The solution to the national debt is going to be appropriating the IRA’s and 401K plans of the population and rolling the money into the Social Security system. Several countries have already done this and the IMF is encouraging this practice. The amount in these retirement accounts ($16 trillion) almost matches the national debt ($17 trillion). We will receive IOU’s for the money confiscated. No different than FDR confiscating gold in the 1930’s. This will all be done under the ruse of “safekeeping” and protecting citizens from volatility on Wall Street. The IOU’s will be “safe” US Treasury bonds yielding 2-3%.
Within a few years the government will have trouble meeting the demands for withdrawals from the retirement accounts and will make several changes:
1) The IRA/401K money in the “safe” accounts can no longer be passed down at death. The government will take it.
2) Limits on the amounts and timing of withdrawals even on the money the citizens once controlled.
3) Ultimately the money will be swept into regular social security accounts and means tested. After all it is only “fair”.
As to the currency I suspect the end game is a global currency or minimally a western hemisphere currency. The US dollar already circulates as the only currency or a secondary currency in some Central American countries. As far a precious metals in coinage, I don’t have an opinion. If the US $ totally collapsed I’m not sure how people will “value” gold and silver commemorative coins or the old silver coinage they have tucked away in piggy banks or drawers. In the initial stages of a currency meltdown it may be that useful items such as ammunition, medicine, canned and dehydrated food, and toilet paper have more value for barter than pieces of metal. Hopefully I won’t live to see it.
Some people tell me this will never happen but they do not understand our spiritual forces at work here as well. We are living in an age of mass deception.
Here's the rub.
For many people, this will have zero impact because they earn so little that they don't pay taxes now. They likely don't have 401k's or IRA's.
So next you will have the super-rich, like the Trumps, Limbaughs, Soros and Kochs. Do they have their wealth in 401k's and IRA's? Probably not. There's is probably in other assets. Does that mean that they won't have their retirement funds confiscated?
Next we have the political class. Not quite super-rich, but still multi-millionaires. How will they protect their own money while still confiscating the savings of everyone else?
And then there are the institutional investors, people who have their 401K's in company stocks. How will those be seized and swapped for treasury bonds? Will this type of seizure really be a back-door nationalization of the companies whose stocks were just seized?
Does the government become the stockholder of these stolen shares, or does the government sell off the stocks at spot sale prices? Who will be the buyers of these stolen stocks? And what does the corporation itself have to say about the sudden garage sale of the stocks that they rely on to finance their businesses?
-PJ