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.

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