As predicted, the Obama Administration is taking more steps toward nationalization of private 401(k) and IRA retirement accounts in an increasingly desperate effort to bridge the U.S. government’s growing funding crisis.
In a joint Treasury Department/Labor Department public meeting scheduled to begin today, the Administration is fleshing out details of a new “retirement security” initiative under the benign-sounding “lifetime income options for retirement plans.”
Many months back Independent Living became the first national publication to “connect the dots” on the people, funders, and long-term objectives behind this insidious emergency government funding plan – a plan that is now in its active planning stages.
Much to the chagrin of America’s ruling class, the global appetite for lending money to the U.S. government continues to weaken. As this hidden funding emergency deepens, Obama officials are putting into place a plan to hijack a portion of private citizens’ $14 trillion in 401(k), IRA, and other retirement accounts to pay for runaway government deficit spending.
Government Prepares Draconian “Options”
For Its Coming Funding Mega-Crisis
Why is the Obama Administration pressing so hard to unveil their “employment security” agenda? In short, its about averting a Soviet-level collapse of the central government’s precarious finances.
The government’s precarious cash-flow situation is not unlike a private citizen with a $50,000 annual salary who is “maxed out” on $80,000 in credit card debt – and barely able to make minimum monthly payments.
New evidence of the government’s acute funding crisis:
In concert with the Labor and Treasury Departments’ joint initiative on retirement nationalization, Senators Jeff Bingaman (D-MN) and John Kerry (D-MA) introduced legislation on August 5. Their bill, S. 3760, would impose mandatory IRAs on the employees of most companies in America, requiring them to deposit 3% of employee earnings into government-approved “investments” unless those employees specifically opt out. (And their wages would be automatically sunk into “principal preservation investments,” which is French for government bonds.)
Back to today’s joint hearings. On the table is the subject of new regulations governing how 401(k) and IRA fund managers and account holders invest their funds, with bureaucrats searching for ways to “encourage” or outright mandate purchase of government bonds or annuities (fixed-income instruments which hold government bonds).
Meanwhile, we anticipate the threat of revoking tax-advantages of 401(k)s and IRAs will be used as a tool to impose the potential new rules.