The $6 Trillion 401K Grab

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In 2008 I came
across a disturbing article about 401k and IRA confiscation. The
article appeared in the Carolina Journal Online. I’ve been
following this closely. In fact as recently as February 1, 2010
I became the 93rd
person to provide
“Informational Comments” on the
Department of Labor’s website. My comment was beyond scathing
and is therefore posted without a link to it.

Let’s
not mince words: The Social Security “Trust Fund” that
FDR started 75 years ago is now a 14 trillion dollar black hole.

We trusted
Congress to manage the fund and the morons (fiscally responsible
Ron Paul, Paul Ryan and a handful of other good eggs excluded) looted
it.

The “Trust
Fund” now consists of a bunch of IOU’s that will be passed
onto our children. It was spent on the day-to-day operations of
a bloated government. If you or I managed a pension fund and we
stole from it – we’d do time. If we used the money we
stole to buy votes – we’d do more time.

Like Health
Care, Congress can pass laws that they themselves do not have to
follow.

The insanity
continues: Tomorrow the United States Department of Labor is holding
a hearing on options for retirement plans.

EBSA
News

Release
Date: August 26, 2010
Release
Number: 09-1234-NAT
Contact Name: Gloria Della
Phone Number: 202.693.8664
Email: Della.Gloria@dol.gov

U.S. Department
of Labor publishes agenda for September 14-15 joint hearing on
lifetime income options for retirement plans

Washington

– To day the U. S. Department of Labor’s Employee Benefits
Security Administration (EBSA) released the agenda for the upcoming
joint hearing with the Department of the Treasury on lifetime
income options for retirement plans. Accompanying the agenda are
copies of the witnesses’ requests to testify and testimony
outlines. The hearing begins at 9:00 a.m. (EST) on September 14
and 15, 2010. The hearing will be held in the Labor Department’s
main auditorium, 200 Constitution Avenue, NW in Washington, D.C.

A live webcast
of the hearing will be available on EBSA’s Web site at www.dol.gov/ebsa.

In November
of 2008 the Carolina Journal Online carried a piece titled:
Dems
“Target Private Retirement Accounts
” where “leaders”
in the U.S. House discussed confiscating 401(k)s, and IRAs and turning
them into a GRA (Government Retirement Account).

I suppose that
after looting the Social Security Trust Fund and after guaranteeing
14 trillion dollars of taxpayer dollars to the people who blew up
the economy, Congress is now brazen enough to think that it can
steal 6 trillion more.

This time by
confiscation.

According to
the article: “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.”

Professor Ghilarducci
wrote here about the shortfall’s of 401(k)s and IRAs. What Ghilarducci
doesn’t mention is that our debt, on and off balance sheet
is why workers have retirement savings problems. The average worker
toils from January 1 to August 15th to service our debt. This leaves
him 138 days of the year to fend for himself. The fact that his
wages are circa 1973 doesn’t help him save. The fact that he
is paying back looted money with interest doesn’t help him
save.

The actual
debt numbers are insane. Public Debt is over $13,433,000,000,000.00
(13.4 trillion). Add the GSE (Freddie/Fannie) debt to that and we
are over 18 trillion. Pile on the unfunded liabilities hidden on
the government’s off balance sheet ledgers: Social Security
(14.6 trillion), Prescription Drugs (19.2 trillion), Medicare (76
trillion) and we come up with 128 trillion dollars.

128 trillion
dollars of debt is why workers toil 227 days just for Uncle Scam
and have no money to save. Stealing their savings and blowing it
like they blew social security will not fix anything.

Like Doug Casey
says; “giving politicians the ability to borrow is like giving
a teenager a bottle of whiskey and the keys to a Corvette.”
Great words but “giving politicians” needs to be replaced
with “letting politicians steal.”

Reprinted
with permission from Financial
Sense
.

D.
Sherman Okst [send him mail]
became fascinated with the economy in 2007, particularly with the
correlation of depleting resources against a growing population.
He is an ex-airline captain with about 15,000 hours and is amazed
at all the BS we are taught. Aviation or economics, Keynes to Austrian
– Bernulli to Newton we’ve been sold bad goods.

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