"The government is flat broke. Even by their own assessment, the US government’s “net worth” is NEGATIVE 16 trillion. That’s as of the end of 2012 (the 2013 numbers aren’t out yet). But the trend is actually worsening.
In 2009, the government’s net worth was negative $11.45 trillion. By 2010, it had dropped to minus $13.47 trillion. By 2011, minus $14.78 trillion. And by 2012, minus $16.1 trillion.
Here’s the thing: according to the IRS, there is well over $5 trillion in US individual retirement accounts. For a government as bankrupt as Uncle Sam is, $5 trillion is irresistible.
They need that money. They need YOUR money. And this MyRA program is the critical first step to corralling your hard earned retirement funds."
Therefore keep a close eye on the boys from Washington, because they and their banker buddies are keeping a close eye on your money. Remember, Social Security was supposed to be funded with money collected and invested from working Americans, but eventually our own government spent that money, and relies on current collections to pay their obligations. If they didn't flinch from stealing that retirement pile, they certainly won't flinch from stealing your 401k.
But that money isn't in those accounts. Those accounts are full of paper IOUs from companies and banks. Those companies and banks buy stock with it (other paper). Some of it bought treasury bills (so the government already got that money years ago in exchange for paper).
ReplyDeleteThere is nothing there to take. The whole point of investing money is to give it to someone who will spend it. There is no big vault full of trillions of dollars.
Minor quibble: Net worth of the US govt is not what you have calculated because it fails to account for all their assets, significantly public lands and mineral rights.
--Hale