Government Lays Groundwork To Confiscate Your 401k and IRA: “This Is Happening”

uncle-sam-retirement

This morning Reuters obtained a leaked proposal disclosing that European Union officials are looking for new and innovative ways to fund their immense debt levels. As noted by Zero Hedge, they’re no longer turning exclusively to central bankers to simply print more money as needed. Because last year’s bank bail-in forcing the confiscation of funds from average depositors in Cyprus worked so well, EU regulators and bankers have determined that they’ll use a similar method to fund their future endeavors.

In a nutshell, and in Reuters’ own words, “the savings of the European Union’s 500 million citizens could be used to fund long-term investments to boost the economy and help plug the gap left by banks since the financial crisis, an EU document says.”

The solution? “The Commission will ask the bloc’s insurance watchdog in the second half of this year for advice on a possible draft law “to mobilize more personal pension savings for long-term financing”, the document said.”

Mobilize, once again, is a more palatable word than, say, confiscate.

This is what happens when governments run out of money.

But if you think this is limited to just Europe, then consider the words of President Barack Obama in his recent State of the Union address.

For all intents and purposes, a similar groundwork is being laid right here in America.

They’ve already taken over the health care industry… why not nationalize our retirement savings while they’re at it?

(Reprinted with permission from Sovereign Man. You can read the full analysis here.)

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.

As former Congressman Ron Paul notes, the government will stop at nothing.

“They’ll use force and they’ll use intimidation and they’ll use guns, because you can’t challenge the State and you can’t challenge the State’s so-called right to control the money,” warns Paul. “It’s already indicated that they will confiscate funds and they will [confiscate] pension funds.”

This didn’t just happen over night. The move to make this reality has been going on for quite some time. The first time it was mentioned publicly in any official capacity was at a 2010 Congressional hearing:

Democrats in the Senate on Thursday held a recess hearing covering a taxpayer bailout of union pensions and a plan to seize private 401(k) plans to more “fairly” distribute taxpayer-funded pensions to everyone.

Sen. Tom Harkin (D-Iowa), Chairman of the Health, Education, Labor and Pensions (HELP) Committee heard from hand-picked witnesses advocating the infamous “Guaranteed Retirement Account” (GRA) authored by Theresa Guilarducci.

In a nutshell, under the GRA system government would seize private 401(k) accounts, setting up an additional 5% mandatory payroll tax to dole out a “fair” pension to everyone using that confiscated money coupled with the mandated contributions.  This would, of course, be a sister government ponzi scheme working in tandem with Social Security, the primary purpose being to give big government politicians additional taxpayer funds to raid to pay for their out-of-control spending.

You’d think that such an idea would be immediately dismissed by the American public, but it has only gained steam since, as evidenced by a 2012 hearing held at the U.S. Labor Department:

The hearing, held in the Labor Department’s main auditorium, was monitored by NSC staff and featured a line up of left-wing activists including one representative of the AFL-CIO who advocated for more government regulation over private retirement accounts and even the establishment of government-sponsored annuities that would take the place of 401k plans.

“This hearing was set up to explore why Americans are not saving as much for their retirement as they could,” explains National Seniors Council National Director Robert Crone, “However, it is clear that this is the first step towards a government takeover. It feels just like the beginning of the debate over health care and we all know how that ended up.

Such “reforms” would effectively end private retirement accounts in America, Crone warns.

A few years ago the government of the United States of America nationalized nearly 1/6th of our economy when they took over the health care system with forced mandates. In the process they essentially took control of $ 1.6 trillion in yearly industry revenues.

But that’s nothing compared to private savings. The total amount of retirement assets in America, including 401k, IRA and savings accounts is around $ 21 trillion. With our national debt coincidentally approaching the same, the government sees big money and potentially a way out of our country’s fiscal disaster.

This will start voluntarily with the MyRA and other state-sponsored programs. But when not enough Americans are making it their patriotic duty to turn over their funds to their government, they’ll mandate compliance with the stroke of a pen just as they did with the Patient Affordable Care Act.

And just like Obamacare it will be enforced by the barrel of a gun. Failure to comply will mean confiscation without recourse and prison time.

All they need now is a trigger.

And that trigger will likely come in the form of another stock market collapse. Wipe out Americans’ in a stock market crash and scare the heck out of them with more economic bad news, and millions of our countrymen will be all too willing to hand it over to Uncle Sam. Panic is a powerful motivator and what better way to get people on board than by threatening them with squalor and destitution in their old age if they don’t go along with it?

Government officials have been actively working to make this a reality for years. The Europeans are doing the same.

You can put your head in the sand or cover your ears and pretend this is not happening, but that won’t change the outcome.

They will take everything they can get their hands on.


SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You

AWESOME: Union Front Group Got Taxpayer Funds From Department of Labor to Push Minimum Wage Hikes

Guest post by Eric Boehm

The U.S. Department of Labor handed over $ 275,000 in taxpayer-funded grants in 2009 to an organization that claimed to be a charitable nonprofit with tax-exempt status from the Internal Revenue Service.

But that organization was not officially certified as a 501(c)3 charitable nonprofit until 2010, documents show.

The Restaurant Opportunity Center, or ROC-United, a national organization working to raise the minimum wage and improve working conditions for restaurant workers by combing the labor organizing muscle of powerful unions with Occupy Wall Street protest tactics, got the grant anyway.

The group is organizing several high profile events this week to highlight the $ 2.17 national minimum wage for tipped workers.

In the 2009 grant application, ROC United submitted a letter to the Department of Labor that showed the IRS had granted tax exempt status to ROC New York — an affiliated but legally separate organization — even though the $ 275,000 grant would flow to ROC United.

The department was either fooled by the application or didn’t check it closely enough.

Either way, ROC was awarded the grant through the Susan Harwood Grant Program, which is supposed to be limited to 501(c)3 charitable nonprofits, a status not granted to ROC United until June 2010.

“This is also further reason why ROC should not be receiving taxpayer funds. ROC takes taxpayer money, then turns around and lobbies Congress and pushes labor-backed initiatives across the country,” said Mike Paranzino, communications director for ROC Exposed, a political nonprofit that obtained the 2009 grant application via a Freedom of Information request.

Documents obtained by ROC Exposed show that when ROC United applied for the federal grant in August 2009, the group was in the midst of a back-and-forth battle with the IRS over its tax status.

On the application, ROC United claimed to be a “nonprofit with 501(c)3 status.”

But six months later, in February 2010, lawyers representing ROC United were still haggling with the IRS over the organization’s status, and indicated in a letter that the IRS hadn’t granted ROC United official 501(c)3 status.

By that time, the grant records show, federal cash was already flowing to the organization.

A spokesman for the department didn’t respond to a request from Watchdog.org seeking information about the grant application and whether it could be reviewed five years after it was approved. The department also didn’t respond when asked if there could be penalties imposed for grants that were obtained with inaccurate application information.

ROC United didn’t return calls for comment.

When the Labor Department announced the grants in 2009, the award given to ROC United was supposed to “provide training to small restaurant employers” and to develop “local health and safety committees for ongoing workers and employers.” The grant said ROC United would provide training to 50 restaurants and an estimated 2,000 workers in Chicago, New York, Detroit, Los Angeles, Miami and Washington, D.C.

Since 2009, affiliates of ROC United have sprung up in each of those cities.

But training workers on safety issues is hardly the organization’s primary purpose.

Founded after 9/11 to help restaurant workers displaced from their jobs in lower Manhattan, ROC has morphed into a national organization with branches in most major cities. The organization’s goal is “to improve wages and working conditions for the nation’s restaurant workforce,” according to its website, which brags about ROC’s role in several states’ recent decisions to raise the minimum wage.

The organization has helped organize protests against several restaurant chains and is helping promote protests on Thursday — February 13, a date meant to draw attention to the $ 2.13 per hour wage for tipped workers — around the country.

The group joined U.S. Sen. Sherrod Brown, D-Ohio, on Wednesday for a conference call urging an increase to the national minimum wage, and ROC United bragged on its Facebook page about being at the White House for an event focusing on the minimum wage.

The group has slowly gained more influence with the Labor Department since that initial 2009 grant, regardless of whether the grant was obtained properly.

In 2011, the department announced an “alliance” with ROC to promote workplace safety.

Its success has caught the eye of major unions, who see service sector employees as a new frontier in labor organization.

All over America, workers are organizing in all kinds of ways, and they call their unity by all kinds of names — workers’ unions, associations, centers, networks,” said AFL-CIO president Richard Trumka in September, praising ROC United’s executive director Saru Jayaraman for her role in organizing restaurant workers.

While ROC United puts pressure on restaurants to increase wages, Congress might soon put pressure on them.

Two years ago, the House Oversight Committee caught wind of the 2009 grant application and the seemingly inaccurate representation of the group’s tax exempt status.

In a letter to the Labor Department, committee chairman Rep. Darrell Issa, R-Calif., asked for information about that questionable 2009 grant and why it was awarded when the organization wasn’t yet recognized by the IRS as a nonprofit.

ROC’s history of intimidation towards opponents and management problems with its own restaurant raises significant questions about why DOL decided to form an alliance with and provide federal funding to the organization,” Issa wrote.

The grant is one of six taxpayer-funded grants ROC has received from the federal government — the other five came from the U.S. Department of Health, federal records show — totaling more than $ 1 million.

Caitlin Carroll, spokeswoman for the House Oversight Committee, said lawmakers and staff are currently reviewing additional materials received from the Labor Department concerning the issues raised in the July 2012 letter.

Boehm is a reporter for Watchdog.org and can be reached at EBoehm@Watchdog.org. Follow @WatchdogOrg and @EricBoehm87 on Twitter for more.

Doug Ross @ Journal

Larwyn’s Linx: 100 Percent of 501(c)(4) Groups Audited by Obama IRS Were Conservative

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Nation

100 Percent of 501(c)(4) Groups Audited by Obama IRS Were Conservative: TPNN
Nobody Trusts the Government: Daniel Greenfield
Ron Fournier on Obamacare: White House thinks Americans are stupid: Scoop

Primary Them All: Erick Erickson
12 GOP Senators Join Democrats to Increase the Debt Ceiling: TPNN
Why bumbling, buffoonish, incoherent Speaker Boehner capitulated: Russell Berman

An Orwellian nation of Obamathink: Victor Davis Hanson
Did I Move?: Ann Coulter
Does Obamacare cover Nancy Pelosi’s much-needed psychiactric care?: Nice Deb

No Wonder Obama Was so Desperate to Pack the D.C. Circuit: Commentary
CMS announces Obamacare site will be down two critical days this month: Toldjah
Wendy Davis totally supports that 20-week abortion ban now: NakedDC

Economy

Michelle O.’s Dinner Dress Cost More Than Annual US Poverty Level: GWP
Obamacare, the Jobs Killer: James Hall
Stakes Just Raised In UAW Bid To Unionize VW…: LUR

Scandal Central

DOJ Argues Against Rules to Prevent Foreigners From Voting: J. Christian Adams
New Benghazi Bombshell – House Report Blames White House For Security Lapse: NoisyRm
JW Gets Map of Military Fleet Positions During Benghazi Attack: Judicial Watch

Apparently they won’t be exactly running on Obamacare after all: Ace
Ohio National Guard Training Envisions Right-Wing Terrorism: Jesse Hathaway
Alabama State Representative: I Object to a Biracial Marriage: Ace

Climate & Energy

The One-Party State of Climatestan: Mark Steyn
Good News: EPA unilaterally redraws borders of Wyoming: Judson Berger
Justin Gillis, New York Times’ Environmental “journalist”, still trying to salvage global warming scam: WUWT

Media

My Fourth Open Letter to Mike Lawlor: Of anti-Catholic jihads and spitting on your heritage.: SSI
Tweet o’ the day: WZ
#BOWDOWNWednesday: Frugal fashionistas show Michelle Obama how it’s done: Twitchy

CNN Report On Ray Nagin Corruption Lacks Single Mention of the Word Democrat: Glob
Mayhem At FL State Fair: Hundreds Of Black/Hispanics Riot and Fight With Police: Treehouse
White House transcript hides Obama’s chattering-class gaffe : DC

Liberal Constitutional Lawyer: left SILENT on Obama lawlessness because of ‘CULT OF PERSONALITY’: Scoop
Wake Me When Someone ‘Comes Out’ — As a Black Republican: Larry Elder
BuzzFeed Ignores Wendy Davis Flip Flop On Late Term Abortions: Glob

World

Venezuela: Huge demonstrations UPDATED: Fausta
Egypt: U.S. Embassy official in contact with Muslim Brotherhood arrested: Robert Spencer
Obama’s partner in peace, Iran: We’re ready for ‘decisive battle’ with Israel, US: Times of Israel

Europe Considers Wholesale Savings Confiscation, Enforced Redistribution: ZH
All You-Know-What Is Breaking Loose In Venezuela: Stephen Kruiser
Ten reasons why the BDS movement is immoral and hinders peace: Alan M. Dershowitz

Sci-Tech (courtesy BadBlue Tech News)

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Amid political pressure, FCC to propose Net neutrality fix: Marguerite Reardon
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Cornucopia

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Towering Over Our Little French Friend in Tall Cotton…Candy: MOTUS

Image: Michelle O.’s Dinner Dress Cost More Than Annual US Poverty Level
Sponsored by: HAD ENOUGH? Help Fire Mitch McConnell — Support Matt Bevin for U.S. Senate

QOTD: “I’m afraid this is beginning to border on a cult of personality for people on the left. I happen to agree with many of President Obama’s policies. But in our system it is often as important how you how you do something as what you do. I think that many people will look back at this period in history and see nothing but confusion as to why people remained so silent when the president asserted these types of unilateral actions. You have a president who is claiming the right to basically rewrite or ignore or negate federal laws. That is a very dangerous thing. It has nothing to do with the policies, it has to do with the power…

…A system in which a single individual is allowed to rewrite legislation or ignore legislation is a system that borders on authoritarianism. I don’t believe that we are that system yet. But we cannot ignore that we’re beginning to become a system that is a pretense of democracy if a president is allowed to take a law and just simply say I’m going to ignore this, or I’m going to shift funds that weren’t appropriated by Congress to this area.

The president’s state of the union indicated this type of unilateralism that he has adopted as a policy. Now, many people view that as somehow it is empowering. In my view it is dangerous, that what he is suggesting is to essentially put our system off line. This is not the first time that convenience has become the enemy of principle. But we’ve never seen it to this extent.” –Constitutional Lawyer Jonathan Turley, a liberal

Doug Ross @ Journal