" interest of 3%/year (or maybe even be indexed for inflation - which the government regularly understates), AND (here's the real hook) he'll offer to restore the account of anyone making such a choice to its full value as of the beginning of the "crisis." Millions will jump on this - and forever have a large part of the retirement plans run by the government at sub-par rates. Further, those funds will - guaranteed - be used to "loan" the government money when there are future shutdowns.
Oh, and if you don't cooperate with Obamacare and a host of other mandates, they'll take it out of your retirement plan.
Of course, it'll start out as a voluntary program, but within 2 or 3 years it'll become mandatory - plus mandatory additional "contributions" (i.e. taxes). IOW
IT'S A TRAP!!!!!!
If the people don't start shooting politicians in the street after something like this, then it is over and done for this country.
“A simpler solution they could implement is a mandatory 1% purchase of government bonds by retirement accounts. It starts small, as a way to supposedly diversify peoples’ holdings. Then up the percentage that must be held in government bonds. They aren’t officially confiscating it, but actually are.”
Yup. Other countries have done similar. What used to be a smart investment, a 401(k) of IRA, is rapidly becoming a really rotten one.
Stop giving them ideas!