Posted on 09/02/2010 12:54:07 AM PDT by Fred
The Obama administration appears to be proceeding with a novel way of financing trillion-dollar budget deficits by forcing IRA and 401(k) holders to buy Treasury bonds by mandating the placement of government-structured annuities in their investment accounts.
The requirement to invest private retirement assets has been cleverly buried within plans to create "automatic IRAs" that would mandate employer groups enroll all employees in 401(k) or IRA plans.
The U.S. Department of Labor released yesterday an agenda for an upcoming joint hearing with the Department of the Treasury scheduled for Sept. 14 and 15 on whether government life-time annuity options funded by U.S. Treasury debt should be required for private retirement accounts, including IRAs and 401(k) plans.
WND reported in January that Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary 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.
In a 2010 budget blueprint unveiled Feb. 26, President Obama proposed that employers sponsoring 401(k) plans or other defined contribution plans should be required to offer automatic enrollment in these plans, or in direct-deposit IRAs, as steps that would change the nation's voluntary retirement plan into a government-mandated nationalized program.
With the Treasury needing to sell another $1.4 to $1.5 trillion in government debt to finance the anticipated fiscal year 2010 federal budget deficit, the Obama administration is obviously scrambling to find ways to sell government debt without having to raise interest rates.
Under ERISA, the Department of Labor regulates approximately 700,000 private pension plans, with approximately $4.7 trillion in assets.
(Excerpt) Read more at wnd.com ...
They can have it.
After everyone is transferred out of their current, good assets to IOU T-bills and notes and maybe Agency bonds, then worry about DEFAULT on them in a few years....US debts and monetizing are only rising astronomically and cannot do that for very long.
Analysts stress deflation, inflation, possibility of hyperinflation, but while the Congress is considering the IRA and 401k actions, there is little mention of DEFAULT. Therefore, consider the possibility as a final outcome.
Coming soon:
Obambie to take ALL of your earnings and money, in exchange for five acres and a mule.
Because they’ve done such a great job with social security and that “lock box” thing.
I said, and I quote, ‘because the government is going to take it.’
Odd thing, my ex-wife did the exact same thing.
As soon as Obama was elected, half the people I know, dumped their 401s.
We all knew this was coming. And this is only the beginning.
The United States economy is in full meltdown.
It will not be long before everything you own belongs to the government. By government, of course, that would be China.
Wow! Isn't it wonderful to live in the Utopian Paradise the Libs and RINOs have given us?
They must be very proud. USSR rocks! (and now, we are them) Good going to all involved. Great Job. I'll see you in the bread line! You stupid losers.
Yeah right it will end up being a single room apartment in a slum somewhere and a bus pass....
I should pull mine out and hide the money under the mattress. Until Obama sends his secret police to check my bedroom, that might be the safest place.
Move mine to a Roth. No mas in my 401K.
Give the feds time; they’ll come for your Roth too.
Don’t know why they need to, what with our first Black Prez’s brilliant idea to re-create Zimbabwee economics (i.e. Weimar Republic finance policy) here in the USA.
Obama doesn’t need anyone to buy Govt debt, his Fed Reserve (or Kinko’s Copy Centers) will just create the money out of thin air and the Govt will have all the dollars it needs.
A process now called “quantitative easing” (aka counterfeiting or destroying the value of the dollar)
And since no Dem voter has the smarts to figure out that debasing the currency always leads to making it w/o value, Obama can do it all he wants. Trillions at the snap of his finger...too cool!
...and the mule has only three legs...
A;ready paid the taxes and can pull it out with min fallout...
Yep
This is not a natural spike. People are afraid of Obama and the Liberals, i.e, Communists.
Everyone knows the government is going to take everything and they rushing to Gold as a haven. It is as if they think the Communist government will not take their Gold.
Of course they will. And even if they can't find, the Government will just trading in Gold illegal.
No, short of moving to Australia, there is no way around this.
America has been conquered!
Sounds like a Conservative plan all along.
What the anti-capital collectivists are working towards are requirements to qualify an IRA for tax exemption before retirement.
Hussein was very clear in his campaign website that IRA tax exemption is a government subsidy, all money belongs to the government. Osama posted on the site that anyone rich enough to have a private retirement account, is rich enough to pay taxes on it. The website has long since been scrubbed.
The Treasury requirement is likely to be: X bucks of Treasuries in an IRA to qualify X bucks of other IRA investment tax exemption.
All of this was spelled out in Barak Hussein bin Obama al Kenyata's campaign literature long before he was elected.
yitbos
They won't need any steenkin' secret police to take your savings.
Whatever gets past the taxman will be robbed by the central bankers et al - and they'll never have to get near your home to do it.
bump
Sounds like another way of saying ‘’Stick em up,sucker.’’
I was paid unemployment. Got a call from the IRS and they wanted taxes on the unemployment.
I was confused. So I said to the lady, but unemployment is taxes. You tax people to have money to pay unemployment. That is one of the points of having taxes.
So, I continue, by this logic, the government pays me unemployment. The government then taxes the unemployment they just gave me. And then they count the amount of money they just gave me, that give back to them, which is their own money... as revenue.
So, basically, money that you give me, that I give back to you is productivity?
Man that is some wild logic. Get you money for nothing and your chicks for free.
Liberalism is a mental disease. They really do, they are pretending, they really do believe that money comes from nothing. It is like dealing with children.
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