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Obama Wants to Spend Your Retirement Money

What the Gov't Has Up Its Sleeve for 401(k)s and IRAs

Written by Brian Hicks
Posted March 2, 2010 at 7:00PM

I have, from time to time, ranted in these very pages about one of the more pernicious — and quite frankly embarrassing — policies of Socialism (and hence, the United States government): their hatred for savings.

At the height of the recession, my U.S. Senator from Maryland, Ben Cardin, was heard on a local radio talk show urging Americans to go out, spend money... hit the restaurants for an evening on the town.

He was ripped to shreds by callers.

For those of you who think that I'm a Republican, let me say I'm not. George Bush urged Americans to spend money right after 9/11. He was just as dumb as Ben and the Democrats.

But Ben and the Democrats doubled-down on that proposal. In an effort to get Americans consuming again — and not saving — they briefly flirted with the idea of taxing the money in your savings account. After all, spending generates sales tax revenue for the state, right?

But there's more to this. You see, the socialist economist John Maynard Keynes argued that saving money was immoral. In other words, when you put money in your savings account, it sits there "unproductively"; a dollar in your savings account is a dollar not in your comrade's wallet.

Bottom line: When you save, you're not being a responsible citizen. Capital is therefore universal... not personal and private. And going in to debt is good.

I will repeat Dick Cheney's economic mantra that "deficits don't matter." I challenge you — whether you're a Democrat or Republican — to defend the deficit spending of Cheney or Obama... Do it, I dare you!

Keynesianism was described by Zygmund Dobbs in the illuminating exposé, Keynes at Harvard:

The great virtue is consumption, extravagance, improvidence. The great vice is saving, thrift and ‘financial prudence... If there are no savings there is no private money for investment. Without private investors the government must provide investment capital. If the government provides for investment it has the power to dictate the conduct and processes of those who need investment capital.

In addition to the potential attack on your savings, the gov't is contemplating "reforming" your retirement account. You see, the Chinese have dramatically reduced their purchases of U.S. treasuries... which means they are no longer funding our gov't debt.

So guess who the gov't is gonna turn to in order to continue deficit spending?

That's right... you and me.

What am I talking about? What I believe to be plans by the Obama Administration to, in effect, seize your retirement funds and use them to finance their deficit spending. Remember, more than $3 trillion is sitting out there in individual retirement, IRA, and 401(k) plans. Liberals just can't stand the idea if this much money sitting out there in private investments, out of the grasp of politicians.

Something needs to be done. And sure enough, something is going to be done.

The Treasury Department and the Department of Labor are contemplating ways to promote the idea of converting 401(k) savings and IRAs into government-managed annuities or other steady payment streams.

You can read more about here.

If this passes, it's sure to be a game changer.

This also means you have to make as much money now as possible... and get it out of the reach of the U.S. government.

Stay tuned. I'll report more on this later.

Brian Hicks

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