Treasury Confirms Debt Ceiling To Be Breached Today; Will Tap Pension Funds

[bobbyw24]

It's official: the US credit card has officially been maxed out, just as we predicted on Wednesday, and througout Q1 and Q2. The United States is expected to reach the legal limit on its debt later on Monday and will start dipping into federal retirement funds to give the country more room to borrow, a Treasury official said. As Reuters reports further, The U.S. Treasury will settle $72 billion in maturing bonds on Monday, which will push the country right up against its $14.294 trillion borrowing cap, the official said. To all those who thought only the insolvent government of Ireland will plunder pension funds, our condolences.

Full release (no pun intended):

http://www.zerohedge.com/article/treasury-confirms-debt-ceiling-be-breached-today-will-tap-pension-funds

[Lucille]

Isn't Amerika pathetic.

Someone linked to Chapman (http://www.theinternationalforecaster.com/International_Forecaster_Weekly/The_Financial_Powers_That_Be_Are_In_A_Trap_of_Thei r_Own_Making) in the comments:


In legislation just proposed, and I don’t know by whom, nor do I have a number yet, the Dept of Labor has proposed a re-definition of who is a fiduciary, not under the Securities laws, but under ERISA, the law that governs tax advantaged retirement accounts, such as 401K and IRAs and it probably will include all retirement assets, we don’t have a definite direction yet of what they intend to do but it is my guess they want to limit those investments only to US government debt. They may include some blue chips or funds, I don’t know. They may allow other high-graded fixed income products. These DOL-ERISA rules override all SEC rules. We don’t know the final form of the legislation, nor do we know whether it will be passed, but my guess it will be. The government desperately needs to get those retirement funds invested in government debt. I would seriously think about terminating 401ks and IRAs by transferring the assets – without commission – into a personal account it then becomes a taxable event. I also believe there is a good chance that taxes will be higher next year. There is also an outside chance that retirement assets could be frozen – such events would be negative on the general market because government would be directing brokerage houses to sell retirement assets. This is all in the planning stage, but it is very real.

I guess we'd better cash out our last 401K PDQ.

[Kylie]

Glad I cashed out my 401k before the market tanked in 08.

This needs to be spread far and wide to all who have retirement accounts.

TOLD YA THEY'D COME FOR YOUR SHIT!!

[bobbyw24]

isn't amerika pathetic.

Someone linked to chapman (http://www.theinternationalforecaster.com/international_forecaster_weekly/the_financial_powers_that_be_are_in_a_trap_of_thei r_own_making) in the comments:



I guess we'd better cash out our last 401k pdq.


wow

[bobbyw24]

Report in PDF at:

http://www.assetpreservationinstitute.org/storage/pdf/ObamaAdministration401Ks.pdf

[Lucille]

Report in PDF at:

http://www.assetpreservationinstitute.org/storage/pdf/ObamaAdministration401Ks.pdf

That's a good read. It lays out the planners' planning for this thus far.

This is good news...:


Percentage of Americans who:
Oppose an annuity mandate for retirement accounts: 71
Are confident 401(k)s can help meet retirement goals: 73
Oppose replacing private accounts with a government guarantee: 81
Oppose getting rid of 401(k) tax advantages: 88
Want to control their own accounts in retirement: 96

...but I'm afraid that would change once The Bernank stopped propping up the stock market.

[Danke]

Unless I quit my job, I can access my retirement plan. :(

[Cowlesy]

I thought it was Federal Workers' Pensions, and instead of taking a big scoop out of the tax receipts, they'll refrain from taking that scoop and use it to finance the country. Once they can borrow again, they'll go ahead and pay all the contributions missed to the Federal Workers' Pensions.

[bobbyw24]

I thought it was Federal Workers' Pensions, and instead of taking a big scoop out of the tax receipts, they'll refrain from taking that scoop and use it to finance the country. Once they can borrow again, they'll go ahead and pay all the contributions missed to the Federal Workers' Pensions.

It is--but I keep hearing that the Feds will come after private 401/IRAs

[FrankRep]

Government to Tap the Federal Retirement Funds to Run Government
http://www.ronpaulforums.com/showthread.php?293372-Government-to-Tap-the-Federal-Retirement-Funds-to-Run-Government

[schiffheadbaby]

oh they will bobby boy, my guess is around 2013 or 2014 or so. It will be for the "common good". As more people struggle the class warfare will intensify and Obama will say your 401k is a common resource.

[ghengis86]

I thought it was Federal Workers' Pensions, and instead of taking a big scoop out of the tax receipts, they'll refrain from taking that scoop and use it to finance the country. Once they can borrow again, they'll go ahead and pay all the contributions missed to the Federal Workers' Pensions.

Just like borrowing from social security, no? Not exactly, but in principle I suppose

[Napoleon's Shadow]

http://www.youtube.com/watch?v=CTFp8IDbKfo