I have been reading articles, like the one at American Thinker about how the Labor and Treasury Department, along with the Obama Administration are planning the Nationalization-Confiscation of IRA's and 401K's. (check this too).
The articles may not be current, but the issue does not seem to be dead.
There was a meeting held on September 14th and 15th, with the Labor and Treasury Departments which outlined the Course of Action and sought input. Videos of the hearing are here.
The agenda is called "Lifetime Income Options for Retirement Plans".
The Federal Government may be moving to control an estimated $3.613 Trillion Dollars in IRA's and $2.350 Trillion Dollars in 401-K's.
It is said that initially, they will offer this as a "choice" - that you can take your equity and have it placed in U.S. Treasury Bonds that will eventually pay out to you an estimated 3% annually. They of course are doing this to "protect Americans' retirement".
...the government intends to convince Americans that the abrupt seizure of trillions of dollars in defined contribution retirement accounts in exchange for token government payments is for their own protection and benefit. (American Thinker)Powerline said this back in May:
... I think the best we can say is this: the federal government is desperate for cash, and the biggest untapped source of wealth is the hundreds of billions or trillions of dollars that Americans who are now nearing retirement age have saved over their lifetimes. I don't doubt for an instant that the Obama administration would like to get its hands on this money, which would go a long way toward resolving the current government debt crisis. An obvious way of doing so is to take the money now, in exchange for a promise to pay an "annuity" later. The bottom line is that, given what we know about the Obama administration's rapacious appetite for swallowing up private wealth, anyone who has savings should be vigilant.Another opinion piece is here.
The reason they want access to all these trillions in Americans' retirement accounts is so they can use your money now as collateral for the massive debt they have accumulated, in order to make the United States credit worthy to China and other buyers of our debt.
Back in May, the Republicans did not like this plan.
One of the major clauses which has been discussed, was that upon retirement the value of the your Retirement Account would be placed into Annuities. Once an individual dies, the value of the account will Automatically become property of the Government. The Program will likely be structured much like Social Security Accounts.
Furthermore, the move toward this nationalization of IRA's & 401ks will initially be offered as an "Option". Some critics of this plan have said that those who would be unwilling to accept this Government run Retirement Account plan will likely be stripped of their current IRA/401-K account tax benefits. You would likely be forced to pay taxes on your holdings, which could feasibly wipe out one-third of your wealth!
And how do you think the US Government would convince people to buy into this scheme? How about if they created a financial meltdown that eroded the value of what people have in their current retirement accounts? If you saw your IRA or 401-K drop 50-60% in a matter of days you might want to take a "Conservative Approach" offered to you by the government in the form of "Government-Guaranteed Income".
It is possible that this could be the plan in place for when the Stock Market Drops by 40-60%!
Some say that a Stock Market crash is imminent based on the following indicators:
* Unsustainable U.S. Debt
* Real un-employment continues to rise (9.8% reported by the government... but we all know it is much higher)
* Housing market continues to Drop
* Failing Banking System (2-7 Banks Fail Weekly)
* Lower Quality of Life (SNAP recipients just hit a fresh all time high of 42.9 million)
How reassuring to know that the government is out to "help" all those Baby Boomers by taking their IRA accounts and giving them an IOU. Didn't a guy named Ponzi do something similar?
"I'll have a hamburger for which I will gladly pay you Tuesday" - Wimpy