Thursday, December 22, 2011

Think Your IRA Is Safe? Better Think Again...

 The MF Global bankruptcy is a blueprint for how the Government and wealthy bankers will begin to take everything that is kept within the confines of the financial system.
 Ten years ago I tried to tell many friends and acquaintances that housing prices would collapse and this country was headed for disaster and that the only only way to protect themselves financially was to load up on gold and silver.  Almost everyone looked at me like I needed my own floor in the mental health wing at Belleview Hospital in NYC.  Of course, that was back when gold was around $300/oz. and housing prices were on average about 50% higher than they are now.

As I run into these folks these days, they compliment me for my ability to see into the future and immediately want to know what I think will happen next.  My only logical response is to say that they don't want to know what I think because, just like 10 years ago, they'll think I'm crazy.  I add that I hope I'm wrong this time about what I think is coming but that I doubt that I am.

I bring this up because one of the things that I believe will eventually happen is that the Government will find a way to confiscate all retirement assets (IRA's/401k's).  But rather than outright taking them, they'll substitute them with some kind of retirement "annuity" that is funded with good old Treasury bonds.  Of course, by that point in time, the Treasury bond printing press will be working overtime to print currency the Government can use to stay afloat. 

If you think I'm Belleview-bound, then I would urge you to consider what is happening with the MF Global collapse and bankruptcy situation right now.  I preface this by saying that the theft of private property that is taking place with this is enabled because so very few people are paying attention to what is happening and how it is taking place.  But this is fundamental to understanding exactly why this is likely just the beginning of the Government/Wall Street partnership effort to steal everything they can before the country collapses.

If you are interested in understanding how JP Morgan, the court system and Government regulators are stealing private property in broad daylight, please take the time (18 minutes for the first part) to listen to this interview by Peter Schiff of a woman, Ann Barnhardt, who closed down her commodities advisory business and returned client money in response to the MF Global disaster.  Here's the LINK

As I have written previously, the handling of the MF Global liquidation is riddled with conflict of interest and a complete lack of transparency at the expense of the clients who kept investment accounts at MF Global.  These accounts were supposed to be legally immune to the problems that took MF down.  For instance, let's say you had $100,000 in only cash sitting in your account at MF Global - no market exposure or securities risk.  When everything is settled, it is likely that you'll only get $50-60,000 returned.  How is this possible?  Listen to the interview and read some of my previous posts.  But, make no mistake about it, the Government and court system is completely complicit with the illegal methods that are being employed by the bankruptcy trustee.  Completely complicit.

In my inherent appreciation of the absurd, I commented to a long-time colleague that "the best part about this MF Global situation is that most people aren't paying attention because they think that the illegal liquidation of a commodities and futures broker doesn't apply to them because they don't have investment accounts at commodities brokers.  But the real issue is the legal system enabling the people who control the MF Global disaster to confiscate private property (listen to the interview if you don't understand why this is so).  Furthermore, anyone who thinks that this can't happen with their IRA's and 401k's is completely ignorant of the facts and fails to understand exactly what is going here."

Someone asked me earlier today if our clients understand just how bad everything is.  I responded by saying that many of our clients do not really understand just how bad it is. I also think most people - i.e. 90% of the country - maintain some thread of faith that somehow everything will be fixed. After all, we have lived, breathed and eaten nothing but "America is the greatest, jerk off with the red white and blue" for the last 60 years.

In my experience, very few people truly understand why you should have most of your investable net worth in the metals and miners. How many people do you think are actually trying to follow and understand what exactly is going on with MF Global? Anyone who understands that will be liquidating their IRA's and 401k's tomorrow.

Either people get it or they don't. By the time most people get it, it will be too late to jump on the metals train. I think most of our clients have a small portion of their money in our fund "just in case." They will lose everything not in our fund. But they will be Biblically thankful that they have the metal in our fund when that time comes AND that the metal is being safe-kept outside of the financial system in a private depository.
I said about 8 years ago to a colleague at the time, after I really started to grasp just how fraudulent and corrupt the entire financial and political system was becoming, that the people who are in a position to do so will confiscate every last crumb of middle class wealth on the table.  I said the biggest "crumb" was IRAs and 401k's.  For definitional purposes, "middle class" means anyone who does not have enough cash to buy their own Senator or House Rep - that means 99.5% of the country.  The MF Global bankruptcy is a blueprint for how the Government and wealthy bankers will begin to take everything that is kept within the confines of the financial system.


  1. Poof - - and it's gone.

  2. What do you think it takes to get a regulator to look the other way? Don't say it never occurs...I wonder what all the paper assets they own would be marked at if gold/silver were a free market?

    A Christmas Message From America's Rich

    It seems America’s bankers are tired of all the abuse. They’ve decided to speak out.

    Dimon, incidentally, is another one of those bankers who’s complaining now about the unfair criticism. “Acting like everyone who’s been successful is bad and because you’re rich you’re bad, I don’t understand it,” he recently said, at an investor’s conference.

    Hmm. Is Dimon right? Do people hate him just because he’s rich and successful? That really would be unfair. Maybe we should ask the people of Jefferson County, Alabama, what they think.

    That particular locality is now in bankruptcy proceedings primarily because Dimon’s bank, Chase, used middlemen to bribe local officials – literally bribe, with cash and watches and new suits – to sign on to a series of onerous interest-rate swap deals that vastly expanded the county’s debt burden.

    Essentially, Jamie Dimon handed Birmingham, Alabama a Chase credit card and then bribed its local officials to run up a gigantic balance, leaving future residents and those residents’ children with the bill. As a result, the citizens of Jefferson County will now be making payments to Chase until the end of time.

    Read more:

  3. Hey JMac! Is that the JMac I think it is? How's it going?

  4. I know you do not limit that to IRAs. 401k's and ultimately almost all dollar holdings in the financial system are ultimately fair game.

  5. Dave, your blog is always awesome to read. Thank you for posting it.

  6. LOL. I think if Jenny McCarthy tried to read this blog she get a headache trying to make out any words with more than two syllables...

    I definitely think all paper assets can be confiscated. I wanted to highlight IRAs and 401k's because most people mistakenly believe those to be sacred. Then again, investors mistakenly thought customer funds couldn't be

  7. Dave, another solid post. The problem I find is part of the reason people think we're nuts when we explain what's going on is one must understand a lot of pieces to the puzzle...there r many factors we point to as clues of what is coming, yet by point 3 they shrug it off as impossible or conspiracy. How do u teach real value ie tangible when all we have ever known the past century is paper and return on paper?

    Heck, u talked about, again, slv and gld - retail investors mostly believe they actually own the real thing...when in fact if u do not a basket (50k) of shares u r entitled to zero...worse, they use the metal for other purposes since ur shares are Unallocated...But you must pay fees/expenses/storage on metal u don't own - so ur funding the big guys that can actually own baskets...

  8. Custodial chain...hmmm..

    21 December 2011

    Outlook for Gold in 2012
    CNBC Europe this week broadcast a spectacular interview with Cheviot Asset Management's investment director, Ned Naylor-Leyland, in which, amazingly, he was allowed to discuss the collusion of central and commercial banks "selling leveraged paper" in gold, to characterize this as "the modern manifestation of the London gold pool," to note that there may be as many as a hundred times more paper claims to gold than real metal is available, and to conclude that gold is "a rigged market."

  9. There was a great deal more detail, about the JPM<->Corzine conversations, in the 12/20 NYTimes. JPM continually escalated the level of assurances they were seeking, that the funds were not from customer accounts - OBVIOUSLY there was a stink.

    "After the transfer, JPMorgan, one of MF Global’s main banks, questioned Mr. Corzine about the source of the money.

    “Since I had no personal knowledge of the issue, I asked senior people in the back office and the legal department to become directly involved in responding to JPMorgan Chase’s request,” he told the House Financial Services Subcommittee on Oversight and Investigations.

    Mr. Corzine testified that Ms. O’Brien assuaged any concerns that MF Global had been improperly using customer cash.

    “I had explicit statements that we were using proper funds, both orally and in writing, to the best of my knowledge,” he told the panel. “The woman that I spoke to was a Ms. Edith O’Brien.”

    But JPMorgan was not satisfied. The bank once again contacted Mr. Corzine, this time requesting a guarantee in writing. Mr. Corzine handed the request to his general counsel, Laurie Ferber. Ms. Ferber would not authorize the document, according to one of the people close to the investigation, saying the firm did not offer such special assurances.

    Two days later, at about 6 p.m. on Sunday, Oct. 30, Ms. Ferber notified regulators that there was an apparent shortfall in customer money."

  10. great blog.
    what worries me now is the idea that these crooks and corrupt systems will go for everything.

    If everything is their wish, i fear what they will do to all us savers of metal.

    There's a growing number of people who are buying metal now to survive, or in some cases, to give it to the man and come out a billionaire on the other side of a collapse. It seems it's too obvious for them to not grab our metal too.

    I do however understand that PM holders as a percentage of population nowadays is real small...can we hope they just consider that slop and let us transition freely?

  11. I've been telling people for years - rather explicitly, to the best of my ability - that the stock market it NOT A FORM OF SAVINGS. Only a few finally get it after lecture 3 or 4.

    Now this. Not only is the shitpile eroding, they're just straight up taking it. It's a whole new level.

    But I saw the light a long time ago and will be getting a nice paper IOU from old Saint Nick any day now in the form of a liquidated IRA. It's my 3rd IRA completely cashed out in 2011 and I have TWO MORE to do in 2012. The avg return on those three accounts was 80% because I thew all my chips in in the spring of 2009 and went to cash at the Bin Laden top in April. Lucky? Maybe. I thought I was just following paper rule #1: buy low, sell high.

    Keep up the good fight, Dave. Listening to Ann go off as I'm writing this. She's sexy when she's all fired up....

  12. People did indeed "look at me like I was crazy" when I liquidated my 401K and took the hit this past August.

    However, in April, I wrote:

    I was thinking that the securitization of collateralized pension annuities would make a wonderful asset backed synthetic to replace the ficticious wealth fantasy of the real estate bubble scam and its attendant collateralized debt obligations ...

    Still, you should read the entire post here:

    ... as I am also quoting a Bloomberg Business Insider post, as well as Karl Denninger on this very topic.

    My friend, the Florida Department of Law Enforcement Pension Trustee filed for bancruptcy and I picked it up from a legal forum where their HR person was inquiring as to the best appraoch to "get their money".

    This should have been NATIONAL front page press. There is NOTHING on this/ Oh, it was settled amicably and quickly, but ... it's FDLE for Christ's sake.

    I don't think you're crazy Dave. Not NEARLY as "crazy" as me.

  13. Regarding SLV and GLD: I know of some hi net worth folks that I have been trying to get into physical. They have not but their high highfaluting money managers got them into GLD and are proud that they have gold in their portolios.

    And then there is no way to convince them otherwise or you get labeled into Bellvue as dave refers to.

    I even know a manager -some with them on behalf of acquaintances with them where the mgr bought say 1 mil worth of GLD-the manager actually told me she had a deal with GLD so her clients could get the actual metal. They might be able to do that if a number of clients formed a partnership holding GLD but even if they wanted paper gold, why not do it with GTU or PHYS if going the paper route, or buy 20 mil of real gold and store it on behalf of clients (and best in individual accounts). They manager could even put the gold on their monthly appraisals and still charge a fee for AUM.

    Talk about the 99%--there is a 99% that's oblivious to whats going on and its a diverse cross section of society.

    I'd go on further but I have to refill my drink--a drink Dave in Denver advised I needed.

  14. Short term "Advance Warning"-- Gold Sell Signal

    Merry Merry

  15. Indeed. Well Said.

    In the meantime: we may be doomed, but we have to do whatever we can. Right now that means under no circumstances ever voting for a corporate whore like Obama or Romney or Perry, instead vote for Ron Paul - he's not a messiah, but at least he is not corrupt. More generally: never vote for any politician who the corporate press has not declared 'unelectable'. A vote for Ron Paul is, first of all, a vote against acting like a mindless sheep, 'lesser of two evils' be damned.

    Thank you for your consideration.

  16. Hi Dave, love your blog and your insight. I also fear that these accounts will be confiscated and have just liquidated a huge portion of our IRA's because of the attention you have brought to this subject. Thank you for that.

    My question is that since that you have also brought up the 401k piece you know of a way to liquidate the 401k that I am not aware of? The problem here is that I'm still working for the same company which my 401k is associated with.

    Thank you for the continuing education.

  17. The Gold Panic & What to Expect in 2012
    “The amount of discontent and bearishness among people who know better
    is enormous. It’s moved from bearishness to some form of anger.
    (This is a) historical bottom, capitulation. A clear sign that the
    gold market is moving into an outrageously oversold position, most
    certainly in anything that’s a common share.

    You must not allow your emotions to direct your decisions. Your
    emotions will always be your best contrary indicator you have. You
    have to examine the circumstances and ask whether or not the reasons
    why you’ve committed to something have changed. And if they haven’t
    changed, you simply need to buck up and go the course because you’re
    “We’re in the most manipulated markets. We’re in the most fraudulent markets in history. There has never been a time when you can have assets disappear from people and modest inquiries take place of the leaders of that company. What you are seeing go on right now favors the bankers and disfavors all others.

  18. Iranians Rush to Buy Gold, Dollars as Sanctions Tighten Grip - Businessweek

    The average rate offered at currency exchange bureaus was about 15,300 rials per dollar, meaning the currency has lost about 15 percent of its value in a month, the Donya-e-Eqtesad newspaper said yesterday. The official rate yesterday was 11,030 rials per dollar, according to the Central Bank’s website. No rates were available for today, when Iran’s weekend began.

  19. No One Is Above the Law

    The American ideal of equal and impartial justice under law has repeatedly been undermined by attempts to concentrate power. Our political system has many advantages, but it also provides motive and opportunity for resourceful people to become so strong they can elude the legal constraints that bind others.

    The most obvious example is the oil and railroad trusts at the end of the 19th century. A version of the same process is happening again today, but what has become concentrated is not a vital energy source or the nation’s transport arteries but rather something much more abstract – financial sector risk.

    In early 2009, Treasury Secretary Timothy F. Geithner reportedly said to President Obama and senior members of the new administration, with regard to the financial system (as described by Ron Suskind on Page 202 of “Confidence Men”:

    The confidence in the system is so fragile still. The trust is gone. One poor earnings report, a disclosure of a fraud, or a loss of faith in the dealings between one large bank and another — a withdrawal of funds or refusal to clear trades — and it could result in a run, just like Lehman.

    Three years later, the megabanks are even bigger, as is the risk they concentrate (see my recent testimony to the financial institutions subcommittee of the Senate Banking Committee for details). Curiously, their precariousness, as much as their power, is shielding these behemoths from the enforcement of financial fraud laws.

    Whenever someone or a group of people is above the law, equality before
    the law is ended. This is how the megabanks, and the way they are
    treated, threaten to undermine democracy.

  20. Thrity years ago I tried to tell many friends and acquaintances that the global economy would collapse and this country was headed for disaster and that the only way to protect themselves on all levels was to load up on food, water and guns and to be as self sustained as they could be. That was before "sustainability" became the buzz word for Agenda 21.

    Almost everyone looked at me like as if I was some convoluted reincarnation of the biblical "Noah".

    They still don't get it. They don't get that this is a slow melt down, (illustration of frog in pan of water with heat being slowly increased) peaking around '18-'20. And you thought '12 was going to be a bad year?

    In the same vein, for those of you who aren't dreaming. If you aren't eating non GMO, organic food, i.e. wholesome food ideally from your own garden, then you are eating poison and your days are numbered. They're numbered anyway, but in this case, the number is smaller. You don't want to wait 30 years to digest this one (wouldn't make it anyway). Kind of makes the accumulation of gold and silver a mute point.

    People either get it, the whole shebang, the whole ball of wax, the whole enchilada, or they don't. One's either totally awake, or totally asleep. There's no middle ground. Don't let the sleep walkers convince you otherwise.

  21. SOPA vote delayed until 2012 - Dec. 22, 2011

  22. Nice post. Prescient.

    Society will be radically transformed over the next ten years.

  23. Hi Dave,

    I have been reading your material with much appreciation for some time.
    I got ourselves (my wife and me) out of our IRA well over a year ago:)

    However, I have a cautionary tale for you. I do not think any bullion held at ANY depository is safe from the massive criminal operation that is the FED.

    Here is the story, first hand, and it happened several years ago. A friend got into a private funding company - and he met personally with the principals involved to make sure of their character, business plan, etc.

    Now, these individuals were cognizant of the blood sucking disposition of the FED. They decided to put all their clients money offshore, outside the jurisdiction of the US, and they deposited the several billions in a bank in Fiji.

    Not to much later, the FED shows up and forcefully freezes the account. The story ends with a lawyer is Seattle who specializes in such matters and he managed to get some of the clients money back, several years later - at 30 cents on the dollar,

    My personal advice to everyone, including you, is to put all the bullion in your own vault -build it if necessary. because if you do not have it in your personal possession , YOU DO NOT HAVE IT, period,

    All the best,

    Kaare Bursell

  24. I liquidated my 401k over a year and a half ago. It was that obvious then and with seeing what has taken place with MFGloabal it has now become a trumpet blast.

    For those who still harken to His Majesty's Word, refer to the Laodecia Church in Revelations 3:14-22 where there is a parabolic equivalence to what we are going to see. The truth existing in the spiritual being manifested in the physical.

    17 You say, ‘I am rich; I have acquired wealth and do not need a thing.’ But you do not realize that you are wretched, pitiful, poor, blind and naked.

    The coming collapse will bring this truth to light in a most horrific way for many.

  25. Last year my tax guru was slack jawed that I liquidated over half my IRA in late 2009, early 2010 and told him I was planning on doing the rest in 2011. Now I am looking forward to the appointment in early 2012, I wonder if he even knows who MF Global is? It sure feels good to be ahead of the herd on this one! Just read about Ireland putting a "new" tax on retirement income and what Argentina did to their peoples retirement savings plans. The government is a parasite and it will kill its host instead of starving.

  26. Special Report: The watchdogs that didn't bark

    "I think it's difficult to find a fraud of this size on the U.S. court
    system in U.S. history," said Raymond Brescia, a visiting professor at
    Yale Law School who has written articles analyzing the role of courts in
    the financial crisis. "I can't think of one where you have literally
    tens of thousands of fraudulent documents filed in tens of thousands of

    Spokesmen for the five largest servicers - Bank of America Corp.,
    Wells Fargo & Co., JP Morgan Chase & Co, Citigroup Inc., and
    Ally Financial Group - declined to comment about the possibility of
    widespread fraud for this article.

    "It seems to me that Washington is deathly
    afraid of the banking industry," Tirelli said. "If you're talking about
    filing false documents and filing false notarizations, do you really
    think that the U.S. Attorney would find it too difficult to prosecute?"The
    office of U.S. Attorney Preet Bharara in Manhattan has routinely
    brought charges involving forgery and filing false documents against
    smaller targets.

  27. Another great post! I am in the process of moving my 401k money over to a self directed ira that allows me the possibility to buy precious metals. You mention in your post to store precious metals outside of the financial system. Would storing the IRA precious metals in a depository in the US be considered "out of the financial system"?

  28. Look at how much they fear Ron Paul...this commentary has a link to WSJ propaganda...Derrenger is wrong...the real reason the negative propaganda will fly is because the elite gravy train runs out of track with more tbtf and paper games equals the tide goes out!

    The Journal Grabs The Long Knives For Paul

  29. Matt Taibbi, Financial Schemes And The US Congress

    One has to wonder about the litany of the 1%ers. As Matt correctly points out, this is the guy who blew $5 million on a birthday party (it's your money, do with it what you want) with money he made skinning the public off an IPO that cost investors 3/4 of their money.

    And yeah, skinned is the right word -- that's not a fleecing, it's a flensing.

    There are those who hate anyone who has "made it" -- they don't care how they got it, they want it, and if you won't give it up they'll steal it. That sort of instinctual hatred of success is Satanic, and there's plenty of it out in the world.

    But far-more often the issue isn't hating people who "made it" -- it's the utter revulsion and hatred of those who "made it" by stealing it, and used their money, power and influence to find new and creative ways to steal it without going to prison for doing so.

    Swaps deals for Jefferson County, money laundering for Mexican Drug gangs, ripping off entire nations via hinkey deals in Greece and elsewhere in Europe -- the visceral reaction isn't about success at all. It's about theft.

    These folks at the "top" of the game ought to be doing some serious reflection about now. Under any rational system of justice they'd all be in the graybar motel here and now, getting their hour in the prison yard and spending the other 23 in a nice little cage. No caviar, no raw oysters, and the "sauce", if they got any at all, would be their cellmate's and administered involuntarily.

    The "hee haw" attitude from these people is dangerous to everyone, including most-especially them and their families. See, there's this premise among those goons that they're invincible. It's reasonably-well cultivated too, just like it is among the Mob. Nobody tries to hit the Mob, right?

    Well, nobody who has something to lose does. And that dynamic is what the 0.1%ers rely on as well. The general premise continues to exist that murder and mayhem is punishable, and that punishment is a deterrent.

    What happens when it's no longer a deterrent?

  30. Re IRA question: Answer: NO

    Why would you keep your IRA period after reading my post? I cashed out of my IRA 2006-2008, paid the 10% penalty and rolled everything into gold and silver at much lower prices. I have made so much more than the penalty over that time period that it's a joke.

    If you do the same at these prices for gold and silver, two years from now you will be VERY happy.

    They are going to figure out a way to fuck everyone on their IRAs/retirement vehicles. Your IRA is definitively INSIDE the finacial system, sitting there like a wounded duck.

    Cash out of your IRA, pay the penalties and taxes and move everything into gold and silver that you keep at your house OR in a private depository like Diamond State in Delaware if you IRA proceeds are large enough.

    RIght now, $1650 worth of gold (10 ozs) 1 oz. Austrian Philharmonics, will fit in the palm of your hand. It's pretty easy to hide $100k of gold in your home.

  31. P.S. It doesn't matter if you own gold coins IN your IRA. It's the IRA vehicle itself that is legally inside the financial system, no matter what custodian you use. You have to use a custodian for an IRA. That's how the Govt keeps track of it for tax reporting purposes.

  32. Friday, December 23, 2011

    Jim Sinclair

  33. Dave

    Senators to AG Holder - use every resource available.

    Merry Christmas to you my friend.


  34. Thanks for this post. I was going to transfer my 401k into a self directed IRA but after reading this F that. I'm not the most intelligent hoodlum in the investment world but I got a sick sense that D-day is steadily approaching.
    F the institution and the system. As Ann Barnhardt would say, I'm getting out. I rather pay the fees and have some oatmeal than no-meal in the end.

  35. I've been doing research lately into investing in precious metals, specifically gold and platinum, for my sel directed IRA. Reading all this has definitely given me something to think about. The fed govt requires u keep any metals purchased thru the self directed IRA in a depository .. You cant keep it in your home. I guess that goes with what you're saying.... But how would they take possession of gold that I own? Yes..there's a custodian.. But I own it. Would they just tax the "assets" and screw me that way? They can't pull the gold out of the depository right.. I know this is just a theory but can u give more specifics

  36. Anonymous,

    I've made an entire site devoted to precious metals investing, like gold. Like this site (Nice job, Dave), I'm going to continuously updated it with news, prices, and coverage of precious metals investing. Dave, perhaps you would like to weigh in and contribute content on my site? If so, please email me. tim AT