muses of the moment

November 24, 2012

Nationalizing 401ks

Filed under: 401K and IRAs, US Government Debt — totallygroovygirlfriday @ 1:39 am

Click here.

Government is talking about nationalizing IRAs, pension funds, and 401ks again. We will need to keep a close eye on this.

gg says: even if the funds are not formally nationalized, it is highly likely that those funds will be “forced” to buy US T-bills at some point. Buyers of US debt are slowly disappearing, the Treasury will need some new suckers soon. Especially at the rate the government is spending money they do not have. They did the exact same thing to social security money, and now, we have a major cash flow problem coming with the baby boomers retirement. 

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2 Comments »

  1. They do have a cash flow problem. But it’s gonna be interesting … if Wall Street and the Corporatists own/run the govenment, how will they react when the government wants to sell all those stocks and bonds to buy Treasuries? I kinda don’t think it will happen. The buyer of Treasuries of last resort is the Fed, and they’re buying.

    As to the Social Security Trust Fund, it is just fine, all in Special U.S. Treasuries with a balance of $2.4 trillion or some such. And growing every year.

    Comment by Phaedrus — November 25, 2012 @ 1:26 pm

  2. Good point. Companies must know that even from a demographic point of view, aside from any depression, the DOW must contract. Baby boomers must sell stocks to live over the next 20-30 years. And pensions must sell as well.
    gg

    Comment by totallygroovygirlfriday — November 26, 2012 @ 11:44 am


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