Monday, January 11, 2010

Are Democrats eyeing your retirement accounts?

I warned you 18 months ago the Democrats were looking at getting their greedy little hands on your retirement accounts to finance their deficit spending. Even their base is starting to get worried about the runaway deficit spending by the Obama/Geithner/Bernanke axis and how we can pay for it. Well, apparently Argentina's recent gambit of seizing private retirement accounts is an inspiration of sorts to these guys as Businessweek reported recently:

"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..." Article

Anyone want to guess what those annuities include? Treasuries, the prime financial instrument used to finance deficit spending. The Fed has purchased over a trillion dollars in Treasuries and Fannie/Freddie bonds (which has kept mortgage rates low) since it initiated its policy of quantitative easing (printing up dollars to buy such bonds) nearly a year ago. However, the Fed can't keep creating money out of thin air to buy Treasuries forever and when it stops purchasing said securities, interest rates will rise.

Such a market is tempting for the Democrats as Investments News reports "Some $7.5 trillion is invested in 401(k) plans and individual retirement accounts, about half of which is invested in mutual funds." Mark Iwry of the Treasury Department wrote this paper a few years ago in which he advocated taking a portion of Americans' 401k plans and converting them to annuities. Bloomberg reported last week one of the main beneficiaries of such a policy would be.....AIG.

This announcement by the government stoked fears in the financial community and blogs that this is the government's way of putting its nose in the 401k tent. Rick Santelli mentioned Friday on CNBC the government was looking at forcing 401k-holders to buy Treasuries (See last 90 seconds of video above) but for some strange reason, CNBC did not put this clip on its website (Should be between the 11:00 and 11:15 clips Friday). His comments sparked much interest over the weekend and while some of it is undoubtedly hysteria, there is a great deal of justification for such fears, starting with a little hearing the Democrats held 18 months ago.

reported last year Congressman George Miller, the Chairman of the House Labor and Education Committee, held hearings on abolishing the tax breaks for 401k plans and grabbing the money for the government. Earlier post. Read it. Professor Theresa Ghilarducci, the intellectual godmother of Miller's scheme, even stated on Mark Levin's radio show she wanted to "nationalize" 401k plans. Just as Cleopatra's gold financed Augustus's expansion of the Empire, so do Miller and his friends see your 401k plans.

Democrats hold hearings on abolishing the tax breaks for 401k plans. Their leading expert declares she wants to "nationalize" private retirement accounts. The Treasury official spearheading the effort to change retirement plans just happens to write a paper in 2008 that advocates forcing workers to buy annuities. AIG stands make a great deal of money as it will be one of the main companies to sell fixed-rate annuities to individuals. The government needs new methods to sell treasuries or else yields will go up, damaging the economy even more. Argentina last year seized private retirement accounts and told account-holders they would get a fixed-payment and IOU in return.

Is it any wonder people start worrying about their retirement accounts when the Obama administration announces it 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"? Motive, means, opportunity, and absolute immunity: the perfect combination for the perfect crime.


Anonymous said...

Slowly but surely our money is no longer ours. Get the coffee cans and shovels ready.

Kingfish said...

you mean the powder.

Anonymous said...

More and more you understand why there are those who live "off the grid" checking only.

Anonymous said...

Until the cash becomes worthless.

Anonymous said...

When cash is worthless, then it's on to bartering with goats & chickens...I guess....

Anonymous said...

Isn't this the "hope and change" Jacksonians voted for?

Anonymous said...

Never let it be said that the Democrats aren't ambitious.

Anonymous said...

1:56. That's exactly what I was going to say. Democrats are clearly thinking creatively here, and are seizing the moment to get their stubby little fingers on those funds.

daddymax said...

Soap Box
Ballot Box
Cartridge Box

Anonymous said...

My grandparents lived completely off their land, and with some adjustment, I could too. I'm sure then I would be taxed on the number of cows and mules I owned....if they could find them to count them that is..LOL

Kingfish said...

never heard of Wickard v. Filburn, did you?

Anonymous said...

Let's see...first they took your Social Security to use for welfare and called it SSI. Then they let corporations raid pension funds. They did nothing when the court ok'd developers stealing your property in the name of economic development and improving the tax base. They did away with the usury laws.

And, still,they retained ,in both parties, a 95% incumbency re-election rate. Why would THEY think YOU'D mind?

You ,the voter, are too busy blaming the other party and letting your party tell you how to think than making demands or holding anyone accountable or doing your homework on issues. Pissing contests are far more fun,right?

Anonymous said...

They're all snakes in both these so-called "parties". Same snake, different side. Rehearsing together like the old wrestlers on Muscle Beach in the 50's.
My 401K lost about 60K in the summer of 2008 in a litle over two months. I snatched it out before it was totally depleted. It was a Halliburton account. Hardly a dem. related corporation.

Anonymous said...

7:56 the job of a money manager is to make money for himself and his firm. If he does that best by making money for you, that works for you both. But, if he can make enough money by duping you in the short run or get all the money you have to lose so that losing your business is not a long term concern, that works equally well for him.
Aside from that, most money managers are salesmen that are urged by their firm to push certain investments which result in the most money for the firm. Much of the time, all they know about an investment is what they are told. It's not that they don't believe what they tell you, they just don't have all the facts.
If an insurance agent can sell you one policy that pays a big commission and one that pays a small one, which do you think he'll push? Which will he want to believe is the best?

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Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).

Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

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In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.

In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

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Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.

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Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

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