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All Da King's Men

Will The Government Nationalize Your Retirement Funds ?

By Da King Published: September 18, 2010

It's no secret that Obama Hood and his band of merry liberals want to redistribute wealth and centralize power in this country (but don't call them socalists !). They don't trust the American people to handle their own money properly. They view the American people as too ignorant to be trusted with much of anything, and besides, in Liberal La La Land, your wages really belong to the government in the first place. That's why liberals refer to things like tax cuts as "government spending." Liberals say things like "why should the government spend $700 billion on tax cuts for the wealthy ?," as if a person's wages belong to Obama and company instead of to the person who earned those wages. And never mind that the wealthy already pay the highest taxes in the country by far. If you point that out to liberals, they will start reminiscing fondly about the "good old days," when the highest marginal tax rate was over 90% here in the land of the free-up-to-a-point-to-be-determined-by-liberal-wealth-confiscaters. In true Orwellian fashion, liberals call such discriminatory theft "fairness."

But stealing more money from the wealthy will only take liberals so far. After all, reversing the Bush tax cuts for the wealthy is only expected to bring in about $70 billion per year in additional government revenue, hardly enough to close the $1.3 trillion annual deficit. It's a drop in the bucket. Liberals need to find a really huge pile of money to steal in order to continue

spending America into fiscal disaster implementing helpful governmental policies.

And there is over $7.8 trillion sitting around in private retirement accounts (401K, IRA, etc) that liberals would love to get their grubby mitts on. Think I'm kidding ? Consider this:

The U.S. Labor Department and the U.S. Treasury Department are holding hearings today and tomorrow on how to annuitize, that is, how to get a lifetime of income, from your 401(k) or IRA, entitled: “Hearing on Certain Issues Relating to Lifetime Income Options for Participants and Beneficiaries in Retirement Plans.”

How would the government go about insuring that our retirement plans provided a lifetime of income ??? Here's how:

In the Annual Report of the White House Task Force on the Middle Class, Vice President Biden discussed at length the creation of so-called " Guaranteed Retirement Accounts (GRAs)" which would provide protection from "inflation and market risk" and potentially "guarantee a specified real return above the rate of inflation" -- presumably at taxpayer expense. ...

The Vice President's comments are troubling, insofar as they come on the heels of testimony before Congress from supporters of GRAs proposing to eliminate the favorable tax treatment currently afforded to 401(k) plans, and instead use those dollars to fund government-invested GRAs into which all employees would be required to contribute a portion of their salary -- again, with a government subsidy. These advocates would, essentially, dismantle the present private-sector 401(k) system, replacing it instead with a government-run investment plan, the size and scope of which remain to be seen.

For more information, look here.

Now, how could the government make 401K's, IRA's, etc. free from inflation and market risk ?

Easy. Take them out of the market and put them under government control. That's what the GRA's would be, government controlled accounts. There have already been hearings on the plan:

The testimony of Teresa Ghilarducci, professor of economic policy analysis at the New School for Social Research in New York, in hearings Oct. 7 drew the most attention and criticism. Testifying for the House Committee on Education and Labor, Ghilarducci proposed that the government eliminate tax breaks for 401(k) and similar retirement accounts, such as IRAs, and confiscate workers’ retirement plan accounts and convert them to universal Guaranteed Retirement Accounts (GRAs) managed by the Social Security Administration

By "attention and criticism," that means Ghilarducci's plan got the attention of liberal Democrats (mo' money, mo' money !), and criticism from conservative Republicans.

Of course, the government won't be able to takeover everyone's private retirement plans all at once here, like Argentina's socialist government did a couple years ago. That would have people marching in the streets. For a takeover to occur here, there would have to be several intermediate steps, like....a financial crisis that threatened private retirement accounts (check), followed by a campaign of demonization of the private financial sector (check), followed by the government stepping in with unprecedented new powers over the financial system (check), followed by government proposals to "protect" the citizenry from the scary free market (check), etc, etc.

If would also be helpful if, prior to the government takeover of private retirement accounts, the government found a way to....say....dramatically increase the size of those retirment accounts, in order to allow the government to maximize the amount of money it will eventually steal...

Enter Democratic Senators Jeff Bingaman and John Kerry, and meet SB3760:

Automatic IRA Act of 2010 (S. 3760) enables nearly all employees who work for a private business with more than 10 workers and whose employer does not already offer a retirement plan to contribute to retirement savings through payroll deductions. Worker contributions would be deposited into their own Individual Retirement Account (IRA), ultimately managed by the same banks, mutual funds, insurance carriers, and other institutions that currently provide IRAs. The approach builds on the use of automatic features in 401(k) plans that encourage employees toward sensible decisions (while allowing them to make alternative choices), which has proven highly successful in raising 401(k) contribution rates.

Maybe the government can get those private retirement accounts up to $10-12 trillion before they swoop in and put it all under the control of the Social Security Administration (SSA). We all know what a bangup job the SSA did with our SS retirement Trust Fund. They spent the Trust Fund and then wrote IOU's in the form of T-bills back to us, so we can pay for the Trust Fund all over again later. Heck, if they used the same ponzi scheme with our private retirement accounts, they could screw us all over again, and pay down the national debt at the same time !!! It's genius, I tell you. Genius !!! It's also known as monetizing the debt, which will impoverish us all, but why be bothered with such trifles ? All the liberals have to do is convince us that the theft is for our own good. They've certainly accomplished that before. Stay tuned.

Do I know this is what the Obama administration has planned for us ? No, I don't know it for certain, but I do know they are considering it, and I do know the government is in dire financial straits. Plus, the Obama administration already made a play to takeover the healthcare industry, made a play to takeover the insurance companies, took over the student loan program, took an ownership stake in General Motors, has implemented financial regulations that enable the government to step in and shut down any financial entity it wishes whenever it wishes, has given the Federal Reserve unprecedented new powers, etc, etc. This has all happened in less than two years. I wouldn't put anything past them, which is plenty worrisome enough for me.

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