Obama Retirement Trap

by Dave Blount | January 25, 2010 8:28 pm

As noted earlier[1], it’s only a matter of time until our insatiably greedy socialist rulers seize our retirement accounts. Another ominous warning[2]:

Washington is in a desperate search for more revenue and a solution to the future financing of the trillions in national debt obligations currently held by foreign central banks and investors. Economists, politicians and smart investors know the dollar’s days as the world reserve currency are numbered as is our ability to finance the national debt.

Although the historical government solution to unsustainable government debt loads has always been the destruction of the debts by currency depreciation and eventual hyperinflation, there is always an intermediate step used to buy more time for the politicians in power. This action … is wealth confiscation. …

The largest source of liquid private wealth remaining in the United States [is] the $15 trillion in private retirement funds and the ultimate ownership, control and future of these funds have already been compromised and exchanged for the favorable tax treatment of private retirement plans. Congress writes the laws, so they can tax, penalize, hold your funds hostage and although they’d never use the word, “confiscate” your assets at their discretion.

This confiscation will take the form of compelling participation in a Social Security-style Ponzi scheme that will pay a 3% return (instead of the ~10% you’d make on the stock market in the long term). When you die, Big Government will keep half of what’s left in the account.

Despite the full-throated support this multi-$trillion heist can count on from the statist media, many would resist having their life savings stolen by ignominious blackguards. That’s why governments create crises, which as Rahm Emanuel observes[3], should never be allowed to go to waste. Likely crises that might precipitate seizure of retirement accounts include:

• Loss of Triple-A Status for U.S. Treasury Bonds
• Terrorist Attack or Military Disaster
• Another Economic Meltdown

All three crises are not only possible under our current leadership, they appear to be policy objectives. How else could you explain Comrade Obama’s pro-terrorist policies, economy-crushing initiatives (Cap & Trade, ObamaCare), and obviously unsustainable spending?

We are heading straight for an iceberg because our rulers are steering for it deliberately. When we hit, one of the first things to go overboard will be private ownership of pension accounts.

On a tip from Funkendunkel. Cross-posted at Moonbattery[4].