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Why Your IRA Is a Lobster Trap Set by Congress

Written by Gary North on March 21, 2012

You deserve a bedtime story.  Uncle Gary has a good one for you.

Once upon a time, there were two United States Senators. One was a Democrat. The other was a Republican.

They were very concerned.  The government’s deficit was up again this year. Of course, it was always up again, every year. But this was becoming a problem. It was making it harder to borrow money. Creditors wanted evidence that the government could pay its bills without facing the nasty trolls called bond vigilantes.

They had to find ways to bring in more revenues.

B. We’ve got to get more money out of them. Any ideas?

A. We can give them a tax deduction each year to invest money for their old age.

B. Why would that get more money out of them?

A. We’ll tell them they can defer paying any income tax on the profits until age 70.

B. But then we can’t get their money.

A. Sure we can. We’ll borrow against it. We’ll use their future tax payments as collateral.

B. You mean the old “full faith & credit of the United States” routine?

A. You’ve got it.

B. Then what?

A. We’ll raise the tax rates later. We’ll tell them it’s necessary for debt reduction.

B. But we never reduce the debt.

A. Of course not. But the suckers always go for it. They’ll pay more taxes “just this once.”

B. So we can borrow even more.

A. Right.

B. But they may start hiding their profits. Money will get hard to collect.

A. That’s the beauty of giving a tax deduction now. We will tell them they have to report whatever they invest in every year until they cash out.

B. So, they can’t hide it.

A. Right.

B. I am beginning to understand this. How about this? We can tell them their money has to go into government-approved investments.

A. You’re right. The investments must be Wall Street approved. We’ll go to the Wall Street political action committees and ask for some advance money.

B. But can it really work? Won’t the rubes know the taxes must be paid eventually?

A. That doesn’t matter.

B. Why not?

[For the rest of the story, click the link]

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7 thoughts on “Why Your IRA Is a Lobster Trap Set by Congress

  1. Jonathan says:

    This is similar to what I was telling my colleagues at work not too long ago. Except I was telling them that I do not trust the "guvments" promise to keep Roth IRA draws at retirement tax free. Of what I set aside for retirement each year I split it evenly between Roth and conventional IRA accounts because I really do not trust our wonderful "guvment" one bit to keep their greedy little hands off my retirement. At 28 years old there is a lot of time for government shenanigans concerning my retirement….It's going to be a long ride.

  2. The American people are in for a rude awakening. Just look at Obama’s plan and they
    plainly spell out their willing to kill 25 million people but that doesn’t include
    you or me just the idoits.

  3. http://www.petition2congress.c... Go to this website to sign a petition to vet obama for eligibility to be president. He was never vetted in 08. Lame stream media was too busy lauding him as the hope of America.

  4. MontanaMEL says:

    EVERYONE…. Go visit another COUNTRY of your choice… EMPLOYEE a local LAWYER (as long as such "communications" are considered "priviledged or protected" like they are here/now)… You PAY HIM to be your TRUSTEE in such money matters as you choose. You sign a contract of/for services as such…at some agreed rate of payment. You also verify that YOUR FUNDS will only be held in that new/designated trust account under his law firms name – not to be comingled with anyothers without your written permission…agree to pay the bank fees on that account monthly, with a copy of that statement 1st class mailed to your hand in exchange.

    Con't below:::

  5. MontanaMEL says:

    Con't from Above:::

    Move you accounts to this account…and, via instructions to your "lawyer" have them invested per your instructions solely. Remember, this lawyer is NOT your broker – you will need to see that HE, the lawyer, opens brokerage account(s) solely linked to your trust account… NOTE: DO NOT FORM A TRUST – under anyone's laws…The only documents being your contract with your lawyer – and those written/USPO mailed instructions…and, your "payments" to him for his services, via MO or bank checks drawn monthly and mailed. You will have to "eat" the early withdrawal fees of 10%…and, any "additions" to these offshore funds will have to be "after tax" $$. Within 30 days of this cashout transfer (done via mail alone)…open a "new" 401k or other type account and start new with small additions…like $100 per month only…but, report this as your only retirement account. This system use to be called "GREEN DOOR BANKING" over in the EU…it still works if documented properly.

  6. the above-mentioned link should read http://www.petition2congress.com/

  7. MontanaMEL, how can you have a "trustee" and a "trust account" and not form a trust?