The dangers of Obama’s ‘MyRA’ scam

President Obama introduced several new government programs during Tuesday’s State of the Union address, and one involved the federal government taking over your retirement account. According to President Obama, the ‘MyRA’ account would “guarantee a decent return with no risk of losing what you put it.” Sounds too good to be true, right? Well, that’s because it is.

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Glenn opened the radio program this morning by reading an excerpt from a great post on Zero Hedge by Simon Black of Sovereign Man blog that sums up the program laid out by President Obama on Tuesday:

I have an old acquaintance named Sam who has a hell of a deal for you.

Sam is actually a pretty famous guy with a big reputation. Unfortunately he has been a bit down and out on his luck lately… but he’s trying to make a comeback. And Sam is prepared to float you a really great investment opportunity.

Here’s the deal he’s offering: you give Sam your hard-earned retirement savings. Sam will invest your funds, and pay you a rate of return.

Granted, the rate of return he’s promising doesn’t quite keep up with inflation. So you will be losing some money. But don’t dwell on that too much.

And, rather than invest your funds in productive assets, Sam is going to blow it all on new cars and flat screen TVs. So when it comes time to make interest payments, Sam won’t have any money left.

But don’t worry, he still has that good ole’ credibility. So even though his financial situation gets worse by the year, Sam will just go back out there and borrow more money from other people to pay you back.

Of course, he will be able to keep doing this forever without any consequences whatsoever.

I know what you’re thinking– “where do I sign??” I know, right? It’s the deal of the lifetime.

This is basically the offer that the President of the United States floated last night…

Read the entire post HERE.

“It’s a great article from Zero Hedge, and not a lot of people are talking about this. During the State of the Union address, our president looked our people straight in the face and he said we’re going to give you a decent return with no risk of losing what you put in. Mr. President, I don’t think I’m going to take or recommend [that] to anybody,” Glenn said. “What they’re going to do is you will sign over your IRA And then the government is going to use all of that money to pay the bills and pay for things that we can’t afford. But don’t worry.”

President Obama laid out the following plan in Tuesday’s State of the Union:

OBAMA: Let’s do more to help Americans save for retirement. Today, most workers don’t have a pension. A Social Security check often isn’t enough on its own. And while the stock market has doubled over the last five years, that doesn’t help folks who don’t have 401ks. That’s why, tomorrow, I will direct the Treasury to create a new way for working Americans to start their own retirement savings: MyRA. It’s a new savings bond that encourages folks to build a nest egg. MyRA guarantees a decent return with no risk of losing what you put in. And if this Congress wants to help, work with me to fix an upside-down tax code that gives big tax breaks to help the wealthy save, but does little to nothing for middle-class Americans. Offer every American access to an automatic IRA on the job, so they can save at work just like everyone in this chamber can…

While President Obama tried to see the plan as a safe and secure bet for our nation’s retired population, the introduction of the MyRA essentially confirms the notion that the U.S. government can longer find anyone to lend them money.

“Well, okay, we can’t get China to invest anymore, but it’s not like we can’t get Japan… Okay, we can’t get Japan to invest anymore,” Glenn joked. “It’s not like we can’t sell our treasury bonds anymore to the world. Okay, we can’t actually sell our treasury bonds to the world anymore, but we have the Fed. The Fed already owns, what is it, $4 trillion of our debt… If the Fed loses that $4 trillion, don’t worry. I mean their balance sheet isn’t all upside down.”

Regardless of how this program shakes out, Glenn was confident the Obama Administration will enjoy the support of organizations like the AARP, which may very well allow this giant ponzi scheme to get off the ground.

“You watch – AARP will be at the lead of this,” Glenn concluded. “You know what? This is a good idea. Why? Because the elites will be the ones that will benefit from your money. And you will be left penniless. It’s like saying, ‘Is that you, Bob?’ ‘Yeah, it’s me. I’m Bob. I got a bank. I’ll put my money in my pocket. Thanks for going to Bob’s bank.’ Nobody would do it. Wise up, America! Wise up!”

Front page image courtesy of the AP

  • Lucas Forde

    When is the theft going to stop.

  • Anonymous

    if you like your money you can keep it…/sarc

  • Anonymous

    You know the answer to that one…keep your powder dry.

  • Anonymous

    Classic Obama, jam a program through knowing that there isn’t anybody to put any money into it.

  • http://www.youtube.com/watch?v=V8FvmesaxXg Sam Fisher

    Protest the hell out of it. All it is going to be is another Obamacare.

  • Kathy Baucom Koepke

    In the 30′s the banks gambled(invested) for the common man and when all was said and done… The common man had to endure the Great Depression… What makes the government so much smarter….NOTHING!

  • Anonymous

    Remember a previous government scheme — using dedicated the Social Security fund account to finance a war and shifting Social Security to a “pay-as-you-go” basis. Now update years later with gov. hand wringing that the Social Security fund is running out of money . Imagine another gov. administration eyeing another “dedicated” account that’s held under administration promises .

  • Anonymous

    This guy is destroying Americans an yet the diehard liberals will praise this to no end. He took over your health security and the libs are fine with it until they realize how much they’re losing. Now, this some MyRA is another scheme to take over peoples’ security for retirement. Was it drawn up by the same person who drew up obamacare? Anything that the government takes over is guaranteed to fail.

  • John Scott

    So they screwed up Social Security and they screw up Fannie and Freddie with loans to people who could not afford the loans. You force people to buy health care and now offer a snake oil IRA from a institution not known for breaking even let alone making money. Yea, liberals go ahead and sign up for that!

  • John Scott

    No its if you make money give it to us and we will spend it for you.

  • John Scott

    Can anyone say Ponzi scheme?

  • Jimmy Chase

    Looks like a disguised tax.

  • Anonymous

    Would you trust your retirement account in the hands of a criminal like Obama?

  • Anonymous

    It will stop when the Democrats lose control of the three branches of government. I say all three branches because Boehner (House Leader(less) does nothing to stop Obama and his socialist agenda.

  • Anonymous

    Didn’t this guy say you could keep your insurance if you liked it? And you could keep your doctor if you like him ? If you fall for this con man again you deserve to have your retirement stolen.

  • Anonymous

    Is it me or does this sound like they are setting up another Social Security program that sounds like the Social Security Reform proposed by the Republicans several years ago? You know, the one that the Democrats said was too risky?
    If the government decides to take over all IRAs in this country, I will be pulling my money out! We all contribute to our IRAs because Social Security isn’t working. Why isn’t it working? Because our government stole the money from those who contributed to this system and gave it to those who didn’t! If they take over our IRA accounts, what will keep them from doing the same thing to it? Will it be because they say they won’t? They shouldn’t have been able to do it to Social Security but they did! I don’t trust the government with my tax money and sure as hell won’t trust them with my IRA!

  • Jim Kidwell

    he calls it myRa, because when shtf ….its his money.

  • Anonymous

    How is this any different from Social Security. We put the money into a “lock box/social security trust fund” where it was supposed to be “safe” and maybe earn a penny or two. But, LBJ got legislation passed to co-mingle the trust fund with the general fund whereupon it just kind of disappeared. Poof! And now we want to do this with our IRA money??? Not on your life!

  • sea-libtard

    It’s only the beginning. You won’t be allowed an early withdrawl and when you die, you won’t be able to bequeath that money to your heirs.
    If this ever passes, eventually they will confiscate 401(k) and IRA accounts without your permission. Dangerous.

  • sea-libtard

    When the government holds your money, it’s not your money anymore. If you sign over your IRA, do you think that you could bequeath any of those funds to your surviving family members? Not a chance.

  • Anonymous

    The government has been stealing from you since the end of WW2. It’s called inflation. They want you to think it’s normal and just the way that things work but it’s not. They do it on purpose by printing money. If they stop printing money then the money increases in what it will actually buy. It’s very simple. If you get 2% on your savings and inflation is 4%, then your bank account has less in it by 2%, even though the number is bigger. Yet they want you to think that it’s the domain of great leaders to make decisions that lead to inflation, but it’s simply a lie to get you to accept it when they steal from granma’s pention. What Obama and others are really doing here is getting ready to get rid of the pretense of stealing from you little by little through inflation and just taking the whole deposit. They will place penalties on early withdrawals and generally make a stink when you want to access that money. You will be lucky to get 5 cents on the dollar. The greater probability is that you will get nothing.

  • Anonymous

    The only investment that really holds it value is stuff. Back in the middle 70′s even cars depreciated less than inflation. For example, if you bought a used car and it depreciated 10% in 1974, you made money by owning it becasue inflation was 12%. The money was worth less and the car was worth an extra 2%.

  • Fat Lip

    Give back to Cesar which is Cesar’s they will get there way every time they make the broken dollar we just need to let them have it and when it comes to taxes they will take more of those to when we all have very little left then fundamental transformation will be done I take no pride in this just look what has happened so far has anyone stop them really ? when your poor you have less to loose, if we can’t even use our own currencies in our own country what will it be worth if we can’t even find value in it at all anymore .
    That’s what will really happen to many just don’t understand what exactly is going on its been this way sense I was a young boy .
    Sorry if I offend but it is really how its going to go down if not now it is the future and It sucks no matter how they rob us there are going to rob us all .

  • Norma Lewis

    he must think we are stupid,, he is about the most dumb ignorant creep that is known to man

  • Norma Lewis

    when is congress going to do anything about him? are there any REAL MEN IN WASHINGTON DC???????

  • Jeanne Annette Kennedy

    Well of course they well keep all of this money that people let them take from their pay checks separate from the general treasury. Just like they do with the Social Security money they already take from our pay checks. They will invest it wisely & safely, & it will be there when you need it just like our Social Security money is there waiting for us now. Who would not want to sign up for it?

  • Anonymous

    These are after tax dollars, with Obama saying the money won’t be taxed when the bond is cashed in (much like a Roth IRA). They also didn’t tax Social Security benefits as income, until they did. It only takes a future Congress, or if precedent holds, a future Executive Order, to declare the government doesn’t have enough money to allow you to not pay taxes on the income.

  • Anonymous

    That restrictions on withdrawals is already happening in banks around the world, like HSBC, Barclay’s, etc. THEY DON’T HAVE THE MONEY. You think it’s YOURS, and they think it’s THEIRS.

    They wasted it on bad bets at the casino (derivatives and securitizations), they are addicts that can’t stop the spending and gambling, and they want YOU and ME to pay for it, forever. With government complicity. Starving people are easy to control.

  • Anonymous

    Both D’s and R’s are guilty as sin on these schemes. There needs to be an overhaul of these people, they are too set in their ways.

  • tmazzbo

    You know what’s funny about “MyRA” ??
    As the President was saying this at the State of the Union Address, I was thinking … He just said MyRa. I took at “HIS-RA” not mine. Meaning I’ll put in the dough, He’ll take the cash !!

    What are We the People, THEIR personal endless BANK Account ????

  • Anonymous

    The Government’s Money — from the first day one works until the day one dies.

    At one time US savings bonds were OK — a stable-ish US government and a decent return rate (5% or more). Today, some would kill for that kind of “guaranteed” return rate because one can only get around 1% (little more or less). Safe? “Safe” as the FDIC? Safe as someone who is 17 Trillion USD in debt? Someone who wants to bankrupt the “fat cats” so that any kind of decent return is impossible? What next? Government-approved stores to shop from? Illegal to own gold?

    This ploy is nothing but shuffling digits back to the government and preparation for nationalizing all banks and other money holding institutions.

    That’s right boys and girls tell your old, uninformed, hating parents that trading gold for MyRA is the patriotic and right thing to do.

    “God bless America”.

  • Anonymous

    Perhaps MyRA means: “My Rheumatoid Arthritis”!

  • landofaahs

    As long as it’s voluntary I have no problem with it. If poor democrats want to extend this Ponzi scheme a little longer while I accumulate more real wealth then hey, you’ve already been screwed over by being democrats, you might as well make the total humiliation complete. What dummies.

  • Andrew Patton

    It’s 2.25% this month.

  • http://thedoctorwhocurescancer.com/ TheDoctorWhoCuresCancer

    Obama: “If I like your MyRA, I can keep your MyRA. Period.”

  • Anonymous

    As I said… I will withdraw my money before they get their hands on it. As it is, I won’t see much of my investment from Social Security. Money I consider stolen from the people that actually work and are given to people who never contributed to Social Security. They call it an entitlement when, as it was designed, you were not entitled to it if you haven’t contributed to it.
    The same thing will happen if this myRA is enacted. Nothing will stop this greedy government.
    You are right though, there is a difference between this proposal and the Republican Social Security Reform proposal… We wouldn’t be able to bequeath the money. The government will see to that.

  • Norma Kelley

    Ummm..isn’t this what Social Security was supposed to be all about? Are people going to fall for it again??

  • Norma Kelley

    The problem is, it is the taxpayers who would again be stuck with paying the bill when their little Ponzi scheme fails.

  • landofaahs

    A little off topic but not much, but Glenn, you say if Texas flips blue by voting that scumbag democrat into office “It’s over”. I have heard you say that more than once. So if “It’s over” what do you personally intend to do? Do you pack up and leave America? Do you become an enemy of the state? Or do you just submit? It’s a simple question that begs an answer. I really don’t fault your statements but then I think you should say what you will do.

  • landofaahs

    Norma sweetheart, I hate to tell you this but the whole scheme of American finance is over. The only thing Obama Ponzi scheme will do is to delay the TOTAL COLLAPSE and destruction of our country. You and the future generations are already destined to be stuck with the bill. It was the plan all along by liberals to indebt Americans because the filthy liberals think we did that to others. Arm yourself and prepare because as Dan George said “Get ready little lady, Hell is coming to breakfast”.

  • Evelyn Robert

    You force people to buy health care and now offer a snake oil IRA from a institution not known for breaking even let alone making money.

  • Keith Pallo

    I don’t want these Feds touching my 401k!! That is my money!! I earned it and studied where to ut it for the best return and thse pieces of garbage best not confiscate it under any guise!!

  • mspatdev

    I AM ADVISING THE AMERICAN PUBLIC NOT TO GET “MyRA” AS IT IS THE BIGGEST SCAM EVER PRESENTED BY A SNEAKY obammy. He is not going to pay any bills off that he has racked up in his un-administration. He will put to the people all of these scams to take your money. How very sad that the dictator in the w/h can’t be removed from office. He has caused so much damage to the USA. Other countries if you have some one that can out smart him, have him take out obammy.

  • mspatdev

    They can take all they want from mine, I don’t care. I don’t have any. After 9/11, the market crashed and in 2009, obammy crashed the system again and I lost all of my IRA.

  • mspatdev

    Actually it is called, taking from the RICH and middle income and giving it to the lazy poor.

  • Guest

    With Obamacare taking so much out of everyone’s pockets, there is no more money for people to save aside in a mIRA now.

  • Watch it

    After what they have done with Social Security and Medicare, why would this be any different? This will be the death blow to this country.

    Federal unfunded liabilities are estimated at near $127 trillion, which is roughly $1.1 million per taxpayer and nearly double 2012’s total world output. Federal unfunded liabilities are the difference between the net present value of expected future government spending and the net present value of projected future tax revenue, particularly those associated with Social Security and Medicare.

  • Anonymous

    The ONLY way this works is if they nationalize it; otherwise there won’t be anyone Signing up for it. They want that $18 Trillion currently stashed in Americans’ IRAs and 401ks; it pays off their debt, then, you can just count your money gone, Baby!

  • Stuck_in_Ca

    My son, a college student, works for a “solar” company on weekends going door to door asking people if they’re interested in solar power. If he gets three leads he’s done for the weekend. He gets paid for 16 hours regardless how many hours he actually worked. He knows it’s a scam and the guy running the program knows it’s a scam. They just can’t pass up free money, they’d be stupid not to. Our government in action.

  • Eugene Bertone

    Let ‘U.S.’ see Uncle Sams’ track record; S.S.; Medicare/Aid; Public School System, Public Pensions/Federal, State, County, City Pensions; Federal, State, County. City; budgets and soon Obama Care; etc are all bankrupt…sure let’s give him our savings

  • Anonymous

    Obama: “MyRA guarantees a decent return with no risk of losing what you put in. And if this Congress wants to help, work with me to fix an upside-down tax code that gives big tax breaks to help the wealthy save, but does little to nothing for middle-class Americans”.

    1- Decent return? Can to share that decent rate of return?
    2- No Risk of what I put in? Will I be able to afford a loaf of bread in 2040?
    3- Depending on how you file your taxes (Single vs. Married /Joint) Once you hit a IRS pre-determined MAGI – your IRA contribution is NON-Deductible (Roth IRA have higher limit, but is after -tax money and if you income is high enough you are ineligible to contribute. So Mr. President – The Traditional IRA in truth benefits the those that make less the the IRS limits and NOT the Wealthy.

    With the Government’s track record of fiscal responsibility, I would mail them a check today! Tell them to hold on to it until they figure out the rules of the New Ponzi -MyRA
    LIAR! THIEF!

  • Anonymous

    So….

    We can’t give gold to Germany – because we don’t have any.

    No one wants to buy our Sovereign Debt – because the more we print devalues US.

    Thus, because we have no other assets, Uncle Sam wants to help US invest safely with a modest return…. which looks like Social Security 2.0

    Why am I not shocked….?????

  • Anonymous

    You hit the nail on the head!

  • Anonymous

    The two things government can do best is…
    1. Collect money
    2. Spend money…. and more than they take in!
    Trust Government with retirement accounts – nah – don’t think so.

  • Anonymous

    More like Three Card Monte

  • Anonymous

    If you could call it money by then?? Who knows???

  • gdaym8

    It’s just a matter of time. Tick, tick, tick, tick……………………………….

  • Anonymous

    Voter Imposed Term Limits = VITL

  • Sarah Haden

    I delivered mail in rural Ky several yrs ago, one family got checks for mom & each of the 3 kids got one also. The ‘man’ of the family was reportedly a drug dealer, they looked to be able-bodied, both younger than me, He used to hit me up at the p.o. for his foodstamps early, as they were near the end of the route. The postmaster ran him off, finally, & dared me to give them ‘early.’ Sure enough, he was waiting up the road. Later, he was arrested for ‘didling’ one or more of the girl children. Burnt me up! I suffer from rheumatoid arthritis & still work.

  • landofaahs

    I understand the domain “MyRA” is already owned. If true then it is yet another example of democrat theft and apropos for the Ponzi scheme theft that it’s named after.

  • ken.

    don’t forget voter imposed truth in campaigning laws similar to truth in advertising laws. how can we clean up government when we don’t know what a candidate will do after being elected. how many republican and tea party candidates run on that platform then turn liberal once in office. this is fraud against the voters which is the worst kind of fraud that can be committed.

  • Anonymous

    Unprincipled reckless ruling class. Redistribution with OPM all the glory with none of the responsibility.

  • Anonymous

    Not over the bond’s lifetime combined with the effects of inflation.

  • Andrew Patton

    The rate resets monthly, according to the current yield of mid-to-long-term Treasuries.

  • Andrew Patton

    This is not “signing over your IRA.” This is the G-Fund, one of the funds that government employees can already choose to invest in through the TSP (Federal Employees version of the 401(k)). And yes, you can bequeath your TSP assets to anyone you choose, regardless of the balance of your TSP or the allocation of that balance among the G, C, S, F, and I Funds. G-Fund invests in government bonds, F-Fund invests in corporate bonds, C-Fund invests in the S&P 500, S-Fund invests in small-cap US stocks, and the I-Fund invests in foreign stocks and bonds.

  • Andrew Patton

    And this will have no effect on your 401(k). I’m the last person who’d ever shill for Obama, but there is nothing sinister about this. Truth is, it isn’t even intended for people who already have retirement accounts, but rather for those who don’t have retirement accounts and don’t have a lump sum to deposit into an IRA.

  • Andrew Patton

    Last month, the interest rate was 2.25%. This month, it’s 2.50%. It will reset again at the end of the month based on Treasury yields. No, this is not guaranteed to keep up with inflation; the market will determine that. MyRA is only offered as a Roth account; if you don’t qualify for a Roth IRA, you cannot enroll in MyRA.

  • Andrew Patton

    This is not intended to nationalize retirement accounts. This is intended to get people who are otherwise not saving to save money and lend it to the government. Besides, a considerable portion of that money is already invested in government debt. I’m not saying this will work, and I’m not saying that many people will sign up for it. What I am saying is that this in no way constitutes a threat of seizure of retirement accounts. If anything, this amounts to the first step toward privatizing Social Security, as it gets people comfortable with the concept of investing. Abolish Social Security and give every American a TSP account instead, and our national wealth will dramatically increase.

  • sea-libtard

    There are plenty of progressive politicians who propose doing just that. I can provide links for you if you, or you can google or bing it for yourself. One step leads to another.

  • Josh Moore

    I concur, this does look like Social Security 2.0, the next biggest Ponzi. Learn more about Obama’s new plan and how to protect your IRA http://irallc123.com/blog/obamas-new-retirement-account

  • Handis O’Hara

    Most of the benefits of modern civilization result from our own ability to make use of more knowledge than we could ever know personally.