Wondering who will take over the mantle of Treasury bond buyer now that the Fed is stepping away? Curious of the government's next steps towards repression and control of wealth? Wait no longer. As the AP reports, President Obama will unveil a new retirement savings plan tonight that allows first-time savers to buy US Treasury bonds tax-deferred for retirement. Of course, this is not the mandatory IRA that remains somewhat inevitable (as the muddle-through fails) but is certainly a step in the direction we alerted readers to a year ago by which the government generously offers to help manage your retirement savings. Two words spring to mind... remember Poland.
Read More...
----------
The Fed, in recent years has been purchasing between 60-80% of the newly issued U.S. Treasuries, has been struggling to find an exit from QE realizing that the world’s U.S. bond investors (primarily China and Japan) would not tolerate perpetual printing and debasement of the U.S. Dollar. We have often speculated on this blog that exiting from QE would collapse the stock and real estate markets and hence the recovery, and therefore a clean break from QE would not be possible, UNLESS an alternative buyer of U.S. Treasuries could be found.
Last summer (June 2013) we noted that the new alternative buyer could be U.S. citizens:
A possible solution? A Bail In! U.S. citizens who have approximately $9 trillion in IRAs and 401K plans would be required to hold U.S. treasuries in those retirement accounts.
Its been calculated that each citizen’s portion of the U.S. is about $50,000.
The U.S. Government could using such a calculation to argue (or issue an executive order), you owe it and it is patriotic to help out and pay your fair share.
The U.S. government could easily point to the volatility of the stock market as being a poor retirement investment vehicle and that U.S. Treasuries would provide the right type of security for a safe retirement portfolio.
Problem/crisis solved: US citizens become the new buyer of last resort of U.S. Treasuries.
In subsequent podcasts, posted here and on You Tube, we have repeated this theme.
President Obama took the first step last night in guiding U.S. citizens towards buying U.S Treasury Bonds. We would think after the next stock crash/financial crisis, it’s possible that mandatory conversions of securities held in IRA’s and 401Ks to U.S. Treasury bonds be ordered (of course at similar low rates of interest that T-bonds are currently paying). After all its “safe”, “guaranteed” and the patriot thing to do.
http://smaulgld.com/obama-announces-myra-retirement-savings-accounts/
Read More...
----------
The Fed, in recent years has been purchasing between 60-80% of the newly issued U.S. Treasuries, has been struggling to find an exit from QE realizing that the world’s U.S. bond investors (primarily China and Japan) would not tolerate perpetual printing and debasement of the U.S. Dollar. We have often speculated on this blog that exiting from QE would collapse the stock and real estate markets and hence the recovery, and therefore a clean break from QE would not be possible, UNLESS an alternative buyer of U.S. Treasuries could be found.
Last summer (June 2013) we noted that the new alternative buyer could be U.S. citizens:
A possible solution? A Bail In! U.S. citizens who have approximately $9 trillion in IRAs and 401K plans would be required to hold U.S. treasuries in those retirement accounts.
Its been calculated that each citizen’s portion of the U.S. is about $50,000.
The U.S. Government could using such a calculation to argue (or issue an executive order), you owe it and it is patriotic to help out and pay your fair share.
The U.S. government could easily point to the volatility of the stock market as being a poor retirement investment vehicle and that U.S. Treasuries would provide the right type of security for a safe retirement portfolio.
Problem/crisis solved: US citizens become the new buyer of last resort of U.S. Treasuries.
In subsequent podcasts, posted here and on You Tube, we have repeated this theme.
President Obama took the first step last night in guiding U.S. citizens towards buying U.S Treasury Bonds. We would think after the next stock crash/financial crisis, it’s possible that mandatory conversions of securities held in IRA’s and 401Ks to U.S. Treasury bonds be ordered (of course at similar low rates of interest that T-bonds are currently paying). After all its “safe”, “guaranteed” and the patriot thing to do.
http://smaulgld.com/obama-announces-myra-retirement-savings-accounts/
