Social Security is a scheme where the government takes your money, tells you its in an account just for you, but really gives your money to the elderly or simply uses it. You only have an IOU.
Since this scheme is accepted, it’s not a big step to see the government take control of IRAs, then issue monthly statements showing you are getting a certain return, but really spending your money on current government expenses. Your IRA would really be an IOU, from Uncle Sam.
I had heard about this possibility before, and I know that the government of Argentina did take control of retirement accounts. The following quote made it seem more likely:
If foreign sources of funding will not cover the Federal government’s deficit after June 2011, and Washington will definitely not cut spending in any sort of realistic sense, then there really are only two—and only two—possibilities:
â€¢ The indefinite continuation of QE by the Federal Reserve.
â€¢ Or the requisitioning of private retirement accounts and pension funds.
Don’t dismiss the second possibility out of hand—think it over.
What pool of money is just sitting there, not doing much, while being legally barred from its owners? What pool of money is easily accessed, yet is large enough to fund the deficit?
The retirement accounts of the American people: Both individual private accounts, and pension funds.
So instead of rushing to add money to my IRA by April 15, I’m thinking about cashing it out, paying the fine, and moving my wealth one more step away from the greedy hands of spendthrift politicians, who already taxed it and may want even more.
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