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IRA confiscation

Discussion in 'Financial Cents' started by Minuteman, Jan 29, 2014.

  1. Minuteman

    Minuteman Chaplain Moderator Founding Member

    IRA confiscation: it’s happening
    January 29, 2014
    Santiago, Chile

    I have an old acquaintance named Sam who has a hell of a deal for you.

    Sam is actually a pretty famous guy with a big reputation. Unfortunately he has been a bit down and out on his luck lately… but he’s trying to make a comeback. And Sam is prepared to float you a really great investment opportunity.

    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.

    by Simon Black

    Simon Black is an international investor, entrepreneur, permanent traveler, free man, and founder of Sovereign Man. His free daily e-letter and crash course is about using the experiences from his life and travels to help you achieve more freedom.

    Visit his website
    VisuTrac, Yard Dart and Mountainman like this.
  2. ghrit

    ghrit Ambulatory anachronism Administrator Founding Member

    Ol' zero hasn't set out the details yet, but looks like Simon nailed it. Even the rather pitiful name "MyIRA" reeks of puerile, sophomoric thinking guaranteed to appeal to sheep of a social persuasion.
    Tracy and VisuTrac like this.
  3. kckndrgn

    kckndrgn Moderator Moderator Founding Member

    So this would be social insecurity for the next generation. Same scam just a new package to make it look all pretty.
    Tracy, Yard Dart and oldawg like this.
  4. gunbunny

    gunbunny Never Trust A Bunny

    My RA= My Rectal Assault

    We all knew it was coming, just a matter of time.

    A random thought for you- if you have to put some of your money in one of these accounts some day soon, just who is paying the interest that you (pitifully) are making from it? That's right- you are. The ultimate diversion and theft, you pull it out of your pocket and put it in another. If I do that myself, will I be exempt from the MyRA?
    ditch witch and Mountainman like this.
  5. DKR

    DKR Interesting ideas, interesting stories

    The so-called "Social Security" was a tax scam from the beginning.

    Under FDR, the plan was simple. Collect taxes and start paying out at age 65. Except that when the scam started, the average life expectancy in the US was between 63 and 65 Y/O. It was noting more than a massive new tax and every year that "surplus" was spent and a note added to an IOU to be paid "later".

    Now that "later" is here, and Sam's pockets are empty, it is time to come up with a new scam....
  6. Mountainman

    Mountainman Großes Mitglied Site Supporter+++

    Dumped all my retirement accounts years ago and put the money into things that you actually own, minus property taxes, a-holes. Also invested in some other things......... Last move was to pull any money left in the bank and buy PM's under the $10K .goob reporting requirement.
  7. tacmotusn

    tacmotusn Mosquito Sailor

    At 59.5 years of age with the Obozo Dictator in charge of the nations purse strings, irs, numerous federal police forces, and the military, I cleaned out my standard IRA in one lump sum. My taxes on that one time disbursal was about 20% of the total. Like MM above I put it all in preps for the worst. I am happy and content those federal bastooges ain't gonna get squat from me on it now.
  8. BTPost

    BTPost Old Fart Snow Monkey Moderator

    I did Likewise, a Decade ago.... Put the PMs (Physical) into Out of the Country Safety Deposit Box, that is close enough to me, that I could get there in a few Days travel. Bought LOW, and will Sell HIGH, if there is a need, for the funds. I still Have a 401K with the Cannery, only because they MATCH Me, 20 Cents on the Dollar, and as it builds, I move those funds Out, and put them to use, Elsewhere.... Banking is in my Blood, and Conservative Money Management was taught in MY Family, my whole life.
  9. Minuteman

    Minuteman Chaplain Moderator Founding Member

    I love these newsletters from Simon black. They are not only informative but offer concrete steps that you can take to safeguard your money. He recommends buying hard assets, like PMs and storing them out of the country. In this one from yesterday he recommends investing in ammo! The idea of buying other currencies is one I have never really considered but may have to check into these.

    Presenting the latest country to lose confidence in the dollar….

    January 30, 2014
    Sovereign Valley Farm, Chile

    Zimbabwe. You remember those guys, right?

    The country’s plight with its currency became world famous, the butt of untold jokes in economic circles. At its height, hyperinflation in Zimbabwe reached nearly 90 sextillion in 2008.

    That’s a 9 with 22 zeros.

    To put it in context, if you had 90 sextillion grains of sand, you could cover the entire surface of the earth all the way to the outmost layers of the atmosphere.

    Then, in April 2009, the government effectively abandoned the Zimbabwe dollar. The US dollar became the official currency for all government transactions, and US dollars, British pounds sterling, euros, and South African rand became the most widely used tender in circulation.

    I’ve traveled to Zimbabwe frequently; they have some of the best stories you could ever hear about standing in line at the banks with wheelbarrows, and using stacks of paper currency at home for toilet paper or furniture.

    Given that Zimbabwe is literally THE poster child for hyperinflation over the last half-century, one cannot understate the irony of their latest announcement.

    Just yesterday, the government there announced that the Chinese renminbi (among other currencies) will become legal tender in Zimbabwe.

    This is big news. As we have discussed so many times in the past, the current fiscal and monetary antics in the United States are absolutely no different than what Zimbabwe employed several years ago.

    Zimbabwe printed its currency in nearly infinite quantities. So has the United States. The only difference is that the US dollar is readily accepted around the world thanks to good ole’ American credibility that was built by previous generations.

    But that credibility is rapidly deteriorating. And everywhere you look, there are obvious signs that the rest of the world is quickly moving on from the dollar.

    Central banks around the world are stocking up on gold. Major powers like China and Russia are calling for a new reserve currency. And a number of nations (Zimbabwe is the latest) have already begun to use other currencies like the renminbi for international trade and central bank reserves.

    It’s happening. And it’s one of those things that will play out like what Hemingway wrote about going bankrupt: gradually, then suddenly.

    The dollar’s share of global reserves has slowly fallen from roughly 75% in 2001, to just over 60% today.

    But the world will eventually reach a bifurcation point where investors, foreign governments, central banks, etc. panic and start rushing for the exits.

    It’s something that could happen tomorrow. Or five years from now. No one knows. But rational, intelligent people shouldn’t be waiting around for it to happen.

    I very strongly recommend that you take a portion of your savings and move them into real assets– precious metals and productive land are the most obvious. But even things like collectibles or nonperishable goods (like ammunition) would be preferable to US dollars.

    Then there’s other currencies that you can hold. Right now, the Norwegian krone has the strongest fundamentals in the world as it is backed by the most solvent central bank on the planet.

    The Hong Kong dollar is also an interesting option because it minimizes your downside currency risk while providing protection against the US dollar’s deterioration.

    (Premium members: please refer to your SMC welcome guide for actionable information about holding Hong Kong dollars and Norwegian krone.)

    by Simon Black
    Tracy and tulianr like this.
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