theeconomiccollapseblog.com
American families better get ready to tighten their belts again. There is every indication that we are all going to really start feeling the squeeze in the months ahead. The price of gas is starting to spike again. The price of food is moving north. Health insurance premium increases are being announced coast to coast and a whole slate of tax increases is scheduled to go into effect in 2011. Meanwhile, household incomes are down substantially all over the nation and the U.S. government is indicating that there will not be an increase in Social Security benefits for the upcoming year once again. So if the cost of most of the basic things in our monthly budgets is going up and our incomes are going down what does that mean? It means that average American families are about to be squeezed like nothing we have seen in decades.
The reality is that it is getting really hard to make it out there. Not only do most households have both parents working, but in many cases both parents are getting second or even third jobs. Things have gotten so bad that millions of Americans have felt forced to turn to the government for assistance just to survive.
It can be really disheartening to come to the end of the month and realize that despite your best efforts you have less money than you did at the beginning of the month. But that is where millions upon millions of American families now find themselves.
The economic despair in the air is almost palpable. Already hordes of Americans are truly and honestly hurting and things are only going to get worse.
The following are ten reasons why ordinary hard-working Americans are about to really start feeling the squeeze....
#1 Gas prices are going up again. AAA says that the average price of a gallon of regular gasoline in the United States was $2.80 on Sunday. That is 32.6 cents higher than it was during the same time period in 2009. As oil and gas prices continue to go up, that is also going to have a significant impact on utility bills for American families this winter.
#2 The price of food is poised to rise substantially. Bloomberg is reporting that the the cost of meat in the United States is going nowhere but up. But meat is not the only thing that you will soon be paying much more for at the supermarket. Wheat, corn, soybeans and almost every other major agricultural commodity is absolutely soaring this fall. As this continues, it is inevitable that ordinary Americans will see much higher food prices at their local grocery stores.
On a previous article, a reader named Erica left a comment in which see detailed the stunning food inflation that she is seeing where she lives....
Food inflation is real, and it is here. Just yesterday I compared my receipt from a grocery run to prices I have from the same exact store from September 15, 2009. Bacon? Up 52% to $13.69 from $8.99 for 4 lbs. Butter? Up 73% to $9.99 from $5.79 for 4 lbs. Pure vanilla extract up 14% to $6.79 from $5.95. Chopped dried onions up a mere 2% but minced garlic (wet) was up 32%.
#3 It looks like those receiving Social Security are not going to be seeing cost-of-living increases again. The Associated Press is reporting that the U.S. government is expected to announce some time this week that the tens of millions of Americans that receive Social Security will go through yet another year without an increase in their monthly benefit payments. You see, Social Security cost-of-living adjustments are tied to the official government inflation numbers, and according to the U.S. government there is basically very little inflation right now. Of course we all know that is a lie, but it is what it is.
#4 The cost of health care continues to soar into the stratosphere. Americans already pay more for health care than anyone else in the world, and yet costs continue to spiral out of control. The cost of health care increased a staggering 9.6% for all U.S. households from 2007 to 2009. Now, health insurance companies from coast to coast are announcing that they must raise health insurance premiums substantially due to the new health care law that Barack Obama and the Democrats have pushed through. So in 2011 it looks like the average American family is going to have to carve out an even bigger chunk of the budget for health care.
#5 American families could desperately use a recovery in the housing industry, but that is simply not going to happen. Foreclosure-Gate is getting worse by the day, and it threatens to bring the U.S. real estate industry to a complete and total standstill. If it is ultimately proven that the paperwork for millions of mortgages in the United States is seriously deficient, it could push hordes of mortgage lenders into bankruptcy and render mountains of mortgage-backed securities nearly worthless. Regardless, it is now going to be much more difficult to get a mortgage, much more difficult to buy a home and much more difficult to sell a home. We could very well be looking at the next stage of the housing crash. Ordinary Americans could end up losing trillions more in home equity.
#6 More Americans than ever find themselves unable to pay their bills, and an increasing number of frustrated creditors are actually resorting to wage garnishment. Yes, you read the correctly. Creditors are starting to ruthlessly go after the weekly paychecks of debtors.
The following is an excerpt from a recent New York Times article that discussed the rise of wage garnishment as a weapon against debtors....
After winning, creditors can secure a court order to seize part of the debtor’s paycheck or the funds in a bank account, a procedure called garnishment. No national statistics are kept, but the pay seizures are rising fast in some areas — up 121 percent in the Phoenix area since 2005, and 55 percent in the Atlanta area since 2004. In Cleveland, garnishments jumped 30 percent between 2008 and 2009 alone.
So if you are getting behind on your debt, you better watch out - your creditors may soon decide to garnish your wages.
#7 Americans now owe more on student loans than they do on credit cards. As hard as that is to believe, that is actually true. Americans now owe more than $849 billion on student loans, which is a new all-time record.
Student loan payments can be absolutely crippling to a household budget. This is especially true for young Americans that have just gotten out of school. Sadly, student loan debt is nearly impossible to get rid of. Once you are committed, it will follow you around for the rest of your life.
#8 Even as expenses rise, incomes are down from coast to coast. Median household income in the U.S. declined from $51,726 in 2008 to $50,221 in 2009. There are very few areas that have not been affected. In fact, of the 52 largest metro areas in the United States, only the city of San Antonio did not see a decline in median household income during 2009.
#9 If all of this was not bad enough, now there are rumblings that the U.S. Federal Reserve is actually thinking that we need more inflation. A number of top Federal Reserve officials have come out recently and have publicly supported the notion that the Fed needs to purposely create more inflation in order to stimulate the economy. Of course what they don't tell the American people is that inflation is a hidden tax on every single dollar in our wallets and in our bank accounts. More inflation would be really bad news for ordinary Americans, because they are already having a tough time getting their dollars to stretch far enough.
#10 Apparently the U.S. government (and many state and local governments) think that this is a great time to stick it to the American people by hitting them with a slew of new taxes. There are so many tax increases scheduled to go into effect in 2011 that it is hard to keep track of them all. In fact, there are many (myself included) that are calling 2011 "the year of the tax increase". But the Americans that are going to get it the worst of all are those that are going to get hit with the Alternative Minimum Tax. One out of every six American households is going to be hit with a tax increase averaging $3,900 (thanks to the AMT) and most of them don't even know that it is coming.
So did you think that 2010 was bad?
Well, you haven't seen anything yet.
2010 was a Sunday picnic compared to what is coming.
Get ready to get squeezed.
Get ready for higher food prices, higher gas prices, higher health insurance premiums and higher taxes.
Get ready to try to do a lot more with a lot less.
Inflation is already here, but it is going to get a whole lot worse. Meanwhile, the U.S. government (along with state and local governments) is going to continue to have a voracious appetite for more revenue.
Average Americans are going to be squeezed until they have nothing left to give. Then they are going to be squeezed just a little bit more.
Are you ready?
View Article With Links HERE
Tuesday, October 12, 2010
Darpa Starts Sluething Out Disloyal Troops
By Spencer Ackerman
Wired.com
The military is scrambling to identify disgruntled or radicalized troops who pose a threat to themselves or their buddies. So the futurists at Darpa are asking for algorithms to find and pre-empt anyone planning the next Fort Hood massacre, WikiLeaks document dump or suicide-in-uniform.
This counterintelligence-heavy effort isn’t Darpa’s typical push to create flying Humvees or brainwave-powered prosthetic limbs. But the Pentagon’s far-out R&D team has made other moves recently to hunt down threats from within.
The idea behind the Anomaly Detection at Multiple Scales, or Adams, effort is to sift through “massive data sets” to find the warning signs of looming homicide, suicide or other destructive behavior. “The focus is on malevolent insiders that started out as ‘good guys.’ The specific goal of Adams is to detect anomalous behaviors before or shortly after they turn,” the agency writes in its program announcement.
Currently, Darpa says, the Defense Department doesn’t actually know how “a soldier in good mental health” actually comes to pose an “insider threat,” defined as “an already trusted person in a secure environment with access to sensitive information and information systems and sources.” (WikiLeaks, anyone?)
“When we look through the evidence after the fact, we often find a trail –- sometimes even an ‘obvious’ one,” Darpa adds. “The question is can we pick up the trail before the fact, giving us time to intervene and prevent an incident? Why is that so hard?”
Adams is supposed to fill the breach. But what kind of tech would be necessary to detect these anomalies? What sort of data actually represent worrisome anomalies, as opposed to a soldier harmlessly venting steam?
Unclear. The full Adams request for proposal won’t be released until “mid-October.” It’s inviting anyone interested in thinking those questions through to an Oct. 19 “Industry Day” conference at the Arlington, Virginia, offices of the Systems Planning Corporation, a defense-research firm.
Adams isn’t Darpa’s first move into internal military sleuthing. In August, it announced plans to build a system called Cyber Insider Threat, or Cinder, to hunt down patterns of suspicious cyberbehavior on military networks that might indicate internal subversion or outside infiltration.
But even though Cinder is overseen by top hacker Peiter “Mudge” Zatko, it doesn’t sound like Darpa knows precisely what it’s looking for. Anomalous behavior could be “comprised of entirely ‘legitimate’ activities, observables and the data sources they will be derived from,” its August contractor solicitation acknowledged. How to distinguish the real warning signs from the false positives?
Then again, the rest of the Defense Department has been caught off-guard on radicalization. After a shooter — allegedly Army Major Nidal Malik Hasan — killed 13 people at Fort Hood last November, an independent inquiry ripped the department for not giving clear guidance on how to identify the warning signs of radicalization.
And that inquiry came under fire from the House Armed Services Committee for avoiding questions about radical Islam taking hold within the military after it came out that Hasan was in touch with al-Qaeda-aligned preacher Anwar al-Awlaqi.
All this suggests the blind are still leading the blind when it comes to stopping internal military subversion. It’s far from clear what kind of data — troops’ e-mail? web trails? book orders? — Darpa would use to ferret out troops who pose a risk to themselves or others.
Nor is it clear if any such effort can succeed against a soldier who just snaps. But it’s not as if there are clear alternatives to confront an insidious and deadly problem.
View Original Article With Links HERE
Wired.com
The military is scrambling to identify disgruntled or radicalized troops who pose a threat to themselves or their buddies. So the futurists at Darpa are asking for algorithms to find and pre-empt anyone planning the next Fort Hood massacre, WikiLeaks document dump or suicide-in-uniform.
This counterintelligence-heavy effort isn’t Darpa’s typical push to create flying Humvees or brainwave-powered prosthetic limbs. But the Pentagon’s far-out R&D team has made other moves recently to hunt down threats from within.
The idea behind the Anomaly Detection at Multiple Scales, or Adams, effort is to sift through “massive data sets” to find the warning signs of looming homicide, suicide or other destructive behavior. “The focus is on malevolent insiders that started out as ‘good guys.’ The specific goal of Adams is to detect anomalous behaviors before or shortly after they turn,” the agency writes in its program announcement.
Currently, Darpa says, the Defense Department doesn’t actually know how “a soldier in good mental health” actually comes to pose an “insider threat,” defined as “an already trusted person in a secure environment with access to sensitive information and information systems and sources.” (WikiLeaks, anyone?)
“When we look through the evidence after the fact, we often find a trail –- sometimes even an ‘obvious’ one,” Darpa adds. “The question is can we pick up the trail before the fact, giving us time to intervene and prevent an incident? Why is that so hard?”
Adams is supposed to fill the breach. But what kind of tech would be necessary to detect these anomalies? What sort of data actually represent worrisome anomalies, as opposed to a soldier harmlessly venting steam?
Unclear. The full Adams request for proposal won’t be released until “mid-October.” It’s inviting anyone interested in thinking those questions through to an Oct. 19 “Industry Day” conference at the Arlington, Virginia, offices of the Systems Planning Corporation, a defense-research firm.
Adams isn’t Darpa’s first move into internal military sleuthing. In August, it announced plans to build a system called Cyber Insider Threat, or Cinder, to hunt down patterns of suspicious cyberbehavior on military networks that might indicate internal subversion or outside infiltration.
But even though Cinder is overseen by top hacker Peiter “Mudge” Zatko, it doesn’t sound like Darpa knows precisely what it’s looking for. Anomalous behavior could be “comprised of entirely ‘legitimate’ activities, observables and the data sources they will be derived from,” its August contractor solicitation acknowledged. How to distinguish the real warning signs from the false positives?
Then again, the rest of the Defense Department has been caught off-guard on radicalization. After a shooter — allegedly Army Major Nidal Malik Hasan — killed 13 people at Fort Hood last November, an independent inquiry ripped the department for not giving clear guidance on how to identify the warning signs of radicalization.
And that inquiry came under fire from the House Armed Services Committee for avoiding questions about radical Islam taking hold within the military after it came out that Hasan was in touch with al-Qaeda-aligned preacher Anwar al-Awlaqi.
All this suggests the blind are still leading the blind when it comes to stopping internal military subversion. It’s far from clear what kind of data — troops’ e-mail? web trails? book orders? — Darpa would use to ferret out troops who pose a risk to themselves or others.
Nor is it clear if any such effort can succeed against a soldier who just snaps. But it’s not as if there are clear alternatives to confront an insidious and deadly problem.
View Original Article With Links HERE
Judge Orders 'Don't Ask, Don't Tell' Injunction
By JULIE WATSON, Associated Press Writer
SAN DIEGO – A federal judge issued a worldwide injunction Tuesday immediately stopping enforcement of the military's "don't ask, don't tell" policy, suspending the 17-year-old ban on openly gay U.S. troops.
U.S. District Judge Virginia Phillips' landmark ruling also ordered the government to suspend and discontinue all pending discharge proceedings and investigations under the policy.
U.S. Department of Justice attorneys have 60 days to appeal. Pentagon and Department of Justice officials said they are reviewing the case and had no immediate comment.
The injunction goes into effect immediately, said Dan Woods, the attorney who represented the Log Cabin Republicans, the gay rights group that filed the lawsuit in 2004 to stop the ban's enforcement.
"Don't ask, don't tell, as of today at least, is done, and the government is going to have to do something now to resurrect it," Woods said. "This is an extremely significant, historic decision. Once and for all, this failed policy is stopped. Fortunately now we hope all Americans who wish to serve their country can."
Legal experts say the Obama administration is under no legal obligation to appeal and could let Phillips' ruling stand.
Phillips' decision was widely cheered by gay rights organizations that credited her with getting accomplished what President Obama and Washington politics could not.
"This order from Judge Phillips is another historic and courageous step in the right direction, a step that Congress has been noticeably slow in taking," said Alexander Nicholson, executive director of Servicemembers United, the nation's largest organization of gay and lesbian troops and veterans.
He was the sole named veteran plaintiff in the case along with the Log Cabin Republicans, a gay rights organization that filed the lawsuit in 2004 to stop the ban's enforcement.
Gay rights groups warned gay troops not to make their sexual orientation public just yet. Aaron Tax, the legal director for the Servicemembers Legal Defense Network, said he expects the Justice Department to appeal. If that happens, the case would be brought to the U.S. Court of Appeals for the 9th Circuit, where the decision could be reversed.
"Service members must proceed safely and should not come out at this time," Tax said in a statement.
Supporters of the ban said Phillips overstepped her bounds.
"The judge ignored the evidence to impose her ill-informed and biased opinion on our military, endangering morale, health and security of our military at a time of war," said Wendy Wright, president of Concerned Women for America, a women's group on public policy. "She did not do what Congress did when it passed the law and investigate the far-reaching effects of how this will detrimentally impact the men and women who risk their lives to defend us."
The case put the Obama administration in the awkward position of defending a policy it wants Congress to repeal.
Defense Secretary Robert Gates, a Republican, and Chairman of the Joint Chiefs of Staff Adm. Mike Mullen, the military's top uniformed officer, have both said they support lifting the ban. But Gates and Mullen also have said they would prefer to move slowly.
Gates has ordered a sweeping study, due Dec. 1, that includes a survey of troops and their families.
President Obama agreed to the Pentagon study but also worked with Democrats to write a bill that would have lifted the ban, pending completion of the Defense Department review and certification from the military that troop morale wouldn't suffer.
That legislation passed the House but was blocked in the Senate by Republicans.
Gates has said the purpose of his study isn't to determine whether to change the law — something he says is probably inevitable but up for Congress to decide. Instead, the study is intended to determine how to lift the ban without causing serious disruption at a time when troops are fighting two wars.
"The president has taken a very consistent position here, and that is: 'Look, I will not use my discretion in any way that will step on Congress' ability to be the sole decider about this policy here,' " said Diane H. Mazur, legal co-director of the Palm Center, a think tank at the University of California at Santa Barbara that supports a repeal.
Government attorneys had warned Phillips that such an abrupt change might harm military operations in a time of war. They had asked Phillips to limit her ruling to the 19,000 members of the Log Cabin Republicans, which includes current and former military service members.
The Department of Justice attorneys also said Congress should decide the issue — not her court.
Phillips disagreed, saying the law doesn't help military readiness and instead has a "direct and deleterious effect" on the armed services by hurting recruiting during wartime and requiring the discharge of service members with critical skills and training.
"Furthermore, there is no adequate remedy at law to prevent the continued violation of servicemembers' rights or to compensate them for violation of their rights," Phillips said in her order.
She said Department of Justice attorneys did not address these issues in their objection to her expected injunction.
Phillips declared the law unconstitutional after listening to the testimony of discharged service members during a two-week nonjury trial this summer in federal court in Riverside.
She said the Log Cabin Republicans "established at trial that the Don't Ask, Don't Tell Act irreparably injures servicemembers by infringing their fundamental rights." She said the policy violates due process rights, freedom of speech and the right to petition the government for redress of grievances guaranteed by the First Amendment.
Phillips is the second federal judge in recent weeks to throw the law into disarray.
A federal judge last month in Tacoma, Wash., ruled that a decorated flight nurse discharged from the Air Force for being gay should be given her job back as soon as possible. Barring an appeal, Maj. Margaret Witt who was suspended in 2004, will now be able to serve despite being openly gay.
Gay rights advocates have worried they lost a crucial opportunity to change the law when Senate Republicans opposed the defense bill last month because of a "don't ask, don't tell" repeal provision.
If Democrats lose seats in the upcoming elections, repealing the ban could prove even more difficult — if not impossible — next year.
The "don't ask, don't tell" policy prohibits the military from asking about the sexual orientation of service members but bans those who are openly gay. Under the 1993 policy, service men and women who acknowledge being gay or are discovered engaging in homosexual activity, even in the privacy of their own homes off base, are subject to discharge.
View Original Article HERE
SAN DIEGO – A federal judge issued a worldwide injunction Tuesday immediately stopping enforcement of the military's "don't ask, don't tell" policy, suspending the 17-year-old ban on openly gay U.S. troops.
U.S. District Judge Virginia Phillips' landmark ruling also ordered the government to suspend and discontinue all pending discharge proceedings and investigations under the policy.
U.S. Department of Justice attorneys have 60 days to appeal. Pentagon and Department of Justice officials said they are reviewing the case and had no immediate comment.
The injunction goes into effect immediately, said Dan Woods, the attorney who represented the Log Cabin Republicans, the gay rights group that filed the lawsuit in 2004 to stop the ban's enforcement.
"Don't ask, don't tell, as of today at least, is done, and the government is going to have to do something now to resurrect it," Woods said. "This is an extremely significant, historic decision. Once and for all, this failed policy is stopped. Fortunately now we hope all Americans who wish to serve their country can."
Legal experts say the Obama administration is under no legal obligation to appeal and could let Phillips' ruling stand.
Phillips' decision was widely cheered by gay rights organizations that credited her with getting accomplished what President Obama and Washington politics could not.
"This order from Judge Phillips is another historic and courageous step in the right direction, a step that Congress has been noticeably slow in taking," said Alexander Nicholson, executive director of Servicemembers United, the nation's largest organization of gay and lesbian troops and veterans.
He was the sole named veteran plaintiff in the case along with the Log Cabin Republicans, a gay rights organization that filed the lawsuit in 2004 to stop the ban's enforcement.
Gay rights groups warned gay troops not to make their sexual orientation public just yet. Aaron Tax, the legal director for the Servicemembers Legal Defense Network, said he expects the Justice Department to appeal. If that happens, the case would be brought to the U.S. Court of Appeals for the 9th Circuit, where the decision could be reversed.
"Service members must proceed safely and should not come out at this time," Tax said in a statement.
Supporters of the ban said Phillips overstepped her bounds.
"The judge ignored the evidence to impose her ill-informed and biased opinion on our military, endangering morale, health and security of our military at a time of war," said Wendy Wright, president of Concerned Women for America, a women's group on public policy. "She did not do what Congress did when it passed the law and investigate the far-reaching effects of how this will detrimentally impact the men and women who risk their lives to defend us."
The case put the Obama administration in the awkward position of defending a policy it wants Congress to repeal.
Defense Secretary Robert Gates, a Republican, and Chairman of the Joint Chiefs of Staff Adm. Mike Mullen, the military's top uniformed officer, have both said they support lifting the ban. But Gates and Mullen also have said they would prefer to move slowly.
Gates has ordered a sweeping study, due Dec. 1, that includes a survey of troops and their families.
President Obama agreed to the Pentagon study but also worked with Democrats to write a bill that would have lifted the ban, pending completion of the Defense Department review and certification from the military that troop morale wouldn't suffer.
That legislation passed the House but was blocked in the Senate by Republicans.
Gates has said the purpose of his study isn't to determine whether to change the law — something he says is probably inevitable but up for Congress to decide. Instead, the study is intended to determine how to lift the ban without causing serious disruption at a time when troops are fighting two wars.
"The president has taken a very consistent position here, and that is: 'Look, I will not use my discretion in any way that will step on Congress' ability to be the sole decider about this policy here,' " said Diane H. Mazur, legal co-director of the Palm Center, a think tank at the University of California at Santa Barbara that supports a repeal.
Government attorneys had warned Phillips that such an abrupt change might harm military operations in a time of war. They had asked Phillips to limit her ruling to the 19,000 members of the Log Cabin Republicans, which includes current and former military service members.
The Department of Justice attorneys also said Congress should decide the issue — not her court.
Phillips disagreed, saying the law doesn't help military readiness and instead has a "direct and deleterious effect" on the armed services by hurting recruiting during wartime and requiring the discharge of service members with critical skills and training.
"Furthermore, there is no adequate remedy at law to prevent the continued violation of servicemembers' rights or to compensate them for violation of their rights," Phillips said in her order.
She said Department of Justice attorneys did not address these issues in their objection to her expected injunction.
Phillips declared the law unconstitutional after listening to the testimony of discharged service members during a two-week nonjury trial this summer in federal court in Riverside.
She said the Log Cabin Republicans "established at trial that the Don't Ask, Don't Tell Act irreparably injures servicemembers by infringing their fundamental rights." She said the policy violates due process rights, freedom of speech and the right to petition the government for redress of grievances guaranteed by the First Amendment.
Phillips is the second federal judge in recent weeks to throw the law into disarray.
A federal judge last month in Tacoma, Wash., ruled that a decorated flight nurse discharged from the Air Force for being gay should be given her job back as soon as possible. Barring an appeal, Maj. Margaret Witt who was suspended in 2004, will now be able to serve despite being openly gay.
Gay rights advocates have worried they lost a crucial opportunity to change the law when Senate Republicans opposed the defense bill last month because of a "don't ask, don't tell" repeal provision.
If Democrats lose seats in the upcoming elections, repealing the ban could prove even more difficult — if not impossible — next year.
The "don't ask, don't tell" policy prohibits the military from asking about the sexual orientation of service members but bans those who are openly gay. Under the 1993 policy, service men and women who acknowledge being gay or are discovered engaging in homosexual activity, even in the privacy of their own homes off base, are subject to discharge.
View Original Article HERE
Government Prepares To Seize Private Pensions
Paul Joseph Watson
Infowars.com
The government is preparing to seize the private 401(k) pensions of millions of Americans while enforcing an additional 5 per cent payroll tax as part of a new bailout program that will empower the Social Security Administration to redistribute pension funds in a frightening example of big government gone wild.
Public pension plans have been so aggressively looted already by the government that cities and counties face a $574 billion funding gap, according to a CNBC report.
That black hole is set to be filled by a new proposal that will “fairly” distribute taxpayer-funded pensions to everyone, by confiscating the private wealth of millions of Americans. Its proponents express staggering arrogance in thinking that they can just steal money people have worked for decades to accrue as if it’s their own.
Not only would the government confiscate 401(k) pensions, it would also impose a mandatory 5 per cent payroll tax payable by everyone, according to a hearing chaired last week by Sen. Tom Harkin (D-Iowa), Chairman of the Health, Education, Labor and Pensions (HELP) Committee.
“This would, of course, be a sister government ponzi scheme working in tandem with Social Security, the primary purpose being to give big government politicians additional taxpayer funds to raid to pay for their out-of-control spending,” writes Connie Hair.
The hearing was a platform for advocates of Guaranteed Retirement Accounts (GRAs), a program authored by Teresa Ghilarducci, professor of economic policy analysis at the New School for Social Research in New York. Back in November 2008, Ghilarducci testified to Congress that 401(k)s and IRAs should be confiscated and converted into universal Guaranteed Retirement Accounts (GRAs) managed by the Social Security Administration.
“You don’t hold hearings on something you don’t intend to do,” points out the Market Ticker blog. “I hate it when I’m right. I hate it even more when tens of millions of Americans are going to get reamed to pay for the crimes of the handful on Wall Street, and their crony enablers in Washington DC.”
The GRAs would be enforced by means of a mandatory savings tax equating to 5 per cent of an individual’s annual paycheck deposited to the GRA. Social Security and Medicare taxes would still be payable, employers would no longer would be able to write off their contributions and capital gains would be taxable year-on-year. In addition, workers could bequeath only half of their account balances to their heirs, unlike full balances from existing 401(k) and IRA accounts.
During a Seattle radio interview in October 2008, Ghilarducci explained the motive behind the plan, stating, “I’m just rearranging the tax breaks that are available now for 401(k)s and spreading – spreading the wealth” (emphasis mine).
However, as we painfully learned in the immediate aftermath of the original $700 million dollar bailout, which was originally sold on the basis that it would be used to pay off bad debt, governments that propose “spreading the wealth” under socialist-style financial reforms almost always collect the wealth under the pretext of being the saviors before greedily hoarding it all for themselves.
The GRA program is being pushed by the Economic Policy Institute, an organization housed on the third floor of the building occupied by the George Soros-funded Center for American Progress. The Center for American Progress is a think tank headed by Bill Clinton’s former chief of staff John D. Podesta, who was also head of Barack Obama’s presidential transition team after the 2008 election.
In preparing to seize private pensions, the United States is going the same way as Argentinean government, which in 2008 nationalized the country’s private pension plans, known as AFJPs, confiscating the wealth of millions.
“We have no doubt that here the right to private property is being violated. Not just for us but for society and the world, this is a clear confiscation,” said opposition Radical Party’s Ernesto Sanz at the time.
How will Americans react to having not only their wealth but their nest egg for future generations brazenly confiscated by the government in one fell swoop? If this doesn’t prompt widespread rioting and civil disobedience in America on behalf of the besieged middle class then nothing will.
Don’t be under any illusions, if you don’t have a private pension and think this won’t affect you – think again. Once the pretext has been created that the state can simply confiscate privately earned wealth, they can then come after anything, your gold, your home, your kids and eventually your very freedom. Once the vampire of big government gets a taste for blood, the teeth will only sink in further, and America’s resemblance to third world tyrannies will rapidly accelerate.
View Original Article HERE
Infowars.com
The government is preparing to seize the private 401(k) pensions of millions of Americans while enforcing an additional 5 per cent payroll tax as part of a new bailout program that will empower the Social Security Administration to redistribute pension funds in a frightening example of big government gone wild.
Public pension plans have been so aggressively looted already by the government that cities and counties face a $574 billion funding gap, according to a CNBC report.
That black hole is set to be filled by a new proposal that will “fairly” distribute taxpayer-funded pensions to everyone, by confiscating the private wealth of millions of Americans. Its proponents express staggering arrogance in thinking that they can just steal money people have worked for decades to accrue as if it’s their own.
Not only would the government confiscate 401(k) pensions, it would also impose a mandatory 5 per cent payroll tax payable by everyone, according to a hearing chaired last week by Sen. Tom Harkin (D-Iowa), Chairman of the Health, Education, Labor and Pensions (HELP) Committee.
“This would, of course, be a sister government ponzi scheme working in tandem with Social Security, the primary purpose being to give big government politicians additional taxpayer funds to raid to pay for their out-of-control spending,” writes Connie Hair.
The hearing was a platform for advocates of Guaranteed Retirement Accounts (GRAs), a program authored by Teresa Ghilarducci, professor of economic policy analysis at the New School for Social Research in New York. Back in November 2008, Ghilarducci testified to Congress that 401(k)s and IRAs should be confiscated and converted into universal Guaranteed Retirement Accounts (GRAs) managed by the Social Security Administration.
“You don’t hold hearings on something you don’t intend to do,” points out the Market Ticker blog. “I hate it when I’m right. I hate it even more when tens of millions of Americans are going to get reamed to pay for the crimes of the handful on Wall Street, and their crony enablers in Washington DC.”
The GRAs would be enforced by means of a mandatory savings tax equating to 5 per cent of an individual’s annual paycheck deposited to the GRA. Social Security and Medicare taxes would still be payable, employers would no longer would be able to write off their contributions and capital gains would be taxable year-on-year. In addition, workers could bequeath only half of their account balances to their heirs, unlike full balances from existing 401(k) and IRA accounts.
During a Seattle radio interview in October 2008, Ghilarducci explained the motive behind the plan, stating, “I’m just rearranging the tax breaks that are available now for 401(k)s and spreading – spreading the wealth” (emphasis mine).
However, as we painfully learned in the immediate aftermath of the original $700 million dollar bailout, which was originally sold on the basis that it would be used to pay off bad debt, governments that propose “spreading the wealth” under socialist-style financial reforms almost always collect the wealth under the pretext of being the saviors before greedily hoarding it all for themselves.
The GRA program is being pushed by the Economic Policy Institute, an organization housed on the third floor of the building occupied by the George Soros-funded Center for American Progress. The Center for American Progress is a think tank headed by Bill Clinton’s former chief of staff John D. Podesta, who was also head of Barack Obama’s presidential transition team after the 2008 election.
In preparing to seize private pensions, the United States is going the same way as Argentinean government, which in 2008 nationalized the country’s private pension plans, known as AFJPs, confiscating the wealth of millions.
“We have no doubt that here the right to private property is being violated. Not just for us but for society and the world, this is a clear confiscation,” said opposition Radical Party’s Ernesto Sanz at the time.
How will Americans react to having not only their wealth but their nest egg for future generations brazenly confiscated by the government in one fell swoop? If this doesn’t prompt widespread rioting and civil disobedience in America on behalf of the besieged middle class then nothing will.
Don’t be under any illusions, if you don’t have a private pension and think this won’t affect you – think again. Once the pretext has been created that the state can simply confiscate privately earned wealth, they can then come after anything, your gold, your home, your kids and eventually your very freedom. Once the vampire of big government gets a taste for blood, the teeth will only sink in further, and America’s resemblance to third world tyrannies will rapidly accelerate.
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