Will Uncle Sam Takeover Your IRA?
Posted by Larry Doyle on February 19, 2010 11:06 AM |
Is the launch of government sponsored annuities a precursor to the formal takeover of your retirement accounts by Uncle Sam?
The groundwork for this possibility is being laid by the powers that be in Washington. Will it come to fruition? Only time will tell, but did you think developments over the last 18 months would ever happen? While we can hope for the best, we should prepare for the worst — including the potential reality of having Uncle Sam take control of your retirement accounts.
I thank a loyal Sense on Cents reader, Comrade Joe, for initially broaching this topic here on January 11th in writing, Blueprint for Government Takeover of IRAs.
We have seen further evidence of this potential reality in a BusinessWeek article in late January, Mandatory IRAs May Burden Small Employers, Business Group Says:
U.S. President Barack Obama’s effort to increase retirement savings by requiring all businesses to offer automatic IRA accounts may face opposition from small companies, says a Washington-based trade group.
Obama said the plan, part of a tax package aimed at middle- income Americans proposed today, would let employees automatically enroll in direct-deposit retirement accounts and expand matching tax credits. The administration hasn’t released a cost estimate.
“When small businesses are struggling to stay afloat, we oppose mandates such as this that stand to create a new administrative burden,” said Molly Brogan, vice president of public affairs for the National Small Business Association, in an e-mailed statement.
When I see the term mandate connected with a government initiative, I get very concerned. Who else is concerned and has been for a long time? Ron Holland. Ron writes, The Coming Obama Retirement Trap Has Started:
A Personal Note from the Author
“What is certain is that out-of-control spending will continue, and meaningful benefits for those on Social Security will have to be funded from somewhere. My guess for the most likely future source is a wealth tax on the retirement accounts of those who have distrusted the word of the Federal Government to pay benefits, but who have curiously trusted that same government with regard to retirement account security.” Thomas M. Schmidt
Dear Concerned American:
I begin with a quote from a politician who believed in an all-powerful central government and in using that power to achieve his vision for a nation. “He who has his thumb on the purse has the power.” – Otto von Bismarck, a statesman who created the modern Germany and known as the iron chancellor.
But however well-intentioned he might have been, he built the regulatory groundwork and government institutions for a centralized federal state that was later taken over by an evil political leader who created a tyranny seldom seen in the world before, or after. The tyranny started in 1933, 35 years after Bismarck’s death, was National Socialism and the leader was Adolf Hitler. All of this came after Germany’s military defeat in World War One and a national debt crisis, followed by hyperinflation and currency collapse.
I fear that today the control, nationalization and ultimate confiscation of trillions in private US retirement plan assets is on the horizon. Rick Santelli alluded to the possible nationalization and forced investment into treasuries on CNBC as recently as January 8, 2010. There was also similar coverage on Bloomberg and Business Week.
Reports out of Washington indicate that new retirement annuities may be promoted by Obama aides. This is just the beginning! The question every successful American with substantial retirement assets must ask is “what will you do if our retirement funds are forced to become the buyer of last resort for US treasury obligations?” Unless you believe Congress and Washington bureaucrats will do a fair job of allocating and distributing your personal retirement assets between yourself and others, you must begin now to protect your assets.
How do you start to protect your assets?
To listen to an audiotape of this fabulous discussion with Ron Holland, click here.