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The Stock Market, Your 401K, and the Economy: Is the Market Artificially Inflated for the Government’s Next Sinister Plan? April 12, 2010

Posted by seeineye in : Politics , add a comment

by Bungalow Bill

Have you looked at your 401 K statement lately? Chances are you are coming out of your 401K depression, although you probably aren’t all there yet. The market hit 11,000 today, and everything looks good right?

I am not sure I agree with that. While I am not an expert in Wall Street by any means, the economy doesn’t seem strong enough to drive up the value of stocks 36% over the last year. Doesn’t it seem curious in the least little bit, that there has been no real growth in the economy outside of government growth—artificial stimulus. Is the market strong? I have my doubts.

What bothers me more is the fact the government is talking about confiscating all American’s 401 K plans. Haven’t you heard? The United States under Barack Obama’s crazy spending sprees has become a credit risk. We are losing our credit worthiness around the world, and the countries that used to purchase our Treasury bonds are scrambling to get rid of them. With a country creating debt faster than any time in its history, the United States government is looking at possibilities to fund the debt and one of the possibilities is taxing your 401K at 100%. There’s nothing in the Constitution that prevents them from doing so.

They will claim they are doing it for the security of your retirement claiming the last few years have proven to risky to 401K investors, and the government can provide a much more secure plan for your money. They will reinvent Social Security this way, and they are already drawing the plans to do so. Of course the hundreds of thousands of dollars your 401K promised you will be gone in a matter of months as the US government robs Americans once again of what is rightfully theirs.

Oh, you will see traces of it when you retire. You will see what the government says you need to see to live an impoverished retirement void of RV trips to Branson, Gatlinburg, or wherever you can park it.

Some in the government are planning to take your 401K and invest it into US treasury bonds to further fund the national debt, and like Social Security, there will not be a lock box—just trillions and trillions more in unfunded liability they will eventually forget about because we already know they are hinting at healthcare rationing. The sooner you are dead, the less they will be required to pay back of your confiscated 401K.

So as the market hits 11,000 today, I am reminded of this 401 K confiscation plan which Newt Gingrich commented about a few weeks ago. I am wondering today, based on the little private sector activity in the economy, if they are driving up the market with stimulus money to give us hope in our 401K plans as they plan to confiscate them through a new Social Security tax. The problem I have with mine is I can’t touch it without leaving my job.

The Truth About the Health Care Bills March 20, 2010

Posted by seeineye in : Politics , add a comment

By Michael Connelly, Ret. Constitutional Attorney

Well, I have done it! I have read the entire text of proposed House Bill 3200: The Affordable Health Care Choices Act of 2009. I studied it with particular emphasis from my area of expertise, constitutional law. I was frankly concerned that parts of the proposed law that were being discussed might be unconstitutional. What I found was far worse than what I had heard or expected.

To begin with, much of what has been said about the law and its implications is in fact true, despite what the Democrats and the media are saying. The law does provide for rationing of health care, particularly where senior citizens and other classes of citizens are involved, free health care for illegal immigrants, free abortion services, and probably forced participation in abortions by members of the medical profession.

The Bill will also eventually force private insurance companies out of business, and put everyone into a government run system. All decisions about personal health care will ultimately be made by federal bureaucrats, and most of them will not be health care professionals. Hospital admissions, payments to physicians, and allocations of necessary medical devices will be strictly controlled by the government.

However, as scary as all of that is, it just scratches the surface. In fact, I have concluded that this legislation really has no intention of providing affordable health care choices. Instead it is a convenient cover for the most massive transfer of power to the Executive Branch of government that has ever occurred, or even been contemplated If this law or a similar one is adopted, major portions of the Constitution of the United States will effectively have been destroyed.

The first thing to go will be the masterfully crafted balance of power between the Executive, Legislative, and Judicial branches of the U.S. Government. The Congress will be transferring to the Obama Administration authority in a number of different areas over the lives of the American people, and the businesses they own.

The irony is that the Congress doesn’t have any authority to legislate in most of those areas to begin with! I defy anyone to read the text of the U.S. Constitution and find any authority granted to the members of Congress to regulate health care.

This legislation also provides for access, by the appointees of the Obama administration, of all of your personal healthcare direct violation of the specific provisions of the 4th Amendment to the Constitution information, your personal financial information, and the information of your employer, physician, and hospital. All of this is a protecting against unreasonable searches and seizures. You can also forget about the right to privacy. That will have been legislated into oblivion regardless of what the 3rd and 4th Amendments may provide.

If you decide not to have healthcare insurance, or if you have private insurance that is not deemed acceptable to the Health Choices Administrator appointed by Obama, there will be a tax imposed on you. It is called a tax instead of a fine because of the intent to avoid application of the due process clause of the 5th Amendment. However, that doesn’t work because since there is nothing in the law that allows you to contest or appeal the imposition of the tax, it is definitely depriving someone of property without the due process of law.

So, there are three of those pesky amendments that the far left hate so much, out the original ten in the Bill of Rights, that are effectively nullified by this law It doesn’t stop there though.

The 9th Amendment that provides: The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people;

The 10th Amendment states: The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are preserved to the States respectively, or to the people. Under the provisions of this piece of Congressional handiwork neither the people nor the states are going to have any rights or powers at all in many areas that once were theirs to control.

I could write many more pages about this legislation, but I think you get the idea. This is not about health care; it is about seizing power and limiting rights. Article 6 of the Constitution requires the members of both houses of Congress to “be bound by oath or affirmation to support the Constitution.” If I was a member of Congress I would not be able to vote for this legislation or anything like it, without feeling I was violating that sacred oath or affirmation. If I voted for it anyway, I would hope the American people would hold me accountable.

For those who might doubt the nature of this threat, I suggest they consult the source, the US Constitution, and Bill of Rights. There you can see exactly what we are about to have taken from us.

Michael Connelly Retired attorney,
Constitutional Law Instructor
Carrollton , Texas

Obama’s Budget Plans to Nationalize 401K Plans February 28, 2010

Posted by seeineye in : Politics , 1 comment so far

by Bungalow Bill

I warned you a week ago. The United States government is looking at 401K plans to fund the national debt. Obama is calling for establishing automatic workplace pension plans. This means the government will force you to pay another retirement tax, just like they did with Social Security through the FICA tax.

It’s was reported last week, the government was looking at confiscating all 401 k plans to help fund the debt, in exchange for US Treasury bonds that pay interest. Now Obama is pushing the plan.

They are calling Obama’s plan a way to protect your retirement savings. I told you this was coming in the name of security. An early analysis of Obama’s plan, shows the following disadvantage to Obama’s plan.

From the Daily Market:

This proposal is in the 2010 Budget and may be a start of a Government takeover of the American 401k and Retirement Account system. Obama is giving retirement, IRA, and 401k savers something to monitor closely….

President Barack Obama is calling for establishing automatic workplace pensions and expanding unemployment insurance as part of his spending plan for the U.S. Labor Department next fiscal year. We liken this to an “Obama 401k Plan”

The budget “lays the groundwork for future establishment of a system of automatic workplace pensions, to operate alongside Social Security, that is expected to dramatically increase” retirement and personal savings, Obama’s Office of Management and Budget said in its outline, without giving details on the costs.

Obama 401k Plan: What it entails

The plan would force employers that don’t offer retirement plans to enroll employees in a “direct-deposit IRA account,” with the option for workers themselves to opt out. Currently, 75 million working Americans, or about half the workforce, lacks employer-based retirement plans, according to the administration.

The troubling thing to me is that the government would pay a 3% fixed interest rate on the accounts as opposed to the diverse mutual fund offerings in a traditional 401k plan. In effect, this would create a “Social Security” type structure to your retirement, IRA, or 401k.

The lack of equity options in your 401k plan would dramatically affect the possible returns, especially over an extended period of time. Just think, the average equity return over the stock market’s history is somewhere between 9-11%. Do you think that you would be happy with 3%?

A traditional 401k Savings Plan vs. an Obama 401k Plan

$10,000 invested over a 30 year period at a 3% interest Rate

Final Savings Balance:$ 24568.42

$10,000 invested over a 30 year period at a 8% rate of return

Final Savings Balance:$ 109357.30

That is a $84,789 Difference to your disadvantage!

$10,000 invested over 30 years with an annual contribution of $2,000 at 3%

Final Savings Balance:$ 121302.74

$10,000 invested over 30 years with an annual contribution of $2,000 at 8%

Final Savings Balance:$ 356756.97

That is a $235,454 Difference to your disadvantage!

That is $235,454 less you will have on average with the Obama plan, if Obama is successful in replacing the 401k with another government retirement program. I will pull my 401K and pay the less taxes than let the government confiscate it with a 100% tax.