FINANICAL REPRESSION - Obama Introduces MyRA: The "No Risk, Guaranteed Return" Retirement Savings Bond
Obama Introduces MyRA: The "No Risk, Guaranteed Return" Retirement Savings Bond 01-28-14 Zerp Hedge
Presenting: the MyRA, and since it offers "guaranteed return and no risk" we now know where all the Fed's bond trades will go to work once QE ends.
From the president:
Let’s do more to help Americans save for retirement. Today, most workers don’t have a pension. A Social Security check often isn’t enough on its own. And while the stock market has doubled over the last five years, that doesn’t help folks who don’t have 401ks. That’s why, tomorrow, I will direct the Treasury to create a new way for working Americans to start their own retirement savings: MyRA. It’s a new savings bond that encourages folks to build a nest egg. MyRA guarantees a decent return with no risk of losing what you put in. And if this Congress wants to help, work with me to fix an upside-down tax code that gives big tax breaks to help the wealthy save, but does little to nothing for middle-class Americans. Offer every American access to an automatic IRA on the job, so they can save at work just like everyone in this chamber can...
Or put another way - if you like your retirement account you can keep your retirement account.
And just like that, the "automatic" continuity to the Fed's Quantitative Easing is ensured.
IRA Confiscation: It's Happening 01-29-14 Simon Black via Sovereign Man blog via ZH
Here’s the deal he’s offering: you give Sam your hard-earned retirement savings. Sam will invest your funds, and pay you a rate of return.
Granted, the rate of return he’s promising doesn’t quite keep up with inflation. So you will be losing some money. But don’t dwell on that too much.
And, rather than invest your funds in productive assets, Sam is going to blow it all on new cars and flat screen TVs. So when it comes time to make interest payments, Sam won’t have any money left.
But don’t worry, he still has that good ole’ credibility. So even though his financial situation gets worse by the year, Sam will just go back out there and borrow more money from other people to pay you back.
Of course, he will be able to keep doing this forever without any consequences whatsoever.
I know what you’re thinking– “where do I sign??” I know, right? It’s the deal of the lifetime.
This is basically the offer that the President of the United States floated last night.
And like an unctuously overgeled used car salesman, he actually pitched Americans on loaning their retirement savings to the US government with a straight face, guaranteeing “a decent return with no risk of losing what you put in. . .”
This is his new “MyRA” program. And the aim is simple– dupe unwitting Americans to plow their retirement savings into the US government’s shrinking coffers.
We’ve been talking about this for years. I have personally written since 2009 that the US government would one day push US citizens into the ‘safety and security’ of US Treasuries.
Back in 2009, almost everyone else thought I was nuts for even suggesting something so sacrilegious about the US government and financial system.
But the day has arrived. And POTUS stated almost VERBATIM what I have been writing for years.
The government is flat broke. Even by their own assessment, the US government’s “net worth” is NEGATIVE 16 trillion. That’s as of the end of 2012 (the 2013 numbers aren’t out yet). But the trend is actually worsening.
In 2009, the government’s net worth was negative $11.45 trillion. By 2010, it had dropped to minus $13.47 trillion. By 2011, minus $14.78 trillion. And by 2012, minus $16.1 trillion.
Here’s the thing: according to the IRS, there is well over $5 trillion in US individual retirement accounts. For a government as bankrupt as Uncle Sam is, $5 trillion is irresistible.
They need that money. They need YOUR money. And this MyRA program is the critical first step to corralling your hard earned retirement funds.
At our event here in Chile last year, Jim Rogers nailed this right on the head when he and Ron Paul told our audience that the government would try to take your retirement funds:
I don’t know how much more clear I can be: this is happening. This is exactly what bankrupt governments do. And it’s time to give serious, serious consideration to shipping your retirement funds overseas before they take yours.
Obama, Treasury detail new MyRA savings plan 01-29-14 Pensions & Investments
President Barack Obama directed the Treasury Department on Wednesday to create the “MyRA” retirement savings bond program mentioned in his State of the Union address Tuesday night to reach low- and middle-income workers and others not saving for retirement.
“This is a starter IRA,” said a senior administration official on a background press call.
Treasury officials said on the call that they will launch a pilot program by the end of 2014 with employers opting to participate. Employers would not administer or contribute to the accounts, and there would be “little to no cost” to them, administration officials said. The federal government will pay an agent selected through a competitive process to administer the program.
The savings account would be offered as
- a Roth individual retirement account managed by a third party for the federal government.
- The federal government would guarantee the principal as it does with savings bonds.
- The interest rate would be based on the Thrift Savings Plan's G Fund, which uses rates based on a four- to 30-year average maturity.
- Households with income of up to $191,000 can open accounts with just $25 and make contributions of as little as $5 through payroll deductions.
- The MyRA accounts would also be portable among employers.
- Contributions may be withdrawn tax-free at any time, and Treasury officials said they would not police that.
- Once an account reaches $15,000 or 30 years, the money would have to be rolled over into a private-sector Roth IRA.
- Balances may also be rolled over to a Roth IRA before the limit is reached.
“We currently have a system that is not doing what it is supposed to,” said a different senior administration official, who noted that 50% of all full-time workers and 75% of part-time workers are not saving for retirement. “The proposal today is very much pitched at bringing new people in and is based on economic research that what you need is something simple, safe, secure and easy to set up through an employer,” the official said.