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How Likely is a Government Takeover of Private Savings and Retirement Accounts?

Updated on April 11, 2013
Retirement Account Nationalization
Retirement Account Nationalization | Source

The short answer is that nationalizations of private savings and retirement accounts are much more likely than they were just a few years ago. Cyprus was a litmus test to see if the public would accept government confiscation of their private savings accounts. They did. If recent history is any guide, retirement accounts, such as IRAs and 401ks, may also be targeted for government confiscation if the economy deteriorates further. Here's why:

Since the government theft of Cypriot bank accounts in March 2013, several other governments, including those of Spain, New Zealand and Canada, are considering doing the same thing. Canada's “Jobs Growth and Long-Term Prosperity: Economic Action Plan 2013," approves a so-called haircut from private accounts. What these governments are calling a 'haircut," or "tax," on private bank accounts is no such thing; it is highway robbery. When the government raided bank accounts in Cyprus, banks closed down. People couldn't write checks. They had no access to their money.

Banks are justifying the theft of private deposits by claiming that your funds belong to them once you deposit them in a bank account. Thanks to the fractional reserve banking system, bank deposits are treated as bank assets to gamble and invest with. Not more than a small percent of a bank's total deposits are on hand at any one time, which is why bank runs happen. Banks are working in collusion with government in order to perpetuate this fraud. Our global quasi-fascist central banking system also makes it difficult to separate public sector debt from private sector debt. It is reasonable to assume that some of the same oligarchs control both government and financial markets, but that is a topic for another essay.

We have already seen the appropriation of private savings accounts by an indebted Western government, and retirement accounts could also be targeted in the future. In 2008, the government of Argentina nationalized over $30 million in private pensions. Private accounts were looted and replaced by a pay as you go system, which the government mandated. Thanks to the mandate, individuals were not able to opt out of the nationalized Argentinian system, nor were they able to keep their private pensions.

The United States government has discussed implementing something similar in the form of "guaranteed retirement accounts," but no formal steps have yet been taken. Provisions similar to a bail-in were enumerated in the Dood-Frank legislation which passed in 2012. The FDIC has purportedly put forth a plan to target larger American deposit accounts in the event of a crisis, but details are still sketchy. Obama (and this is not a partisan tirade; both parties are equally guilty of collusion with Wall Street and the financial elite) has recently been on a mission to convince the public that IRAs over a certain limit should not be allowed, according to an April 2013 article by Zero Hedge.

If savings account, IRA, 401k, or pension plan expropriation come, it will be under the guise of "fairness." No matter that you may have saved your entire life, its not "fair," that you have more in your retirement account than someone else who did not bother to save. This socialist ruse may be used to justify the government's theft of your private funds, should it come to that.

Savings Account Confiscation
Savings Account Confiscation

I don't know what to tell you to do with your retirement savings to keep them safe. You should research your options and figure out a solution that works best for you. I'm not in the business of giving specific financial advice, but I am here to sound the alarm about the possibility of government confiscation. Be vigilant.


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    • Cassie Smith profile image

      Cassie Smith 

      5 years ago from U.S.

      I would call it federally approved legalized robbery.

    • maxoxam41 profile image


      5 years ago from USA

      You call it nationalization, I would call it privatization


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