"You's sends one a his to the fkin morgue! THATs the Chicago way."
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?
Very good point. The whole scam / sham is a crap shoot. I expect taxes must go up with $110 trillion in debt, so maybe converting an IRA to a ROTH now would be beneficial. But, the probability of confiscation is better than 50 / 50, so maybe unlocking the funds from withdraw penalty now gives a family flexibility.
I just watched a two hour show on the history channel about the potential results of a REAL pandemic that kills millions of people. At one point they said that a person who knows how to grow food might be more valuable than a stock market expert. I am old enough to know how to grow food with machinery or with the old methods, using hand tools or a horse drawn plow. Maybe I’ll be employable again yet.
Hey, I resemble that remark, actually I converted in ‘97.
The last straw. The tresury seeks public comment? How bout we send the messenger back a piece at a time!
Ha, funny thing, that is just what I did last year when I first heard mention of this proposed theft by some of our scumbag congressmen - I cut my excess contributions to the minimum, and am now considering early retirement so as to spend down my portion of this obvious pool of money apparently plum for the criminal $hitbags in DC.
I think 95% of us are f'ed if you're talking about the Almighty :)
"You's sends one a his to the fkin morgue! THATs the Chicago way."
There are a number of federal tax free municipal bond funds that yield between 4.5 and 6% - with no federal tax - and they pay monthly dividends (MNP, NPY, DMF).
Don't accept 0.6% yield!
That is pre 12-25-09 thinking.
;)
And Miller wasn't the only one..."floating" that scheme.
-Barack Hussein Obama
I will start that.......
My pop taught me....
Had $6k in the bank...when I was almost 19. Bought my first car...with $4k of it...
Kept saving at least $50 a month for years....Then started figuring out ways to leverage that, and now have a real good amount.
I've taught my kids to do the same....My youngest...who's just 21...has over $10k in the bank! Whoa!! Surprised me...!! She's a smart young lady.
But I worry about her future!
I vaguely recall that Sheila Bair put her two cents worth in on the scheme. Vipers, all.
I think this latest workplace shooter in St Louis was “set off” due a conflict with his and his coworkers 401k being supposedly trashed by their company , or something to that effect .....etc
If polidiots ....that watched ENRON and Maddoff (sp?) etc rob the sheeple that just said “oh well we got screwed”....consider our savings and investments for retirement as a source of their cash. They do NOT want to try such through legislation. They will get “tired” trying that IMO. (Pamwe Chete).
Dear polidiot.......take my life savings and leave me no alternative . I’ll show ya a trick .
My opinion.....
I don’t think he’s got it all in place yet. They’ll act prematurely, and out of hubris. They also seriously underestimate the anger that’s been building towards them over the decades.
That’s going to be their downfall. Unfortunately, there’s going to be a whole lot of dying between point A and point B.
We personally strive to never be more than 50% reliant on fiscal US infrastructure and systems for our long term retirement investments.
Groceries / Garden, Guns, Gold/Cash and Gas on hand (AT HOME) to get through at least a minimum of six months of any national monetary crisis, as well as a safe deposit box at your local bank and additional resources stored in a private bonded secure storage facility. A defense in depth per se......
Self reliance is the key .
My opinion !
but what of us who have to save for our own retirement?....we're going to be slaves again.....
I've feared this for some time....one reason I didn't do much with my 401 last year, and probably won't be contributing much this year either....
Almighty Lord help us please....
Cash is good. Paper, maybe not so much if we have a currency crash - as is likely. Junk silver coins in easily recognizable denominations might be a better deal. But we didn’t buy a bag when we had the chance. Oh, well...
LOL
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