Top Economist: The Government Is Preparing To Seize 401(K) Pensions


Armstrong is specifically warning that due to a Supreme Court ruling this month, the stage has been set for the federal government to start seizing private pension funds.

Will pensions be confiscated outright? Or, will they be exchanged for some form of bond or the ‘numbers’ simply sunk into the morass of government budgeting?

With $4 Trillion in America’s 401(k) accounts and with total U.S. retirement assets at $24.7 trillion…surely the feds are salivating.

According to Armstrong, the outcome of Tibble v. Edison, which found that employers have a duty to protect their workers’ 401(k) plans from mutual funds that perform poorly, will grease the skids for the feds to seize private funds and prosecute companies who manage mutual funds badly.

“Between the court ruling and the Obama administration’s push for stronger fiduciary rules,” the developments send a, “strong message that government can much easier seize the pension fund management industry of course to “protect the consumer,” writes Armstrong, warning that the ruling, “sets the stage to JUSTIFY government seizure of private pension funds to protect pensioners,” when the economy gets “messy”.
“This fits perfectly just in time for the Obama administration’s next assault as they prepare a landmark change of its own by issuing rules requiring that financial advisers put the interest of customers ahead of their own,” writes Armstrong. “This creates a very gray area wide enough to justify public seizure of pension funds under management.”

Following the 2008 financial collapse, reports emerged that the federal government was planning to seize the private 401(k) pensions of millions of Americans while enforcing an additional 5 per cent payroll tax as part of a new bailout program that would empower the Social Security Administration to redistribute pension funds “fairly” amongst citizens.

Armstrong warns that the development is part of a wider move towards “economic totalitarianism,” which is also characterized by efforts to eliminate physical cash altogether in the name of giving central banks more power.

Numerous prominent individuals have called for hard currency to be banned in recent months, including former Bank of England economist Jim Leaviss, who wrote a piece for the Telegraph which argued that, “Forcing everyone to spend only by electronic means from an account held at a government-run bank would give the authorities far better tools to deal with recessions and economic booms.”

Earlier this month, German Council Of Economic expert Peter Bofinger also said that imposing a cashless society would make it easier for central banks to enforce their economic policy.

As we have covered at length, commercial banks are beginning to impose more draconian controls on the withdrawal and depositing of cash, with the practice being treated as a suspicious activity even for relatively modest sums.

Source: infowars.com


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