The Government Generously Offers To Help You "Manage” Your Retirement Account

zero hedge ^

[Perdogg]

Via Michael Krieger of Liberty Blitzkrieg blog,

[ZH: We have discussed this threat over the past several years (must read).] The obvious concept is that when the government runs out of money, or they face a drying up in interest for its debt, they will come for the $19.4 trillion in American’s retirement accounts. It seems that day may be finally drawing near.

I stopped contributing to my 401k back when I worked at Bernstein, and I will probably now have to give more serious consideration whether I want to take the penalty and move the funds out of my retirement account entirely. I haven’t made any decisions, but will be watching closely.

I’m sure the government is just trying to protect your retirement account from terrorists.

From Bloomberg:

The U.S. Consumer Financial Protection Bureau is weighing whether it should take on a role in helping Americans manage the $19.4 trillion they have put into retirement savings, a move that would be the agency’s first foray into consumer investments.

That’s one of the things we’ve been exploring and are interested in in terms of whether and what authority we have,” bureau director Richard Cordray said in an interview. He didn’t provide additional details.

The bureau’s core concern is that many Americans, notably those from the retiring Baby Boom generation, may fall prey to financial scams, according to three people briefed on the CFPB’s deliberations who asked not to be named because the matter is still under discussion.

The Securities and Exchange Commission and the Department of Labor are the main regulators of U.S. retirement savings vehicles and funds. However, the consumer bureau — established by the 2010 Dodd-Frank Act — sees itself as a potential catalyst for promoting a coherent policy across the government, the people said.

[MtnClimber]

The first thing a con artist must do before pulling off the con....convince you that he cares about you.

[WorkingClassFilth]

Good land. Land with timber, farming or hunting lease potential. You can live there, farm it, grow veggies, lease it, cut firewood, sell timber or just sit on it until you can sell it once again for the same relative value or greater.

[fr_freak]

You need the gold to store your wealth until the collapse has stabilized. You need the brass and lead to survive the collapse.

[FreedomPoster]

That’s a line.

Thieves are fair game.

[usconservative]

The bureau’s core concern is that many Americans, notably those from the retiring Baby Boom generation, may fall prey to financial scams

Like that ponzi scheme Social Security!?

[MtnClimber]

I hear you and have thought about it. The brass and lead thing I agree with. With gold, I really don’t know. Historically it has been valued, but if we were plunged into 100s of years of “dark ages” would gold be valuable during the dark ages or would barter of useful items be more useful?

Hopefully 2014 gives Barry the Userper a brick wall that he cannot pass and he will be written into history as the worst and most constitutionally damaging presidents ever, but with Woodrow Wilson snorkling his butt.

[Intolerant in NJ]

The U.S. Consumer Financial Protection Bureau is weighing whether it should take on a role in helping Americans manage the $19.4 trillion they have put into retirement savings...yes indeed, the Government has done so well in managing its own finances, I sure need its help in how to manage mine......

[Washi]

I'm, admittedly, terrible with money.
Seeing this theft coming, however, I've been thinking of taking the penalty hit, cashing out my IRA, and investing in real estate as the housing market seems to be recovering and the interest rates are low right now.

[sten]

never saw this coming... oh wait...

[gotribe]

Ammonow.com shows average prices and last week’s and month’s. My .223s are coming down finally.

[PeevedPatriot]

"...whether and what authority we have,” bureau director Richard Cordray said in an interview

Isn't Cordray one of the recess appointees that the appeals court ruled was invalid? How come this guy is still collecting a paycheck, let alone trying to determine his regulatory power? Does the House have the authority to withhold his salary?

[The_Media_never_lie]

Don’t take the hit, not worth it. These guys are not able to loot your IRA account. Not going to happen.

[JRandomFreeper]

Ammonow.com shows average prices and last week’s and month’s. My .223s are coming down finally.

When there's charts on the internet tracking prices on ammo... It's like silver or gold, except it's useful and fun.

If it keeps going like it is, I'll pay next year's property tax by selling a brick of .22LR.

/johnny

[okie01]

Isn't Cordray one of the recess appointees that the appeals court ruled was invalid?

The very same.

[JRandomFreeper]

Not going to happen.

And you can keep your gold and regular light bulbs and regular flush toilets and keep the doctor you like.

I don't trust 'em as far as I can throw 'em. That's trillions of $$s sitting there that the government needs.

Roosevelt shouldn't have been able to outlaw possession of gold, either.

But he did, and our corrupt government went along with it.

/johnny

[PGalt]

Unaccountable bureaucracies are socialist constructs.

Socialism Is Legal Plunder - Bastiat

http://www.usdebtclock.org

BIG GOVERNMENT IS CRONY SOCIALISM

From socialist architect/bureaucratic brianless child to senator...

http://dealbreaker.com/2012/12/elizabeth-warren-director-of-the-consumer-financial-protection-bureau-doesnt-sound-so-bad-anymore-does-it/

http://www.huffingtonpost.com/2012/07/18/cfpb-capital-one_n_1682578.html

As big as anything...well...since OBAMACARE!

The socialists are running the table AND we have ZERO representation in Congress.

“Above all, if you wish to be strong, begin by rooting out every particle of socialism that may have crept into your legislation. “ - Bastiat

Americans are being overtaken/looted/plundered/subjugated by coalitions of collectivists - all socialist.

Thanks for posting, Perdogg. BIG SOCIALISM BUMP!

Thanks to all of the tremendous posters at zero hedge and free republic.

[M-cubed]

would gold be valuable during the dark ages or would barter of useful items be more useful? <<

http://www.321gold.com/fed/greenspan/1966.html

[dixiechick2000]

“I’ve already fallen prey to one financial scam - it’s called Social Security.”

You didn’t fall prey. You were coerced.

[agere_contra]

where would be a good place to put their money?

Physical Gold and Silver. Some of it in bar form, some in coins. My preference is for Silver.

[agere_contra]

...would gold be valuable during the dark ages or would barter of useful items be more useful?

Precious metals (Gold and Silver) are the way to go, because they are money. The concept of money - and why it always wins out over barter - requires a little unpacking:

Precious metals possess all of the attributes of money (fungibility, portability, store of value and so forth)

Fiat currency has most of the attributes of money, but it does not act as a store of value. After a few years a dollar bill has only a fraction of its original buying power. However an oz of Gold from (e.g.) the time of the Incas retains its buying power.

Something that has the attributes of money is valuable because it has those attributes. Would-be barterers can use money to overcome the otherwise insuperable problem of discovering a Coincidence_of_wants .

Trade requires money. Let's examine this vital function of money with respect to the coincidence of wants, and also get a feel for why Barter rarely works:

Chicken farm example:

You run a chicken farm, and you need to buy a great many things to keep your farm and family going.

In a given month you need - for instance - to buy chicken feed, to hire someone to repair your generator, to buy a nailgun to allow you to mend chicken barn #9, to hire a midwife to help give birth to your widowed daughter’s baby, to buy milk and bacon - and so on.

Some of these resources will be buyable with chickens or eggs. And some of them will not - there's no coincidence of wants if the midwife or the nailgun owner don't want chicken meat or eggs.

Remember: these people need to replace their consumables in order to stay in business: they can't use your food to buy more nails or WD40 or painkillers or whatever they need from their suppliers a hundred miles away.

But all or most of these resources will be buyable with money - with Gold or Silver. This is because offering money as part of a transaction vastly improves the chance of a coincidence of wants

Chicken farm example - continued:

You’ve had a successful month at the farm, and you now have loads of chicken meat and/or eggs to sell.

100 people line up to buy what you’ve got.

* 50 of them have horribly devalued fiat money, food-stamps and a bad attitude

* 40 of them have plans for barter - some of which are better than others.

One is willing to work on your farm for food

Another is willing to sell you their body

Another has a stack of AA duracell batteries

Another has some miniature bottles of scotch

- and so on, with dozens of variations. You have to gauge each transaction on its own merits - an exhausting process - and half of the barter offers are simply going to be unworkable.

* 10 of them have Gold and/or Silver.

Which customers will you prefer selling your produce to? They all want what you've got - but do you want what they've got? Again: real money vastly increases the chance of a coincidence of wants.

In summary:

Only Gold and Silver fulfill all of the prerequisites of money. This gives them inherent value - useful (for instance) in a survival situation.

Barter (however) turns out not to be a workable solution in the great majority of cases due to the need for a coincidence of wants.

Lastly - as we know: fiat currency can also be used to run a chicken farm. It has the appearance of money. However fiat currency is currently losing ~7% of its buying power a year. Once price inflation reaches a certain level, only real money will be accepted as money.

Hope this was helpful.

...would gold be valuable during the dark ages or would barter of useful items be more useful?

Precious metals (Gold and Silver) are the way to go, because they are money. The concept of money - and why it always wins out over barter - requires a little unpacking:

Precious metals possess all of the attributes of money (fungibility, portability, store of value and so forth)

Fiat currency has most of the attributes of money, but it does not act as a store of value. After a few years a dollar bill has only a fraction of its original buying power. However an oz of Gold from (e.g.) the time of the Incas retains its buying power.

Something that has the attributes of money is valuable because it has those attributes. Would-be barterers can use money to overcome the otherwise insuperable problem of discovering a Coincidence_of_wants .

Trade requires money. Let's examine this vital function of money with respect to the coincidence of wants, and also get a feel for why Barter rarely works:

Chicken farm example:

You run a chicken farm, and you need to buy a great many things to keep your farm and family going.

In a given month you need - for instance - to buy chicken feed, to hire someone to repair your generator, to buy a nailgun to allow you to mend chicken barn #9, to hire a midwife to help give birth to your widowed daughter’s baby, to buy milk and bacon - and so on.

Some of these resources will be buyable with chickens or eggs. And some of them will not - there's no coincidence of wants if the midwife or the nailgun owner don't want chicken meat or eggs.

Remember: these people need to replace their consumables in order to stay in business: they can't use your food to buy more nails or WD40 or painkillers or whatever they need from their suppliers a hundred miles away.

But all or most of these resources will be buyable with money - with Gold or Silver. This is because offering money as part of a transaction vastly improves the chance of a coincidence of wants

Chicken farm example - continued:

You’ve had a successful month at the farm, and you now have loads of chicken meat and/or eggs to sell.

100 people line up to buy what you’ve got.

* 50 of them have horribly devalued fiat money, food-stamps and a bad attitude

* 40 of them have plans for barter - some of which are better than others.

One is willing to work on your farm for food

Another is willing to sell you their body

Another has a stack of AA duracell batteries

Another has some miniature bottles of scotch

- and so on, with dozens of variations. You have to gauge each transaction on its own merits - an exhausting process - and half of the barter offers are simply going to be unworkable.

* 10 of them have Gold and/or Silver.

Which customers will you prefer selling your produce to? They all want what you've got - but do you want what they've got? Again: real money vastly increases the chance of a coincidence of wants.

In summary:

Only Gold and Silver fulfill all of the prerequisites of money. This gives them inherent value - useful (for instance) in a survival situation.

Barter (however) turns out not to be a workable solution in the great majority of cases due to the need for a coincidence of wants.

Lastly - as we know: fiat currency can also be used to run a chicken farm. It has the appearance of money. However fiat currency is currently losing ~7% of its buying power a year. Once price inflation reaches a certain level, only real money will be accepted as money.

Hope this was helpful.