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Old December 15th, 2019, 08:06 PM #137
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MaxVO2 MaxVO2 is offline
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Join Date: Oct 2012
Location: North Potomac (ok.ok.. Rockville..)
Posts: 2,335
Quote:
Originally Posted by whistlersmother View Post
I expect all that 401(k) money to suddenly become soc sec money and confiscated with credit given towards soc sec pay-in. The dollar will then be devalued through high inflation - of which heating and food is not included in the figures. Retirees/pensioners won't get an actual dollar cut, but will get a purchasing power cut.

Remember inflation is a great way of cutting debt - for those that owe the debt.
*****Something like the above has been done in other countries, especially Latin America. In Argentina, they essentially took people's money (money market accounts and their equivalent of a 401k.) , and gave them government bonds at a favorable rate (at the time). The dollar was weak at the time, inflation was low, and many people were sorta ok with it. Those that saw the writing on the wall, converted their money to dollars or other currency and got it out of the country. Those that did so were thought to be "paranoid" and stupid as the rates were very favorable and even average workers could travel, and buy nice things in other countries, enjoy life, etc.. The government essentially opened up the treasury to help the "poor", printed lots of money and a good time was had by all, until the money ran out... and the World Bank and others stopped lending and refinancing debt. Once run away inflation began, folks life savings were essentially wiped out and the even those well off began struggling.

It was the classic socialist model, with a Latin American bent. Spend until you run out of other people's money. It works great for awhile, it always seems to - until it doesn't. The people voted for the socialism, the government had already confiscated firearms for the most part, and now countries with tremendous natural resources, relatively low population density, and favorable climate for farming, etc.. are broke and many many people are indigent.

I'm hopeful that there are enough people in this country to keep stupidity like what happened in Argentina, from happening here - but there are days I have my doubts.

I think it was Nancy Pelosi some years back that was setting up a trial balloon of a "one time" tax on tax privileged accounts to help pay down debt, help the poor, and less fortunate, perhaps build a road or bridge or two, and of course more money for schools to help the children. It was shot down in flames at the time, but it *will* come back up eventually once the people have been dumbed down enough in the schools.
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