(Funding the Keynesian Folly) - The Fed's Frantic IRA/401(k) Money Grab...

polifrog

WorldNetDaily:
The Obama administration appears to be proceeding with a novel way of financing trillion-dollar budget deficits by forcing IRA and 401(k) holders to buy Treasury bonds by mandating the placement of government-structured annuities in their investment accounts.

The requirement to invest private retirement assets has been cleverly buried within plans to create "automatic IRAs" that would mandate employer groups enroll all employees in 401(k) or IRA plans.

At some point the Federal Reserve will have to replace the funding for Quantitative Easing. Currently dollars are simply created to buy treasuries from the US Government; inflationary. Eventually the financial support for US Treasuries will have to have a non inflationary source and it seems the preferred method when that point is reached is to force the public to purchase treasuries through the use of IRAs and 401k's. Voluntary support, it seems, is no longer adequate. Interestingly, Chile also embarked on private investment theft prior to their bout with hyperinflation.

So, in an effort to keep non inflationary demand up for US treasuries there has been a lot of consideration given to forcing individuals to purchase treasuries through their IRAs/401k's by way of forcing a percentage requirement of treasury investments in each portfolio. This is, of course, "for your own good."

But, treasuries have become a government created bubble. How can they not be a bubble when the Federal Reserve is little more than a shill for the US Government bidding treasury interest rates down and artificially keeping demand for treasuries high? The Federal Reserve is no different from my acting as a shill for my used car dealer employer at auto auctions. Whether it is me acting as a shill or the Federal Reserve acting as a shill we each distorted the market; we were each thieving money from buyers; in either case the act is dishonest. In each case the purchaser is getting screwed due to a distorted market that benefits the seller.

Get out of IRAs/401Ks. Avoid the Treasury bubble.

What do people think if this plan?

A survey conducted by the Investment Company Institute showed more than 70 percent of all households disagreed with the idea of requiring retirees to buy annuities with a portion of their assets, whether that annuity is offered by an insurance company or by the government.

Moreover, 96 percent of households in the Investment Company Institute survey responded that retirees rejected the idea that the government should mandate turning IRA or 401(k) assets into annuities, asserting instead that retirees should make their own decisions about managing retirement assets and income.

With numbers like that is there any doubt our current congress would ignore this opportunity to piss off Americans in an effort to fund their Keynesian Folly?



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