TINFOILHAT: BHO44 targets IRS/401Ks

Thursday, April 25, 2013

http://online.wsj.com/article/SB10001424127887324050304578412932073225110.html?mod=wsj_share_tweet

REVIEW & OUTLOOK
Updated April 12, 2013, 12:13 p.m. ET

Now He’s After Your 401(k)
The White House pulls a switcheroo on retirement savings accounts.

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Thus do our political betters now feel free to define for everyone what is “needed” for a “reasonable” retirement. Not to be impertinent, but does this White House definition include being able to afford summers at age 70 at Martha’s Vineyard near the Obamas?

The feds may think $3 million is all you need after a lifetime of work, but that’s roughly the value of a California police sergeant’s pension if she works for 30 years, retires at age 50 and lives to normal life expectancy.

Out in the private economy, people generally have to work longer than that before they retire, and some of them do manage to save significant amounts. We’re talking about people who work for decades and abstain from buying the bigger house or the new car so they can contribute the maximum to their 401(k)s or IRAs. The people who defer gratification and build a nest egg to avoid becoming a burden on their kids or their fellow taxpayers. The people whose savings finance productive enterprise. You know, the bad guys.

*** and ***

The Administration’s political motive here is two-fold: First, it’s a redistributionist play and a revenue grab. But for many on the left it’s also about reducing the ability of individuals to make themselves independent of the state. They have always disliked IRAs, just as they oppose health-savings accounts, because over time they make Americans less dependent on federal entitlements or transfer payments. 

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Yeah, I know you all think I have a tin foil hat! So what.

Now the Wall Street Journal is in the same genre?

My concern is this is the first step towards exchanging your IRA/401K for an “enhanced social security benefit”.

I read somewhere that there is 14T$ in such plans. Held and controlled by ~2100 “custodians”. And the Gooferment needs about 13T$ to get back on an even keel.

Remember what happened in Cyprus?

Yeah, and I have a tin foil hat.

Argh!

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ECONOMICS: No safe store of wealth

Sunday, April 7, 2013

http://www.deviantinvestor.com/3506/3506/

A Tipping Point In The Financial System
Posted by Deviant Investor on April 4th, 2013

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In my opinion, the sign that a tipping point has occurred in the financial system is the real story:

* The veil of banker honesty has been lifted. The EU/IMF/ECB will do whatever is necessary to support the banks, even if it means they will confiscate (tax, steal, bail-in) customer deposits.

* Customer deposits are NOT assets held in the bank for safe-keeping, but are liabilities of the bank and are not guaranteed to be made whole.

* Billions of dollars were removed prior to the Cyprus freeze, so insiders clearly knew in advance of the ordinary depositors (see below). There is no “level playing field” when billions of dollars/euros are in play.

* According to Jeroen Dijsselbloem, Dutch finance minister and Euro Group President, this is “the template for any future bank bailouts.” In other words, your deposits are considerably less safe than you thought. Your bank could fail, and your deposits might be used to compensate for derivative losses or other losses that the bank incurred.

* The FDIC in the US, as well as England, Canada, and New Zealand, has announced similar policies, agreements, and plans to confiscate deposits in the case of an emergency. Is this a sign that an emergency is not only possible but probable and imminent?

* Confidence in the banking and financial system has been seriously damaged, perhaps irreversibly.

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So a new definition of “counterparty risk” has appeared.

There is no safe store of wealth.

(There really never was, but there was an illusion.)

One has to think very carefully about keeping balances in banks.

imho

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RANT: The four insideous taxes

Sunday, February 3, 2013
‎”“Florida is a state of choice,” said Thalius Hecksher, global development chief for Apex Fund Services, who moved many of his operations to Palm Beach. “It’s organically grown. There’s no need to drag people down here. It’s a zero-income-tax jurisdiction.”” http://buff.ly/WszLB0 Should have done it year ago!!!

‘Wall St.’ flees NY for tax-free Fla.

http://www.nypost.com

The city’s hedge-fund executives are flying south — and it’s not for vacation. An increasing number of financial firms, especially private equity and hedge funds, are fed up with…
–30–
Don’t forget FOUR insidious taxes that you don’t see: (1) the inflation tax — the FED has destroyed 99%of the value of the dollar in the last three or four decades; (2) the gas tax — gets added into every product sold and into every capital good used to make products, or deliver them; (3) the corporate tax — corps don’t pay tax, people do, they just pass it on; and (4) the estate tax — that turns productive assets into legal fees and schemes to avoid it as opposed to capital investment that improves society’s wealth — say goodbye to the family farm or a families’ small business. I’d assert that (a) the true tax rate is incalculable because it’s so well hidden; (B) it crushes the poor and middle class; and (c) some years we pay more than 100% of an annual year’s earnings in taxes! The loss of purchasing power means real savings goes down DESPITE rising account balances!!!!!!!!!

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PRODUCTIVITY: Intergenerational war

Wednesday, January 9, 2013

http://changethis.com/34.05.Generational

http://changethis.com/pdf/34.05.Generational.pdf

Turning the Generational Dial: A Plea to Boomers, Gen X and Gen Y By Carol Orsborn, PhD

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Carol Orsborn argues that instead of participating in a complicated generational tug-of-war of who is more relevant, Gen X and Gen Y must learn from Boomers because these following generations will also face the same elongated lifespans and increased vitality…and buying power.

*** end quote ***

Interesting that today’s Gooferment fiscal stupidity is a direct assault on the future generations’ pocketbooks and wallets.

And they don’t see it.

Or they don’t understand.

Argh!

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