401kThey will take our retirement accounts, they will take our IRA’s. They will say we’re going to save you, we’re going to give you government bonds.“- Jim Rogers
From Obama’s MyRA announcement to Russia massively divesting itself of UST bond holdings, it is becoming apparent that something we have been warning about for years here at SD is not only possible, but is in fact extremely likely to occur- the national confiscation of 401k retirement funds into forced treasury bond allocations.
The MUST WATCH mini-doc below connects the dots, and reveals the 401k scheme:

    • 1. An IRA/401K is basically a loan to IRS with open terms how you will be paid back.  Tax terms now are inviting but not guaranteed.
      2. The rules governing IRA and national tax rates are not stable, so you don’t know what the terms will be when you withdraw your IRA/401K.  Maybe you’ll need to be much older and tax rate will be much higher.
      3. 401Ks (especially employer) have a lot of hidden management fees.  Attempts for laws to disclose fees gets pushed back by finance lobbies.  Fees estimated at 2.58%, typically half of total possible return.  Extremely expensive compounded over a lifetime.
      4. $3T in managed 401K/IRA for Wall Street at 2.58% fees = $77.4B in annual revenue
      5. $20T in total retirement savings counting annuities, 410K, IRA, Pensions, etc.  Gov. is desperate for money and that is where it is.  Thus possible confiscation laws mandating purchase of US Bonds.

    • Thank you @ART005 for the summary.
      While the possibility of shenanigans exists, I am still (at this point in time, anyway) comfortable putting 4% of my pay into the 401K and receiving 4% matching funds from my employer.
      One thing to consider:  Given that Wall Street makes over $75,000,000,000 per year from managing 401K’s AND given Wall Street controls the puppet strings of our elected leaders – how likely is it that Wall Street will permit the cash cow of 401K’s to be withdrawn from their greedy grasp?

    • Hi @Mammoth, I should have put your name in my first reply but you found it anyways.  I travel outside of video range a few months of the year so I can relate to your situation.
      Good point, though I’m sure they have the ability to get gov. approval to charge some fee if gov. mandates the investment vehicle while Wall St. delivers it for you.  I don’t support the “get everything out” strategy because I don’t have a suggestion where to put it.  Good luck!

    • mammoth  the big bankers and big government and virtually the same thing.  The big banks and money management firms are lusting after MYRA and 401k confiscation   They will end up managing one investor type, possibly totally $10-20 trillion or more.  It goes from one hand to the other but the banksters will still get their 1-2% rake and toke from this system
       Even at .5% on $10 trillion that would come to $50,000,000,000.  .5% on $20 trillion is $100 billion, better than their take now. It’s a win win for the banksters and government. Nothing will change for them. The holders of pension plans will see what might have been a 6% ROI over 30 years, will be, at lest 2.5%.  Most of that will go in taxes upon withdrawal and fees during the live of this POS investment.  When you die, half the outstanding value of your MYRA or GRA will revert to the government.
      If my math works, at a management fee of 1.5 % for 30 years is a 40% take from your return. When you start taking that retirement draw you’ll probably be taxed at 35%.   When you die the government takes 50%.   That is how the Ghillarduci GRA program was set up in fact by the bill passed 8 years ago.   This does no take into account the ravages of inflation
      Inflation is the silent wealth killer that all governments rely on to bail themselves out of a jam.

    • @AGXIIK
      “When you start taking that retirement draw you’ll probably be taxed at 35%.”
      Why would we be taxed at that rate in retirement?  IIRC, my current actual tax rate is closer to 17% than 35%.  Of course, if I was to take ALL of it at once, then, yes, the tax rate would be 35%.  Is that the plan?  No slow withdrawals in retirement?  All or nothing?  Some 401Ks are set up that way but many allow partial withdrawals.  All IRAs allow partial withdrawals, so one can roll a 401K over into an IRA when they “separate from service”.
      “When you die the government takes 50%.”
      My, that IS generous.  When we die the money we’ve “contributed” to the SS system reverts to the Fed Gov at a 100% rate, less the amazing $255 death benefit.  :-/

  1. IMO the wealth transfer  program implemented to gut the federal pension plan, TSP, aka Theft Saving Plan, now little more than a Federalized Honey Pot of FIAT,  will see OBAMYRA established by Executive Order, forcing employers and employees to ‘contribute’ to poor people’s retirement programs.  Poor people are the ‘new rich’ when it comes to funding bankrupt governments.  The present ‘owners’ of 401K’s will find out the ownership is dictated by the government. Executives orders and the Senate GRA bill passed by Pelosi’s house gives the USG 100% legal right to expropriate your pension plans
    Second cousin to Obamacare, OBAMYRA will complete the full and total strip mining of the American wealth.

  2. Welcome to the wonderful world of Weimar before the pensions were destroyed
    When Ron Paul makes the statement that plans are written into law to take your pension plans, plans which are being implemented today, I would take his word for it. When the thefts and plans for thefts are being done and made right out in the public eye, the time to get out of the market may very near. Soon that time will pass. Your savings will be Corzined and vaporize before your eyes

    Don’t think that public outcry and threats of riots in the streets will stop these people. The lifetime of savings for Cypriots, Hungarians and Poles were taken without a single viable protest. Just some whimpering and tears as the governments and banksters of these any many other countries looted the peoples monies right out of their accounts. If 50% of the people in the US pay no taxes, have no savings to speak of and are on one form of government transfer payment or other, the the rationalization of the looting will be the easiest sell since air conditioners in the desert.
    When that 50% says ‘gimme gimme gimme, it’s your money and I want it now’!, the public outrage will create a Demon-ocracy that overwhelms those ‘rich’ people excoriated by Obama as the ones who have some retirement funds.

    • @AGXIIK
      “The lifetime of savings for Cypriots, Hungarians and Poles were taken without a single viable protest.”
      True.  But then, those good folks are not: 1) heavily armed; and 2) steeped in a tradition of fair play.  Blatant grabs at our financial future will NOT be tolerated, regardless of what their piss-ant law says.  What next?  A new law requiring us to hand over our children or grandchildren?  Not gonna happen.  Molon Labe, bitchez!
      As to who is “rich”, that is usually defined as “anyone who has $1 more than you”.  😉
      Anyone else remember Algore and his “millionaire’s tax” on everyone making $250k per year and up?  Yep, like his other dumb ideas, this one belly-flopped BIG-TIME.  But that $250k per year number has taken on a life of its own and remains as a threshold in many of the new tax laws.  :-/

  3. Off topic but an enlightening read: http://news.yahoo.com/russias-opposition-feels-bite-chill-wind-ukraine-210003651.html

    An especially interesting quote: “Ironically, a new law due to come into effect next month will make it illegal to question Russia’s “territorial integrity.” That means, Mr. Davidis points out, “that any citizen of Crimea who has second thoughts about voting to join Russia will now face a prison term.””

    In other words, if a population votes to succeed (like the Crimea vote, etc) Russia will crush them like a bug. Now THAT is the real Putin I know.

    • Oh we have that too in my country AmeriKa but it’s much worse.

      They call it the NDAA.

      You see, they can come in the middle of the night for you, cart you off forever, no Habeas Corpus and there is no recourse of action. As a matter of fact, it’s not really a country or a Republic any more.

  4. AGXIIK,  Thanks for your astute overview of the wealth confiscation in progress.  If anyone took your knowledge on this subject and put it into a side by side comparison or info-graphic to clarify the obvious to folks, maybe we could convert people to the safety of PM’s?
    The big hurdle for most people in taking their money out of 401’s and pensions is that it is easier, and safer to have Big Brother take care of their wealth.  Being invested in Big Brother allows them to not be responsible for either and gives them license to act as they please.  Folks also do not like to act in ways which are radically different then the rest of the herd, they will follow them over the cliff to conform.

  5. missiondweller  thank you for the find on Ghillarduci.  It’s hard to find any specific reference to the GRA law passed in 2006 late at night by the usual suspects like Pelosi.   The Google memory hole has swallowed up this intel quite effectively.  
    mjkane   I am obsessive on the subject of retirement plan confiscation.  It’s like a wrathful plague on the land, hoovering up hundreds of billions in life time savings while throwing us under the bus.  I’d be just as obsessive if someone stuck and gun in my ribs and said  “Give me your money’

    • @AGXIIK
      ” I’d be just as obsessive if someone stuck and gun in my ribs and said  ”Give me your money’”
      Or, as Duke Nukem used to say of such tyrants, “Your face, your ass… what’s the difference?”.  In either case, your wealth is stolen by some thugs enforcing their will on you from the barrel of a gun.  😉

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