Best of the Week
Most Popular
1.Crude Oil Price Trend Forecast 2016 Update - Nadeem_Walayat
2.Will Deutsche Bank Crash The Global Stock Market? - Clif_Droke
3.Gold Price In Excess Of $8000 While US Dollar Collapses - Hubert_Moolman
4.BrExit UK Economic Collapse Evaporates, GDP Forecasts for 2016 and 2017 - Nadeem_Walayat
5.Gold Stocks Massive Price Correction - Zeal_LLC
6.Stock Market Predicts Donald Trump Victory - Austin_Galt
7.Next Financial Crisis Will be Far Worse than 2008/09 - Chris_Vermeulen
8.The Gold To Housing Ratio As A Valuation Indicator - Dan_Amerman
9.GDXJ Gold Stocks - A Diamond in the Rough - Rambus_Chartology
10.Gold Boom! End Game Nears As Central Banks Buying Up Gold Mining Companies! - Jeff_Berwick
Last 7 days
Why Trump Lost, Hillary Won the 1st U.S. Presidential Debate - 29th Sept 16
Is a Dollar Crash Imminent After the Senate Overrides Obama Veto on Saudi 9/11 Bill? - 29th Sept 16
2017: Gold and Silver's Year of "Public Recognition" - 29th Sept 16
Did Trump Win the 1st US Presidential Election Debate? - There's Something Happening Here... - 29th Sept 16
FED Goes from ZIRP to NIRP! - 29th Sept 16 - Chris_Vermeulen
Here’s Why You Should Be in Cash Right Now - 28th Sept 16
The Fed Put a 50% Tax on Your Retirement Plan - 28th Sept 16
Massive Chinese Debt And Why They Are On A Gold Buying Binge! - 28th Sept 16
Stocks Commodities and FX Markets Waiting Technically While Fundamental Data Neutral Poised - 28th Sept 16
This Commodity Has Perked Up its Investors' Portfolios - 27th Sept 16
Charting the Continuing Gold Market Correction - 27th Sept 16
Stock Market Crash and Recession Indicator Warning: Extreme Danger Ahead - 27th Sept 16
Financial Markets and FX Setups 27th Sept - 27th Sept 16
Crude Oil, Forex and Stock Market Trend Forecasts - 27th Sept 16
Why There is Trump - 27th Sept 16
Save Up to 70% in Shopping Expenses for Daily Items - 27th Sept 16
Gold’s Moving Averages and Long-Term Outlook - 26th Sept 16
September Stock Market - The Not So Silent Demise of Deutsche Bank - 26th Sept 16
SPX sell signal confirmed - 26th Sept 16
SPX is testing the next level of support - 26th Sept 16
Outrageously Entertaining US Presidential Campaign Final Stages - What Happens Next? - 26th Sept 16
BoJ, FOMC and Where To Now? - 26th Sept 16
Stock Market New All Time Highs Next - 26th Sept 16
Why Trump Will Win US General Election 2016 Prediction Forecast - 26th Sept 16
Martial Law Rolls Out Across the US As Jubilee Nears - 26th Sept 16
Stock Market More Correction Likely - 25th Sept 16
US Presidential Election Forecast 2016 - Trump Riding BrExit Wave into the White House - 25th Sept 16
US Economy GDP Growth Estimates in Free-Fall: FRBNY Nowcast 2.26% Q3, 1.22% Q4 - 24th Sept 16
Gold and Gold Stocks Corrective Action Continues Despite Dovish Federal Reserve - 24th Sept 16
Global Bonds: Why Our Analyst Says Things Just Got "Monumental" - 24th Sept 16
Where Did All the Money Go? - 23rd Sept 16
Pension Shortfalls Could Be 4X To 7X Greater Than Reported - 23rd Sept 16
Gold Unleashed by the Fed - 23rd Sept 16
Gold around U.S Presidential Elections - 23rd Sept 16
Here’s Why Eastern Europe Is Doomed - 23rd Sept 16
Nasdaq NDX 100 Big Cap Tech Breakout ? - 23rd Sept 16
The Implications of the Italian Banking Crisis Could Be Disastrous - 22nd Sept 16
TwinLakes Theme Park Summer Super 6 FREE Return Entry for Real? - 21st Sept 16
Has the Silver Bullet Run Out of Fire Power? - 21st Sept 16
Frack Sand: The Unsung Hero Of The OPEC Oil War - 21st Sept 16
What’s Happening With Gold? - 21st Sept 16
Gold vs. Stocks and Commodities, Pre-FOMC - 20th Sept 16
BrExit UK Inflation CPI, RPI Forecast 2016, 2017 - 20th Sept 16
European banks may be more important than the Fed this week - 20th Sept 16
Gold, Silver, Stocks and Bonds Grand Ascension or Great Collapse? - 20th Sept 16
Mass Psychology in Action; Instead of Selling Gilead it is Time to Take a Closer Look - 20th Sept 16
Hillary - Finally Well Deserved Recognition for Deplorables - 20th Sept 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Power of the Wave Principle

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.


© 2005-2016 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

Catching a Falling Financial Knife