Act Now! Before You Lose Your Retirement Money
By James Hart
Man can live and satisfy his wants only by ceaseless labor; by the ceaseless application of his faculties to natural resources. This process is the origin of property. But it is also true that a man may live and satisfy his wants by seizing and consuming the products of the labor of others. This process is the origin of plunder. Now, since man is naturally inclined to avoid painóand since labor is pain in itselfóit follows that men will resort to plunder whenever plunder is easier than work. When plunder becomes a way of life for a group of men living in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it. (The Law, Frederic Bastiat, Economist & Statesman, June 1850)
o cover-up their failed economic policies, corruption, and prevarications, U.S. politicians have decided to "plunder" your retirement money and the heist has begun.
A Body of Evidence
In Mid-November of 1995, an interest payment of $25 billion was owed on an array of government Treasury bills, bonds, and notes. Nevertheless, the government didn't have the money because they had reached their debt limit of $4.9 trillion (set by Congress) and therefore couldn't borrow it. Consequently, U.S. Treasury Secretary, Robert Rubin, under questionable authority resorted to plunder and dipped into two civil service pension funds and paid the government's debts. At the time, Rubin said, "This is no way for a nation to manage its financial affairs."
However, by March of 1996, Rubin had taken $61 billion from employee retirement plans and replaced the money with non-interest bearing, IOUs. Moreover, no date has been set to pay this pension money back. And since then:
At the time, the Labor Department had expected more than 1,700 companies to use a six-month amnesty period to repay millions of dollars improperly withheld from their workers' 401(K) pension plans. Worse, Labor department officials are afraid that these violations may be more wide spread. Lynn Dudley, (Vice-President of the Association of Private Pension and Welfare Plans) said that: "People are scared and say, `I won't give them my money.'"
An editorial in the Wall Street Journal, entitled, "The Ultimate Raid" identifies Assistant Treasury Secretary for Economic Policy and one-time Federal Reserve nominee, Ms. Alicia Munnell, as the architect of the coming attack on your retirement benefits. In her report, "Current Taxation of Qualified Pension Plans: Has The Time Come?" Munnell attacks the tax deductibility of pension benefits and proposes a 15% up-front tax to generate billions in revenue for Washington politicians.
If this proposal is ever implemented, it will be the greatest theft of private wealth by any government in world history. Presently, one in five pension plans is seriously under-funded and American workers, don't even know it.
"How many ways can the government lighten your wallet? The list is long, but a new threat just arrived, your pension is now at risk." ó(Jim Saxton, N.J. Congressman)
A + B = Security, Wealth, and Your Legacy!
In the future, expect more sophistry and pathetic con-jobs from federal and state politicians who are scheming to steal your retirement money. Nevertheless, remember this: plunder is what most politicians doóyou can never satisfy their insatiable hunger for your moneyóand ultimately, the responsibility to get control of your finances and manage your affairs, is yours.
"People always have been and they always will be the stupid victims of deceit and self-deception in politics." ó(Nikolai Lenin)
Copyright 2002, efobi.com. All Rights Reserved.
James Hart is chief economist at Credit Suisse Acceptance Trust
International, and author of the blockbuster, new bestseller
entitled: Diary Of An Investment Banker. His shrewd business and
investment advice is sought after by millionaires and anyone who
wants to be one. To get free information or answers to your financial
questions like how to retire rich in 3.7 years, fire-off an email to
or call (310) 842-5134.
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