Is A 401k/IRA Screw Job Coming?

by Karl Denninger

Forcing people into Treasuries as an “annuity” is exactly what Social Security allegedly is. Except that Treasury stole the money that was collected in FICA taxes and spent it!

Guess what? They’ll do that here too – you’re going to “invest” in Treasuries which of course are effectively a CALL option on the future taxing ability of the government.

One Dollar of Capital

What’s that solution?

Prohibit as a matter of Federal Law, and enforce it vigorously under pain of immediately dissolution, the lending of money unsecured, that exceeds the firm’s capital.

This is in fact the only way you can both end “too big to fail” and not constrain size or influence.

It is also the definition of sound lending.

It is also how lending was done prior to the banksters corrupting the government and literally usurping the sovereign credit of The United States.