Here’s Why Stealing Your 401(k) Could
Actually Be Acceptable to Many Americans
In recent weeks and months, we’ve warned you of the Obama Administration’s steps down the path of nationalizing some $15 trillion in privately-held 401(k)s, IRAs, and 403(b)s. You might be wondering, how is stealing so much money from private citizens politically possible?
Simple: Responsible voters with savings are outnumbered and outgunned.
The Employee Benefit Research Institute says that a whopping 49% of Americans over 55 have less than $50,000 in total savings and investment – woefully inadequate to carry an individual through retirement.
IRS records also confirm 47% of Americans pay no income tax and 60% get more from government benefits than they pay in taxes. In other words, roughly half of American voters have little or nothing to lose, so the promise of a new government-run retirement program could be quite attractive (or cause little alarm).
Drive to Audit the Fed Derailed in Senate
Despite strong support from the right and the left, the Obama White House has succeeded in severely watering down what had been a growing Congressional mandate to subject secretive Federal Reserve Board operations to an independent audit. Unfortunately, Fed money creation is essential to prevent the bankrupt federal government’s illusion of operational solvency from disintegrating.
Noted the Wall Street Journal on May 7: “….pressure from the Obama Administration led Senate lawmakers….” to kill legislation “that would have largely repealed a 32-year old law that shields Fed monetary policy from congressional auditors.”
Once High-Flying “Maestro” Continues to Point Fingers
Meanwhile, former Federal Reserve Chairman Alan Greenspan is resorting to truth-telling (however self-serving it may be) to deflect the criticism he has faced for helping create the disastrous housing bubble. Greenspan is now laying blame on Congress for its role in the financial meltdown. “The Federal Reserve,” he said, is a “creature of Congress and if… we had said we’re running into a bubble and need to retrench, the Congress would say ‘we haven’t got a clue what you’re talking about…’“
“Congress passed the Community Reinvestment Act, which gave regulators the power to force banks to loan money to low-income, minority, and distressed neighborhoods.” he further pointed out.
Of course, Greenspan didn’t bother to mention that his own Boston Federal Reserve office egged on such policies by releasing a damning report implying that banks were racially motivated in limiting credit to minorities, even though bank underwriters were appropriately looking at credit history and credit risk, not skin color.
Government Spending is Hogging America’s Growth Capital
Banks just aren’t loaning much money to small businesses – the traditional source of job creation – anymore. Feeding the federal spending beast is far more important to cash-strapped federal officials. A May 10 Wall Street Journal notes that federal banking rules gives lending institutions strong incentives to “invest capital” into government debt “rather than taking the painful course of raising more equity. That can concentrate banks’ exposure to sovereign-debt risk, reducing money that would have been lent to boost the economy…”
World Bank advisor Michael Pomerleano says Obama’s regulators have warped market incentives to “encourage” banks to plow their lending resources into government debt instruments… “banks short on capital and reluctant to lend in a risky setting are given an easy choice to pile into government debt.”
Stay on the Defensive
With a Federal Reserve continuing to skirt accountability while banks make risky investments in government debts, it’s vital we stay on the defensive.
And again, if you have not yet obtained our exclusive new report on the sneaky plans afoot to steer Americans’ retirement savings into paying for government deficits, simply reply to this email and type “401(k)” into the subject line. No one else has this exclusive information.