IRA Confiscation Could Never Happen Here... Right?

If you would have asked me a few years ago if the federal government would put limits on – or outright steal – 401(k) and IRA accounts from Americans, I would have told you to get your meds and your tinfoil hat adjusted. However, given the times we live in, the people we have in government, and knowing that it's happened in other countries before... it's not that far-fetched a notion. Just look at the recent outright theft of bank deposits by the IMF and EU in Cyprus.

Argentina's government “borrowed” citizens' pensions in 2001 AND 2008; Bulgaria, France and Hungary did in 2010, and Ireland followed suit in 2011. It's obvious the federal government has absolutely NO intention to cut spending or balance budgets until their backs are against the political wall. Elected officials are addicted to substitute good speeches and minor reductions in spending increases for sound fiscal policy – not actual Honest-to-Pete cuts, where spending in Year 2 is less than Year 1. Every time they have a chance to cut spending, they just “kick the can” down the financial road, and always avoid any short-term economic (or political) pain.

The obvious next step for greedy politicians is to look for large amounts of cash that can solve the problem in the short-term. As of September 2012, Americans had an estimated $19.4 trillion in private retirement accounts. That amount would definitely cover most or all of our national debt – depending on if/when the government took this action.

If the federal government decided to “borrow” your retirement funds, the money will probably be rolled into Treasury bonds paying a paltry amount of interest per year. You'll get a small interest payment every month, but I have serious doubts you'll ever regain control of your money. Anything with government is like the financial version of the Hotel California: You can check out anytime you like, but you can never leave.

In case you think “Something that could and would never happen in America,” sorry to burst your bubble - but it already has. FDR stole people's purchasing power by devaluing the dollar in 1933. President Nixon closed the gold window in 1971 and Henry Kissinger created the Petro-Dollar standard in 1973, which further fueled inflation by allowing the US to borrow, print and spend even more funny money. And I don't think the Obama Administration has any problem confiscating Americans' retirement funds.

For more proof, just click here, here, and especially here – Jim Sinclair gives a strong warning to exit the system and avoid the Financial Nazis.