Rule of Law All modern governments believe they are above the law. They justify violation of the law on the grounds it is necessary for the "good of the nation." The US government has frequently demonstrated that property rights should not stand in the way of public policy. Abuses of eminent domain are numerous. The automotive bailout was a flagrant example. Not only was the bailout without legal precedent, but US bankruptcy law was violated in order to reward unions at the expense of bondholders. Behavior Pattern The US government has a despicable record with regard to honoring retirement obligations. The government raided the Social Security trust fund so that politicians could spend at higher levels. That continuing raid put Social Security in a liquidity crisis that should not have occurred for another couple of decades. President Clinton and Congress reneged on the promise that Social Security benefits would never be taxed. Now Treasury Secretary Geithner routinely raids public pension plans in order to allow government to continue spending.
http://www.americanthinker.com/2011/07/is_your_ira_going_to_be_raided.html
The government could force holders of IRAs and 401Ks to buy U.S. bonds with part of their account.
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