In Chapter 3 of
The Ultimate Guide to Storing Gold and Silver Overseas, I wrote:
"In the next few years, investors around the world are going to look at the gigantic U.S. government debt and simultaneously decide that there is zero chance it will ever be paid back. Thereafter, interest rates will begin a steady climb higher (see Greece, 2011) to reflect the risk, making it harder and harder for the government to fund itself."
I then wrote Washington might respond by taking the following action:
"Mandate that some portion of your investments be directed to the "safety and security" of the U.S. Treasury market."
And that's me quoting me. Unfortunately, as the New York Post reports in the article
Feds Eye Retirement Fund Tax to Cut $16 Trillion-Plus Deficit, this scheme by Washington to steal your retirement account is already beginning:
"Another proposal being discussed in Congress says all tax deductions on 401(k)s and IRAs to be replaced with an 18 percent credit. The credit, according to a proposal that has been endorsed by economist William Gale, would be placed directly in a person’s retirement account.
“Unlike the current system,” Gale told Congress, “workers’ and firms’ contributions to employer-based 401(k) accounts would no longer be excluded from income and would be subject to taxation, contributions to IRAs would no longer be tax-deductible and any contributions to a 401(k) plan would be treated as taxable income.”
In other words, the employee and employer would no longer get a deduction under the Gale plan, they would qualify for a credit. And the credit would “increase [government] revenues by about $458 billion,” Gale says."
While this plan isn't calling for an outright theft of your retirement plan, it proposes to replace your tax deduction (which is the incentive for investing in retirement plans) with an 18% credit for a bunch of
junk U.S. government bonds. Theft by another name...
I find this entirely unsurprising and strongly suspect it's just the start of the pillaging. Given that Washington is now looking to appropriate your 401k, do you really think they'd have any problem confiscating your gold
if when the shit hits the fan and they get truly desperate? Me neither. And it's why I wrote this book.
