Posted on 01/08/2010 11:07:28 AM PST by Zeddicus
Now this is a guaranteed rape job.
In a short conversation this noontime that CNBC apparently has omitted from their archives (Why's that folks?) Rick Santelli was talking about a potential to effectively force money into the Treasury market.
Where would they get this?
From your 401k and IRA accounts!
From Businessweek:
The U.S. Treasury and Labor Departments will ask for public comment as soon as next week on ways to promote the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams, according to Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry, who are spearheading the effort.
Let me tell you what this is - it is an attempt to prevent the collapse of the Treasury market!
Forcing people into Treasuries as an "annuity" is exactly what Social Security allegedly is. Except that Treasury stole the money that was collected in FICA taxes and spent it!
Guess what? They'll do that here too - you're going to "invest" in Treasuries which of course are effectively a CALL option on the future taxing ability of the government.
The problem is that with an aging population and the immigrant problem (illegal immigrants that is), along with offshoring, the aggregate wage base will drop and thus this is the most dangerous investment of all!
What's even worse is that the government has intentionally suppressed Treasury yields during this crisis (and will keep doing so by various means, including manipulating the CPI - the "inflation index" - as they have for the last 30 years) so as to guarantee that you lose over time compared to actual purchasing power.
THIS HAS BEEN THE CASE SINCE THE 1980s AND IT WILL NOT CHANGE!
I have been talking about this for quite some time and recall writing a Ticker on it a year or more ago, although I can't find the entry immediately.
Let me be clear:
I have no quarrel with the government mandating that you have a choice in your IRA or 401k account to buy short-duration Treasuries - much like the "G" fund that government and civil-service workers have.
But - "choices" have a funny way of turning into mandates, and this looks to me like a raw admission that Treasury knows it will not be able to sell its debt in the open market - so they will effectively tax you by forcing your "retirement" money to buy them!
This may be the only way for Treasury to hold down interest rates to something reasonable in the intermediate term, but doing so will instantaneously remove a major source of funding for the stock market - that is, the monthly and quarterly inflows from retirement accounts.
You can bet this won't be good for you, the ordinary American.
You can also bet that once such an "option" is made available there is a very high probability of the government doing things that either promote or simply don't stand in the way of another stock market crash as a means of "herding" your money into Treasuries - so they can blow it - all under the guise of being allegedly "safe".
Of course this begs the question - what if the government can't pay down the road when you retire, just as they can't pay on a forward basis with Social Security and Medicare?
This "proposal" can only mean one thing - Treasury smells smoke. Maybe you should pay attention to what they're huffing!
And before you say "oh they'd never do that" I want you to read this:
Here is a warning to us all. The Argentine state is taking control of the country’s privately-managed pension funds in a drastic move to raise cash.
...
My fear is that governments in the US, Britain, and Europe will display similar reflexes. Indeed, they have already done so. The forced-feeding of banks with fresh capital – whether they want it or not – and the seizure of the Fannie/Freddie mortgage giants before they were in fact in trouble (in order to prevent a Chinese buying strike of US bonds and prevent a spike in US mortgage rates), shows that private property can be co-opted – or eliminated – with little due process if that is required to serve the collective welfare.
Any questions?
its already happening - April 15 2010 will be a wake call
“...obscure 1886 US Supreme Court decision...”
-
I would like to read up on that, what was the name of it?
Hell Yes they are! First to take any wealth we might have and then to de-populate the country.
It won't be an overt, in-your-face confiscation. They will get people to voluntarily throw their entire life savings into another government bond ponzi scheme, by orchestrating another stock market crash.
This current stock market rally is a setup.
A set up to beef up those 401k's they want to confiscate.
Well, you might be tired but you get it. Our nation's vault is empty. WE'VE BEEN ROBBED!
:) thanks for the laugh...
I agree. So get to the bank and wire all your money to:
Snardius' Canned Goods, Ammunition, and Bottled Water Fund
PO Box OU812
Grand Cayman Islands
A receipt will follow shortly.
They’ve been doing this same thing for nearly a hundred years. After the first big crash and our group response, they knew they had us whipped.
Maybe now people will take a stand.
1Tim.6 [10] For the love of money is the root of all evil:
Touching my 401K is an act of war. I WILL respond in the proper fashion. I hope that millions do the same.
Touching my 401K is an act of war. I WILL respond in the proper fashion. I hope that millions do the same.
Money is not everything...
but it's way ahead of what's in second place.
I guess you've noticed them going after Swiss bank and other off-shore accounts?
bttt
Technically, they're not going to "touch it". They'll give you the option to put it in their treasury bond ponzi scheme. If you don't, you'll be wiped out when they decide to stick a pin in this current artificial stock bubble.
Either way, you lose, and they win.
Yes, I've noticed...but the super-wealthy will always have a safe place to park the cash they don't want anyone to know they have...so, I just have to find that place and open an account.
I do...
Time to read a little John Ross. I have just the book...
I bought his book. I am a follower of his. No need to be a full-fledged survivalist to appreciate his advice, either.
I know that many of them would die before they got hold of my home. I don't think that asshats in Washington realize how fragile the peace in this nation is right now. This country is a powderkeg waiting for a spark.
And when that game of ‘let’s pretend’ ends, as we know it must, God help us all, for that will be the end of the dollar. With everything that implies.
Have your kits ready, people. and be prepared to give a good account of yourselves.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.