In a new and what appeared on the surface to be a fairly innocuous Supreme Court ruling last week, the high court determined that employers do have the right and responsibility for ensuring company based 401K plans are managed well, do not have inordinate fees, and perform profitably. However, within this decision regarding Tibble v. Edison International, the Court also added a bombshell that could lead to the eventual ending of state sponsored retirement benefits, or even the confiscation of your funds at the national level.
The US Supreme Court ruled last week in the unanimous, 8-page decision in Tibble v. Edison holding that employers have a duty to protect workers in their 401(k) plans from mutual funds that are too expensive or perform poorly. That is simply astonishing since there is no constitutional requirement for even government to provide social benefits. The Supreme court held in HARRIS v. McRAE, 448 U.S. 297 (1980) it was explained that the constitution is negative not positive. There is no duty imposed upon the state to provide a program for that would convert the constitution from a negative restrain upon government to a positive obligation to provide for everyone.
Yet this decision is even deeper. It sets the stage to JUSTIFY government seizure of private pension funds to protect pensioners. When the economy turns down and things get messy, they are placing measures in place to eliminate money in and physical dimension, closing all tax loopholes, shutting down the world economy with FATCA, and preparing for the final straw of Economic Totalitarianism with the Supreme Court reversing its entire construction of the Constitution to impose a duty upon employers to ensure the 401K plans perform in a world where interest rates are going negative. You really cannot make up this level of insanity. – Armstrong Economics
For years the government has hinted at wanted to take over and confiscate the nearly $20 trillion in personal pension and retirement funds that proliferate the multitude of 401K, IRA, and other financial instruments. From Nancy Pelosi writing (but not submitting) a bill for their confiscation, to President Obama’s signing of an Executive Action for the MyIRA government savings plan, to the more recent ruling out of the White House regarding multi-employer pensions, the insolvent government sees your money as a means to fund programs and wars that they are currently hamstrung to afford since the world no longer is buying our debt.
Since the beginning of 2015 we have seen the G20 order nations to pass bail-in legislation, and for some economists to call for an end to cash as a means to protect the banks from what many believe is a new economic and financial collapse coming just over the horizon. And with the Supreme Court now paving the way for the government to ‘legally’ take your hard earned money, and leave your retirement in a state of limbo to cover the failures of the banking and political systems, you have to look long and hard at whether paying a small percentage of tax and penalties now is more palpable than losing it all from the stroke of a bureaucrats pen.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.