Debt, public debt to be exact, is no longer a problem in America–at least according to the Democrats following their big win last week. By their accounts the Earth’s orbit has been changed so we no longer need fuel to heat our homes and transfer goods and, yes indeedy, government debt no longer has to be repaid.
There is a caveat to that last bit, it no longer has to be paid through normal channels. There is a vast distinction because where the government is now looking is to retirement accounts. You see, by the new definitions established Tuesday, anyone with a retirement account is now “rich.”
You didn’t understand that was part of the voting process? Gee whiz, it sucks to be you then, doesn’t it?
Just as they did with Healthcare, the government wants to nationalize all retirement plans. Over the past four years, union plans and state plans were incorporated into the federal government’s arena, but now the attention has turned to the private holdings.
Obama’s Administration plans to take a page from Bill Clinton’s playbook. Clinton “balanced” the budget back in the late 90s by ruthlessly wringing every spare dime from the Social Security Permanent Trust Fund. That wasn’t enough to turn the tide so buoyed by Tuesday relentless win the statist socialists in the prevailing party are taking dead aim at the dollars currently residing in IRAs and other juicy private holdings that were intended for use during retirement.
It may not be much of a challenge for Les Majeste either. Weiss Research’s income and retirement specialist Nilus Mattive is convinced Obama needs to reduce the federal deficit and has few options.
Raising taxes on the rich is only one step in the Obama Plan. He is paying lip service to trimming spending as a second stance but what has never been disclosed is how the 60′s-radicals he has a deep kinship for are determined to demonstrate their idea to balance the budget will work, by decimating retirement accounts.
One basis of rational they will use to push this to the masses that elected them (many of whom do not have retirement accounts) is “if they didn’t need it while they were raising families and in a position to spend it for the good of the community, they certainly have more than they need for their last few years.”
Mattive thinks this new plan will affect 96% of all Americans. But there is already projected to be another trillion dollar shortfall this year. To relieve some of the pressure, Obama needs to show he is moving in the right direction and reduce that deficit.
To that end he will utilize the estimated $400 billion currently in IRAs and the additional $600 billion in the pension plans the government has acquired as “revenue” to help offset current expenses. In return for this “donation” he will promise to provide an alternative future plan for those who were counting on these funds to provide for their retirement–quite possibly with his Healthcare’s “end of life” consultations.
To promote the effort, Obama will emphasize the necessity to counter the effects of the fiscal cliff. The plan will show gradual improvement from the willingly complicit CBO (it already showed the national deficit dropping to less than 1% of GDP by 2016 in its projections).
Another target for needed government revenue is businesses of Main Street. The owners of these businesses have amassed almost $1.4T in cash reserves. This cash is intended to soften the blow from whatever fallout there is from the American government’s greed.
Cash is always a good buffer against uncertainty and the fact business has socked away this much means they think the Earth did move from its orbit last Tuesday. They are anticipating an apocalyptic event. Otherwise, at even 1% return, they are willingly turning away from $14 billion annual profit on this held funding.
Clearly they feel investing in the future is so risky it overwhelms the benefit of holding this money against government intervention.
What is ironic is many of the people who own small businesses used their retirement assets to start these businesses when the recession hit. They took a gamble but government’s political need to keep the deficit in check on paper may penalize them twice.
“I have sworn on the altar of God eternal hostility to every form of tyranny over the mind of man.”–Thomas Jefferson.
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