Category Archives: Conspiracy Theory

Sandy Hook Massacre was a False Flag Hoax …Here is all of the proof

parkers

IT’S GOTTEN TO THE POINT where I need to put some of these thoughts down on paper

so I can look at them and figure out just what in the heck is going on right now. Of course I am talking about the Sandy Hook elementary school shootings, I am talking about the Colorado theater shootings, I’m talking about the FEMA camps and the ammo buys and the police state that we are slowly spiraling into. Nothing about the Sandy Hook killings makes any sense at all… If you haven’t been following this let me explain: 1) Children who were allegedly victims of the shooting have been seen still alive and have even had their pictures taken with Pres. Barrack Hussein Obama 2) Some of the parents (OK all of them) of the alleged victims who were interviewed aren’t really parents of victims but appear to be actors http://youtu.be/xYcNlJKP-Hw 3) First responders who arrived at school to assist with triage and treatment of the wounded were not allowed in the school …at all …ever…and sat idle in the parking lot 300 feet away from the door to the school and not directly in front of the school where they should’ve been. Why? While you’re thinking about that how bout that one…how about this one? 4) Other than the medical examiner who we will talk about in a second and some of the police nobody has really seen these children or the crime scene… Why? 5) Where is the video footage from the security cameras in front of the school? Why has it not been released or discussed? 6) Why haven’t we heard who the other two men seen running from the school are? One of them man was handcuffed and detained briefly and then allowed to sit in the front seat of a police car…. Even though he was dressed like the alleged killer; with camouflage pants and a black sweatshirt why don’t we know who this person is? And why was he let go? And what was he doing there? 7) What about the third man you can see running away very clearly in the video?8) how is it possible that there were federal agents at the school at the same time that the initial 911 call was made… Isn’t it customary for a crime to have been committed and called in before the police arrive? And why the feds? YES The Fed’s were there already before the school called 911??? 9) why were there so many interviews of fake people and families… Who are these people? Why are they at the scene of the tragedy pretending to be the immediate family of victims? These stories don’t add up …and I mean not even kind of!10) Robbie PARKER AND EMILIE PARKER- Check out this smiling and laughing father of one of the alleged victims named Emilie Parker…in this video you see her being hugged while mugging for a photo opp with Obama wearing the same dress.Very Creepy. . http://youtu.be/xSnhYMaGYuY . I will tell you what else doesn’t make sense about this father: Robbie Parker. On the same exact day as the shootings; December 14, 2012, Mr. Parker, the mourning father who is consumed with grief over the death of his beautiful little daughter some how finds the energy and time to put up a Facebook page called the “Emilie Parker fund” where he actively solicits money from strangers… Weird huh? Two days later of course he is with Pres. Obama and a very much alive Emilie Parker for a photo op. What in the hell is going on? 11) Check out these happy parents who have clearly not been crying or mourning or having problems sleeping as they joke with Anderson Cooper. This is not how parents act when they lose a six-year-old daughter to a senseless tragedy and such a violent death it’s just not. Start this video at about 2 min. 30 seconds We are going to use this video over again so just click on the embedded links …http://youtu.be/6c_6JzSqr2w 12) at the five-minute 25 second mark these parents who have been laughing and joking with Anderson Cooper about their daughter who was gunned down brutally start talking about Pres. Obama and the give him some of her artwork which ironically or not is the owl it appears on all of the illuminati swag… What are the odds? 13) there is no way a parent can tell the story that she tells at 8 min. and 10 seconds without crying. It just can’t happen. 14) at the 10 min. mark we get a new set of parents who are happier than the last set. These parents talk about their daughter as though she had passed away years before and not two days before… This is really creepy http://youtu.be/6c_6JzSqr2w at the 11 min. 16 seconds Mark is some of the worst acting I’ve ever seen how is it possible for all of these families to cry without tears? These people look well rested and their eyes do not show the strain of mourning. Why? Her makeup shows no stains or signs of running. Check out this link … It’s a link to crisis actors who play these parts professionally http://crisisactors.org/ or this link that will tell you that our government has done this type of training recently http://youtu.be/eHJ0hn7G9d4 15) Back to the shooter … Adam Lanza …what made this guy allegedly snap? How about something like this? the MK Ultra Project? The CIA’s use of mind control to create killers is a matter of historical record. MK-ULTRA was the code name for a covert, illegal CIA human research program, run by the Office of Scientific Intelligence that came to light in 1975 through investigations by the Church Committee, and by a presidential commission known as the Rockefeller Commission. 14-year CIA veteran Victor Marchetti insists that the program is ongoing and has not been abandoned. http://en.wikipedia.org/wiki/Project_MKUltra 16) The people who are subjected to this kind of deep hypnosis are given triggers to kill others and ultimately to kill themselves …Here comes the police scanner mystery where the order is given to Adam to kill himself …. His trigger…. Listen to this…. Turn it up loud. Do you hear very clearly where someone says to him: “end the life of Adam” http://en.wikipedia.org/wiki/Project_MKUltra 17) Finally …check out the Darren Brown Assassin where they did this http://youtu.be/Cc9y1UYIqv0 18) Add to all of this the fact that there is a very well established link between this shooting …the Colorado Theater shooting and the Grimm murders. 19) And last but certainly not least …the freak show medical examiner …check this guy out 20) And what about the principal of the school?? Dead or alive? UPDATES …. –MORE FAKE WITNESSES …HERE IS TEACHER KAITLYN ROIG …. ACTING! WHO CRIES WITHOUT TEARS? HOW MANY PEOPLE ARE GOING TO SAY THE EXACT SAME THING ‘MY HEART GOES OUT TO ALL OF THOSE WHO …LALALALA” Conspiracy or Coincidence? James Holmes and Adam Lanza http://www.youtube.com/watch?v=sdV4QG28or4&feature=youtu.be http://crisisactors.org/profiles/members/ ACTING!!! Sandy Hook massacre: Official story spins out of control http://www.veteranstoday.com/2012/12/20/sandy-hook-massacre-official-story-sp… Obama Fake Crying Scientific Proof https://www.youtube.com/watch?v=ojBuHO1og7c Conspiracy or Coincidence? James Holmes and Adam Lanza http://www.youtube.com/watch?v=sdV4QG28or4&feature=youtu.be CT. COP on Sandy Hook Inconsistencies: “THINGS DON’T ADD UP” https://www.youtube.com/watch?feature=endscreen&NR=1&v=greuYvcMLDk Beautiful Rant By Adam Curry About How Fake the Sandy Hook Shooting Is http://www.youtube.com/watch?v=vRFG9F5UW5Q

17 Comments

January 6, 2013 · 10:31 am

I Don’t Believe in Coincidence, All 3 of These Mass Murders Are Related to the LIBOR Scandal…

Pricelessly Boring
Sorry it took me so long to post something about these latest twists. I’ve been busy with the holidays and then out of town. What is it all about? It’s about the largest financial scandal the world has ever known. The Libor (London Interbank Offered Rate) is the benchmark Interest Rate for a whopping $800 trillion of financial instruments. That’s more than 10 times global Gross Domestic Product. It is at the heart and core of virtually every piece of debt that is issued to consumers around the world — credit cards, car loans, mortgages, student loans, interest rate swaps and other complex derivative products all depend on the Libor Rate. Hold that thought …

File this under the ‘will wonders never cease’ category because you all know how I feel about coincidences? I don’t think very many things are really as coincidental as alot of people are led to believe. The 3 gays from Trinity church who were friends of Barrachio …all executed within the same 30-40 day period …execution style…with the last one getting capped just 1 week before the DNC convention …definitely NOT coincidence, The actions that led up to Benghazi-gate …leaving that embassy unprotected when they needed it the most…also wasn’t coincidence. When it comes to this administration NOTHING! is coincidence anymore. With that in mind please make sure you are seated when I tell you the latest which most of you didn’t watch the news on the right day…

The latest is this: Could it just be a coincidence that father of the Colorado shooter and the father of the Connecticut shooter are connected by the fact that they are BOTH scheduled to testify in front of Congress about the LIBOR scandal…(oh that’s right …the same exact two men who fathered the same 2 sons who both walked into a crowded theater/school and opened fired on the innocent people inside ending the lives of over 40 people and changing the lives of millions…what are the odds? You don’t want to hear the odds of this actually happening because they make winning lotto America or Powerball look like an even money bet) Hang on there is more.

Peter Lanza …The father of Connecticut school gunman Adam Lanza, is the “Tax Director” for GE Capital a division of General Electric, whom as you will recall was clever enough to pay exactly zero taxes on over 14 billion dollars in profits last year alone. Robert Holmes, the father of James Holmes is a fraud detection expert for FICO and is also scheduled to testify in front of Congress and they are both going there to talk about LIBOR rigging.

For those of you who don’t think this is a big deal then please note that not only is this a big deal …it is THE BIGGEST DEAL in the history of our financial markets…Why? Because for the 1st time ever, the blame for one of these scandals can’t be sloughed off onto some “rogue trader” “acting without authority” with money he didn’t control or ‘didn’t have permission to lose’ etc. No, this time the scandal reached out and sucked in the central bankers a.k.a. The Zionist Criminal Global banking cabal that runs our country and demonstrated conclusively their complicity in fixing the LIBOR rate. People they were caught red handed!

Let me explain how big this is: The interest rate of a loan consists of adding what is referred to as the “risk-free” rate to an appropriate “risk premium” (the additional vigorish paid to compensate the lender according to the risk profile of the borrower). If either the risk-free base rate or the risk-premium go up, then the interest rate and cost of the loan also go up …you with me? For example …If the ‘risk free rate’ is 4% and your ‘risk premium’ is 6% then your credit card rate would be 10%. All of the complicated predictive models used by financial institutions include more types of different risk-premia and other things, but this is basically how credit that is being extended to someone or some entity is priced. As a result, all the most complicated models have this “risk-free” rate at their core. If you don’t understand this concept then please take it on faith because EVERYTHING REVOLVES AROUND THE LIBOR OR ‘RISK FREE’ COST OF MONEY RATE! The sun literally rises and sets on the LIBOR rate. Did I say everything? I meant EVERYTHING!

The LIBOR rate forms the core of every financial model involved in pricing a loan and determining risk. Discovering that the LIBOR rate is not governed by market forces etc and is instead being manipulated depending upon the whim and caprice of the criminal global Zionist bankster element challenge’s the most important cornerstones of the entire global economy. Let me give you a better example by taking our simple explanation to a higher level for just a second and having you consider this slightly more complicated model which is currently used for pricing options and derivatives (ahhh…yes those derivatives!) This is the ‘Black Scholes PDE’

xxx BS1

The one variable I want you to look the hardest at is the “r” which is the LIBOR or risk free cost of money. What this model does is help illustrate the context and interplay between these various components and for understanding options and derivatives as owning pieces of the underlying object along with some cash, and getting the price of a derivative by understanding what it would mean to manipulate those two items. The cash component is valued and determined by the LIBOR. Are you still with me? You should be starting to see that when I said that the LIBOR affects everything …including the 100 trillion dollar plus derivatives market…I meant everything. The fact that it directly implicates the derivatives market makes it clear why this matters to the overall market. The possibility that the regulators were in on it further clarifies the “protect the health of the largest banks at all costs” approach, one that squeezes every last bit of blood out of the US housing market and creates mass unemployment through a balance-sheet recession. And even if they weren’t, that means that future measures to adequately monitor the health of the banks through disclosures and market information might also be manipulated without (or even with) serious jail time or penalties. The people pricing any loans at LIBOR want the pricing of a systemic credit crisis in their model. It is impossible to overstate how fundamental LIBOR is to the bond market. These prices are supposed to mean something, and the ability to add that information is a crucial reason it has shown up in so many pricing models.

Hopefully I was able to explain it well enough for you to see that the LIBOR rate rigging scandal is HUGE, and like almost every violent act that takes place where large scale killing and dying occur, it also ties directly to the hands on the banksters and the central banks …they are not just suspects this time …their finger prints are all over it and they were caught red handed …expect to see the premature deaths of anyone who knows or saw or can testify to any of this before this is finished being vetted…that’s how they play. Okay now back to our story….

So in one corner we have Peter Lanza from GE (father of the Connecticut shooter) getting ready to testify on the LIBOR scandal AND NOW WE FIND OUT THAT in the other corner … We have the father of the Colorado Batman movie shooting …Mr. Robert Holmes …father of gunman James Holmes. Robert Holmes is also a LIBOR witness in his position with FICO. According to the link at FICO, Robert Holmes was a ‘Fraud Scientist’.

“FRAUD SCIENTIST?…”LIBOR INVESTIGATION? …RUH ROW!”

So let’s recap: In what can only be described as an amazing coincidence, both men were to testify before the US Senate in the ongoing LIBOR scandal where 16 of the largest and most powerful international banks have been implicated and accused of rigging contracts worth trillions of dollars. And this time we really have the goods on these thieves…so much so that HSBC has already been fined $1.9 billion and three of their low level traders scapegoated …I mean arrested.

BUT WAIT! There have been other LIBOR related shootings and killings of children during this same time frame …don’t forget the two beautiful children of the CNBC Executive whose department first ran the story …and just several hours after the story ran his children were brutally murdered by who? By a nanny who out of nowhere went batshit crazy just like the other two shooters did. The forces of evil appear to have the ability to somehow turn people into violent mass murderers with no scruples whatsoever …pure evil …no one thinks a child is guilty of anything and should be killed except evil itself.

Ladies and gentlemen, I don’t have these answers either. What I do k now is that so far, as the central bankers and Zionists who control the global economy are slowly being dragged out into the light of day, their methods, motives, and evil deeds are being discovered and outed. They see the writing on the wall and know that when enough people wake up, look around, and begin to put the pieces together they are finished…hopefully this article will help wake just one person up because the sooner we are willing to shine a bright light on this scourge that plagues us and our economy the sooner we can cut the cancer out and resume our healthy lives

7 Comments

December 30, 2012 · 12:05 pm

Great Article from the Chair of the Washington County GOP – The Article that he resigned over

Rather than let him resign they should have had a parade for this man for finally having the cajones to speak out and speak the truth cej

Liberalism is an atheistic cult. The DNC is actually communism wrapped in their liberal religion to mask the fact they are attempting to create their utopian enslavement. The first thing Communists want is to take God out of all government institutions such as schools and government to be replaced with secularism. Secularism is an atheistic belief which replaces the Bible’s Ten Commandments and teachings of honesty and integrity with moral relativism. One can lie, cheat and steal if the end justifies the means. This gives the government officials, elitists and leaders free reign to make up morality as they see fit and declare what is right and wrong. Rather than having personal morality or responsibility they believe in a social morality allowing them to live an immoral personal life and having it absolved through social morality.

The Democrats have replaced personal morality with social morality which means to be a good person you no longer have to worry about your personal failings but your societal failings. This allows you to put the social good in front of your personal responsibilities to make yourself a good person. You can be a drug addict, leave your family in shambles or steal from your boss but, as long as you drive a Prius and are concerned about polar bears, you are a good person. You can live any immoral lifestyle you want and, as long as you believe in Social Justice, you are a saintly person in their belief system. This is where the cult lifestyle comes in since you have to take God out of your life and replace it with social morality to work yourself into goodness. Liberals earn their way into their heaven of a perfect liberal.

Liberalism is a Godless religion whose High Priests are scientists. Since they don’t believe in God or a superior being the only people who can explain; existence or truth are scientists. They won’t accept the “myth” of creation so they have to have the scientist explain our coming to being through evolution. According to evolution the top of the evolutionary chain is man which means that the only thing superior to man is a more intelligent man or a group of men together like government or science. That should disprove their theory right there.

The average liberal will accept anything a scientist says since they think the scientific method is based on facts and infallible. When a scientist declares something true by consensus such as evolution or Global Warming they accept it as absolute truth. Never mind science has been wrong about similar theories such as acid rain, DDT, Spotted Owls or AIDs affecting heterosexuals they accept it without question. The liberal will accept it completely without hesitation and when someone dares to question the findings of these scientists, that person is attacked and declared a heretic or ignorant of science. The truth is science has been corrupted by politics and now is closed to competitive theories and will destroy careers of non believers.

Many liberal will brag about how they are vegans who love Polar Bears and try to save the earth from those evil 1%ers. They are tolerant of everyone except those who disagree with them. They live their lives to be the perfect liberal who try to earn their way into liberal perfection. Their lives are a series of clichéd phrases and actions, trying to be more liberal than the liberal next to them. They are all pro-“choice”, for homosexual marriage, for salary equality, they worship the earth and most of all you vote Democrat. None of these social laws have anything to do with personal responsibility but enslaving others to your social morality. Tolerance is their sainted behavior and intolerance and Republicanism is the ultimate sin. Every one of these cultish beliefs either directly or indirectly lead you to voting for more Democrats and less individual freedom.

While they look with sanctimonious disdain at Christians and their religious myths and intolerance to be scoffed at they will spend untold millions on frauds which have no credible proof. It takes far more faith to believe in evolution than God when you look at the extremely long odds of random evolving of our complex species yet they laugh at the idea there may be a creator. Both take large amounts of faith to fill in the gaps yet one’s is laughed at while the other is taught in every institution in the country. The reason is these institutions have agreed that evolution is true through consensus which means all gaps in the theory are ignored completely and questioning is stopped. Anybody who argues against the so called proof or evidence are declared heretics to their religion and not admitted into the church of science. This consensus tactic has been repeated throughout liberal politics to declare their ideas right and any dissention attacked.

The mediots are who determine which theories are valid and which need to be rejected and they of course are members of the cult. The media has decided to promote every tenet of their religion from evolution, feminism, veganism, racism, homosexuality, choice, Global Warming, hate the wealthy, communism and every other lifestyle agenda the establishment considers normal. The only miracle is after forty years of political and cultic brainwashing the American dream still lives in half of this country’s citizens. After being mocked and vilified for all of these years Conservatives still have the ability to make these elections competitive considering the overwhelming forces standing against them. There are still people willing to stand up and proudly proclaim their faith in God as well as their trust in individual responsibility.

This should still give us hope that if we find candidates who can articulate Conservatism there are enough people to vote for them. Rather than trying to be like liberals with all their group dividing “isms”, let’s explain how capitalism and God free you rather enslave. Rather than falling for the right colored or gendered candidate, we need to find the ones who can explain the concept of trusting in our own individuality to provide for our families and friends. Rather than bowing to evolution and Global Warming we need people to become informed of the giant gaps in those theories and ask the dirt worshipers to explain why evidence points away from evolution and why there was no warming of the earth for the past ten years?

Let’s move away from consensus as a Party and use the power of variety and experimentation to pave a way to victory from election to election. The country is starving for leaders and rather than following the affirmative action consensus model let’s promote leaders who will lead the followers into our ranks and start attacking the cult. As one of their heroes said, let’s choose our leaders by the content of their character and not the color of their skin.

5 Comments

December 30, 2012 · 10:03 am

TSA’s Grip on Internal Travel is Tightening …Wendy McElroy

US_TSA_check_86
Coexistence on this tightly knit earth should be viewed as an existence not only without wars…but also without [the government] telling us how to live, what to say, what to think, what to know, and what not to know. Aleksandr Solzhenitsyn, from a speech given September 11, 1973.

Slowly but surely …one by one we respond to one manufacture3d crisis after another and cede a little tiny bit of our freedom and liberty away to the government who is looking out for us. The next thing you know we are being subjected to random strip searches and rationalize that it is somehow OK. Currently we are only allowing ourselves to be freely groped at airports …but as the following article documents …TSA has taken it’s show on the road to a city or town near you.This is how “gradualism” works through a series of “created crises” which utilize Hegel’s dialectical process, leading us to more radical change than we would ever otherwise accept.

This article is going to really really make you angry… why in the world do we need anyone giving us the police state treatment domestically? Has there even been one incident? This is the sort of Hegelian gradualism the has a really bad ending because I know that I for one will not be a very cooperative subject if some $10.00 an hour TSA worker with a double digit IQ decides to pull me over and try to search me or my car. Read on then call your congressman who just voted to fund this nightmare.

TSA’s Grip on Internal Travel is Tightening …Wendy McElroyThe TSA agents and their “partners” want your freedom, your obedience, and control of your life.

The Transportation Security Administration (TSA) is tightening its grip on domestic travel. I don’t mean the random, unpredictable security checks at bus, subway and train stations which already exist. I mean a coordinated and systematic police control of internal travel within America. Groundwork is being laid.

APPLICATION TO MAKE U.S. INTO AN AIRPORT SCREENING ZONE The application was tucked away on page 71431 of Volume 77, Number 231 of the Federal Register (November 30). It was surrounded by soporific references to forwarding “the new Information Collection Request (ICR) abstracted below to the Office of Management and Budget (OMB) for review and approval under the Paperwork Reduction Act (PRA).”

The application for funding from the TSA constitutes a preliminary step toward systematically expanding TSA’s authority from airports to highways and almost every other means of public travel. The expansion would erase one of the last remaining differences between the US and a total police state; namely, the ability to travel internally without being under police surveillance. The total police state you experience at airports wants to spill into roads and bus stops, to subways and trains. Or, rather, the TSA wants to solidify and spread the fledgling and erratic presence it already has.

The official request reads, “TSA’s Highway BASE program [Baseline Assessment for Security Enhancement] seeks to establish the current state of security gaps and implemented countermeasures throughout the highway mode of transportation by posing questions to major transportation asset owners and operators.” An example would be an owner and the employees of a long-haul truck company. The application continues, “Data and results collected through the Highway BASE program will inform TSA’s policy and program initiatives and allow TSA to provide focused resources and tools to enhance the overall security posture within the surface transportation community.”

Meanwhile, the Government Security News Service provides additional details on TSA’s plans. TSA wants funding to conduct “security-related assessments” on about 750 “transportation assets” including “140 public transportation agencies.” An example would be bus depots or train stations.

Security Magazine (May 30th) offered a sense of how sweeping the definition of “assets” might be, including “trucking, school bus, and motor coach industries, privately-owned highway assets that may include bridges and tunnels, and other related systems and assets owned and operated by state departments of education and transportation.”

At this point, the goal is merely “an assessment.” But when did a government agency ever conclude that it didn’t need funding, expansion and more power? This is especially true of the militarized TSA that treats the public as “hostiles.”

The fact that the agency lamented the lack of a “single database” on public transportation is not reassuring. (Federal Register, Vol.77, No.104, pg. 31867, May 30) The entire push seems aimed at not merely expanding but also centralizing information, efforts and authority, with BASE itself being a consolidation of several other TSA programs.

TRAVEL AUTHORITIES WILL COMPLY
Private companies and public travel authorities will co-operate with this “voluntary” program of assessment and with whatever policies result. They will co-operate for two reasons: the stick and the carrot.
CONTINUE THIS STORY HERE …AT THE SOURCE

4 Comments

December 21, 2012 · 8:16 am

We Already Know how to Stop School Shootings…Concealed Carry!

wakeup2012
By Ann Coulter
December 19, 2012
In the wake of a monstrous crime like a madman’s mass murder of defenseless women and children at the Newtown, Conn., elementary school, the nation’s attention is riveted on what could have been done to prevent such a massacre.

Luckily, some years ago, two famed economists, William Landes at the University of Chicago and John Lott at Yale, conducted a massive study of multiple victim public shootings in the United States between 1977 and 1995 to see how various legal changes affected their frequency and death toll.

Landes and Lott examined many of the very policies being proposed right now in response to the Connecticut massacre: waiting periods and background checks for guns, the death penalty and increased penalties for committing a crime with a gun.

None of these policies had any effect on the frequency of, or carnage from, multiple-victim shootings. (I note that they did not look at reforming our lax mental health laws, presumably because the ACLU is working to keep dangerous nuts on the street in all 50 states.)

Only one public policy has ever been shown to reduce the death rate from such crimes: concealed-carry laws.

Their study controlled for age, sex, race, unemployment, retirement, poverty rates, state population, murder arrest rates, violent crime rates, and on and on.

The effect of concealed-carry laws in deterring mass public shootings was even greater than the impact of such laws on the murder rate generally.

Someone planning to commit a single murder in a concealed-carry state only has to weigh the odds of one person being armed. But a criminal planning to commit murder in a public place has to worry that anyone in the entire area might have a gun.

You will notice that most multiple-victim shootings occur in “gun-free zones” — even within states that have concealed-carry laws: public schools, churches, Sikh temples, post offices, the movie theater where James Holmes committed mass murder, and the Portland, Ore., mall where a nut starting gunning down shoppers a few weeks ago. Read More »

1 Comment

December 20, 2012 · 9:06 am

Wealth Confiscation…Democrats Target Private Retirement Accounts… Hearings Going on NOW!

Dems Target Private Retirement Accounts

Wednesday, March 30, 2011 at 2:26PM

By Karen McMahan – Guest Contributor

RALEIGH, NC – Democrats in the U.S. House have been conducting hearings on proposals to confiscate workers personal retirement accounts including 401(k)s and IRAs and convert them to accounts managed by the Social Security Administration. ARE YOU FREAKING KIDDING ME?

Triggered by the financial crisis the past two months, the hearings reportedly were meant to stem losses incurred by many workers and retirees whose 401(k) and IRA balances have been shrinking rapidly. The testimony of Teresa Ghilarducci, professor of economic policy analysis at the New School for Social Research in New York, in hearings Oct. 7 drew the most attention and criticism. Testifying for the House Committee on Education and Labor, Ghilarducci proposed that the government eliminate tax breaks for 401(k) and similar retirement accounts, such as IRAs, and confiscate workers retirement plan accounts and convert them to universal Guaranteed Retirement Accounts (GRAs) managed by the Social Security Administration.

Rep. George Miller, D- Calif., chairman of the House Committee on Education and Labor, in prepared remarks for the hearing on The Impact of the Financial Crisis on Workers Retirement Security, blamed Wall Street for the financial crisis and said his committee will strengthen and protect Americans 401(k)s, pensions, and other retirement plans and the Democratic Congress will continue to conduct this much- needed oversight on behalf of the American people.

Currently, 401(k) plans allow Americans to invest pretax money and their employers match up to a defined percentage, which not only increases workers retirement savings but also reduces their annual income tax. The balances are fully inheritable, subject to income tax, meaning workers pass on their wealth to their heirs, unlike Social Security. Even when they leave an employer and go to one that doesn’t offer a 401(k) or pension, workers can transfer their balances to a qualified IRA.

Mandating Equality Ghilarduccia’s plan first appeared in a paper for the Economic Policy Institute: Agenda for Shared Prosperity on Nov. 20, 2007, in which she said GRAs will rescue the flawed American retirement income system (www.sharedprosperity.org/bp204/bp204.pdf).

The current retirement system, Ghilarducci said, exacerbates income and wealth inequalities because tax breaks for voluntary retirement accounts are skewed to the wealthy because it is easier for them to save, and because they receive bigger tax breaks when they do.

Lauding GRAs as a way to effectively increase retirement savings, Ghilarducci wrote that savings incentives are unequal for rich and poor families because tax deferrals provide a much larger carrot to wealthy families than to middle-class families and none whatsoever for families too poor to owe taxes.

GRAs would guarantee a fixed 3 percent annual rate of return, although later in her article Ghilarducci explained that participants would not earn a 3% real return in perpetuity. In place of tax breaks workers now receive for contributions and thus a lower tax rate, workers would receive $600 annually from the government, inflation-adjusted. For low-income workers whose annual contributions are less than $600, the government would deposit whatever amount it would take to equal the minimum $600 for all participants.

In a radio interview with Kirby Wilbur in Seattle on Oct. 27, 2008, Ghilarducci explained that her proposal doesn’t eliminate the tax breaks, rather, than just rearranging the tax breaks that are available now for 401(k)s and spreading the wealth.

All workers would have 5 percent of their annual pay deducted from their paychecks and deposited to the GRA. They would still be paying Social Security and Medicare taxes, as would the employers. The GRA contribution would be shared equally by the worker and the employee. Employers no longer would be able to write off their contributions. Any capital gains would be taxable year-on-year. Analysts point to another disturbing part of the plan. With a GRA, workers could bequeath only half of their account balances to their heirs, unlike full balances from existing 401(k) and IRA accounts. For workers who die after retiring, they could bequeath just their own contributions plus the interest but minus any benefits received and minus the employer contributions.

Another justification for Ghilarduccia’s plan is to eliminate investment risk. In her testimony, Ghilarducci said, humans often lack the foresight, discipline, and investing skills required to sustain a savings plan. She cited the 2004 HSBC global survey on the Future of Retirement, in which she claimed that a third of Americans wanted the government to force them to save more for retirement.

What the survey actually reported was that 33 percent of Americans wanted the government to force additional private savings, a vastly different meaning than mandatory government-run savings. Of the four potential sources of retirement support, which were government, employer, family, and self, the majority of Americans said self was the most important contributor, followed by a government. When broken out by family income, low- income U.S. households said the government was the most important retirement support, whereas high-income families ranked a government last and self first (www.hsbc.com/ retirement).

On Oct. 22, The Wall Street Journal reported that the Argentinean government had seized all private pension and retirement accounts to fund government programs and to address a ballooning deficit. Fearing an economic collapse, foreign investors quickly pulled out, forcing the Argentinean stock market to shut down several times. More than 10 years ago, nationalization of private savings sent Argentina’s economy into a long-term downward spiral.

Income and Wealth Redistribution

The majority of witness testimony during recent hearings before the House Committee on Education and Labor showed that congressional Democrats intend to address income and wealth inequality through redistribution.

On July 31, 2008, Robert Greenstein, executive director of the Center on Budget and Policy Priorities, testified before the subcommittee on workforce protections that from the standpoint of equal treatment of people with different incomes, there is a fundamental flaw in tax code incentives because they are provided in the form of deductions, exemptions, and exclusions rather than in the form of refundable tax credits. Even people who don’t pay!

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