We just heard the words, “Hello, I’m from the federal government and I am here to help you manage your retirement savings.”
Run away, don’t walk, as fast as you can.
I have been wondering who is going to keep buying U.S. debt since China is no longer interested in keeping the U.S. debt ponzi scheme going.
In November 2012, the Obama administration was exploring a creative way to finance continuing trillion-dollar annual federal budget deficits through forcing private citizens holding IRA and 401(k) accounts to purchase Treasury bonds by mandating the placement of government-structured annuities in their retirement accounts.
We are a step closer after last night’s state of the union speech.
President Obama announced in his State of the Union address Tuesday an initiative that allows (gullible) first-time savers to start building up their savings in Treasury bonds. These are the same Treasury bonds that the rest of the world is dumping as fast as they can.
From the Snake Oil Salesman in Chief last night:
“Let’s do more to help Americans save for retirement. Today, most workers don’t have a pension. A Social Security check often isn’t enough on its own. And while the stock market has doubled over the last five years, that doesn’t help folks who don’t have 401ks. That’s why, tomorrow, I will direct the Treasury to create a new way for working Americans to start their own retirement savings: MyRA. It’s a new savings bond that encourages folks to build a nest egg. MyRA guarantees a decent return with no risk of losing what you put in. And if this Congress wants to help, work with me to fix an upside-down tax code that gives big tax breaks to help the wealthy save, but does little to nothing for middle-class Americans. Offer every American access to an automatic IRA on the job, so they can save at work just like everyone in this chamber can…”
With the Obama administration having run federal budget deficits in the range of $1 trillion every year in office since 2009, and with the Federal Reserve announcing a new policy to “taper” Quantitative Easing by buying $10 billion a month less in U.S. government debt every month this year until QE hits zero, somebody has to buy all the Treasury debt the Obama administration plans to issue.
It looks like it will be us poor fools.