posted on Jan, 9 2010 @ 09:54 PM
Pretty damn interesting story here. There's also lots of possible conspiracy/financial TEOTWAKI speculation too.
I first saw some speculation about this over at the Tickerforum maybe a year or more ago, and it was pretty much considered tinfoil then. Denninger
has already opined on it and basically says this.
I have no quarrel with the government mandating that you have a choice in your IRA or 401k account to buy short-duration Treasuries - much like the
"G" fund that government and civil-service workers have.
But - "choices" have a funny way of turning into mandates, and this looks to me like a raw admission that Treasury knows it will not be able to sell
its debt in the open market - so they will effectively tax you by forcing your "retirement" money to buy them!
I pretty much agree with both parts of that sentiment. I've seen several 401K's and 403bs that have crappy choices as far as ultra-safe annuity and
T type investments and would have no problem with the government mandating that plans require them as options.
But let's face it given the criminality of those currently in power on Wall Street and DC do you really think this idea coming now is for any reason
other than they see a problem funding the government in the not to distant future and need a large pool of money to continue the buying of our
Another nefarious posibillity is this, think about all the toxic crap on the FED's balance sheet, and the still being written sure to default Fannie
and Freddie (Fraudie and Phoney) paper. What if the annuity idea is not only to increase T purchases but to also find a place to put all this crap.
I think the tell will be in the details and speed of whatever plan comes out of this. If it simply requires retirement plans to offer a certain type
of low risk investment as an option that, on balance, is a a good thing. We will have some idea of how screwed we are when we see the percentages of
required contributions (and if rebalancing is required) to be placed in the annuity/T investments.
A year ago this was tinfoil, 6 months ago rumor, Friday was the trial balloon, and this story is getting some internet wings. Keep an eye out on the
details and speed with which this idea moves through .gov. It is important and remember that one of the things Argentina did on it's road to defaul
was seize private retirement accounts.