Posted: Sun Jan 24, 2010 10:46 am Post subject: ECONOMY * For whom does the bell toll?
. . . . . . . .
When a strong man, fully armed, guards his own house, his possessions are safe. Luke 11:21
ECONOMY
For whom does the bell toll?
This is an example of the dictaotrship AmeriKa can expect soon.
November 30, 2009 North Korea devalued his country's currency by 99%.
January 9, 2010, Venezuela's Hugo Chavez devalued his country's currency by 50%, overnight and without warning,
causing immediate inflation, shortages of food and supplies, and general financial chaos throughout the nation.
Since its founding in 1913, the Federal Reserve (which is NOT 'Federal') has devalued the USdollar by 98%
thanks to endless and accelerating money printing and debt creation.
Conceptually, whether it is a 50% overnight devaluation in Venezuela, a 69% overnight devaluation in the United States,
a 98% devaluation in America over time, or a 99% overnight devaluation in North Korea, what is the difference?
The fact is, the people's wealth is stolen via government edict, while the people stand by helplessly and in shock.
Posted: Sun Jan 24, 2010 1:26 pm Post subject: President Evil will take your 401k, IRA
President Evil will take your 401k, IRA
Friday, January 8. 2010
Posted by Karl Denninger in Macro Economics
In a short conversation this noontime that CNBC apparently has omitted from their archives Rick Santelli was talking about a potential to effectively force money into the Treasury market.
Where would they get this?
From your 401k and IRA accounts!
From Businessweek:
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.
Let me tell you what this is - it is an attempt to prevent the collapse of the Treasury market!
Forcing people into Treasuries as an "annuity" is exactly what Social Security allegedly is. Except that Treasury stole the money that was collected in FICA taxes and spent it!
Guess what? They'll do that here too - you're going to "invest" in Treasuries which of course are effectively a CALL option on the future taxing ability of the government.
The problem is that with an aging population and the immigrant problem (illegal immigrants that is), along with offshoring, the aggregate wage base will drop and thus this is the most dangerous investment of all!
What's even worse is that the government has intentionally suppressed Treasury yields during this crisis (and will keep doing so by various means, including manipulating the CPI - the "inflation index" - as they have for the last 30 years) so as to guarantee that you lose over time compared to actual purchasing power.
THIS HAS BEEN THE CASE SINCE THE 1980s AND IT WILL NOT CHANGE!
I have been talking about this for quite some time and recall writing a Ticker on it a year or more ago, although I can't find the entry immediately.
Let me be clear:
I have no quarrel with the government mandating that you have a choice in your IRA or 401k account to buy short-duration Treasuries - much like the "G" fund that government and civil-service workers have.
But - "choices" have a funny way of turning into mandates, and this looks to me like a raw admission that Treasury knows it will not be able to sell its debt in the open market - so they will effectively tax you by forcing your "retirement" money to buy them!
This may be the only way for Treasury to hold down interest rates to something reasonable in the intermediate term, but doing so will instantaneously remove a major source of funding for the stock market - that is, the monthly and quarterly inflows from retirement accounts.
You can bet this won't be good for you, the ordinary American.
You can also bet that once such an "option" is made available there is a very high probability of the government doing things that either promote or simply don't stand in the way of another stock market crash as a means of "herding" your money into Treasuries - so they can blow it - all under the guise of being allegedly "safe".
Of course this begs the question - what if the government can't pay down the road when you retire, just as they can't pay on a forward basis with Social Security and Medicare?
This "proposal" can only mean one thing - Treasury smells smoke. Maybe you should pay attention to what they're huffing!
And before you say "oh they'd never do that" I want you to read this:
Here is a warning to us all. The Argentine state is taking control of the country’s privately-managed pension funds in a drastic move to raise cash.
...
My fear is that governments in the US, Britain, and Europe will display similar reflexes. Indeed, they have already done so. The forced-feeding of banks with fresh capital – whether they want it or not – and the seizure of the Fannie/Freddie mortgage giants before they were in fact in trouble (in order to prevent a Chinese buying strike of US bonds and prevent a spike in US mortgage rates), shows that private property can be co-opted – or eliminated – with little due process if that is required to serve the collective welfare.
PS: If the video shows up I'll update this ticker.... and if you're wondering what hammered the dollar starting at about 9:00 today, this is probably it. Such a "move" would free the government to further abuse the issuance of Treasuries rather than take necessary austerity steps and places us even further down the road toward a political and economic collapse.
Posted: Mon Jan 25, 2010 6:59 am Post subject: 0bama intends to take your savings
When a strong man, fully armed, guards his own house, his possessions are safe. Luke 11:21
0bama intends to take your savings
Conversion of 401(k) and IRA accounts to annuities in the Treasury debt!
Is THIS what 0bama will announce Wednesday? Your entire retirement fund is GONE.
It belongs to the govt.I have heard several times, and reported 0bama intends to take your savings.
The biggest pool of real money left in the U.S. is in 401(k) and IRA accounts.
Trillion-dollar deficits are not going down well with voters, yet 0bama has bigger plans for even more spending.
There is not enough money in the world to finance U.S. debt. Obama needs lots of real money, and he needs it
NOW!
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