It wasn’t that long ago I posted this on the Democrats’ plans to remove the 401k tax breaks. It’s the whole personal responsibility thing they don’t like. If you care for yourself, then how can they scare or bribe you.
So, a new plan of attack is being formed.
The U.S. Treasury and Labor Departments will ask for public comment as soon as next week on ways to promote the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams, according to Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry , who are spearheading the effort.
Annuities generally guarantee income until the retiree’s death, and often that of a surviving spouse as well. They are designed to protect against the risk that retirees outlive their savings, a danger made clear by market losses suffered by older Americans over the last year, David Certner , legislative counsel for AARP, said in an interview.
Pajamas Media author Will Collier answers the nagging question: why annunities:
As noted later in the article, “Seven in 10 U.S. households would object to a requirement that retirees convert part of their savings into annuities,” and the “why” of that opinion isn’t that hard to figure out: they’re a bad deal for everybody except the guys selling them. Consumer gurus like Clark Howard have been warning people away from high-commission “guaranteed” annuities for years. I bet everyone reading this knows of somebody who’s been ripped off by an annuity salesman.
But now … now the government would be the annuity salesman – except that if the administration gets its wish, there won’t be any “selling,” you’ll just be forced to take the money you’ve earned and “convert” it to a construct that they’ll allow you to “invest” in. No more of this willy-nilly mutual fund nonsense for you plebeians; we’ll tell you how you’re going to pay for things, so hand over the cash – it’s your patriotic duty!
It would be plenty bad enough if the “guaranteed” government annuities were limited to bailed-out insurers like AIG. But Karl Denninger of The Market Ticker took a deeper look and found an even scarier outcome. Denninger believes this is really a scheme to prop up the market for Treasury bonds by forcing citizens to “invest” in them.
As Denninger points out, “Forcing people into Treasuries as an ‘annuity’ is exactly what Social Security allegedly is. Except that Treasury stole the money that was collected in FICA taxes and spent it!”
The Intergenerational Ponzi Scheme is starting to unravel, and just like all the other scam artists of the past, a new scam has to be created.
These types of moves will not help them in the next election. As I noted, there is a huge percentage of Americans who have 401ks. You go messing with them, and you are inviting a Republican majority.
But, don’t let that stop you. Far be it from me to keep you from imploding.
Related posts:
- Obama Still Looking to Hijack Your 401k
- Compared to the Federal Government, Bernie Madoff is a Piker
- House Democrats Aim to Remove 401k Tax Breaks
- Locke: U.S. Should Pay for China’s Carbon Emissions
- Obama: Taliban Can Be a Part of Afghanistan Government – Taliban: Convert, Die or Become Our Sex Slave
[...] All American Blogger we read about the plan detailed in Business [...]
Like or Dislike:
0 
0
Thanks Duane for the heads up on this plan. Saw it on Twitter. Linked to it on my blog.
Like or Dislike:
0 
0
F**K the Government! They are not to be trusted with ANYTHING.
Like or Dislike:
0 
0
[...] All American Blogger: How The Obama Administration Plans to Screw With Your 401k [...]
Like or Dislike:
0 
0
Could we have just one day where we don’t have to be worried about what our government -fed, state, county, city are devising to limit our lives and take our wealth?
Like or Dislike:
0 
0
401k issue discussed here! Disturbing
http://www.allamericanblogger.com/9569/how-the-obama-administration-plans-to-screw-with-your-401k/
Like or Dislike:
0 
0
Not sure how the government could presume to reach into someones wallet and force that money into a risky investment. With a $13 trillion national debt, the risk of default is real on those treasuries. China will tell you. This is a horrible idea. What kind of criminal mind would conceive of such a thing?
rjjrdq´s last blog ..Massachusetts To Use Easily Hacked Voting Machines
Like or Dislike:
0 
0
401k issue here! Disturbing #TCOT Ideas?http://www.allamericanblogger.com/9569/how-the-obama-administration-plans-to-screw-with-your-401k/
Like or Dislike:
0 
0
[...] savings with it, the U.S. Treasury and Labor Departments are the fronts for a scheme to have your 401k converted into a treasury backed annuity. So what does this mean? Annuity-a steady payment stream, correct? Yes, but this annuity will be [...]
Like or Dislike:
0 
0
Try this one SG (401K) http://tinyurl.com/y8gqgmt @1SupremeGoddess: @AlinskyDefeater
Like or Dislike:
0 
0
RT @MaePartner: Try this one SG (401K) http://tinyurl.com/y8gqgmt @AlinskyDefeater = That’ll work!!! Thank you!! I cldnt find it at work!!
Like or Dislike:
0 
0