Retirement: The Government Option

Retirement: The Government Option
Vol: 108 Issue: 30 Thursday, September 30, 2010

The Department of Labor’s Employee Benefits Security Administration, in conjunction with the Department of the Treasury, has published a Request for Information asking for ideas on how to help reduce the chances that workers will run out of funds during their retirement years.

That’s the preamble to the Fact Sheet put out by the Department of Labor under the title, “Lifetime Income Options for Retirement Plans.”   The government can no longer pretend that Social Security is anything less than the unsupported and unsustainable Ponzi scheme it has always been.

So it has put together what it calls an RFI to address the looming financial catastrophe for millions of future retirees.  What is an RFI?

The Department of Labor’s Employee Benefits Security Administration, in conjunction with the Department of the Treasury, has published a Request for Information asking for ideas on how to help reduce the chances that workers will run out of funds during their retirement years.

The RFI is merely a vehicle to engage interested persons in exploring ways that the Agencies and the private sector can work together to ensure that workers have the tools they need to help ensure their retirement savings last a lifetime.

Actually, it is much more than merely a “vehicle to engage interested persons.” It is an effort to recapitalize the nation by using your retirement savings.  

It is estimated that Americans have roughly $3.6 trillion in IRA’s and another $2.35 trillion in 401ks.  America’s budget deficit last year was $1.42 trillion.  

That’s more than enough to bail Uncle Sam out of the hole.  According to one report, the administration hopes to seize those accounts and put them into US Treasury bills paying out at 3%.

Upon retirement, the value of an individual retirement account would be placed into annuities that would guarantee income for life.   After the retiree dies, the annuities would become property of the federal government.  

It would be the largest theft in the history of man.  But don’t kid yourself into believing that they wouldn’t do it.  Or that they couldn’t get away with it.

Once we wouldn’t have believed that the government could get away with using taxpayer money to bail out bankers, either.

Assessment:

This is just one of the plans being floated by the federal government to try and keep itself afloat.  At least, that’s one way of looking at it.  

Frankly, I think it is one of the plans being floated by the Obama administration to sink the existing system.

The scheme is currently being floated as an ‘option.’ For retirees who have recently seen their retirement savings collapse overnight, it looks very attractive.   But when the government is involved, ‘optional’ doesn’t mean the same thing it does when used in normal conversation.

For example, putting your Social Security number on a government form is ‘optional’.  You don’t have to, but if you don’t, the form you’re filling out will get tossed in the trash. 

Your ‘option’ is to fill in the number — or sit down and shut up.

This will be the same kind of ‘option’.  You won’t have to participate, but if you don’t, then the government will find a way to offer you an unacceptable alternative choice, like it did when it broke its pledge never to use Social Security numbers for identification purposes.

I got my first Social Security card in 1965.  It said right on it, “Not to be used for identification purposes.” Since then, it is the only thing I’ve ever used it for. 

I needed it to join the Marines, even though at the time they also issued me a military service number.  (Which I remember as clearly today as I did forty years ago.)

Indeed, during my second tour in the Marines they dropped the use of military service numbers altogether and replaced them with Social Security numbers.  Despite that, the government still maintained that using one’s SSN was ‘optional’.

There is little doubt that the RFI plan will work much along the same lines.  It will be offered as an option you can’t afford to refuse.

There is a massive economic crisis still brewing.  According to a report at CNBC the United States is “practically owned” by China.   Rahm Emmanuel may be leaving the White House, but his admonition to “never waste a good crisis” will remain.  

The US debt is clearly unsustainable.  Unemployment continues to rise as the housing market continues to collapse.   Banks are failing at a higher rate than video rental stores.  One in six Americans is now on some form of government assistance. 

In 1933, the federal government ordered the confiscation of all privately-held gold, after it set a fixed price of $35 oz which it paid for using paper Federal Reserve notes.   The action became necessary because the federal government could not meet its obligations to its creditors.  

That’s what happens when the government borrows money.  They borrow in your name and if they can’t pay the bill, then you have to.   Currently, your share is $43,583.00, if it is broken down per citizen.  Per taxpayer, your share is $121,602.  

America’s debt to GDP ratio is now at 93% and rising. 

I don’t know what the answer is – the government will HAVE to seize America’s IRAs and 401ks eventually, anyway, to satisfy our creditors, as it did in 1933.   The problem is that even if the government confiscated all the gold left in America, it wouldn’t be enough. 

Nationalizing retirement savings accounts would stave off collapse — temporarily. 

“And when he had opened the third seal, I heard the third beast say, Come and see. And I beheld, and lo a black horse; and he that sat on him had a pair of balances in his hand.  And I heard a voice in the midst of the four beasts say, A measure of wheat for a penny, and three measures of barley for a penny; and see thou hurt not the oil and the wine.” (Revelation 6:5-6)

The third of the Four Horsemen of the Apocalypse is famine.  Notice the voice in the midst – a measure of wheat or three measures of barley are representative of a day’s worth of food for one person.  

A penny is representative of a day’s pay. Oil and wine is representative of great wealth.   So the image presented is of income disparity so severe that it will take a day’s pay to earn a day’s worth of food, but the rich will still live in luxury for a time.

That is almost where we are at this moment – but Famine is the second horseman.  The first horseman is the rider on the white horse, the conqueror who conquers without weapons. The rider on the white horse is almost universally recognized by prophecy scholars as the antichrist.

 “And now ye know what withholdeth that he might be revealed in his time. For the mystery of iniquity doth already work: only He who now letteth will let, until He be taken out of the way. And then shall that Wicked be revealed, whom the Lord shall consume with the Spirit of His mouth, and shall destroy with the brightness of His coming:” (2nd Thessalonians 2:6-8)

First the removal of the Restrainer together with the vessels He indwells at the Rapture.  Then the revelation of “that Wicked” (the rider on the white horse of Revelation 6:2) 

Then comes the rider on the red horse (War) and then comes the rider on the black horse (Famine).

The Bible says the first horseman to be seen is the antichrist, but we can practically hear the hooves of the second and third horsemen already.  

So its all bad news.  Unless you are a believer.  Then it’s good news. It means we’re even closer to hearing the trumpet

Maranatha!

This entry was posted in Briefings by Pete Garcia. Bookmark the permalink.

About Pete Garcia

Christian, father, husband, veteran, pilot, and sinner saved by grace. I am a firm believer in, and follower of Jesus Christ. I am Pre-Trib, Dispensational, and Non-Denominational (but I lean Southern Baptist).

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