Congress and Obama are ogling the trillions of dollars sitting in Americans' 401(k) s and IRAs and have begun a scheme to tap into more of our money. Their passion is to use our money today with a promise to repay it when we need it down the road. We would do well to remember this is exactly what happened to the Social Security Trust Fund. The original intent was to require people to pay into the plan with all money going into an interest bearing trust account, and when we reached retirement age, we would receive a monthly stipend for life. They sold it to Americans as an insurance policy.
Politicians' greedy hands were soon in the till and the accounts raided and replaced with IOU’s and an empty promise to repay the money at retirement age. The allure of votes they could buy with this money was so compelling Congress quickly turned the Social Security System into a pyramid scheme. We are now at the point where all pyramid schemes end. More people are receiving money than there are people to pay into the scheme. Accordingly, the system has collapsed, and they need more of our money. Politicians stole the money, and then changed the rules for paying it back.
This brings us to today. Lawmakers have proposed changes - and the Obama administration will seek to force the conversion of 401(k) accounts and IRAs into annuities or other fixed income streams, and eliminate tax credits for future contributions. Annuities, of course, typically offer lower interest rates but promise a guaranteed income. Politicians will use this “guarantee” as a way to filter our money into the government coffers. Logically, the next step will be a requirement to invest in Treasury Bonds (loaning politicians the money in our accounts) with the usual promise of reimbursement when they feel it necessary. Following the examples set by their morally bankrupt predecessors they will impose new rules establishing “means” testing, changing the age of eligibility, and increased taxes and penalties.
New mutual funds have slowed considerably, largely because of Obama’s takeovers and bullying of lending institutions and private companies. Hence, his efforts to control the economy make long-term, guaranteed profits by the private sector a risky proposition. The federal government has no such qualms; they simply rig a new Ponzi scheme with another “Wimpy” plan to pay us back Tuesday for a hamburger today. As it is always the case, once the heavy foot of the federal government is in the door, they will have your money and/or govern its use.
Another scheme they will use is arguing that taxes on most of these accounts are unpaid, and they simply want their money early. With a simple stroke of the pen, they change the rules to allow early collection of taxes. Thus, they take control of the money people have worked and saved for to ease and supplement their retirement years.
Politicians also have their eyes on your stocks. Liberals are demanding a capital gains tax "adjustment" and some are floating a trial balloon that would "allow" people to have Congress take over their stocks with a guarantee of no loss in value with that tired old promise of a steady income, etc., etc.
There is one undeniable fact that everyone must face; the spending by this administration and Congress will result in massive tax increases and outright confiscation of wealth from people who played by the rules, worked hard, and saved. Furthermore, there is no limit to how creative politicians are at separating people from their money. Obama and Congress will try to obfuscate the facts and put off the inevitable until they are out of office. The delineation between rich and middle class will soon be indistinguishable. Consequently, there will be two classes; the élite ruling class and the huddled masses.
Government policies have already led to the virtual elimination of pensions and benefits from the private sector. Above all, we must remember their goal is to control all wealth and income to redistribute it as they see fit. This is what authoritarian regimes do to liberty; eliminate it, one step at a time. Jim Mullen http://freedomforusnow.com
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