I don't know of this is new news or not, but according to an accountant buddy on the federal-government level, "the pensions of federal employees have already been collateralized and replaced with IOUs." Those were his exact words.
It's happening again.Old news. It's what kept government running during the last stand-off over raising the debt ceiling. Timmy had to raid government pensions after the debt ceiling was reached. This was widely reported in the MSM: ...
http://www.reuters.com/article/2012/01/17/us-usa-debt-treasury-idUSTRE80G20R20120117The Treasury on Tuesday started dipping into federal pension funds in order to give the Obama administration more credit to pay government bills.
"I will be unable to invest fully" the federal employees retirement system fund beginning Tuesday, Treasury Secretary Timothy Geithner said in a letter to Democratic and Republican leaders in Congress.
Geithner said Treasury started suspending reinvestments in a federal pension fund known as the G-Fund -- a tool Treasury has had to employ six times over the past 20 years in order to keep the country below the statutory debt limit.
The Treasury Department has already tapped another seldom-used fund in order to allow the government to continue borrowing without running afoul of the country's laws.
http://www.bloomberg.com/news/2013-...ounts-draw-u-s-consumer-bureau-attention.htmlThe U.S. Consumer Financial Protection Bureau is weighing whether it should take on a role in helping Americans manage the $19.4 trillion they have put into retirement savings, a move that would be the agency’s first foray into consumer investments.
“That’s one of the things we’ve been exploring and are interested in in terms of whether and what authority we have,” bureau director Richard Cordray said in an interview. He didn’t provide additional details.
"The bureau’s core concern is that many Americans, notably those from the retiring Baby Boom generation, may fall prey to financial scams..."http://www.bloomberg.com/news/2013-...ounts-draw-u-s-consumer-bureau-attention.html
"We're from the government. We're here to help you." aperbag:
http://online.wsj.com/article/SB100...8412932073225110.html?mod=WSJ_hp_mostpop_readHow many times have you read financial-advice stories lecturing you to max-out on your IRA, save as much as you can in your 401(k), and even pay taxes now to change your regular IRA into a Roth IRA that will be tax-free until you die?
Well, be careful how much you save.
That's the message in President Obama's budget for fiscal 2014, which for the first time proposes to cap the amount Americans can save in these tax-sheltered investment vehicles. The White House explanation is that some people have accumulated "substantially more than is needed to fund reasonable levels of retirement saving." So Mr. Obama proposes to "limit an individual's total balance across tax-preferred accounts to an amount sufficient to finance an annuity of not more than $205,000 per year in retirement, or about $3 million for someone retiring in 2013."
Thus do our political betters now feel free to define for everyone what is "needed" for a "reasonable" retirement. ...
Amazingly, Mr. Obama has surveyed the economic landscape and somehow decided that it's time to discourage savings if you make more than he thinks is "reasonable."
More: http://www.reuters.com/article/2013/09/04/poland-pensions-idUSL6N0H02UV20130904Poland said on Wednesday it will transfer to the state many of the assets held by private pension funds, slashing public debt but putting in doubt the future of the multi-billion-euro funds, many of them foreign-owned.
Sadly, I was just talking about this same idea with a friend. 401k, IRAs, 403b, ect programs are all under the controll of Congress. They could easily pass a bill that forces the money in those programs to flow into an "investment" that helps the government such as U.S. treasury bonds that pay less than 1% interest. It is one of the best ways (if you look at it from the big government, keep the party going standpoint) to deal with the monster national debt.Soon to come to our shores. Congress has been eyeballing the trillions of dollars in private pensions and private 401-K accounts for some time now. If this huge pile of cash were transferred to the Treasury, we would [on paper] eliminate all public debts and offload all those treasuries to the pension slush fund. In one fell swoop, we would regain total global monetary hegemony.
If they hyperinflate, it will be trouble for the pensionnaires, but it won't be a problem for the government because they will report little or no inflation to keep SS payments down. Then *POOF* like magic, SS is "fixed". Never mind all the grandparents being evicted and starving to death. They'll make good soylent green.Social Security and other entitlements are programs in big trouble (unless they hyperinflate).