The Government wants Your 401(k) and Retirement Account

By Scottsbluff : NE : USA | Jul 07, 2010

Hang onto your Individual Retirement Accounts, and 401(k) plans because the Federal Government wants them. According to an article by Goldworth, Deputy Assistant Treasury Secretary Mark Iwry, and Assistant Labor Secretary Phyllis Borzi head an endeavor to have Americans convert their retirement accounts. The Government wants them converted into annuities and Treasury bills, to fund the national debt. They need to sell $2 trillion dollars of bonds, and foreign countries aren’t buying like before. The world is concerned about the growing debt of the United States.

The powers pushing this idea are the White House, Ford and Rockefeller Foundations and Congressional activists. Theresa Ghijarducci, of the Swartz Center for Economic Policy Analysis, wants the Government to present the public a proposal of converting these accounts, as early as the middle of July. The announcement seeks to get America’s response to the idea.

The Goldworth article said the New York Times reported the United States would pay out more benefits this year than it takes in from payroll taxes. This deficit will grow, as over 78 million boomers retire and take money out of government coffers.

Last March, Business Week reported our Government wants the converted accounts placed in government-controlled institutions, such as AIG. What the Government seems to have in mind is another power grab, on the lines of the health care plan pushed down America’s collective throats. The national health care plan and the funding of the national debt through converted retirement accounts are brazen acts of Nationalization.

The route to Nationalization the United States is on is similar to the one Argentina took to their demise. In the 1990’s, Argentina had a vibrant economy but it eroded to the point it defaulted on $155 billion of public debt, in 2002. The erosion began when Argentina’s economy slowed, and they continued to spend and print money as a close-gap method to make ends meet. Their peso devalued until it was worthless, inflation set in and the languishing economy never picked up. Finally, with nothing to hold the economy up and their citizenry too broke to keep up with inflation, the economy collapsed. Since then Greece defaulted, for the same reasons, and Spain and others teeter.

Similarly, the United States has a large National Debt, $13 trillion, the interest on it $500 million, per day, but the Government shows no sign of slowing entitlements. For example, the Congressional Budget Office predicts the recently passed health care will add $562 billion to the deficit, over the next ten years. Our Government is printing money like it’s going out of style, tax rates are going up next year and inflation shows signs of beginning to rise. As a result, per-capita spending is slowing, which takes money out of the economy. The United States can only fund the present debt until 2020, then it engulfs our GNP. Washington DC must stop spending.

Goldworth: 401 (k)/ IRA Nationalization Quietly Moves Forward: goldworth.com