Posted on 01/19/2010 6:58:35 AM PST by saganite
The Obama administration appears to have come up with a novel way of financing trillion-dollar budget deficits – demanding IRA and 401(k) holders buy trillions of dollars in Treasury bonds.
With the Treasury needing this year to see another $1 trillion in debt to finance the anticipated federal budget deficit, and the Federal Reserve about to discontinue its 2009 program of buying Treasury bonds for the Fed's asset portfolio, the Obama administration is scrambling to find ways to sell government debt without having to raise interest rates.
Bloomberg reported Friday that Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Mark Iwry are planning to stage a public comment period before implementing regulations that would require private investors to structure IRA and 401(k) accounts into what could amount to a U.S. Treasury debt-backed government annuity.
CNBC's Rick Santelli broadcast the rumor the same day from the trading floor during CNBC's "Power Lunch" show.
Spokesmen from both the U.S. Treasury and Department of Labor confirmed to WND that the federal agencies about to enter a pre-regulation public comment phase on the proposed rule change.
snip
A survey conducted by the Investment Company Institute showed more than 70 percent of all households disagreed with the idea of requiring retirees to buy annuities with a portion of their assets, whether the annuity is offered by an insurance company or by the government.
Moreover, 96 percent of households in the survey responded that retirees rejected the idea that the government should mandate turning IRA or 401(k) assets into annuities, asserting instead that retirees should make their own decisions about managing retirement assets and income.
(Excerpt) Read more at wnd.com ...
I will liquidate my account and pay the taxes before I am forced to buy bogus bonds from the fed......a buck in hand is worth 3 in the fed....
If O keeps up this redistributive mode, revolution(peaceful, of course) cannot be too far behind.
And the Democrats came unhinged when President Bush wanted to privatize Social Security. This is going to be a nail in the Obama coffin. It is one thing to mess with people’s healthcare that in most cases in used infrequently, but when they start directly touching your money, the tea in Tea Party will really begin to boil!
If they don’t get the response they like they are going to crash the market. Count on it.
A bridge to far.
Plain and simple, this is the government using the threat of brute force of violence to cause people to invest in lower returns.
...all being done on purpose.
This is the most dangerous administration the United States has ever seen.
Carter was stupid this bunch is really EVIL.
Chicago THUGS ..
Their carrot to get people to go along was to say they would “restore” the peak value of your 401k from before the crash.
That was the day I stopped contributing to my 401k. I still save the money, after tax, but will no longer put it into a 401k that I may lose, at least until this foolishness ends...
It is a pool of cash they need to get their hands on. When they get this cash it will be spent by the end of the month.
Disaster
I refer to my 401K as the “As Yet Unstolen Retirement Fund”. They want to make our 401K’s part of the Social Security system. If you read the FICA details you will find “The Reservation of Power” section 1164. This is the section that SCOTUS used in Fleming vs Nestor, where it was ruled that the Federal Government is under no obligation to pay you benefits.
Agree I told my sister in -law to do that a year ago but she didn’t and took a loss,she’s a blond and a democrat.You can lead a horse to water but.....
Powder..patch..ball FIRE!
Agreed... I will pay the taxes and buy ... nothing until I absolutely have too
Bump
It will be ANYTHING BUT peaceful
I can tell you how outrage from 401K holders will play out. You will be accused of everything in the book since 401K holders are primarily those who can afford to set aside a portion of their income for retirement. That makes you a target for race baiters and redistributionists. Those who save for retirement are also a minority. You’ll be lumped in with the “tea baggers”.
Fortunately, most Americans have caught on to this kind of Marxist rhetoric.
Wasn't it Lucifer who said he'd rather rule in Hell than serve in Heaven?
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