Best of the Week
Most Popular
1.RED ALERT: Paris Terror Attacks - What to Expect Next - STRATFOR
2.Paris Terror Attacks, Death Pangs of a Dying Religion, and Impact on BrExit EU Referendum - Nadeem_Walayat
3.Paris Terror Attacks, Islamic State Attempting to Spark Civil War in France - Nadeem_Walayat
4.Three Shocking Charts That Prove Gold Price Rally Is Coming - Sean Brodrick
5.Stock Market Nifty-Fifty Becomes Fab-Five; Return of the 'Four Horseman' - Mike_Shedlock
6.Africa Population Explosion - Why Europe's Migrant Crisis is Going to Get A Lot Worse - Video - Nadeem_Walayat
7.Gold Mining Stocks May Be The Buy Of The Century - Jeff_Berwick
8.Grandmaster Putin Beats Uncle Sam at His Own Game - Mike_Whitney
9.BRICS? No, CRISIS - Raymond_Matison
10.UK Housing Market Affordability, House Prices Momentum and Trend Forecast - Nadeem_Walayat
Last 5 days
Gold And Silver - No Ending Action, But End May Be Near - 28th Nov 15
Social and Cultural Distress Dividing The Nation - Fourth Turning - 28th Nov 15
Sheffield Houses Prices 2015, Best Estate Agents As Rated by Buyers and Sellers - 28th Nov 15
Stock Market Top Valuations, at a Critical Juncture - 27th Nov 15
The Top Shopping Opportunity on Black Friday - 27th Nov 15
Economics Is About Scarcity, Property, and Relationships - 27th Nov 15
UK Immigration Crisis Hits New Extreme of 336k Net Migration, up 32% on 2014 - 27th Nov 15
Vauxhall Zafira B Fire Danger Recall - What to Do Video - 26th Nov 15
Triggers In US Dollar Collapse - 26th Nov 15
Apple Stock is a 10-Year Short - Bear Market Environment - 26th Nov 15
U.S. Federal Reserve Rate Hike - 26th Nov 15
George Osborne's War on Buy to Let Sector Trending Towards Doomsday - 26th Nov 15
Will Turkey Drag NATO into War With Russia in Syria? - 25th Nov 15
George Osborne’s Autumn Statement and Spending Review Full Text - 25th Nov 15
Will Fresh QE From ECB Boost Gold? - 25th Nov 15
Sheffield, Yorkshire and Humberside House Prices Forecast 2016-2018 - 25th Nov 15
Investors Watch Out For The Auto Industry… - 24th Nov 15
BEA Revises 3rd Quarter 2015 US GDP Economic Growth Upward to 2.07% - 24th Nov 15
Stock Market Supports Are Being Broken - 24th Nov 15
Is Gold Price on the Verge of a Breakout? - 24th Nov 15
Fed’s Tarullo: U.S. Interest Rates Liftoff Should Wait for Signs of Inflation - 24th Nov 15
Silver Price, COT, US Dollar Updates and More - 24th Nov 15
UK Regional House Prices Analysis - Video - 23rd Nov 15
Crude Oil Swinging For The Fences - A 20 to 1 Option Play - 23rd Nov 15
US Dollar, CRB, Oil, Gas, Copper and Gold - The Chartology of Deflation - 23rd Nov 15
UK Regional House Prices, Cheapest and Most Expensive Property Markets - 23rd Nov 15
Stock Market Rally Losing Momentum? - 23rd Nov 15
Will Gold Price Drop Below $1000 Soon? - 23rd Nov 15
Gold and Silver Sector Big Green Light and Low Risk Entry Setup... - 23rd Nov 15
Limits to Economic Growth - Challenge and Choices - 22nd Nov 15
Long Dollar Trade and Current Copper Price Below Cost of Production - 22nd Nov 15
UK Housing Market House Prices Affordability Crisis - Video - 21st Nov 15
The Fed Has Set the Stage for a Stock Market Crash - 21st Nov 15
Stock Market Primary V Wave Continues - 21st Nov 15
Gold And Silver - Value Of Knowing The Trend - 21st Nov 15
UK Footsie Bulls Set To Foot The Bill - 21st Nov 15
UK Housing Market Affordability, House Prices Momentum and Trend Forecast - 21st Nov 15
GDX Gold Miners’ Strong Q3 Results - 20th Nov 15
End of Schengen, Stock Market’s Technical Strength Grows - 20th Nov 15
Justice for All and The Curious Case of Zambia - 20th Nov 15
Paris, Sharm el-Sheikh, and the Resurrection of Old Europe - 20th Nov 15
Silver Prices and The Management of Perception - 20th Nov 15
Stock Market Nifty-Fifty Becomes Fab-Five; Return of the 'Four Horseman' - 20th Nov 15
Waiting for Goldot Again - 20th Nov 15
Michael Curran Goes Down-Market Shopping for Gold Stock Winners - 20th Nov 15
Why Isn’t This Incredibly Bearish Bond Market Development Making the News? - 19th Nov 15
SPX Appears to have Stopped its Rally - 19th Nov 15
The Great Fall Of China Started At Least 4 Years Ago - 19th Nov 15
Using Elliott Waves: As Simple As A-B-C - 19th Nov 15
Has Deflation Been Ddefeated? - 19th Nov 15
Dow Jones Stock Market Index is Not Going to Crash - 19th Nov 15

Free Instant Analysis

Free Instant Technical Analysis

Market Oracle FREE Newsletter

Reasons to Get Excited About Japanese Stocks

Obama Retirement Care

Politics / US Politics Nov 14, 2012 - 03:38 AM GMT

By: Jeff_Berwick


Wendy McElroy writes: How long will starving governments keep their itchy fingers off your private pension funds? Only as long as they can't get away with it. And governments are literally getting away with murder these days. Why not your pension money, too?

It happened in Argentina, Hungary, Ireland, and France. Here's how it will happen in America. After another financial crisis, Congress will “protect” you by requiring managed retirement plans to include X percent of Treasury bonds at a return well below inflation.

Or, perhaps, government(s) will get innovative with pensions like California. Governor Jerry Brown just signed Bill 1234 which creates America's first state-sponsored and state-managed retirement program for private sector workers. Every private employer with 5 or more workers without an existing employer-sponsored pension plan will automatically deposit 3% of the workers' income into a government-run retirement plan. Who is eligible? Every employee who does not go through the process and paperwork to opt-out; and they have to opt-out every 2 years. Otherwise, they are opted-in, over and over again.

The scheme is expected to put $6.6 billion under state management in the first year. The presumed manager is California Public Employees’ Retirement System (CalPERS) – the biggest U.S. pension fund with 1.6 million public sector employees.

CalPERS is in fiscal death throes. According to state Senator Mimi Walters, “California has... a terrible track record when it comes to maintaining its public pension systems; the systems are currently a combined $240-$500 billion in debt.” And, so, one type of investment explicitly permitted by the bill is “United States government and government sponsored entity debt obligations.” The government can use private pension funds to purchase public debt at a return of 3%. Worse, CalPERS must pay public employees first from dwindling funds.

That's adding insult to injury; when your pension funds are looted, they will pay for the retirement ease of bureaucrats and civil servants. No wonder Walters calls the bill “a cynical effort to prop up the floundering public employee pension debt with new funds from private investors, sent in by employers who are forced to participate under penalty of law.”

Bill 1234 will not prop up the public employee pension for long because CalPERS is a Ponzi scheme. Private Ponzi schemes have a relatively short lifespan after which the perpetrators are fined or jailed. Public Ponzi schemes live longer because laws can force more and more new people into “investing”. But after the public Ponzis go bust, the bureaucrats will collect the pensions that are your money, and go home.

The most ominous aspect of this money grab? California is a trend setter not merely in culture but also in politics.

Treat your pension fund as you do your wallet. Do not leave it lying around. Do not flash it in front of the power-drunk thugs that pass for politicians. Do not hand it over to strangers called investment managers for “safe keeping.” Those strangers will obey the laws passed by thugs; those strangers will betray you without a second thought. Hang on to your wallet; manage your own pension funds. If you have an IRA, then turn it into a self-directed IRA.

If you have significant assets – enough to attract the attention of desperate elected bandits – then move your assets out of their reach by getting those assets out of the country.

Setting up protected offshore bank accounts is one way to do so. And it doesn't have to be that hard or complicated, especially when you get the right help.

You should keep some precious metals within easy reach, just in case of a currency collapse. But if you have large amounts of gold within the geopolitical borders of the United States – too much to keep beneath the government's radar – then you should be worried. And you should be looking for a way to get your gold out of Dodge. At some point in the near future, if things get bad enough, you may want to consider getting yourself out of Dodge as well. 

Wendy McElroy is a renowned individualist anarchist and individualist feminist. She was a co-founder along with Carl Watner and George H. Smith of The Voluntaryist in 1982, and is the author/editor of twelve books, the latest of which is "The Art of Being Free". Follow her work at

Anarcho-Capitalist.  Libertarian.  Freedom fighter against mankind’s two biggest enemies, the State and the Central Banks.  Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast.  Jeff is a prominent speaker at many of the world’s freedom, investment and gold conferences as well as regularly in the media.

© 2012 Copyright Jeff Berwick - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2015 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Biggest Debt Bomb in History