Best of the Week
Most Popular
1.Is the Stocks Bull Market Over? Dow Trend Forecast into End January 2015 - Nadeem_Walayat
2.Gold and Silver Stocks Apocalypse Now, Bear Market Review - Rambus_Chartology
3.NHS Baldrick Plan to Spread Ebola Across UK - Sheffield, Newcastle, Liverpool, London Hospitals - Nadeem_Walayat
4.Ebola Terror Threat Suicide Bio-Weapons Threatens Multiple 9/11's, Global Plague - Nadeem_Walayat
5.Second-Richest Man Says Mortgages Now a "No Brainer" - Dr. Steve Sjuggerud
6.Gold And Silver Still No End In Sight - Michael_Noonan
7.NHS Baldrick Plan to Spread Ebola Across UK - Sheffield, Newcastle, Liverpool, London Hospitals - Nadeem_Walayat
8.The Gold Bug is Set to Bite Back - EWI
9.How Alibaba Could Capitalize on the EBay-PayPal Split - Frank_Holmes
10.The Consequences of the Economic Peace - John_Mauldin
Last 5 days
U.S. Economy Faltering Momentum, Debt and Asset Bubbles - 23rd Oct 14
Annuities - Afraid Your Money Will Vanish before You Do? - 23rd Oct 14
What Debt Deleveraging? - 23rd Oct 14
How to Profit from Massive Spin-Offs with Just One Play - 23rd Oct 14
Evaluating Ebola as a Biological Weapon - 23rd Oct 14
Euro, USD, Gold and Stocks According to Chartology - 23rd Oct 14
Why You Should Always Be Invested in the Stock Market (Even Now) - 23rd Oct 14
Five U.S. Housing Market Warning Signs Point to Real Estate Market Downturn - 23rd Oct 14
The Better Short: Gold or Silver? - 23rd Oct 14
Focus on Graphite Companies with Green Energy and Technology Strategies - 22nd Oct 14
Crude Oil Price Hitting Bottom - 22nd Oct 14
Evidence of Another Even More Sweeping U.S. Housing Market Bust Already Starting to Appear - 22nd Oct 14
Gold Or Crushing Paper Debt Stocks Crash? - 22nd Oct 14
India Gold Demand Surges 450% and Bank of Russia Demand At 15 Year High - 22nd Oct 14
Bitcoin Stock Exchange Could Be "More Valuable than Alibaba" - 22nd Oct 14
Currency War - How to Profit from a Stronger U.S. Dollar - 22nd Oct 14
Banks Hold Treasuries and Make Loans- 22nd Oct 14
Gold and Silver Timing is Everything - 22nd Oct 14
Don't Get Ruined by These 10 Popular Investment Myths (Part VII) - 22nd Oct 14
Follow the Baby Boom to Biotech Stock Profits - 22nd Oct 14
Copper, Nickel and Zinc Won't Be Cheap for Long - 22nd Oct 14
How Will We Know That the Gold & Silver Price Bottom Is In? - 21st Oct 14
Is Gold as Dead as Florida Hurricanes? - 21st Oct 14
First Swiss Gold Poll Shows Pro-Gold Side In Lead At 45% - 21st Oct 14
The Similarities Between Germany and China - 21st Oct 14
The REAL Reason Why the Stock Market Turned Down - 21st Oct 14
Petrobras is a 'Scheme, Not a Stock' - 21st Oct 14
Stocks Bear Market Indicator Is Off the Mark - 20th Oct 14
Stock Market Ideal Turning Point is at Hand - 20th Oct 14
Investors Quit Complaining, The Environment is Perfect Right Now - 20th Oct 14
Ebola Armageddon Could Trigger a Rebirth in Gold and Silver Prices - 20th Oct 14
Gold vs Euro Risk Due To Possible Return of Italian Lira - Drachmas, Escudos, Pesetas and Punts? - 20th Oct 14
Stocks Rebounded Following Recent Sell-Off, But Will It Last? - 20th Oct 14
U.S. Responsible for West Africa Ebola Outbreak Says Liberian Scientist - 20th Oct 14
Stock Market Intermediate B Wave has Started - 20th Oct 14
Gold Stocks Analysis – FNV, CG, NCM, SBM - 19th Oct 14
Stock Market Primary IV Wave Counter Trend Rally - 19th Oct 14
Gold And Silver - Financial World: House Of Cards Built On Sand - 18th Oct 14
Anatomy of a Stock Market Sell-Off - 18th Oct 14
Why OPEC Has Declared an Oil War on Russia - 18th Oct 14
Gold and Silver Extreme Shorting Peaks - 18th Oct 14
Bitcoin Price Fall to $350? - 18th Oct 14
Tesco Supermarket Crisis Worse To Come as Customers Vanish! - 18th Oct 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Stocks Epic Bear Market

Obama Retirement Care

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

By: Jeff_Berwick

Politics

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 http://www.wendymcelroy.com.

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.


© 2005-2014 http://www.MarketOracle.co.uk - 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

Free Report - Financial Markets 2014