By JC Collins
Just a quick thought on the possibility of the Internal Revenue Agency doing a sort of “bail-in” or “confiscation” of the income tax returns of Americans in the up coming tax season.
Treasury Secretary Jack Lew is warning that if Congress doesn’t approve an increase to the debt limit than the government will have difficulty paying its bills (same song and dance) but added this time that the treasury reserves will be quickly depleted as they issue income tax refunds.
Some commonalities of interest here are the fact that Jack Lew is not only pushing congress to increase the debt limit, but also requesting that congress pass legislation to support the International Monetary Funds 2010 Governance Reforms. I’ve written of these reforms in a previous post.
It’s beginning to look like the I.M.F. and U.S. Treasury are working together on a debt consolidation package for America.
Referencing the I.M.F. press release of Jan 23, 2014, which I wrote about in the last post, it’s also clear that there is disappointment with certain I.M.F. members who have not yet accepted the 2010 Reforms, or as stated in the release, the “quota increases”.
What isn’t clear is exactly how the debt ceiling and the 2010 Reforms are connected. Though I would doubt the coincidence of them both being negotiated at the same time.
Considering the level of sovereign debt and the I.M.F.’s involvement, is it too much of a stretch to imagine a restructuring of the U.S. debt through a process of consolidation and confiscation of not only pension funds, as is happening with MyRA, but also by allocating income tax returns to “invest” in treasury bonds. After all, no one else will want them so why not force American’s to buy them with their pension funds and income tax returns.
Governments of the past have been proven to take drastic measures in dire times. Of course the media will spin it as the American thing to do. – JC