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Oral Testimony for Confiscation of 401(k)'s...
- Thread starter ProfitTakgFool
- Start date
Quote from ipatent:
They will take the seized retirement money, use it to pay for the bailouts, and worry about how to pay out the retirement benefits later.
... and then claim ignorance about what their predecessors did in the wasteful spending of citizens' money. Sounds like another campaign speech. 2016?
Indeed, the word they used was "exchange." I over spoke when I used the word "confiscate." If it's a voluntary system then great. Hopefully it won't become mandatory.
Quote from stevegee58:
I just read the whole pdf file. Nowhere did it say that the contents of existing 401Ks or IRAs would be confiscated. It did not say it explicitly or even hint at it.
(In case I missed it please copy/paste the section from the pdf where it say anything about confiscating money.)
What it did say loud and clear was to establish a new guaranteed retirement account and to phase out the tax breaks on the current 401K/IRA setup to help pay for it.
Thanks for posting this, it was not too long and relatively easy reading. I suggest y'all read it over lunch before running out to buy your first assault rifle.
well the day argentina announced a similar action recently their market dropped 20%
Quote from ProfitTakgFool:
Indeed, the word they used was "exchange." I over spoke when I used the word "confiscate." If it's a voluntary system then great. Hopefully it won't become mandatory.
It may be voluntary, but any money taken from 401-k and IRA accounts will cause mutual fund redemptions and stock sales which will result in a broad based stock market decline.
So once it starts the market will tank and there will be a stampede to participate, and the government will be encouraging the fearmongering.
Quote from ProfitTakgFool:
If IRA's and 401k's are converted to a GRA then congress will use these funds for the same things they used the SSA funds for.
Obviously, that would be the motive for such a proposal, and appears to be what Argentina is doing now. What other rational motive could there be for doing this?
Another paper by the same person (Teresa Ghilarducci) on the GRA idea:
http://www.sharedprosperity.org/bp204/bp204.pdf
http://www.sharedprosperity.org/bp204/bp204.pdf
Quote from ProfitTakgFool:
Social Security current has an approximate $600B deficit because Congress taps this source of revenue and uses it for things like Iraq, or building project X in their home state. The Social Security tax that you and I pay is supposed to go into a pool and get invested and pay for our future retirement but it doesn't. Instead, Congress uses the funds today and leaves promisory notes in the fund instead. If IRA's and 401k's are converted to a GRA then congress will use these funds for the same things they used the SSA funds for. The GRA fund, if it ever gets off the ground, could be broke in 30 years.
There's no way Congress can pony up dough like that without printing it.
2 Trillion borrowed for 10 years at 3% + TIPS (say 5% gross return).
Thats an extra 50% (1 Trillion) they'd have to produce when the IOU comes due.
Hard to generate returns like that when the money is loaned and invested in companies that work it.
Instead, Congress wants to spend it, then borrow the shortfall...