…It’s not like government spending is going down anytime soon; it already takes nearly 100% of tax revenue just to pay mandatory entitlements like Social Security, and interest on the debt, plus the government itself estimates that the national debt will hit $30 trillion within ten years. Bottom line, they need more money – lots of it – and there is perhaps no easier pool of cash to ‘borrow’ than Americans’ retirement savings. $7.3 trillion in U.S. IRA accounts is too large for them to ignore.[The original article, as written by Simon Black (sovereignman.com), is presented here by the editorial team of munKNEE.com (Your Key to Making Money!) in a slightly edited ([ ]) and/or abridged (…) format to provide a fast and easy read.]
If you think it’s inconceivable for the government to borrow your retirement savings, just consider the following:
1) Borrowing retirement funds is becoming a popular tactic
Forced loans have been a common tactic of bankrupt governments throughout history plus there’s recent precedent all over the world; Hungary, France, Ireland, and Poland are among many governments that have resorted to ‘borrowing’ public and private pension funds.
2) The U.S. government has already done this with federal pension funds
During the multiple debt ceiling fiascos since 2011, the Treasury Department resorted to “extraordinary measures” at least twice in order to continue funding the government…[by] dipping into federal retirement funds and borrowing what they needed to tide them over. In fact, the debt ceiling debacles were only resolved because the Treasury Department had fully depleted available retirement funds.
3) They’ve been paving the way to borrow your retirement savings for a long time
Two years ago the government launched a new initiative to ‘help Americans save for retirement’ called MyRA (the idea is for people to invest retirement savings ‘in the safety and security of U.S. government bonds’)… They’ve also proposed a number of legislative reforms to ‘encourage’ American businesses to sign their employees up for “Making Your Retirement Accessible”, or MyRA. [In fact,] just last week, Congress introduced the MyRA Act which would charge a penalty ($100 per worker per day) to employers whose workers don’t have a retirement account. Imagine a small business with, say, 10 employees who didn’t have retirement accounts. The penalty to Uncle Sam would be a whopping $30,000 PER MONTH. There’s a word for this. It’s called extortion and, obviously, when facing a $30,000 monthly penalty, an employer will pick the easiest option, MyRA.
This isn’t about fear or paranoia. It’s about facts and the reality is that the government in the Land of the Free is moving in the direction of borrowing more and more of your retirement savings.
If you still remain skeptical, remember that…just 45-days ago a new law went into effect authorizing the government to strip you of your passport if they believe in their sole discretion that you owe them too much tax. No judge. No jury. No trial. They just confiscate your passport.
This is happening. It’s a reality that rational, thinking people should plan for and, yes, there are solutions…[such as] setting up a more robust retirement structure that protects your savings and gives you much greater influence (i.e. investment options) over your funds…
(If you want to learn more about the risks and solutions for your retirement savings, click here to access our free black paper.)
Related Articles from the munKNEE Vault:
There are huge amounts of money in the IRA ($3.5 trillion) and 401(k) ($5.1 trillion) retirement plans in the U.S. (another $9.9 trillion in assets held elsewhere) according to a recent Investment Company Institute study which makes it very tempting for government to try and get at it. [While] the government may, or may not, tax the money, they may force you to include a sizable percentage of the retirement assets in your IRA and/or 401(k) in U.S. Treasury securities, which may be among the worst investments in the years ahead as interest rates go up and price inflation eats away at the buying power of those IOUs. [Let me explain.] Words: 802
The notion of government raiding personal retirement accounts for funds may seem extreme…but other governments have done it. Argentina did in 2008, Ireland has indicated it might [and the U.S. might well do so as it’s] financial crisis worsens. This article puts forth reasons why it is possible they would undertake such a grab or ‘confiscation’ of your retirement accounts and how they likely would go about implementing such an event. Words: 700
Will the laws and rules in place to protect individuals in their attempt to set something aside for retirement be safeguarded by the representatives elected to advocate for them in Washington? Will the principles and moral integrity of the political class keep them from appropriating the trillions of dollars held in 401k’s and IRA’s? I’m not so sure! Words: 1207
Hank Paulson, the Goldman Sachs bankster/US Treasury Secretary, who deregulated the financial system, caused a world crisis that wrecked the world financial system is writing in the New York Times urging that the mess he caused be fixed by taking away from working Americans the Social Security and Medicare for which they have paid in earmarked taxes all their working lives. Wall Street’s approach to the poor has always been to drive them deeper into the ground. Words: 777
Mandatory IRAs as proposed by the Obama Administration is just the 1st step in stealth nationalization and forced investment of our retirement benefits to support the treasury debt market! [As such,] every American with substantial retirement assets must [begin now to] protect themselves from having to become buyers of last resort for US treasury obligations. [Let me explain.] Words: 6349
The Obama administration is “taking the first steps to confiscate retirement dollars,” according to Dr. Jerome Corsi who predicts that the end result will be retirees with 401(k) plans holding near-worthless government debt “that will be paid off in a devalued currency worth … pennies on the dollar.” Words: 839