Yet every scheme comes with a proclamation that says, “your government is looking to help you secure your retirement and your future.” Even the sheeple are offering resistance to this one.
I’ve been covering the topic of government-mandated 401Ks since the fall of 2008, and I even noted that I detected the unmistakable whiff of confiscation in the air. Writers and bloggers all ’round the ‘Net denied that point. To revisit this issue, let’s take a look at a post from last month by Karl Denninger at Market Ticker titled, “401k/IRA Screw Job Coming?” Karl notes a bit that appeared on CNBC where Rick Santelli was discussing the potential to “effectively force money into the Treasury market.” He links to this quote from Businessweek:
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.
Karl comments further:
Let me tell you what this is – it is an attempt to prevent the collapse of the Treasury market!
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!
Guess what? They’ll do that here too – you’re going to “invest” in Treasuries which of course are effectively a CALL option on the future taxing ability of the government.
He also notes that the conversation on CNBC was omitted from its archives. Since then, the link has also disappeared from Businessweek. The link has also disappeared from MSN Money. Use your best judgment as to why they disappeared. However, in an article from the Buffalo News titled, “U.S. Wants Workers to Invest in Annuities,” there is some interesting information to be found. This article hasn’t been pulled — yet.
Keep in mind that any confiscation or forced (“mandatory”) plan will benefit the banking hucksters on Wall Street. As mentioned in the Buffalo News article, companies like AIG, Prudential, and ING Groep NV stand to inherit a windfall of profits upon any move to “invest” in annuities. Always, always follow the money. From the article:
Government success in getting workers to move retirement assets into annuities may prove profitable for insurers that sell annuities, Anne Mathias, policy research director for Washington Research Group, a policy analysis unit of Concept Capital, said in an interview.
Now that’s putting things lightly. This effort to prop up the collapsing Treasuries market with your money is being spearheaded by Assistant Labor Secretary Phyllis C. Borzi and Deputy Assistant Treasury Secretary Mark Iwry. Iwry is Timmy Geithner’s flunky. Says Iwry (bold is my emphasis): “There’s been a fair amount of discussion in the literature taking the view that perhaps there ought to be more lifetime income. The question is how to encourage it, and whether the government can and should be helpful in that regard.”
Per the usual, the government’s personal snipers devise schemes, behind the scenes, to get your money to pay for their massive welfare programs, corporatist rackets, and special interest pay-offs. Also per the usual, the corrupt and demonic AARP is working hard to push this along with their usurping Democratic friends in Washington D.C.
See my previous coverage on this topic:
Ask yourself if it is time to provide a little voluntary stimulus to the safe industry. See more on this topic.4:35 am on February 24, 2010 Email Karen De Coster