Obama Labor Dept. Sets Stage for Nationalizing Retirement Accounts

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via Director Blue

barack-obama-thomas-perez
Barack Obama and Tom Perez

IF YOU LIKE YOUR 401(k), YOU CAN KEEP YOUR 401(k): Obama Labor Dept. Sets Stage for Nationalizing Retirement Accounts

by David Mills

In 2013, in a little-heralded case, the U.S. Court of Appeals for the Seventh Circuit rejected the Obama Labor Department’s attempt to punish voluntary retirement plan service providers. The DOL, under the direction of the controversial, radical leftist Tom Perez, had tried to force providers of 401(k), 403(b), IRA, and related services to adopt a massive new set of regulations known as “fidiculary” responsibilities.

The Seventh Circuit slammed the door shut on Labor and the Supreme Court thereafter declined to hear the appeal, which meant that the Obama administration had lost in the highest court in the land.

Of course for the “most transparent administration ever”, that step simply meant that the court’s opinion was to be rejected and that Obama would use his infamous pen to rule by executive fiat. After all, the ends justify the means, correct?

On August 24th, Perez and the Labor Department confirmed they are moving forward with new regulations that would repudiate the court’s opinion. Even Obama’s SEC Commissioner issued an ominous warning that the Labor Department’s new regulations would unleash havoc and create “a mess.”

Furthermore, financial services experts have cautioned that the new rule is “too complicated to [actually] put into practice.”

Earlier this month, the Labor Department held public hearings to discuss the input and concerns they have received from industry groups and other stakeholders that will be impacted by the department’s proposal to expand the definition of “fiduciary” under ERISA … In the debate over the DOL’s proposal — which, as written, [will] create a vast and costly new regulatory regime for independent firms and advisers across the country

Barack Obama and Tom Perez don’t care about all of that. They’re on a mission to seize your retirement funds:

Labor Department officials are determined to produce a new standard of fiduciary duty for anyone giving retirement investment advice, once they process concerns raised in thousands of comment letters and four days of hearings on their proposal.

 

A SIMPLE PLAN

Like Obamacare, the idea is to drive small- and mid-size service providers out of the retirement business by ensuring that the costs of complying with regulations are unaffordable. And, to ensure a Republican president can’t easily unwind the Rube Goldberg machinery, the Labor Department has also promised an impossible eight month implementation timeline. Most providers believe it will take three years to follow all of the byzantine rules and regulations.

Their intent, in my view, is to force a consolidation of the retirement service industry, just as Obamacare drove mergers and acquisitions in the health care business, leaving only gigantic corporations in its wake. These companies have become intertwined and dependent upon legislators and lobbyists in Washington. They can’t make a move without the permission of the federal leviathan.

Many Democrats are open about the true goal of Obamacare: to end up with a single-payer health care system, modeled after the National Health Service in the U.K. You know, the system that was reported to have killed 120,000 seniors in 2012 alone.

 

SETTING THEIR SIGHTS ON TRILLIONS OF YOUR RETIREMENT DOLLARS

The Obama administration has its sights set on an incredible amount of your money. By some estimates, Americans are holding well over $10 trillion in private retirement accounts.

For a country with debt that is clearly “unsustainable” (source: the non-partisan Congressional Budget Office), that amount of money is akin to showing a kilo of heroin to a desperate junkie.

 

THE GOAL: FINANCIAL REPRESSION

One of the first steps the Obama administration took to signal its direction was to unveil its wildly unsuccessful “MyRA” program. This takes participants’ funds and invests them in “ultra-safe”, government-issued debt.

You can be sure that the future of the retirement services business will be to extend “fiduciary” responsibilities to require advisors to leverage federal debt instruments in their clients’ portfolios.

This is called “financial repression“, and it is the hallmark of a government on its way to bankruptcy. Essentially, a failing government forces investors to purchase its debt because it knows damn well that the instruments will ultimately never be repaid.

Argentina and other failed countries have embarked upon this strategy prior to a full-blown currency collapse.

You can be sure that the real goal of the Obama administration is to nationalize your retirement account and to invest it in debt that will become increasingly unsellable in the open market.

If you want to maintain control of your retirement funds, I’d recommend contacting your member of Congress today. Urge them to defund the Department of Labor until this rule is nuked from orbit.

 

Related, must-read: Don’t cry for me, America.

 

22 COMMENTS

    • In a time where Social Security and Medicare are eating more and more of the Federal Budget, is it possible that politicians will let the billions (trillions?) of 401k / 403b dollars go untouched? I’m 45 years old. 22ish years from retirement. By the time I get there, social security will be busted to the point of irrelevancy (I.e. I may receive a check but it’ll be for a small fraction of what I should have received) despite the fact that I’ve paid into it for 30 years already.

      Maybe I should cash out my 401k, take the tax hit and invest in Win for Life scratch off tickets?

      • Social Security IS NOT WELFARE> I paid into it for over 50 years It is MY money and anyone else that paid into it. It is going broke because the government keeps “borrowing” from it and never paying it back.

      • Vrin, when the time comes for you to take your money out from your 401K, Uncle Sam will tax you tremendously! What you should do now is move your money to where you can withdraw your cash savings, any time in the future, or at retirement age, SANS TAX! At age 45 now, you still have a lot of time in your hands (20 years or so) to do compound interest. Ever heard of Living Benefits, where you don’t have to die to be able to use your cash savings? ASK ME HOW, if you are interested to know.

    • The communist and the bancrupt Obama goverment is now commandeering your retirement funds to pay the debts. They had already had raped Medicare and social security. This is a prelude to economic collapse of Americaa sign that country is bancrupt.. DON’T CRY FOR ME AMERICA!!!!!!

  1. Do not steal my modest income to pay for your stupidity! I didn’t choose to put America in debt by giving the enemy every means to destroy me.

  2. They couldn’t run a whore house what makes them think anyone would want them to control our retirement funds? FYI the whore house was the Mustang Ranch in Nevada that the government took over in the 90s and ran into the ground.

  3. What is it going to take until the American people say enough is enough? The Federal Government is laden with self serving narcissists, that bow down to the world banks elite sect. There is not any fathomable reason the Federal Government, should have ever touched one cent of Social Security, now they label what they owe us as entitlement? The blatant acts of theft that our leaders have victimized us with have to stop! Leave our retirement accounts alone!! The fluoridation has lobotomized the masses, but there are those of us that have been avoiding your poisons! We will not allow you to go on as you have.

  4. NIG-BOY MUST HAVE A DEATH WISH, BECAUSE IF THEY NATIONALIZE EVERYONES IRA Accounts this is exactly what will happen to him, Secret Service Protection or not.

  5. There’s three things in life that you don’t do.
    1. Tug on Supermans cape
    2. Piss into the wind
    3. Screw with my money.

    You’ve been warned.

  6. Well here is another of the socialist agenda. Eugene Keogh if he were alive would lead the charge to stop this insanity. An Obamanation for sure!!

  7. Obama´s behavior, in this case, is exactly the same as Hugo Chávez´s behavior in Venezuela, where he began to legislate via executive orders, in a sense, contrary to the stated people´s desires stated in a referendum.
    Obama is attempting to bury, via unconstitutional executive orders the little remaining freedom of the american people.

  8. Just what you would expect from a tree hugging communist—socialist—liberal—progressive—democrat—who wants to control you and turn you into an ant.

  9. IM SORRY BUT ITS THE JOB OF THE PRESIDENT TO UPHOLD THE LAWS IN THE USA ,NOT TO CHANGE THEM TO HIS SATISFACTION.,WITH HIS PEN AND PHONE LOL.HE NEEDS TO BE IMPEACHED FOR LYING TO SO MANY IF HE GETS HIS WAY ON THIS HE WILL GO AFTER THE SOCIAL SECURITY THAT SO MANY ELDERLY DEPEND ON.IMPEACH HIM NOW PPL.

  10. ………………and “if” and “When” Obama nationalizes our retirement accounts the government will then have the authority to place a lean on our retirement money to pay off their debt without any problems attached. Greece……………eat your hearts out. Liberals again show their love for big government without understanding the consequences in the long term.

    Basically…………………they are full blown gullible idiots!

  11. I don’t feel the least bit worried when I say when this Marxist leaves office there is no security on the planet the can protect this dead man walking! Mind you this is my opinion but with 800 give or take ex special forces pissed off at you and millions of very quiet ones well.

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