Comment: Didn't Ireland

(See in situ)

In reply to comment: that makes no sense (see in situ)

Didn't Ireland

take money from people's retirement accounts to help offset their gov't deficits/debt in the last couple of years?

If people think it can't, or won't, happen here in the USA then I urge them to think again.

When the gov't gets broke enough... and desperate enough... they will come after both public and private retirement accounts.

In fact they already have. The gov't has already "borrowed" money against civil servants' retirement accounts. The same way they "borrowed" money from social security. I have little doubt that we will one day (probably not too far in the future) learn that the gov't has looted those civil servant pensions and they are no longer able to meet their future obligations... just like social security can't meet it's future obligations.

There is nothing to stop gov't from taking your retirement money if they really want to. Short of keeping it in your physical possession... or outright revolt maybe.

The gov't may try spinning it as a new "tax", or "fee", or something first. But if that doesn't work then they will go straight into your accounts and transfer money out without a second thought about it. Haven't we started to see things from the financial institutions re-iterating that retirement accounts are not insured and are not protected in any way. We have seen that financial institutions can, and do, pull from those to cover their liabilities elsewhere and if they lose their ass, and your money, in the process then you have little or no recourse whatsoever.

As for 401k's just being accounts. They are not. As we know they are not covered by any kind of deposit insurance. They come with the risk that they may gain or lose some or all of their value. They come with the risk that the financial institutions officers may plunder them at will with little or no remedy provided to those whose accounts they stole from. The come with the risk that even if the funds aren't stolen outright, that the gov't can impose the inflation tax on them at whatever rate they feel is necessary. Similarly, that the gov't can alter your personal income tax rate at any time to effectively collect as much of that retirement income as they deem fit.

As for stock rising with price inflation... if/when prices of goods and services skyrocket because of inflation, people will be forced to stop buying those things because their salaries won't keep up with the prices. The companies providing those goods and services will see their stocks sink because they will lose customers and revenue. There may be short lived stock gains (local peaks), but once reality sets in and people realize what's happening the market will crash. Try to imagine how a 90% stock market drop will affect your 401k.

It CAN happen here. All signs are pointing that it WILL happen here. Don't be caught by surprise when it does.

Our family's journey from the Rocket City to the Redoubt: