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?
I think you could be right. I won't allow the government to steal my 401K money and I believe there are millions more like me.
One thing to remember -
leftists would LOVE any excuse to use the power of the state to kill/exterminate their political opponents.
They may be intentionally pushing a civil war, or a Rev II, with the very idea of having an excuse to kill conservatives and individualists.
I think Japan has basically done this by not allowing its serfs to invest outside of their country, then using this money to fund and out of control government spending.
Are you willing to cover for the Democrats even if it means busting your own future? Wise up already. This is no longer a left-right thing. It's about the survival of AMERICA!
I think a better caliber for this fight would be 30.06 or .223...
"A pistol is what you use to fight your way back to your rifle."
Do you know anything safe with an interest rate that's worth a damn
I think the new reality we've got live with is the harsh truth that nothing is "safe" anymore. IMO, the best you can do is put your money somewhere where your access to it is maximized and the government's access is minimized.
With money in a 401, the government has instant access with a stroke of the pen and a few mouse clicks. If it's in a safe in your basement however, they have to be willing to physically come and kill you to get it.
A little while ago, I never imagined I would find myself expressing the thoughts of the previous paragraphs. This is what happens when the actions of our politicians utterly destroys one's confidence in the government and our institutions. It's not good.
Well good luck with that. There aren't enough of them with weapons to accomplish that...and the armed forces/police wouldn't be on board with that for very long.
What makes you think they're going to let you keep your home?
That’s why 0bama says
“We cannot continue to rely on our military in order to achieve the national security objectives we’ve set. We’ve got to have a civilian national security force that’s just as powerful, just as strong, just as well-funded,”
Money - 42K
APY - 0.60%
Rate - 0.60%
Dividends Paid - Monthly
I looked for a calculator online, but could not find one.
thanks in advance for any help.
Just a bit of an adjustment, the medium of exchange needs to have INHERENT value and utility, as well as be easily tradeable.
The “medium” that best matches this, imho, is ammo.
Gold & silver MIGHT have limited trade utility, but you can’t “use” a gold or silver coin.
a poster to the Telegraph article says —
nathan_redshield on Nov 3rd, 2008 at 6:32 am
As for the US confiscating the retirement funds of Americans, there is an obscure 1886 US Supreme Court decision that might stand in the way.
-—— would that bother a lib SCOTUS I wonder?
OK, so it'll be the "civilian national security force" against the Army, Navy, Air Force, Marines, Coast Guard, sheriffs, police, NRA, and just maybe a covert force made up of Chinese and Mexican troops to pick up territory when it's over.
And, let’s keep in mind that all this is going to pay welfare. We should be dismantling welfare now while it can (maybe) be done in a somewhat orderly fashion.
Briefly:
0.6% apy = 0.05% / month
0.0005 X 42,000 = $21
Your 42k won’t even yield enough to fill your gas tank once a month.
Check out
http://ferfal.blogspot.com/
He has some interesting reading regarding gold and silver from a boots on the ground perspective.
0.60% isn’t worth your time even if you reinvest the dividend...
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