For several months now there have been rumors about the Obama regime taking over individual retirment accounts and administering them thru the Social Security System. You know, those mental giants that have let the government steal every dime you've put into Social Security and MediCare. The "rumor" has suddenly taken on a real life in both Time and the Atlantic Monthly.Atlantic calls it a $240B waste.
The first mention of a government take-over took place in 2008 when an economics professor from the New School for Social Research in New York named Teresa Gharducci outline the program and explained how it would work. She said there were 3 basic reasons why 401k's needed to be eliminated. (1) The higher wage earners are able to put more money into the fund than low wage earners. Totally unfair to the poorer class. (2) Contributors get a tax break by not paying income tax on the money they invested. Something denied to the poorer class. (3) Contributors are investing $240B into the fund and that money should be going to the government instead of personal retirement accounts. The gov't simply can't afford it. She says further, "I'm rearranging tax breaks that are available and spreading the wealth around". Sound familiar?Putting the mental giants over at SS in charge of managing our retirment accounts is like putting the wolf in charge of the chickens. Their record of performance hasn't been good, to say the least. Even the gov't says the unfunded liability over at SS is $4T (minimum).Under Gharducci's plan current contributors would be grandfathered in, so the government would buy (confiscate) your 401k and IRA at their worth as of Aug '08, plus $600/yr at retirement to compensate for losing your tax benefit. The money they confiscate would be invested into gov't bonds or T-bills (you'd be guaranteed 3% on that money) all of which (indluding the $600) would be paid to you as an annuity when you retire. Wage earners would be required to invest 5% of their earnings into these gov't bonds programs which would pay for benefits to poorer classes who haven't been able to participate. This 5% isn't your money, it's the government's money to do with as they please. All a means of redistributing the wealth.If you want to have some real fun got to google and hear Mark Levin interview Ms. Gharducci. In addition you can read tons of info on this subject thru Google.Obama's march to transform America into a Marxist union is well underway. If he's successful the gov't will control and/or own the auto industry, the health care industry, the student loan industry, the energy industry, the banking industry and now your retirement program. With airlines in trouble, anybody doubt that the gov't will soon control that industry as well? Also, just apply #3 above to health insurance. You know Obama would much rather you send your premium money to the gov't than to some corporation. How long before Atlantic Monthly calls that a multi-billion dollar "waste".