In these turbulent economic and social times, having a group of like-minded people to banter with is invaluable. In fact, trends forecaster Gerald Celente recommended exactly this on an interview he did Friday with Jim Puplava (link here – Celente comes on towards the end of the first hour – the guy is hysterical, and sharp too, one of my favorite guys to listen to).
Our group kicked off the night chatting about the potential confiscation or lockup of retirement funds – namely 401K’s and IRA’s – by the US government. Our fear is that with US federal debt truly spiraling out of control, there will come a point where the government will likely appoint itself “custodian” of all retirement accounts. Stocks are too risky, let us invest your money “safely” in government sponsored annuities (ie. government paper that no one else will buy!)
But then where do you put the money? “Not in your local CitiBank account!” someone joked. The consensus was that you’d probably be wise to get the money overseas, and possibly into physical bullion in the process.
In terms of the timing, the scary thing is that it could potentially happen real fast – striking with lightning speed as the last downturn did. We put the odds on it happening after 2012, as we didn’t believe it’d be politically feasible at the moment, especially with an election slaughter upcoming this year. But if the next leg of the financial crisis strikes, all bets could certainly be off.
December 07, 2001|From Bloomberg News
BUENOS AIRES — Argentina, which is defaulting on its debts, said it will seize $2.3 billion of retirement savings by forcing private pension funds to transfer the money to a state bank in exchange for Treasury bills.
The government targeted savings every worker is required to set aside from their paychecks since the creation of a private pension system in 1994, after the International Monetary Fund withheld a loan.
Economy Minister Domingo Cavallo said the government, which has more than $2 billion of debt due this month, will use the money to pay state pensions and wages.
“For all intents and purposes they are confiscating funds,” said Scott Grannis, who helps manage $1.5 billion of emerging-market debt at Western Asset Management in Pasadena and has sold his Argentine bonds. “They are destroying confidence.”
Think this can’t happen here in the US? I wouldn’t want to bet on it!
- Porter Stansberry’s famous End of America Video – actions to take to protect yourself and your savings
- Open a foreign currency bank account with EverBank