Independent Stockbrokers

Source: http://www.sovereignsociety.com

"Wait...my Bank is now a Federal Agent?

Your Banker Has Been Turned Into a Federal Agent With Potentially Devastating Consequences!

Today's comment is by Larry Grossman, a long-time member of our Council of Experts, leading expert on retirement plan management, and Managing Director of Sovereign International in Palm Harbor, Florida.

Dear A-Letter Reader,

I urge you to pay close attention because this development could impact your future retirement more than anything I have encountered in the last 20 years.

I'm aware that this headline may seem a little bit extreme, but unfortunately it's the truth.

The government has already turned your banker into a federal agent who can confiscate your assets without warning or cause.

This is why you MUST consider getting at least part of your retirement assets out of the country while you still have the opportunity. Very soon it may be too late.

If you've read my articles over the years, you know I'm not a wily reactionary. Nor do I try to scare my readers with my articles. But honestly, today I need to raise a red flag because frankly, this is serious.

I'm more concerned about the markets now than I have been at any other time in my 20 years in the business. And whether you agree that this could be the perfect financial storm or not, it's time to acknowledge the steps our government is taking to deal with this mess.

Right now, they're wracking their brains to come up with short-term solutions for this mess. But long-term, the consequences of their actions could have a very serious impact on your retirement savings.

Devil in the Details of Paulson's Plan

As the saying goes ‘the devil is in the details.' Well, nothing could be truer for Paulson's new TARP bailout plan. The following text is buried deep within the bill passed recently by congress:

NECESSARY ACTIONS. —The Secretary is authorized to take such actions, as the Secretary deems necessary to carry out the authorities in this Act, including, without limitation, the following:

Designating financial institutions as financial agents of the Federal Government, and such institutions shall perform all such reasonable duties related to this Act as financial agents of the Federal Government as may be required.

Broad sweeping authority to do whatever they want to do! "Financial agents of the Federal Government," what does this mean to you and your retirement plan? Well here are a few potential scenarios...

Let's say foreigners stop buying treasury bonds because they become even more nervous about the uncertainty in our banking system. Face it, we can't survive without foreigners continually buying up treasuries. If suddenly they stopped buying, the government would have to do something to finance the debt.

Panic Scenario # 1 - The government tells your banker to purchase U.S. Treasuries with 50% of your retirement plan, or worse. (How about 100%?)

But that doesn't work as well as they want, so they have to figure something else out...

Panic Scenario #2 - The government tells your banker to stop any transfers outside of the U.S., No more offshore accounts! (Highly likely during an Obama presidency.)

Things continue to go downhill and they become even more and more desperate...

Panic Scenario #3 - The government tells your banker to confiscate all gold in retirement plans for the good of the country! (This has already occurred once in American history.)

And finally the "Nuclear Option" we get a president who decides the right thing to do is ‘redistribute' the wealth...

Panic Scenario #4 (worst case!) - The government tells your banker to confiscate all retirement plans over US$250,000 so we can redistribute the wealth! (But don't worry we are going to have universal health care and they will take care of us so you don't need it anyway.)

With a stroke of the legislative pen and passage of the bailout bill, all these nightmare scenarios could be very real possibilities. As government agents, the banks (including yours) will have no means to protect your interests against aggressive ‘redistribution' or the bold new plans of a welfare state.

As a result, this could be one of the last opportunities you ever get to take urgent action now; before your retirement plan is in jeopardy. "

(....)

Regards,
LARRY C. GROSSMAN, CFP®, CIMA®
Managing Director
Sovereign International Pension Services
www.sovereignpensionservices.com
lgrossman@sovereignpensionservices.com
727-784-4841
727-784-6181 fax
888-609-7425