Now the Democrats want to get their paws on your savings

Oh, isn’t this special?

Investors Business Daily: You did the responsible thing. You saved in your IRA or 401(k) to support your retirement, when you could have spent that money on another vacation, or an upscale car, or fancier clothes and jewelry. But now Washington is developing plans for your retirement savings.

BusinessWeek reports that the Treasury and Labor departments are asking for public comment on “the conversion of 401(k) savings and Individual Retirement Accounts into annuities or other steady payment streams.”

In plain English, the idea is for the government to take your retirement savings in return for a promise to pay you some monthly benefit in your retirement years.

They will tell you that you are “investing” your money in U.S. Treasury bonds. But they will use your money immediately to pay for their unprecedented trillion-dollar budget deficits, leaving nothing to back up their political promises, just as they have raided the Social Security trust funds.

This “conversion” may start out as an optional choice, though you are already free to buy Treasury bonds whenever you want. But as Karl Denninger of the Market Ticker Web site reports: “‘Choices’ have a funny way of turning into mandates, and this looks to me like a raw admission that Treasury knows it will not be able to sell its debt in the open market — so they will effectively tax you by forcing your ‘retirement’ money to buy them.”

The only good news – they’re going to have trouble convincing some of their most ardent supporters not to fight their attempts to rob us of our savings.

Power Line: Will it happen? Clearly the Obama administration, inspired by Argentina, is exploring the option. Today, we have the first administration in American history that aspires to be a banana republic. But can they get away with confiscating millions of Americans’ savings? I doubt it. Because first on the list of those who have accumulated wealth in reliance on the laws governing private savings accounts are lawyers. Most people don’t realize it, but even lawyers of modest ability typically have, after three or four decades of diligent savings, seven-figure retirement accounts. (This is one reason why influential Democrats don’t care whether Social Security goes bust. They wouldn’t dream of depending on it.) Lawyers are the heart and soul of the Democratic Party; public employee unions are more important in some ways, but they are junior partners in the Dems’ coalition.

If the Obama administration were to announce an intent to confiscate Americans’ retirement savings, the howls that would arise from lawyers (and others, too, of course) would be deafening. I don’t think the administration could get away with it. Which doesn’t mean they won’t try, as the current efforts by the Departments of the Treasury and Labor indicate.

These people are dangerous.

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