Friday, February 5, 2010
Pravda on 401(K)s
"As the [US] moves into a new decade of military overreach abroad and national bankruptcy at home, Washington is in a desperate search for more revenue and a solution to the future financing of the trillions in national debt obligations currently held by foreign central banks and investors. ... Although the historical government solution to unsustainable government debt loads has always been the destruction of the debts by currency depreciation and eventual hyperinflation, there is always an intermediate step used to buy more time for the politicians in power. ... The largest source of liquid private wealth remaining in the [US] are the $15 trillion in private retirement funds and the ultimate ownership, control and future of these funds have already been compromised and exchanged for the favorable tax treatment of private retirement plans. ... The retirement trap I'm writing about is only a proposal at the present time and since it may well begin in the latter years of the Obama Administration assuming the Democrats can somehow maintain their majorities in Congress, I'm calling it the "Obama Retirement Trap'. But make no mistake, the government need for current revenue and their frenzied search for a short-term fix to fund the backstop of liquidity to buy future government debt obligations when no credible investors will buy them is an unspoken quest of both political parties. ... The protoype for their plan was devised in 1991 by Alicia H. Munnell, then Director of Research for the Federal Reserve Bank of Boston. She presented the idea in a paper entitled 'Current Taxation of Qualified Pension Plans: Has the Time Come?' ... After years of deficits, the greatest hazard to our economy is a run on the dollar and on Treasury securities by foreign investors", Ron Holland at Pravda, 15 January 2010, link:
Pravda is a far-right, wing-nut publication. Welcome aboard wing-nut. Theresa Ghillarducci, you've been found out. Even in Russia!