Wednesday, February 24, 2010

Where Did the Links Go That Point to the Government Forcing Your 401k and IRA Money into Treasury Securities?

Forget about hedging inside your 401k and IRA against inflation. Sooner than you think, you will not be allowed to own gold ETF's, gold mining stocks or gold related mutual funds in your 401k or IRA. There is under the radar plotting by Treasury to force IRA and 401k money into Treasury securities. They still don't have all the kinks worked out on how they will sell the deal to the public, so now, the links to the stories reporting on the Treasury plans, by Rick Santelli at CNBC, BusinessWeek, and MSNBC, are disappearing.

Karen DeCoster reports:

I’ve been covering the topic of government-mandated 401Ks since the fall of 2008, and I even noted that I detected the unmistakable whiff of confiscation in the air. Writers and bloggers all ’round the ‘Net denied that point. To revisit this issue, let’s
take a look at a post
from last month by Karl Denninger at Market Ticker titled, “401k/IRA Screw Job Coming?” Karl notes a bit that appeared on CNBC where Rick Santelli was discussing the potential to “effectively force money into the Treasury market.” He links to this quote from Businessweek:

The U.S. Treasury and Labor Departments will ask for public commentas 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.
Karl comments further:

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.
He also notes that the conversation on CNBC was omitted from its archives. Since then, the link has also disappeared from Businessweek. The link has also disappeared from MSN Money. Use your best judgment as to why they disappeared.
Yeah, the Chinese have pretty much figured out the Treasury security scam, so they are just about done buying them. The government has to find another chump. And, they think they have found one: you.


  1. What happens when you add that Medicare 2.9% tax on all these forced annuities?

  2. One link can still be accessed in cache:

    Another one has been cleared even there.

  3. p.s. In case the cache gets cleared too, here is the pdf of that page:

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  5. sometimes links change, BusinessWeek:
    I found this by searching within the BusinessWeek website using key phrase "weighing how the government can encourage workers to turn their savings into guaranteed income streams"

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