The National Deficit, along with the lack of demand for Treasury Bonds, leaves the government with no other option! And what you don’t know can hurt you! Goldworth Financial first uncovered the early blueprint of our government’s plot to seize retirement accounts in early 2009. Since that time, we have come up with 10 Basic Questions that people have about this issue:
1. Who’s behind the plot to confiscate retirement accounts?
The government takeover of private retirement accounts is a concept first drawn up by Teresa Ghilarducci, who was funded by the White House, the Ford Foundation, and the Rockefeller Foundation. President Obama’s 2008 presidential run proposed the “Automatic IRA” which has now evolved into Ghilarducci’s “Guarantee Retirement Accounts (GRAs)” concept.
2. Why does the Government want to seize Private Retirement accounts?
They need it! China and other buyers of US Treasury (our debt) Bonds have stopped buying. The Federal Reserve reports that it is now forced to fill China’s role, and is buying over 61% of our Treasury Bonds.
3. Have there been any public hearings? If so, who’s involved?
There have been numerous hearings between the Internal Revenue Service [IRS] and the Labor and Treasury Departments. The topic discussed is known as the “Lifetime Income Option-Annuity Income Stream.” Here is the role that each is playing:
- The role of the Labor Department-To draw up the guidelines for the Labor (workers) force to direct their pay into Guaranteed Retirement Accounts (GRA’s).
- The role of the Internal Revenue Service is to write the laws that will tax/penalize you, if you don’t comply.
- The role of the Treasury Department- They have Treasury Bonds/U.S. Debt they need to sell!
4. What workers’ unions are in favor of Nationalized Retirement Accounts?
Believe it or not, the SEIC, CIO & AFL are all in favor! The proposal for this is being discussed as “Re-Imagining pensions.” These workers’ unions are all in favor of “Universal Secure and Adequate (USA)” retirement for all.
John Adler, the Retirement Security Campaign Director of the SEIU, said: “We really don’t favor individual accounts as the way to go.” He went on to say: “Instead, we favor a pooled investment approach.”
John Adler also mentioned Teresa Ghirladucci’s Guarantee Retirement Accounts (GRA). Adler said, “Ghirladucci’s recent proposal of state-sponsored plans is worthy of consideration.”
5. Okay, so unions are in favor of De-Privatizing retirement accounts. But government can’t just take our money, can they?
Yes! Unfortunately, they can! Here’s a recent snapshot of recent headlines in leading newspapers:
- May 16th, 2011-Washington Post reported: “Treasury to Tap Pensions to Fund Government.”
- January 17th, 2012-Reuters reported: “The Treasury Dips Further into Pension to Avoid Debt Limit.”
- April 12 th, 2012-NY Post reported: “Feds Eye Retirement-Fund Tax to Cut $16 Trillion-plus Deficit”
- And of course – August 16th, 2001–CNN reported : “Government Dipping into Social Security.”
If Government “borrows” money they have NO Intention of paying back, wouldn’t you call that stealing/confiscation?
6. Is Obama involved in the plot to seize retirement accounts, and if so, how will they do it?
Proof can be found in the Obama Administration’s 256-page FY 2013 Budget Proposal, the revival of his 2008 presidential run’s “Automatic IRA.” It has now evolved into two proposals: Secure Choice Pension and Government Retirement Accounts (GRA’s).
Some of the proposed “features” are:
- Government will automatically deduct 5%-6% out of your earnings. Those funds will be deposited into a pooled GRA.
- The current tax deduction will be eliminated, and replaced with a tax credit. Which can only be redeemed after retirement.
- Instead of receiving a tax refund check, part or ALL will automatically be placed into a pooled GRA.
- Worker’s un-used vacation pay will automatically be converted to income, which will be deposited into a pooled GRA.
- The funds in your current retirement account will be converted to “longevity annuities,” which typically don’t start making income payments until the investor is well into retirement, 82-85 years old.
- Guaranteed Retirement Accounts (GRA’s) will be administered by the Social Security Administration. –because they’re doing such a great job?
- Much like S.S. Accounts, the uncollected equity will become the property of the Government, once the individual dies.
7.Okay, Government will turn my Retirement Account into a GRA, which will function as “longevity annuities.” But what’s in the annuity, and what kind of returns will I get?
According to Teresa Ghirladucci, the originator of GRA’s, the estimated return on your money will be 3%. It will NOT keep up with government-reported inflation, let alone TRUE/REAL Inflation.
The Government-run annuity will contain U.S. Treasury Bonds, Treasury Notes and Treasury Bills- everything China no longer buys.
The Treasury Department is so desperate to find new buyers, they recently announced that “taxpayers will now have another savings option-the ability to use their refunds to purchase U.S Savings Bonds without having to open an account with the Treasury; even if the tax payer doesn’t have a bank account.”
Citigroup analyst Hans Lorenzen said: “U.S regulators are essentially forcing banks to buy up government debt-While that helps Government Issue more and more debt, the strategy could ultimately explode if the government isn’t able to make the bond payment, leaving the holders of the bonds with toxic debt.”
Yes, through GRA’s, you will be holding our government’s toxic debt!
8. What States, Senate Bills and politicians are in favor of this new Socialistic program?
H.R. 4049: Automatic IRA Act of 2012Sponsor: Rep Neal, Richard E. [MA-D]
Sen. Jeff Bingaman [NM-D] -September 2011
Rep Blumenauer, Earl [OR-D] – 2/16/2012
Rep Crowley, Joseph [NY-D] – 4/19/2012
Rep Deutch, Theodore E. [FL-D] – 3/29/2012
Rep Himes, James A. [CT-D] – 5/7/2012
Rep Honda, Michael M. [CA-D] – 2/28/2012
Rep Larson, John B. [CT-D] – 4/19/2012
Rep Lewis, John [GA-D] – 4/19/2012
Rep McGovern, James P. [MA-D] – 2/28/2012
Rep Pascrell, Bill, Jr. [NJ-D] – 4/19/2012
Rep Rangel, Charles B. [NY-D] – 3/20/2012
Rep Schwartz, Allyson Y. [PA-D] – 4/19/2012
Rep Stark, Fortney Pete [CA-D] – 2/28/2012
Rep Thompson, Mike [CA-D] – 4/19/2012
Rep Tierney, John F. [MA-D] – 8/2/2012
Rep Tsongas, Niki [MA-D] – 4/25/2012
Other related proposed legislation:
SB1234, introduced by California Congressman Kevin De Leon. It’s known as the “Golden State Retirement Trust.” This bill is based on GRA’s.
On May 6, 2012, Lauren Schmitz, a research analyst at the Barnard L Schwartz Center for Economic Analyst (SCEPA), introduced HB5337. SCEPA is the very same institution where Teresa Ghularducci originated the GRA concept. This Connecticut Bill is also based on GRA’s.
9. I don’t like the idea of GRA’s, so can I just pay the early withdrawal penalty and tax, and pull everything out of my retirement account?
No! The Government has already thought of that. On May 18, 2011, Herb Kohl (D-WI) and Mike Enzi (R-WY) introduced “S1020-Saving Enhancement by Alleviating Leakage in 401k Savings Accounts, “AKA: Seal Savings Accounts. This bill will restrict you from accessing your money. In fact, you won’t even be able to borrow from it.
Food for thought – When a country is neck-deep in debt, and has nobody to borrow from, recent history has shown us that indebted Governments steal their citizens’ wealth! Countries such as Belgium, Poland, Hungary, France, Argentina, Bolivia and Ireland have already seized private retirement accounts.
10. Has any organization attempted to Stop the De-Privatization & Seizure of Retirement Accounts?
The American Society of Pension Professional (ASPPA) has started a petition: “Save my 401k, protect my piggy-Tell Congress: Step Away From my 401k“; unfortunately, this only addresses a small portion of the Government takeover of retirement accounts.
The National Senior Council (NSC) is running its own petition: “Save your Private Retirement Savings -sign the Petition Against Obama’s New National Retirement Accounts”
Whether or not these petitions stop Obama & BIG Government… we can only hope!
Remember, President Obama CAN bypass congress by enacting an Executive Order. To date, President Obama has enacted over 115 Executive Orders! Many believe he will enact Executive Order for his gun agenda.
If you have read Goldworth Financial’s previous reporting on the De-Privatization & Seizure of Retirement Accounts, WHY are you waiting for the OFFICIAL government announcement: “To Protect You and for the Good of Our Country, we are Nationalizing Private retirement accounts”? By then, it will be too late to do anything about it!
It’s the old “Frog in a Boiling Pot of Water” they turn up the heat, in stages.
IF the Supreme Court’s ruling on Obamacare didn’t wake you, it should! The ruling will simply be used as case law, when government “herds” everyone into Nationalized Retirement Accounts.
You have worked Long and Hard for your money. Taxes will take a portion, inflation will take a portion… Don’t Allow Government to Take the Rest! Government money is Only a Note, a government promise; tangible Gold & Silver are Constitutional Money.
Much like Eminent Domain, most assets can be “Taken-Over” by the government.
Certain Gold categories have been Exempt from Previous Federal Recalls.